$IREN (+17,11%) Highlights from the earnings call:
– Daniel Roberts (Co-CEO): The capital markets have become more selective in recent weeks—the question is no longer how large a contract is, but whether it can be delivered, financed, and operated profitably.
– CapEx reduction: Approximately $5 billion was spent during the quarter, and about $15 billion is planned for the remainder of the fiscal year—in August, the figure for the full year was still projected to be between $25 billion and $30 billion.
According to Roberts, this was a deliberate decision due to the state of the financial markets, not a lack of growth opportunities—IREN will not grow at any cost.
– $MSFT (+1,13%): The construction delay pushes back the $4 billion ARR target from year-end to January through possibly the end of February. Following the handover of Horizon 1, Microsoft requested a network infrastructure upgrade for 200 MW to run the latest Frontier models. Due to supplier scheduling, this may take until the end of February. Roberts describes the additional costs as insignificant relative to the entire cluster.
– Demand: After the end of the quarter, IREN signed a five-year contract at approximately $22 million per megawatt, under which the customer pays 90% of the GPU costs upfront, as well as a short-term contract at $40 million per megawatt. H100 GPUs were re-leased at double the price for several years.
– Customer mix: Two-thirds of the order backlog comes from customers with investment-grade ratings, such as Microsoft, $NVDA (+3,8%), while the remainder typically involves higher upfront payments.
