Financing - Company secured $3.6 billion in GPU financing for a Microsoft contract with an interest rate of less than 6% per annum, covering 95% of GPU-related capital expenditures [7] - The financing, along with a Microsoft prepayment of $1.9 billion, supports a targeted expansion of 140,000 GPUs, aiming to deliver $3.4 billion in annual recurring revenue (ARR) by the end of calendar year 2026 [7][14] - Over $9.2 billion in funding has been secured in the financial year to date through various sources including customer prepayments and GPU leasing [7] Data Center Expansion - A new 1.6GW data center campus is being developed in Oklahoma, increasing the company's secured grid-connected power to over 4.5GW [7] - Grid studies are complete, with power expected to ramp up from 2028, and the site spans 2,000 acres with low latency network connectivity [7] Financial Performance - For the quarter ended December 31, 2025, total revenue decreased to $184.7 million from $240.3 million in the previous quarter [27] - The company reported a net loss of $155.4 million, compared to a net income of $384.6 million in the prior quarter [27] - Adjusted EBITDA decreased to $75.3 million from $91.7 million in the previous quarter, reflecting ongoing transitions and operational challenges [30] Management Commentary - Management highlighted meaningful progress in capacity expansion, customer engagement, and capital formation, indicating a strong demand environment for AI Cloud services [8][9] - The company is focused on transitioning from Bitcoin mining to AI Cloud services, with increasing capacity allocated to higher-value AI workloads [7][8]

Core Viewpoint - IREN Limited is poised for significant revenue growth driven by AI cloud services and data center expansion, despite facing challenges related to capital spending and funding risks [2][3][6] Financial Performance - The upcoming quarterly earnings report is expected to show an earnings per share (EPS) of approximately -$0.24 and projected revenue of around $227.3 million [1][6] - IREN anticipates a revenue surge of over 92% year-over-year, reaching approximately $230 million, primarily due to AI cloud-led growth and data center expansion [2][6] Operational Insights - The company is expanding its GPU capacity to nearly 140,000 units, which is expected to enhance AI cloud service revenues and improve revenue visibility due to strong customer demand [2] - IREN has missed the Zacks Consensus Estimate three times in the past four quarters, only exceeding it once, indicating potential volatility in performance [3] Financial Ratios - The enterprise value to sales ratio is around 18.27, and the enterprise value to operating cash flow ratio is approximately 29.24, reflecting the company's valuation metrics [4] - IREN maintains a strong liquidity position with a current ratio of 5.52 and a debt-to-equity ratio of 0.34, indicating a relatively low level of debt compared to equity [4] Market Impact - The upcoming earnings report could significantly influence IREN's stock price, with management's discussion during the earnings call being crucial for assessing future earnings expectations [5]

Core Viewpoint - IREN Ltd has transitioned from a Bitcoin mining company to focusing on AI infrastructure, with a significant partnership with Microsoft valued at $9.7 billion, and the upcoming Q2 earnings will determine the success of this strategic shift [1][2][6] Group 1: Company Transformation - IREN, formerly known as Iris Energy, is pivoting towards AI infrastructure by converting its Bitcoin mining sites into data centers for AI workloads [2] - The partnership with Microsoft aims to host next-generation computing, marking a dramatic transformation from its previous business model [2] Group 2: Financial Concerns - IREN's stock has experienced a significant decline, down nearly 19% intraday and 28% over the past five days, primarily due to concerns over dilution risk rather than revenue [3][4] - The company requires approximately 140,000 GPUs by year-end, raising fears that equity issuance may be necessary to fund this expansion [4] Group 3: Earnings Significance - The upcoming Q2 earnings report is critical as it will serve as a credibility test for IREN's cloud ambitions, moving away from its Bitcoin mining roots [5][6] - Investors are looking for clear milestones and financing clarity in the earnings report to assess whether the Microsoft partnership is a strategic platform or a risky gamble [5]

IREN Ltd (NASDAQ:IREN) used to dig for Bitcoin (CRYPTO: BTC) . Now it wants to mine the cloud. In less than two years, the company has leapt from crypto pioneer to "Neocloud" upstart — and Thursday’s second quarter earnings will decide whether that reinvention looks visionary or overreach.Track IREN stock here.$9.7B Microsoft PartnershipOnce known as Iris Energy, IREN has pivoted hard into AI infrastructure, locking in a $9.7 billion partnership with Microsoft Corp (NASDAQ:MSFT) to host next-generation comp ...

J.P. Morgan updated its financial models for North American Bitcoin miners Wednesday ahead of the fourth-quarter earnings season, and the bank adjusted price targets to reflect fluctuations in network difficulty and cryptocurrency prices. Analysts at the firm projected a modest decline in bitcoin mining revenue for the fourth quarter of 2025. While estimates for mined bitcoin increased by a low single-digit percentage due to slower network hashrate growth, lower realized bitcoin prices offset production g ...

Group 1 - Cryptocurrency concept stocks experienced significant declines, with mining companies leading the drop [1] - IREN Ltd (IREN.US) fell nearly 11%, Hut8 (HUT.US) dropped over 9%, Cipher Mining (CIFR.US) decreased nearly 9%, and TeraWulf (WULF.US) declined over 8% [1] - Other stocks such as MicroStrategy (MSTR.US) and Bitmine Immersion Technologies (BMNR.US) also saw declines of over 3% [1] Group 2 - Bitcoin plummeted over 4%, falling below $75,000 [1] - Ethereum dropped more than 5%, trading at $2,181.25 [1]

Group 1 - Cryptocurrency stocks experienced significant declines, with mining companies leading the drop [1] - IREN Ltd (IREN.US) fell nearly 11%, Hut 8 (HUT.US) dropped over 9%, Cipher Mining (CIFR.US) decreased nearly 9%, and TeraWulf (WULF.US) declined over 8% [1] - Other cryptocurrency-related stocks such as MicroStrategy (MSTR.US) and Bitmine Immersion Technologies (BMNR.US) also saw declines of over 3% [1] Group 2 - Bitcoin plummeted over 4%, falling below $75,000, while Ethereum dropped more than 5%, trading at $2,181.25 [1]

Core Viewpoint - IREN is expected to report its 2Q26 results, and the stock is maintained as a buy ahead of the earnings announcement [1] Company Analysis - The analyst has a background as a retired Wall Street portfolio manager specializing in Technology, Media, and Telecommunications (TMT) [1] - The analyst has over two decades of experience in the market, focusing on risk mitigation during significant market events such as the dot-com bubble, the credit default crisis of 2008, and the recent AI boom [1] - The investment strategy revolves around momentum, indicating a focus on stocks that are trending positively [1]

With big tech earnings in focus, smart investors are looking at who the hyperscalers are partnering with.As earnings season comes into focus, growth investors are paying close attention to artificial intelligence (AI) stocks in particular. Among the most scrutinized names are the hyperscalers: Microsoft, Alphabet, Meta Platforms, and Amazon (AMZN +1.60%).On Feb. 5, Amazon will report earnings for the fourth quarter and full year 2025. While investors anxiously await updates regarding the company's performan ...

Core Insights - IREN Limited is set to report its second-quarter fiscal 2026 results on February 5, with a focus on GPU fleet expansion and data center development, which are expected to enhance revenue visibility and operational scale [1] GPU Expansion and AI Cloud Revenue Growth - IREN's AI Cloud Services revenues are anticipated to show strong performance in Q2 fiscal 2026, driven by a clear execution roadmap and robust infrastructure readiness [3] - The company plans to increase its GPU capacity from approximately 23,000 units to about 140,000 GPUs by the end of 2026, utilizing around 460MW, or roughly 16%, of its nearly 3GW secured power portfolio [3] - The transition of British Columbia locations from ASIC mining to GPU operations can support over 60,000 GPUs, potentially generating up to $1 billion in incremental annualized run-rate revenues from the additional 40,000 GPUs deployed at Mackenzie and Canal Flats [3][4] - The Zacks Consensus Estimate for AI Cloud Services revenues is projected at $31.2 million, reflecting significant year-over-year growth from $2.7 million in the same quarter last year [4] Data Center Growth and Infrastructure Development - IREN's expanding data center platform is expected to contribute to stronger growth in Q2 fiscal results, with rapid construction progress and AI-ready infrastructure [5] - The Childress campus is developing Horizons 1–4 with 200MW of liquid-cooled IT load for phased GPU deployments for Microsoft through 2026, with plans for Horizons 5–10 to convert the entire 750MW site to liquid-cooled AI operations [5] - The Sweetwater hub in Texas is set for substantial long-term scalability, with Sweetwater 1 (1.4GW) scheduled for energization in April 2026 and Sweetwater 2 planned for late 2027 [6] Capital Expenditure and Financial Outlook - IREN's capital-intensive expansion strategy requires an estimated $5.8 billion in GPU and infrastructure investments, which may pressure financial results due to funding and dilution risks [7][9] - Customer prepayments and secured GPU financing will partially fund the expansion, but additional capital will need to be sourced through cash reserves, operating cash flow, debt, equity issuance, and convertible notes [7][9] - The financing mix is expected to increase leverage and dilute shareholders, potentially impacting second-quarter fiscal 2026 performance [9]