IREN heads into August 27 earnings with short interest at 26%

IREN (NASDAQ: IREN ) has rebounded this month, moving from the July low of $28.80 to a high of $49.

It ended the week at $44, with its volatility expected to rise in the coming days as traders position themselves for the upcoming earnings on August 27.

Nebius, CoreWeave Earnings Provided Color to IREN’s Performance Top companies in the neocloud industry have reported strong financial results recently.

CoreWeave (NASDAQ: CRWV ) and Nebius (NASDAQ: NBIS ) said that their revenues jumped by triple digits, with their backlog soaring to record levels.

These numbers mean that demand in the sector is soaring, with Nebius saying that it could sell out its 2027 capacity today.

More signs of robust demand came from Riot Platforms (NASDAQ: RIOT ), which inked a major multi-year deal with Anthropic, Claude’s creator.

IREN inked a $9.3 billion deal with Microsoft last year, and in July, it inked a $2.8 billion deal with companies like Figure AI, Fluidstack, Fireworks AI, and Hume AI.

Following this deal, the company boosted its expected ARR to over $4 billion.

Therefore, the upcoming earnings report will likely lead to more volatility for the neocloud company. data shows that the average estimate is that its revenue dropped by 26% in the last quarter to $139 million.

This decline will be because of its Bitcoin (CRYPTO: BTC) mining operations.

However, for the year, its guidance is expected to show that its revenue will be $722 million, up by 41% YoY.

It will then jump by 314% to $2.33 billion.

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This is a big number since it means that over a quarter of its float is held by short sellers.

The main risk facing the company is that the cost of its key inputs like servers, memory, and GPUs continues to rise.

As a result, there is a risk that the company will boost its debt and even dilute its shareholders.

On top of this, the industry has become highly competitive, with companies like Riot Platforms, Cipher Mining, SpaceX, and Meta Platforms moving to the industry.

The options market points to volatility and double-digit moves when it releases its results.

Options expiring on August 21 have an implied volatility of 88, while those expiring on 28th have 109%.

The put/call volume ratio for these options is 0.40, while the put/call open interest is 0.88, suggesting that there is more puts positioning.

As such, as we saw with CoreWeave and Nebius, there is a likelihood that the stock will jump by double digits after these earnings.

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