IREN Shares Drop on Mining Writedown Amid AI Growth

IREN Limited shares fell sharply on August 28 after the company reported a quarterly net loss driven by a large impairment charge on its legacy Bitcoin mining equipment, overshadowing rapid growth in its new AI cloud services business. The stock declined approximately 6% to $38.22 in early trading following the release of its fiscal fourth-quarter results. The company, which is transitioning from Bitcoin mining to AI infrastructure, recorded a $638.8 million impairment charge largely tied to older mining hardware being retired. This non-cash charge pushed IREN to a net loss of $702.6 million for the full fiscal year, compared to a profit of $86.9 million a year earlier. For the quarter ended June 30, the company reported a net loss of $684 million, with $450.4 million of that stemming from the impairments. Management stated the charge reflects the ongoing transition, noting the affected hardware will be effectively decommissioned by the end of December 2026. Despite the headline loss, IREN's financials showed significant growth in its target sector. Total annual revenue rose 41% to $707 million. AI cloud services revenue surged nearly eightfold for the year to $128.