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.

Reddit Turns Sour on the AI Pivot

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
• AI Cloud revenue remains nascent at $7.3 million in Q1, far short of the billions promised
• The stock trades at 61x forward P/E, pricing in flawless execution of an unproven strategy

On the plus side for investors, sentiment had stabilized closer to neutral by February 12 as discussion continued on r/wallstreetbets, with 170 comments debating valuation. Bulls note the company secured $3.6 billion in GPU financing and received $1.9 billion in Microsoft prepayments, covering 95% of capex needs.

Wild Swings Continue

IREN’s beta of 4.28 makes it one of the market’s most volatile stocks. After the February 6 crash, shares bounced 13% on February 9 before giving back gains. The stock closed at around $42 on February 13, still 46% below the November high of $76.87. The question: can IREN deploy 140,000 GPUs and hit revenue targets before Bitcoin’s next move makes the pivot irrelevant? With 11 of 14 analysts rating it Buy and a consensus target of $79, Wall Street believes.