IREN (NASDAQ: IREN) is having a rough Monday, and it's not hard to see why. The stock is sliding as investors take profits and get a little nervous ahead of the company's fiscal fourth-quarter 2026 earnings report, which is set to drop on Thursday.
The Nvidia (NASDAQ: NVDA)-backed Bitcoin (CRYPTO: BTC) miner and AI data center provider has been on a wild ride lately. The stock is still in bear market territory, down more than 48% from its 52-week high. And the broader market isn't helping either, with Nasdaq futures down 1.26% and S&P 500 futures off 0.32%.
Earnings Face Crypto Winter Impact
When IREN reports its results, investors will get a clear look at how the recent crypto winter has hit its core operations. While the company has been busy transforming into an AI data center provider, Bitcoin mining still brings in the majority of its revenue.
In the second quarter, revenue fell to $144 million from $184 million in the same period last year, thanks to lower Bitcoin prices and some infrastructure decommissioning. Analysts are expecting more of the same this time around, with revenue projected to drop 25% year-over-year to $140 million.
AI Deals Drive Long-Term Outlook
But the long-term story is all about AI. Wall Street expects annual revenue to grow 41% this year to $422 million, and then jump to $2.9 billion next year. That optimism is fueled by some big AI deals, including a $2.8 billion contract with companies like Figure AI and Perplexity, and a massive $9.3 billion deal with Microsoft (NASDAQ: MSFT).
The company also just closed a $625 million acquisition of cloud infrastructure provider Mirantis, which should help bolster its AI credentials.
Key Levels: Above 20-Day SMA, Below 50-Day SMA
From a technical standpoint, IREN is in a bit of a mixed spot. The stock is trading above its 20-day simple moving average (SMA) of $39.92, but it's still below the 50-day SMA at $43.56, the 100-day SMA at $47.33, and the 200-day SMA at $46.61. That's the classic "short-term bounce inside a longer-term downtrend" setup, reinforced by a bearish crossover structure. The 20-day SMA is below the 50-day SMA, and there was a death cross in August when the 50-day SMA dipped below the 200-day SMA.
Momentum-wise, the Relative Strength Index (RSI) sits at 50.88, which is basically neutral. That suggests the stock isn't stretched enough to force either capitulation selling or a momentum chase.
- Key Resistance: $43.50
- Key Support: $37
IREN Price Action: IREN shares were down 5.13% at $39.72 at the time of publication on Monday.
