IREN Drops 14% as Bitcoin Mining Revenue Falls to $167 Million

"After IREN ( NASDAQ:IREN) plunged 13.9% on February 4, 2026, retail sentiment soured as Reddit's sentiment score dropped to 39 this week from a quarterly average of 42, with discussions emerging on r/wallstreetbets and r/options analyzing and dissecting Q2 results. The catalyst? The conversation has shifted to Q2 FY26 earnings, which reported $184.7 million in revenue, missing the consensus of $229.65 million by nearly 20%. The miss highlighted challenges as IREN makes a bold move and pivots from Bitcoin mining to AI cloud infrastructure."

"Unfortunately, the timing couldn't be worse as Bitcoin has crashed from $96,954 in mid-January to $66,210 today, a brutal 32% decline hammering mining profitability. IREN's $9.7 billion Microsoft contract for AI cloud services targets $3.4 billion in AI Cloud annualized run-rate revenue by the end of 2026. But investors aren't convinced. On February 6, bearish commentary emerged on r/wallstreetbets as the stock hit $36.52 on volume of 75.2 million shares."

"Discussion intensified on r/wallstreetbets and r/options, with traders debating whether IREN's transformation is visionary or doomed. Sentiment plummeted to 8 on the morning of February 6. One X user captured the mood: "IREN broke below $45 support, tariff fears hitting miners. Shorting to $40 target." The skepticism is grounded: Bitcoin mining revenue collapsed to $167.4 million in Q2, down from $232.9 million in Q1, as resources shift to GPUs"

IREN reported Q2 FY26 revenue of $184.7 million, missing the $229.65 million consensus by nearly 20%, driven by a decline in Bitcoin mining revenue. Bitcoin's price fell from $96,954 to $66,210, reducing mining profitability and shrinking mining revenue to $167.4 million in Q2 from $232.9 million in Q1. The company aims for $3.4 billion in AI Cloud annualized run-rate revenue by end of 2026 under a $9.7 billion Microsoft contract, while AI Cloud revenue remained $7.3 million in Q1. Retail sentiment on Reddit turned sharply negative before stabilizing as bulls cited $3.6 billion in GPU financing and $1.9 billion in Microsoft prepayments covering most capex needs.

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