Bernstein: The IREN crash reflects market disappointment over the failure to reach an AI agreement; Bitcoin is no longer a core part of his investment portfolio.

PANews reported on February 6th that, according to The Block, research firm Bernstein analysis indicates that IREN, a Bitcoin mining company transitioning to AI computing power services, saw a significant drop in its stock price after releasing its earnings report. The main reason was market disappointment at the company's failure to announce new large-scale AI collaboration agreements, rather than a deterioration in its fundamentals. The company's stock price fell approximately 18% to around $39.79 after the earnings release.

Bernstein analysts believe that Bitcoin-related earnings volatility is no longer IREN's core investment logic; investors are more focused on its progress in transforming into AI cloud infrastructure. Although IREN's Bitcoin mining revenue declined sequentially this quarter, its AI cloud revenue more than doubled sequentially. It has already secured approximately $2.3 billion in annual recurring AI cloud revenue contracts, and expects this to increase to $3.4 billion by the fourth quarter of 2026, equivalent to deploying approximately 140,000 GPUs. Bernstein maintains its "Outperform" rating and $125 price target for IREN, viewing this decline as a reset of expectations rather than a sign of deteriorating execution.