IREN Stock Is Tanking More Than 22% After Hours – What’s Driving The Selloff?

• The company’s total revenue in the second quarter of $184.7 million missed analysts’ on average expectation of a revenue of $226.9 million.
• The company said in an analyst call that data center demand is going to continue to compound. 
• The company said its second-quarter (Q2) results reflected continued progress in the transition from Bitcoin mining to AI Cloud.

IREN Ltd. (IREN) stock slumped after-hours on Thursday after it swung to net loss in the second quarter. 

“Last quarter marked meaningful progress across capacity expansion, customer engagement, and capital formation, reflecting IREN’s progress as a scaled AI Cloud platform,” said Daniel Roberts, Co-Founder and Co-CEO of IREN.

At the time of writing, the stock dived 22% after hours. 

Q2 Earnings

The company said its total revenue in the second quarter decreased to $184.7 million compared to $240.3 million it reported in the prior quarter. Analysts on average expected a revenue of $226.9 million. 

The company posted a net loss of $155.4 million during the second quarter compared to a net profit after income tax of $18.9 million in the prior year quarter. 

The company said its second-quarter (Q2) results reflected continued progress in the transition from Bitcoin mining to AI Cloud, with capacity increasingly allocated to higher-value AI workloads and AI Cloud revenues accelerating as deployments ramped.

Strong Data Center Demand

The company said in an analyst call that data center demand is going to continue to compound. 

The company earlier had secured a $3.6bn GPU financing for its Microsoft contract. 

“We are seeing the strongest demand environment to date, and importantly, that demand is being met by a proven execution capability. Over several years, we have consistently delivered data center capacity on time and at scale, and that delivery track record continues to resonate with customers who value reliability alongside performance,” Roberts added. 

How Did Stocktwits Users React?

Retail sentiment around IREN trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

One user said that they were disappointed by the company and management after the results.

https://stocktwits.com/Smashit74/message/644209084

One bearish user said that the stock price will again go under $10. 

https://stocktwits.com/aba75/message/644208327

Another user said that IREN losses in the quarter were just due to Bitcoin and transitions to AI data growth.

https://stocktwits.com/SkinnyDipping/message/644204169

Read More: Why is COIN Stock Falling More Than 8% Today?

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