IREN Limited (NASDAQ: IREN) mining company shares fell between 6% and 8% after reporting a net loss of $684 million in its fiscal Q4. The company confirmed that the negative impact on financial results was primarily driven by high infrastructure conversion costs and the accelerated retirement of Bitcoin mining hardware to expedite its cloud computing business for artificial intelligence.
The strategic pivot reduced quarterly revenue by 27% year-over-year to $137.2 million, falling short of Wall Street expectations. Despite this, revenue from AI cloud services surged to $70.5 million, surpassing Bitcoin mining revenue ($66.7 million) for the first time. The market reacted cautiously to the capital expenditure required to expand its data centers.
In the latest trading session, IREN shares traded near $35.11, accumulating a daily decline of over 6%. The next step for IREN will be to monetize its $4 billion annualized contract backlog and optimize the operating profitability of its new data centers.
Source: https://ca.finance.yahoo.com/quote/IREN/
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