IREN and CleanSpark crash: Is Bitcoin mining in trouble?

IREN and CleanSpark shares plummet after disappointing results. Discover why the Bitcoin mining sector is facing a brutal correction and what it means for investors.

Written by Charles Ledoux

Translated on February 6, 2026 at 08:45 by Simon Dumoulin

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IREN: The AI Bet Comes at a High Short-Term Cost

The punishment was immediate for Iris Energy (IREN). The Bitcoin miner, which is attempting to reposition itself as a hybrid player between Bitcoin and artificial intelligence, reported revenue of $184.7 million for its second fiscal quarter of 2026. A figure that significantly missed analyst consensus, which was set at nearly $229 million. As a result, the stock plummeted more than 11% in after-hours trading.

🚨 $IREN Q2: The big picture

1. $IREN secured 95% of the cost of the GPUs at an average interest rate of around 3%.

2. AI Cloud grew by 137% QoQ.

3. $IREN is targeting $3.4B in ARR by the end of 2026.

4. $IREN grew its cash and cash equivalents to $3.2B as of December 2025… https://t.co/UhsG034NgY
— The Tech Investor (@TheTechInvest) February 5, 2026

The report reveals an earnings per share (EPS) of -$0.52, much worse than the -$0.18 anticipated by the market. This underperformance is partly explained by the massive reallocation of resources toward HPC (High-Performance Computing) infrastructure dedicated to AI. While the strategy aims to diversify revenue in the face of Bitcoin volatility, the immediate cost seems hard to swallow for investors, especially as pure mining revenues declined sequentially.

Despite this bearish short-term picture, management is trying to reassure by highlighting a solid cash position of $2.8 billion and massive funding for GPU purchases. But in a jittery market, the promise of future revenues isn’t always enough to stem the sell-off.

CleanSpark Misses the Mark: Profitability in Decline

The scenario is equally grim for CleanSpark (CLSK), often considered one of the best performers in terms of energy efficiency. The miner posted a surprising earnings per share loss of -$1.35 for its first fiscal quarter, crushing downward estimates that were betting on a significantly better result. Revenue, although up year-over-year thanks to increased production capacity, came in at $181.2 million, also missing targets.

⚡ @CleanSpark_Inc posted $181.2M in Q1 revenue and strengthened its position with $1.5B in current assets, including $1.0B in BTC and $458.1M in cash. The company secured up to 890 MW of new utility-grade power capacity as it advances its multi-gigawatt AI infrastructure… pic.twitter.com/HStvFDqqst
— Power Analysis Ltd. (@power_analys1s) February 6, 2026

This earnings miss comes as mining difficulty reaches new highs, compressing operators’ margins. Even though CleanSpark continues to aggressively increase its hashrate, the cost of production per Bitcoin appears to have risen faster than expected during this period. The market is punishing operational profitability that’s struggling to keep pace with infrastructure investments.

CLSK stock followed the sector trend, plunging in IREN’s wake and dragging other players like MARA or Riot along in a general bearish movement.

An Explosive Macroeconomic Context for Crypto

This drop in mining stocks isn’t happening in a vacuum. It’s part of a broader crypto market correction, with Bitcoin testing critical support levels, briefly passing below the $62,000 mark. The mood is clearly risk-off in financial markets, exacerbated by concerns over new US tariff policies and a Fed that seems less eager to cut rates.

Institutional investors appear to be reducing their exposure to risk assets, and miners, who often act as leverage on Bitcoin’s price, are the first to pay the price. Furthermore, Arkham data shows that miner MARA has moved over $80M worth of Bitcoin to exchanges, often synonymous with an upcoming sale. But is this the beginning or the end of capitulation? We’ll have the answer in the coming weeks.

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Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

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