IREN and AMZ down on earnings miss, as BTC equities bounce back
IREN (IREN) reported weaker than expected earnings results, falling short of consensus on both revenue and earnings per share (EPS) as it transitions from bitcoin mining to AI Cloud. In the second quarter, revenue declined to $184.7 million, missing expectations and down from $240.3 million in the previous quarter, while the company reported a net loss of $155.4 million, below consensus estimates.
To support its transition, IREN secured $3.6 billion in GPU financing for its Microsoft contract, along with a $1.9 billion customer prepayment, covering approximately 95% of GPU-related capital expenditures.
In other news, tech giant Amazon (AMZ) also missed EPS expectations but exceeded revenue forecasts, according to investing.com. The company announced plans to invest around $200 billion in capital expenditures in 2026, primarily focused on AI initiatives. As a result, Amazon shares have dropped by 10%.
In pre-market trading, Bitcoin saw a rebound from $60,000 to $66,000, leading to a rally in crypto-exposed equities. Strategy (MSTR), the largest publicly traded holder of bitcoin, saw a 7% increase, while Galaxy (GLXY) and MARA Holdings (MARA) also rose by 7%. Additionally, Coinbase (COIN) experienced a 6% increase.
Overall, the market is witnessing significant shifts in the technology sector, with companies like IREN and Amazon making strategic moves towards AI and cloud computing. Investors are closely monitoring these developments as they navigate the evolving landscape of the digital economy.
