Why IREN's Post-Market Selloff Misses The Big Picture

2026-02-06 14:37:13 ET

Thesis: Focus on What's Important

Here's what I think about IREN Limited (IREN). The headline numbers this quarter still show us a business that is mostly Bitcoin mining, even though that is no longer the company’s strategic future, and management has stressed this multiple times. What grabbed a lot of investors immediately on the call is that roughly 95% of 2Q26 revenue came from mining, yet management is expecting that mix to flip rapidly. The projections are that Bitcoin contribution should fall considerably by year-end as AI Cloud is expected to ramp up. That's the segment that actually matters going forward, AI revenue, and it grew 136% quarter over quarter to $17 million, with management still reiterating that all major expansions are now fully funded and that power is secured. So when I heard that, I thought that they’ve now removed the two biggest historical risks in dilution and build-out uncertainty....

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