Shares of IREN Limited (IREN.O) declined sharply on Thursday, falling 6.1% to $40.06 in afternoon trading. The move came as Bitcoin retreated roughly 2.7% to $65,559, adding pressure to cryptocurrency-related equities. Other major mining stocks, including Marathon Digital, Riot Platforms, and CleanSpark, each lost approximately 4%.
Risk-Off Sentiment Ahead of Inflation Data
Market participants broadly reduced exposure to risk assets in anticipation of Friday's U.S. Consumer Price Index (CPI) report. The cautious mood extended beyond the crypto sector, affecting technology and software names as well. Concurrently, Treasury yields edged lower as traders recalibrated expectations for Federal Reserve interest rate cuts following recent employment figures.
Analyst Outlook and Financials
Despite the sell-off, HC Wainwright maintained a Buy rating and an $80 price target for IREN, according to a note cited by MarketBeat. However, the firm revised its earnings projections, now forecasting a wider third-quarter 2026 loss per share of $0.30, compared to a prior estimate of a $0.18 loss. For the full 2026 year, the analyst models a per-share loss of $1.12.
The stock has experienced significant volatility since the company's recent earnings release, which reported a net loss of $155.4 million against revenue of $184.7 million for the December quarter. IREN highlighted a $3.6 billion GPU financing agreement linked to its Microsoft partnership, with plans to deploy 140,000 AI-focused graphics processing units by the end of 2026. The company aims to achieve $3.4 billion in annual recurring revenue from these contracts.
Investor perception of IREN remains divided. Some treat it primarily as a Bitcoin miner, while others are awaiting clearer evidence that its ambitious AI infrastructure expansion can justify the substantial capital investment.
The immediate risk is twofold: further weakness in Bitcoin could pressure mining stocks, while persistent inflation data may keep interest rates higher for longer—a challenging environment for high-beta equities. However, any positive signals regarding progress in its AI build-out could quickly reignite trader interest. All eyes are now on the upcoming CPI report and whether Bitcoin can stabilize.
