IREN plummeted after being impacted by Microsoft's tightened review of computing power projects, and has since rebounded sharply by 13% following its earnings report.

Affected by project delivery delays, regulatory hurdles, and rising costs, Microsoft is exiting some projects it deems high-risk. Bloomberg cited people familiar with the matter as reporting that Microsoft is stepping up reviews of certain data center projects from Nebius, IREN, and Nscale, and re-evaluating whether to sign new cooperation agreements. Following the news, coupled with the broader market pullback, IREN fell 16.95% in overnight U.S. stock trading, Nebius dropped 14.94%, and CoreWeave also fell around 10%. IREN subsequently released its Q1 FY2027 financial results: quarterly revenue rose 66% quarter-over-quarter to $228 million, with AI cloud revenue surging 182% quarter-over-quarter to $200 million, and the AI cloud business posted a gross margin of approximately 86%. The company also disclosed its revenue backlog increased to $20.3 billion, up 22% quarter-over-quarter, with delivery timelines still subject to adjustments. IREN has delivered its first Horizon 1 data center to Microsoft, which obtained NVIDIA Exemplar certification; over $4 billion in annual recurring revenue (ARR) targets have been signed and funded, but due to client-requested design adjustments and changes in vendor delivery schedules, the original target of hitting this by the end of 2024 has been pushed to January 2027, with a possible extension to late February at the latest. As of press time, the IREN contract on Hyperliquid traded at $20.43, a rebound of around 13.3% from its regular U.S. stock session close of $18.03; the NBIS contract rose around 3.2% over the same period. Trading activity also expanded significantly: the IREN contract’s 24-hour trading volume was approximately $20.81 million, up around 219% from the previous 24 hours’ $6.51 million; NBIS’s trading volume rose from roughly $43.22 million to $90.53 million, an increase of about 109%.