$IREN Ltd (IREN.US)$ Overvalued
$IREN Ltd (IREN.US)$ Overvalued
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All opinions are my own - Not Financial Advice
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105909906 : Please explain, I'd like to hear your reasoning.
74611659 OP 105909906 : No moat. Easy threat of entry. Market cap far from fundemental value. Above perfect execution is priced.
105909906 74611659 OP : I think you're sorely mistaken. $IREN Ltd (IREN.US)$ has a massive moat, being the only BTC miner capable of pivoting to hyperscaling. They are the only mining company with such a massive fleet of GPUS. 10.9k of Nvidia Blackwells by EOY, and they just ordered another 12.4k GPUs TODAY. They're not looking for colocation deals with big tech firms like Google or Amazon, they aim to become their own hyperscaler.
105909906 : For more detailed info, read this post on x: https://x.com/TheKamaHsutra/status/1962286060341444968
74611659 OP 105909906 : So what if Nvidia just starts operating in house what IREN does? If there is that much of a margin to be made (which from what I’ve seen there isn’t).
105909906 74611659 OP : This hypothetical scenario is not worth discussing. Nvidia is a chip company, not a data center manager. They have no incentive to branch out into a field they have no expertise in and taking unnecessary risks when they have a steady stream of income from their chips, which they have to use to develop their next generation of chips.
74611659 OP 105909906 : If that isn’t worth discussing to you then this is since its not speculation. IREN is then dependent on the demand for the Blackwell. When Nvidia releases their next generation, likely later this year, whos to say existing and new pop up companies do not start offering the same service as IREN with lower magrins of profit? IREN from what I can see is a hyped up glorified resaler in an idustry designed to be low margin. The bitcoin mining they do will not be profitable after the upcoming having. Short term hype, no long term value as I see it. We will see.
105909906 74611659 OP : That's a reasonable argument. I enjoyed this discussion. Let's see where this stock goes.
70552586 74611659 OP : I think you are missing the key factor which is the ability to have access to power and infrastructure to enable data centers. This takes years and a selective skill set to do. That's IREN's secret sauce. Abundant cheap energy at scale and the ability to build and run complex data centers infrastructure