IREN Stock Plummets 6.3% as Concerns Over Poor Earnings Spread Amid AI Cloud Transition
Shares of IREN Limited (NASDAQ: IREN), a company pursuing a business transition from a Bitcoin mining firm to an AI infrastructure enterprise, plummeted following the release of its second-quarter earnings. As of March 27, 2026, IREN shares closed at $35.09, down 6.3% from the previous day, with the intraday low falling to $34.56. Trading volume stood at approximately 27.87 million shares, down 29% from the average.
Below-expectations Q2 earnings shake market confidence
The decline in Airen's stock price was directly caused by the announcement of second-quarter earnings that fell significantly short of market expectations. Airen reported an earnings per share (EPS) loss of $0.44, significantly underperforming the market forecast of $0.07. Revenue was recorded at $184.69 million, a 23.1% decrease from the same period last year and falling short of the market estimate of $229.64 million.
The deterioration in the profitability of Bitcoin mining and costs incurred during the business transition are cited as the main factors behind the poor performance. Airen recorded $31.8 million in hardware damage costs during the removal of existing mining equipment, which dealt a direct blow to short-term profitability.
Large-scale business transition to AI cloud infrastructure carried out
Irene is shifting its business direction toward building AI cloud infrastructure in response to the deteriorating profitability of its Bitcoin mining business. The company has secured a 1.6GW data center site in Oklahoma, with a total pipeline capacity exceeding 4.5GW. This is a strategic move to meet the demand for large-scale AI computing.
Irene has secured $3.6 billion in funding from Goldman Sachs and JP Morgan and signed a $9.7 billion AI contract with Microsoft. Capital expenditures amounting to 95% of this contract are expected to be covered by external funds. Additionally, on March 4, the company plans to expand its total GPU inventory to 150,000 by signing a contract to acquire 50,000 NVIDIA B300 GPUs.
The company set a goal to deploy these facilities in Canada and Texas in the second half of 2026 and achieve an annual revenue run of over $3.7 billion by the end of 2026. Currently, Airen is cashing out all of its mined Bitcoin daily and aims for annual revenue of over $500 million in the AI cloud sector alone by 2026.
Investor Concerns Persist Despite Large-Scale Fundraising
Irene has secured an additional $9.3 billion in funding through advances, corporate bonds, and GPU financing for its business transformation, of which $3.5 billion is set to be invested in facilities. However, concerns are being raised about the dilution of existing shareholders' stakes as the company is running a $6 billion ATM equity issuance program.
Irene's 52-week high was $76.87 and the low was $5.125. The closing price yesterday was $37.45, while today's high was $37.44 and the low was $34.56. The current share price of $35.09 is down $2.36 (6.3%) from the previous day.
Analysts divided, target price is $71.69
Wall Street analysts are maintaining a 'Moderate Buy' consensus for Irene. Of the 18 analysts, 13 recommended buying, 4 recommended holding, and 1 recommended selling, with an average target price of $71.69, suggesting a 104% upside potential from the current share price.
Looking at recent opinions from major brokerage firms, Zacks upgraded its investment rating to Hold, while Goldman Sachs suggested a target price of $39 along with a Neutral rating. Canaccord maintained a Buy rating and set a target price of $70.
CEO's Warning of Infrastructure Bottlenecks Intensifies Doubts Over AI Ambition
Investor sentiment is mixed. Retail investors are concerned about the possibility of the stock price falling an additional 41% to $20, and skepticism regarding Irene's plans to transition to an AI business is also spreading. In particular, the CEO's warning about potential bottlenecks during the AI infrastructure construction process is fueling investor anxiety.
Due to the deteriorating profitability across the Bitcoin mining industry, several mining companies, including Airen, are seeking business diversification. Amid this industry trend, Airen is attempting to secure new growth drivers by transitioning to the AI cloud market; however, in the short term, transition costs and sluggish performance are weighing on the stock price.
For Irene's business transformation strategy to succeed, executing large-scale capital investments, fulfilling contracts with major clients such as Microsoft, and securing competitiveness in the AI computing market are expected to be key factors. The launch of data centers in Canada and Texas in the second half of 2026 is anticipated to be a critical turning point that will determine the future direction of the company's stock price.
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