IREN shares fell approximately 5% during early trading on Thursday. This decline reversed a portion of the 12.84% gain recorded on Wednesday.
The initial rally followed a $3.5 billion deal to acquire NVIDIA B300 GPUs. IREN plans to purchase over 50,000 units to expand its AI cloud capacity. The company projects this expansion will generate over $3.7 billion in annualized revenue. Management expects to reach this financial target by the end of 2026.
Investor concerns regarding potential shareholder dilution triggered the subsequent pullback. The company expanded its at-the-market equity offering program to $6 billion. Short-seller Jim Chanos noted the capital raise represents nearly half of the company’s market capitalization. Chanos questioned the lack of reaffirmed near-term revenue guidance within the significant equity filing.