- IREN and CleanSpark shares plummeted over 20% in combined trading sessions as Bitcoin fell below $64,000 and both companies missed quarterly revenue estimates.
- IREN reported a $155.4 million net loss driven by $219 million in unrealised hedging losses and impairment costs from transitioning its infrastructure from Bitcoin mining to AI Cloud computing.
- CleanSpark posted a $378.7 million net loss despite an 11.6% revenue increase, highlighting the financial strain of diversifying into AI infrastructure and digital asset management.
Two former Bitcoin mining companies (now turned AI cloud computing platforms), IREN and CleanSpark, are having a rough time with Bitcoin’s recent drop below US$64K (AU$92K).
Shares of IREN fell further in after-hours trading following Bitcoin’s sharp selloff and fresh quarterly results that highlighted widening losses tied to hedges, impairments, and transition costs.
IREN closed down 11.5% and then slid another 13% after the bell. CleanSpark fell nearly 20% during the session and was down about 10% more after hours.
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IREN Misses Revenue Estimates, Cites Shift Toward AI Cloud
IREN (NASDAQ: IREN) reported fiscal second-quarter revenue of US$184.7 million (AU$282.6 million), below the US$224 million (AU$342.7 million) estimate cited from FactSet. It posted a net loss of US$155.4 million (AU$237.8 million), versus a profit of US$384.6 million (AU$588.4 million) in the prior quarter.
The company said results reflected its shift from Bitcoin mining toward AI Cloud, with more capacity being allocated to AI workloads as deployments ramp up.
It also reported more than US$219 million (AU$335.1 million) in unrealised losses tied to prepaid forwards and capped calls linked to convertible notes, plus a one-time debt conversion inducement expense. IREN recorded US$31.8 million (AU$48.7 million) in mining hardware impairments tied to its ongoing ASIC-to-GPU transition in British Columbia.
Similarly, CleanSpark (NASDAQ: CLSK) reported quarterly revenue of US$181.2 million (AU$277.2 million), up 11.6% year over year but about US$13 million (AU$19.9 million) below consensus. It posted a net loss of US$378.7 million (AU$579.4 million), compared with net income of US$246.8 million (AU$377.6 million) a year earlier.
The company reported working capital of US$1.3 billion (AU$2.0 billion) as of Dec. 31, 2025, and said it is building multiple earnings streams spanning Bitcoin mining, AI infrastructure, and digital asset management.
Related: Michael Burry Warns Bitcoin Breakdown Could Trigger “Sickening” Cascade
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