The transition from Bitcoin miner to data center neocloud company has been rocky
IREN Ltd (NASDAQ:IREN) stock is down 8.3% to trade at $37.16 this morning as one of the worst stocks on the Nasdaq this morning. The former Bitcoin (BTC) miner-turned neocloud company reported fiscal fourth quarter earnings and revenue that missed expectations, the culprit being a $638.8 million impairment due to older mining equipment.
IREN is set to breach its year-to-date breakeven level today. The shares are heading for back-to-back weekly losses, with their 50-day moving average guiding the downtrend from the June highs just above $70.
There have been no analyst adjustments today, but keep an eye on the brokerage bunch. Of the 15 covering IREN, 11 maintain "strong buy" ratings, while the 12-month consensus price target of $80.25 is a 111% premium to its current perch.
There could also be an unwinding of bullish bets in the options pits. IREN sports a 10-day call/put volume ratio of 3.80 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than 96% of annual readings.
Today is more of the same. In just the first half hour of trading, over 96,000 calls have changed hands, volume that's five times the average intraday amount and triple the number of puts exchanged. The weekly 8/28 41-strike call expiring tonight is seeing new positions bought to open, while the January 2027 70 call is seeing sell-to-open activity.