IREN Sinks 4% as Rising Yields Reverse Monday’s Rally, TeraWulf Falls 4%, Cipher Mining Drops 6%

Rising long-term Treasury yields reversed Monday's gains for Bitcoin mining stocks Tuesday morning, with IREN Limited shares slipping 4% to $35.58. The 10-year Treasury note yield climbed to 4.8%, a move that raised the cost of debt financing for capital-intensive infrastructure projects. This rate pressure hit buildout-heavy miners harder than the broader data-center sector, as seen in the CoinShares Bitcoin Mining and Digital Power ETF falling 4% to $41.14, while the Global X Data Center & Digital Infrastructure ETF retreated just 1% to $27.50.

Other mining names followed suit in the morning session. TeraWulf shares slipped 4% to $14.46, and Cipher Mining stock fell 6% to $14.56, marking the steepest same-day decline in the group at that time. IREN had been down 1.7% year to date through Monday's close, meaning the Tuesday pullback kept the stock in a tight range following its fiscal fourth-quarter report. The company recovered some of its initial losses by 11:00 a.m. ET.

The sensitivity to bond markets stems from the heavy debt loads these companies carry to finance their pipelines. IREN disclosed on August 27 that it had secured $6.5 billion in GPU financing over a three-month period. The company split this total between $3.6 billion in investment-grade funding at a 6% interest rate linked to a Microsoft contract and $2.8 billion in non-investment-grade equipment financing at a fixed 9% rate. With fiscal 2027 capital expenditures guided at $25 billion to $30 billion, the cost of future credit tranches remains a key variable for equity value.

IREN's management stated on August 27 that its 2026 AI capacity is largely sold out, carrying approximately $4 billion in contracted annualized run-rate revenue. The company's current operating annualized run-rate revenue stands at about $1 billion. Management defined this run-rate as an operating metric based on contracted GPU-hour pricing, cautioning that recognized GAAP revenue may be materially lower until capacity is commissioned, tested, and accepted by customers.

In its fiscal fourth quarter, IREN reported AI cloud revenue of $70.5 million, more than double the prior quarter. Full-year AI cloud revenue climbed roughly eightfold. Total quarterly revenue was reported against a net loss of $684 million, which the company attributed primarily to non-cash impairments resulting from mining hardware being taken offline. In August, IREN also completed Horizon 1, the first of four planned 50-megawatt liquid-cooled deployments for Microsoft.

Short interest in IREN shares stood at 27% of float heading into Tuesday, a level that amplifies price moves in both directions. H.C. Wainwright reiterated a Buy rating with a $90 price target on IREN stock following the August 27 disclosures, a figure well above the current trading price.