CEO Daniel Roberts said rising costs across data-center components are adding pressure to the company’s buildout.
- Iren said it expects capital expenditure to be between $25 billion and $30 billion in fiscal 2027.
- Management said it has $14 billion of funding in place and is targeting roughly $8 billion in additional GPU financing and prepayments.
- IREN is in “late-stage discussions” for a significant portion of its 2027 capacity, but those discussions have not yet produced contracts.
Iren (IREN) shares dropped in midday trade on Friday, and appear on track to end August in the red, after the company’s fourth quarter results came in below Wall Street’s expectations.
However, according to H.C. Wainwright, the selloff might be a “buying opportunity.” The firm said Iren’s earnings call was “generally upbeat.” It added that pricing is moving in Iren's favor, with the company’s $4 billion annual recurring revenue outlook for 2026 now fully contracted. The firm reiterated a ‘Buy’ rating on the shares with a price target of $90.
IREN stock fell 12.5% by Friday afternoon and was among the top trending tickers on Stocktwits at the time of writing. The shares were on track to erase their August gains, marking the first three-month losing streak since August through October in 2023.
Why Is IREN Stock Falling?
Iren said it expects capital expenditure to be between $25 billion and $30 billion in fiscal 2027, including spending on data centers and GPUs. Management said it has $14 billion in funding in place, with some coming from data-center financing, operating cash flow, and corporate sources.
However, a gap of around $8 billion still remains. During the earnings call, CEO Daniel Roberts said there were “lots of preliminary conversations” ongoing about financing data centers, but no closed transactions yet.
“The actual CapEx for the year will depend on a range of factors,” he added. Management currently expects GPU and data-center CapEx requirements to rise by 15% to 20%, with revenue expected to eventually outpace those increases.
Roberts stated GPU financing was the “lower-hanging fruit,” adding that finding efficient ways to finance data-center construction would be “the big unlock” for Iren.
IREN Has 2027 Deals In The Pipeline
The CEO also shared that Iren’s 2026 capacity is largely sold out, but the company is now working to secure customers for its next wave of capacity. He said the company is in “late-stage discussions” with customers covering a significant portion of 2027 capacity, while discussions for 2028 have already started. However, those discussions are not yet contracts.
“Signing deals is not the bottleneck in this market; bringing GPUs online is,” Roberts said.
He also stated that another headwind facing Iren was the rising costs associated with data center buildouts. “We’re seeing inflation and costs across various components continue to tick up,” Roberts said.
IREN Revenue Falls During Bitcoin Mining Transition
Iren’s fourth-quarter (Q4) revenue came in at $137.2 million, slightly above the consensus estimate of $136 million, and earnings matched expectations at $0.46 per share. More than half of the company’s revenue, totaling around $70.5 million, was generated by IREN's AI Cloud business, which surpassed Bitcoin mining revenue for the first time.
However, quarter-on-quarter Iren’s total revenue fell by $7.6 million. The company said the decline was due to the decommissioning of Bitcoin (BTC)-mining hardware to make room for GPU installations, as part of the company's broader pivot from crypto mining toward AI infrastructure.
How Is Retail Feeling About Iren Stock?
Retail sentiment around Iren on Stocktwits rose to ‘extremely bullish’ from bullish’ territory over the past day, with chatter rising to ‘extremely high’ from ‘high’ levels.
Most retail traders acknowledged that while the company’s headline numbers looked weak, its transition from a Bitcoin miner to a data center infrastructure company should be taken into account.
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One investor said they are watching to see whether Iren can increase its annual recurring revenue (ARR) to $4 billion from $1 billion, as planned.
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IREN stock has fallen nearly 7% this year, but gained over 50% in the last 12 months.
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