3Wk·

From Bitcoin miner to AI/HPC data center company

A large part of the investment thesis of $IREN (+4.29%) is linked to the company's ambitious expansion into the fast-growing AI/HPC sector.

While $IREN (+4.29%) Bitcoin mining yields remain exceptional, performance in this segment is heavily influenced by factors outside of the company's control - namely price, network difficulty and ASIC prices. $BTC (+1.86%) -price, network difficulty and ASIC prices.

Today's demand for AI computing power is only a fraction of what will be needed.

The reasons are:

- AI switches from text to real-time video, 3D and full scene understanding

- AI co-pilots integrated into every productivity and development tool

- Autonomous robots, vehicles and smart factories

- AI-generated content on a large scale: ads, movies, virtual worlds

- Constant retraining of boundary models, 100 times more computationally intensive

Access to AI computing power and related infrastructure will be critical for major tech companies to defend and grow their multi-billion dollar valuations. These players are outbidding each other, not only to secure capacity, but also to prevent others from obtaining it. Whoever controls the most computing power capacity and supporting infrastructure will gain a massive advantage over the other.

We have already seen this in the race for $NVDA (-0.12%) chips, the biggest bottleneck in the AI value chain today. But this bottleneck is shifting as computing capacity becomes increasingly constrained by access to AI-optimized energy infrastructure.

And here, in my opinion $IREN (+4.29%) that has more than 3 GW of AI-optimized infrastructure will benefit. It takes time to build, contracts for infrastructure and power connection contracts are becoming more difficult, and the land and locations required are becoming more expensive, $IREN (+4.29%) has recognized this early on.

Increase in hash rate since 2023:

$IREN (+4.29%) available today with $IREN (+4.29%) AI Cloud has $NVDA (-0.12%) H100 and H200 GPU clusters.

These clusters are powered 100% by renewable energy.

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42 Comments

Michey777@Michey777

3Wk

I've been in it for a long time and am also well up. However, I still see a lot of potential and a high Bitcoin price will further accelerate growth in the AI sector.

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BamBamInvest@BamBamInvest

3Wk

@Michey777 It will, but at some point the $BTC will no longer be relevant in my opinion, the first colocation deal will lead to a revaluation. But of course $BTC is also used to finance the company and the current valuation is based almost entirely on $BTC, Fomo is far from being priced in in terms of valuation and the share price could then also accelerate dramatically, at least that's my opinion or thesis. ✌️

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Michey777@Michey777

3Wk

@BamBamInvest may be. But due to the profitability + possible issue of convertible bonds, I still see good growth. In my opinion, the bottleneck is cheap energy and possibly the NVIDIA chips. Well, almost 40% increase in one week is quite a fomo, isn't it? But I also agree with you. The analysts have always supported the outlook with decent share price valuations.

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Chris@Multibagger

3Wk

@Michey777 No FOMO, the 40% increase is of course solely due to my entry last week in $IREN at €9, as a user who rarely writes here @BamBamInvest had convinced me.😉 Let's see if it was a good EK in the long term. I would also add again.

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Michey777@Michey777

3Wk

@Multibagger well then everything is clear. Fomo it is only when it has taken on the dimensions of $NOVO B or $UNH:) then I'm out 😏 But if the draught horse has of course entered at €9, then that is of course a driver 🤫 better let me know when you go out again, although I will then see if you reduce your 5% 😜 is an adhoc 🙏

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BamBamInvest@BamBamInvest

3Wk

@Multibagger 🤣 Yes, they do, the analysts have much higher price targets and the rising $BTC price is of course also good, but does not reflect the potential and the outlook. The important thing is a big deal with a hyperscaler and that will come and you shouldn't sell too cheaply because capacities are very limited here and are needed. You just have to be patient and capacities will continue to be expanded. I am bullish here, but had reduced half of the position to minimize risk, in retrospect probably a mistake 😁

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Lupo201@Lupo201

3Wk

I've been looking into the company for a while now because I find it exciting:

If Iris Energy mined at 57 EH/s per day, annual sales of $1 billion and net profits of between $300-500 million would actually be possible.

That would drive the share price up to around 70-150$.

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BamBamInvest@BamBamInvest

3Wk

@Lupo201 Yes, it's incredibly exciting and no colocation deal has been priced in yet 👍

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jkbsmn92@jkbsmn92

3Wk

I have it on my watchlist and have been waiting (too long) for a setback haha

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BamBamInvest@BamBamInvest

3Wk

@jkbsmn92 At the moment we have strong momentum and it remains to be seen whether there will be a strong setback, but in my opinion the valuation is still favorable, also in view of what can and will come. But a consolidation will certainly come at some point, the only question is whether we will then be 50% higher and what kind of setback you would like to see 😊

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jkbsmn92@jkbsmn92

3Wk

@BamBamInvest Exactly, so I think I'll go in with one part

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BamBamInvest@BamBamInvest

3Wk

@jkbsmn92 if you want to invest for the longer term, the entry point will probably not matter if the investment thesis works out.

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Olli@Olli68

3Wk

Isn't that the largest position in Jan Becker's fund?

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Horsti@Horstiiii

3Wk

@Olli68 At least always in the top 5. In the last report it was written that they visited Irish people on site.... and are still invested 😉 I became aware of $IREN via Jan. Unfortunately months ago and the price has only just dropped... Now I'm happy...
By the way, another tip is $KSPI... Things are about to go uphill 😉

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Michey777@Michey777

3Wk

@Horstiiii $KSPI is not running at all. Beckers has also reduced, at least that was my last status from Bloomberg. The date of the fund was May 31, I think...

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Horsti@Horstiiii

3Wk

I believe that the percentage of $KSPI in the fund has tended to adjust automatically as a result of performance, for example the enormous performance of $IREN and $HIMS.

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BamBamInvest@BamBamInvest

3Wk

@Horstiiii Yes, I think so, but I became aware of $IREN some time ago on x. I also have $KSPI on my watchlist, but it's difficult because the currency has headwinds and I don't know how the expansion into Turkey will affect it. Furthermore, Kaspi is already relatively large in terms of valuation, the dividend is uncertain and the political environment is also uncertain. If they lose a little more in price then maybe .

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BamBamInvest@BamBamInvest

3Wk

@Michey777 Yes, all miners have lost, the strong increase started a month ago with approx. 60% ✌️ and will continue and $KSPI has also lost more.

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Michey777@Michey777

3Wk

@Horstiiii $IREN were purchased in some funds. $KSPI Shares were reduced. Otherwise only the proportion of the total fund would change % and not the number (with no purchase / sale)

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Horsti@Horstiiii

3Wk

@Michey777 You're right about that. That's what I meant. So I'm asking for a friend: how, or rather where, do I see the number of shares in a fund? 🙈😉

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Michey777@Michey777

3Wk

@Horstiiii I can't tell you off the top of my head. I get the data from my Bloomberg terminal and see not only the quotas but also the number of shares. Perhaps someone else here knows?

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Olli@Olli68

3Wk

@Horstiiii Annual or semi-annual report of the respective fund. I have already looked this up today.

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Der Spekulant@Derspekulant1

3Wk

I've also been there for a month, I became aware of it through Jan Beckers, unfortunately I only recently started listening to his podcast otherwise I would have been there sooner 🥲

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John@Doe

3Wk

@Derspekulant1 do you have a link to the podcast

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BamBamInvest@BamBamInvest

3Wk

@Doe yes would certainly be interesting, always has exciting companies in its portfolio

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BamBamInvest@BamBamInvest

3Wk

@Doe but today $SOFI ignites the 🚀 strong breakout above the 18$

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John@Doe

3Wk

@BamBamInvest I can see it, but Sofi's position is already too big for me, otherwise I would already have more in it.

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Der Spekulant@Derspekulant1

3Wk

@Doe Unfortunately I only have a link from Apple, but the podcast is called Beckers Bets, is made together with Finance forward and produced by podstars (OMR). Currently the best investor.

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BamBamInvest@BamBamInvest

3Wk

@Doe really burst the 18$ 🤣

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BamBamInvest@BamBamInvest

3Wk

@Derspekulant1 and how can I listen to it now 😂 , subject to payment ?

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Chris@Multibagger

3Wk

@BamBamInvest I told you so. The rocket was just waiting for me to get on board.

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Der Spekulant@Derspekulant1

3Wk

@BamBamInvest no there's spotify and Apple Podcast 😂 came out happier 1 time a week now think every 2 weeks 👍🏽

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BamBamInvest@BamBamInvest

3Wk

@Multibagger I'll keep telling you what I'm buying or even better . You just buy what I have in my portfolio and everything will be fine 😁 but you didn't buy $SOFI did you ?

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Maximilian@Max095

3Wk

I'm really itching to buy. But I'm still damaged from $BITF 🤣

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