IREN Ltd's stock experienced a sharp pre-market plunge of 14.38% on Friday, following the release of its second-quarter fiscal year 2026 financial results.

The dramatic sell-off was primarily driven by the company's significant earnings miss. IREN reported a quarterly loss of $0.52 per share, which badly missed the analyst consensus estimate of a $0.14 loss. Revenue of $184.7 million also fell short of the $228.1 million estimate. More strikingly, the company reported a pretax loss of $337.9 million, dramatically wider than the estimated loss of $22.8 million.

Additionally, the stock's movement was influenced by broader weakness in the cryptocurrency market, with Bitcoin trading lower and falling below $60,000. As a company transitioning from Bitcoin mining to AI cloud services, IREN's shares remain sensitive to cryptocurrency price movements. The disappointing quarterly results, combined with the crypto market downturn, triggered the severe negative reaction in the pre-market session.