Bernstein: The decline in IREN's stock price stems from market disappointment over the lack of new AI trading initiatives.

SmartContractAuditor · 2026-02-06T15:01:20+00:00

IREN stock price dropped approximately 18% due to not meeting the new AI agreement, now at $39.79. Although second quarter revenue fell short of expectations due to a decline in Bitcoin business, the AI cloud business grew more than double quarter-over-quarter. The company already has about $2.3 billion in AI cloud contracts, expected to increase to $3.4 billion, and analysts maintain a "market outperform" rating.

SmartContractAuditor

2026-02-06 15:01:20

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Odaily Planet Daily News: IREN’s stock price plummeted after releasing its earnings report, mainly reflecting market disappointment over the failure to reach a new AI agreement rather than a deterioration in fundamentals. Currently, IREN is trading at approximately $39.79 on NASDAQ, down about 18%. Bernstein analyst Gautam Chhugani pointed out that as IREN transitions from a Bitcoin mining company to an AI infrastructure provider, Bitcoin business revenue is no longer the core focus of investment. Although IREN’s Q2 revenue fell short due to declines in Bitcoin production and prices, its AI cloud business revenue grew more than double quarter-over-quarter. Currently, IREN has signed about $2.3 billion in annual recurring revenue contracts for AI cloud services, expected to increase to $3.4 billion by Q4 2026. The company’s management stated they are in negotiations with multiple potential clients involving billion-dollar contracts. Bernstein believes that IREN has secured approximately $3.6 billion in GPU financing for its Microsoft contracts and has only used about 10% of its power capacity, providing flexibility to sign more AI agreements. Therefore, they maintain a “buy outperform” rating on IREN and a target price of $125. (The Block)

BTC11,2%

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