Data center firm IREN signs new deal with frontier AI lab; quarterly loss hits shares

Data center firm IREN said ​on Thursday it has ​signed a new multi-year contract with ​a frontier AI lab and secured $2.8 billion in new financing to help fund its AI chip purchases.

IREN shares ‌fell more ⁠than ⁠7% in extended trading after the company swung to ​a quarterly loss, driven by costs tied to retiring ​bitcoin mining hardware as it shifts to AI cloud services.

Here are more details:


* The new ​financing deal includes a $2.4 ⁠billion facility led ‌by asset management firm Blue ​Owl ​and bond giant Pacific Investment Management Company.

* ⁠The company did not disclose the ​name of the AI lab.

* IREN ​reported a fourth-quarter net loss of $684 million, compared with net income of $176.9 million a year earlier.

* Revenue fell 27% to $137.2 million but was slightly above analysts' average ‌estimate of $136.8 million, according to data compiled by LSEG.

* The quarterly net loss ​included a $450.4 ​million non-cash impairment, ⁠primarily related to the decommissioning of bitcoin mining hardware.

* IREN said its 2026 compute capacity was ​largely sold out, and that it was already in late-stage discussions with new customers over a significant portion of capacity for 2027. (Reporting by Anzar Mehraj and Deborah Sophia in Bengaluru; Editing by Subhranshu Sahu)