# I Can't Stay Quiet on IREN Stock Crashing Any Longer Source: https://www.youtube.com/watch?v=L32WLzFkxiE Recap page: https://rapidrecap.app/video/L32WLzFkxiE Generated: 2026-02-10T20:06:09.226+00:00 --- ## Quick Overview The video concludes that IREN stock is still a good long-term buy despite recent volatility because its AI cloud business growth is massive, evidenced by a 540% YoY revenue increase, and the company has de-risked its balance sheet by securing favorable financing tied to the Microsoft contract. **Key Points:** - IREN's AI Cloud Services Revenue is growing rapidly, reaching $17.3 million in the latest quarter, marking a 540% year-over-year increase and a 137% quarter-over-quarter jump. - The company's exposure to volatile Bitcoin mining revenue is shrinking, with $31.8 million in asset impairment related to the ASIC-to-GPU transition and a resulting $155.4 million net loss in Q2 FY26. - IREN secured a $3.6 billion financing package from Goldman Sachs and J.P. Morgan, which, combined with Microsoft's $1.9 billion prepayment, covers 95% of GPU-related capital expenditures. - The Microsoft contract provides IREN with revenue runway and financial stability, mitigating risks associated with Bitcoin price swings and allowing them to focus on AI infrastructure expansion. - IREN's power portfolio expanded to over 4.5 GW secured, with a new 1.6 GW data center campus secured in Oklahoma, highlighting their capacity to support large-scale AI deployments. - Microsoft's own capex is exploding toward $600 billion by 2026, underscoring the massive, shared demand for high-density AI infrastructure that IREN is positioned to supply. - The speaker maintains a positive long-term outlook on IREN stock due to the strong AI pivot and secured financing, despite recent earnings volatility. ![Screenshot at 0:09: The video displays IREN Ltd.'s stock chart showing a significant crash, with the price at $46.15, down 15.41% past 5 days, setting the context for the analysis of the stock's recent performance.](https://ss.rapidrecap.app/screens/L32WLzFkxiE/00-00-09.jpg) **Context:** This video analyzes IREN Limited's (NASDAQ: IREN) recent stock performance and financial health following an earnings report, focusing on the company's strategic pivot from Bitcoin mining to providing AI infrastructure capacity primarily to Microsoft. The speaker evaluates the recent financial results, particularly the large net loss driven by non-cash items like asset impairment and debt conversion expenses, against the explosive growth of their AI cloud segment and the strategic importance of their Microsoft partnership. ## Detailed Analysis The video asserts that despite IREN stock crashing recently, it remains a good long-term investment due to its successful pivot from volatile Bitcoin mining to high-growth AI infrastructure, heavily backed by a major partnership with Microsoft. The Q2 FY26 financials reflect this transition period, showing a net loss of $155.4 million, largely due to non-cash, non-recurring items like $111.8 million in debt conversion inducement expense and $31.8 million in mining hardware impairment charges related to shifting from ASICs to GPUs. Bitcoin mining revenue is shrinking, having dropped significantly quarter-over-quarter, while AI Cloud Services revenue is skyrocketing, hitting $17.3 million, marking a 540% YoY growth. To fund the massive AI buildout—including 140,000 GPUs and 4.5 GW of power capacity—IREN secured a $3.6 billion financing package from Goldman Sachs and J.P. Morgan, which, combined with Microsoft's $1.9 billion prepayment, covers 95% of GPU-related capex. This de-risks the balance sheet against Bitcoin volatility. Furthermore, the analyst compares Microsoft's P/E ratio (25.8x) favorably against peers like Apple (34.2x) and Alphabet (29.7x), suggesting Microsoft's AI growth is currently undervalued, which in turn validates IREN's strategic focus. The speaker concludes that the underlying trend of AI infrastructure demand remains strong, making IREN a sound long-term hold. ### IREN Stock Volatility & Fundamentals - IREN stock crashed recently, showing a 5-day drop of 15.41% (0:09), but the underlying AI business is showing massive growth (9:40). ### Q2 FY26 Financials Breakdown - Reported a net loss of $155.4 million (6:35), heavily impacted by $111.8M debt conversion inducement expense and $31.8M asset impairment related to the shift away from Bitcoin mining hardware (7:17, 8:20). ### Revenue Streams Transition - Bitcoin Mining Revenue is shrinking, with the last quarter showing a drop (13:11), while AI Cloud Services Revenue grew 540% YoY to $17.3 million (9:34), indicating the pivot is succeeding. ### Capital & Capacity Expansion - Secured over 4.5 GW power portfolio, including a new 1.6 GW Oklahoma data center campus (11:41). A $3.6B financing package tied to the Microsoft contract covers 95% of GPU capex (10:05, 10:15). ### Microsoft Partnership Strength - Microsoft's expected 2026 capex is nearing $600B (10:47), and their own custom AI chip, Azure Maia (14:14), validates the need for partners like IREN to rapidly deploy infrastructure (11:03). ### Valuation Comparison (MSFT) - Microsoft's P/E ratio of 25.8x is lower than the peer average of 30.4x and peers like Apple (34.2x) (15:00), suggesting Microsoft's AI growth is undervalued. ![Screenshot at 0:10: Stock chart for IREN Ltd. showing a sharp price decline over the past 5 days, closing at $46.15 USD \(0:09\).](https://ss.rapidrecap.app/screens/L32WLzFkxiE/00-00-10.jpg) ![Screenshot at 0:57: A visual inside a massive data center corridor illustrating the scale of IREN's infrastructure, with server numbers overlaid \(0:58\).](https://ss.rapidrecap.app/screens/L32WLzFkxiE/00-00-57.jpg) ![Screenshot at 1:36: Close-up animation of an NVIDIA GPU system, highlighting the Blackwell GPUs and high-speed NVLink connections essential for AI workloads \(1:40\).](https://ss.rapidrecap.app/screens/L32WLzFkxiE/00-01-36.jpg) ![Screenshot at 3:37: Slide detailing the GPU Financing Secured, showing a $3.6B package from Goldman Sachs and J.P. Morgan to support the Microsoft contract \(3:43\).](https://ss.rapidrecap.app/screens/L32WLzFkxiE/00-03-37.jpg) ![Screenshot at 9:30: Bar chart illustrating IREN AI Cloud Services Revenue in Millions, showing explosive growth from $0.6M to $17.3M, despite a slight dip in Bitcoin revenue \(9:39\).](https://ss.rapidrecap.app/screens/L32WLzFkxiE/00-09-30.jpg)