NEW YORK, Feb 6, 2026, 04:55 ET — Premarket
- IREN shares fall about 11% in premarket, extending Thursday’s drop
- Company posted a Q2 net loss as revenue slipped from the prior quarter during its AI shift
- Investors are focused on financing and delivery timelines tied to a Microsoft GPU-services contract
Shares of IREN Limited (Nasdaq: IREN) fell 11.4% to $39.79 in premarket trading on Friday, extending a sharp slide that began in the prior session. The stock closed 11% lower on Thursday and slid further after the company’s quarterly update.
The move matters because IREN is trying to pivot from bitcoin mining into AI cloud infrastructure, a business that depends on big capital spending and customers committing to long-term contracts. The market is still deciding whether that story deserves a data-center multiple, or a crypto discount.
Bitcoin, the price signal that still tugs at miners and their suppliers, was down about 7.8% at around $65,995 early Friday.
In results for the quarter ended Dec. 31, IREN reported revenue of $184.7 million and a net loss of $155.4 million, with adjusted EBITDA of $75.3 million, it said. The company also highlighted $3.6 billion of financing tied to graphics processing units (GPUs) used for AI work under a Microsoft contract, alongside a $1.9 billion customer prepayment, and said it had $2.8 billion of cash and cash equivalents as of Jan. 31. Co-founder and co-CEO Daniel Roberts said the company was seeing “the strongest demand environment to date,” while IREN said results were hit by non-cash and non-recurring items tied to its convertible-note hedges and a one-time debt conversion inducement. SEC
Adjusted EBITDA is a company-defined metric that strips out items such as interest, taxes and depreciation, meant to show operating performance. Traders in this space tend to focus less on accounting swings and more on build-outs, power access and whether customers show up on schedule.
A quarterly filing showed IREN’s Microsoft agreement covers dedicated GPU services from its “Horizon” data center facilities in Childress, Texas, over a five-year average term, with four tranches targeted for deployment during 2026. The contract value is about $9.7 billion through 2031, the filing said, and Microsoft pays 20% of each tranche ahead of delivery; it also said Microsoft can terminate if delivery dates are missed after a cure period. The same filing said Goldman Sachs Bank USA and JPMorgan Chase Bank committed to underwrite about $3.6 billion of delayed-draw financing, while a separate Dell purchase agreement covers roughly $5.8 billion of GPU hardware with deliveries starting in March. SEC
The broader backdrop is messy. Crypto-linked names have been whipping around with bitcoin, while the AI trade has become increasingly about contracts, financing and execution rather than promises.
For IREN, the near-term read-through is simple: bitcoin mining still drives most revenue, but the company is reallocating capacity toward AI workloads. That leaves shareholders exposed to both bitcoin volatility and the risk that AI demand does not translate into smooth, on-time deployments.
But the downside cases are clear. Financing terms can change before documents are finalized, and annual recurring revenue (ARR) targets are a run-rate measure rather than a guarantee of booked sales. Any slip in deliveries or commissioning — or a customer deciding it has enough capacity — would likely show up fast in cash flow and in the stock.
Attention now turns to the opening of U.S. cash trading at 9:30 a.m. ET, and then to whether the first hardware tranche arrives on schedule in March. Bitcoin’s next leg, into the weekend, will matter as well for a stock that still trades like a crypto proxy.
