IREN Limited shares fell sharply after research firm SemiAnalysis flagged reliability problems at the company’s data centers in Prince George and Mackenzie, British Columbia. The stock dropped 7.7% on Thursday to $35.71, adding to a 6.27% slide the previous day and extending a multi-day retreat from its September high of $49.60.
SemiAnalysis reported that customers at the two sites experienced power outages lasting several days and pointed to network upgrade issues. The firm also challenged IREN’s characterization of its offering as “managed cloud services” in a recent U.S. securities filing. Trading volume jumped to more than 54 million shares, about 28% above the average session volume of roughly 42 million shares.
The outage concerns followed a weak fiscal Q4 2026 earnings report. Revenue came in at $137.23 million, down 27% from $187.3 million a year earlier, while the company swung to an adjusted net loss of $0.41 per share from an adjusted profit of $0.08 per share in the prior-year quarter. IREN’s AI cloud service revenue rose from $33 million to $70.5 million, but total revenue declined as the company transitions away from Bitcoin mining toward AI data centers.
Despite the sell-off, Wall Street remains mostly bullish. The consensus rating is a Moderate Buy, with sixteen Buy ratings, four Holds, and one Sell. The average price target of $79.13 implies more than 100% upside from current levels. Analysts such as BTIG’s Gregory Lewis have maintained a Buy rating, citing roughly 5 gigawatts of potential power capacity and four-year customer GPU contracts. Others, including Jones Trading’s Kevin Dede, remain more cautious about the customer base.
IREN has pointed to Microsoft-related deployments and its planned Sweetwater hub, which could eventually offer up to 2 gigawatts of capacity using liquid-cooled systems. However, the company had not publicly responded to the specific outage claims as of Thursday afternoon. The stock trades below both its 50-day moving average of $41.97 and 200-day moving average of $45.76, with a market capitalization of about $14.07 billion.
