IREN's stock price fell sharply after the earnings release, primarily reflecting market disappointment at the company's failure to secure new AI protocols, rather than a deterioration in fundamentals. Currently, IREN is trading at approximately $39.79 on Nasdaq, down about 18%. Bernstein analyst Gautam Chhugani points out that as IREN transforms from a Bitcoin mining company into an AI infrastructure provider, Bitcoin revenue is no longer the core of its investment strategy. Although IREN's second-quarter revenue fell short of expectations due to declining Bitcoin production and prices, its AI cloud revenue more than doubled sequentially. IREN currently has approximately $2.3 billion in annual recurring revenue contracts for its AI cloud, which is projected to grow to $3.4 billion by the fourth quarter of 2026. The company's management stated that it is in talks with multiple potential clients regarding contracts worth billions of dollars. Bernstein believes that IREN, having secured approximately $3.6 billion in GPU funding for its Microsoft contract and using only about 10% of its power capacity, possesses the flexibility to sign more AI agreements. Therefore, Bernstein maintains its "Outperform" rating and $125 price target for IREN. (The Block)