CoreWeave, Nebius and peers such as IREN have surged this year on the back of multibillion-dollar contracts to provide AI computing capacity to large technology companies. ...

Core Insights - The article discusses the author's investment journey, emphasizing a strong foundation in value investing and a disciplined approach to analyzing companies [1] Group 1: Investment Philosophy - The focus is on identifying mispriced quality companies and understanding resilient business models across economic cycles [1] - The author employs a fundamentals-first approach, utilizing DCF models and analyzing financial statements [1] Group 2: Community Engagement - The author contributes to the Seeking Alpha community, sharing insights and testing investment ideas publicly [1] - The goal is to provide research-backed commentary on various investment opportunities, including under-the-radar compounders and misunderstood tech platforms [1]

Core Viewpoint - Cryptocurrency-related stocks showed strong pre-market performance, driven by market expectations of an imminent end to the U.S. government shutdown, alongside a notable increase in Bitcoin and Ethereum prices [1] Group 1: Stock Performance - Bitmine Immersion Technologies (BMNR.US) rose over 7% [1] - IREN Ltd (IREN.US) increased by more than 6% [1] - Cipher Mining (CIFR.US) gained nearly 5% [1] - Coinbase (COIN.US), Robinhood (HOOD.US), Circle (CRCL.US), and SoFi Technologies (SOFI.US) all saw increases of over 3% [1] Group 2: Cryptocurrency Price Movements - Bitcoin surged by 1.66%, currently priced at $106,462 [1] - Ethereum rose nearly 1%, currently priced at $3,615 [1]

Core Insights - Bitcoin has returned to $106,000, while Ethereum briefly reached $3,600 [1] - Cryptocurrency-related stocks saw significant pre-market gains, with IREN and BMNR rising over 7%, Circle and MARA increasing nearly 4%, and Coinbase and Strategy climbing over 3% [1] Company Performance - IREN and BMNR experienced a rise of more than 7% in pre-market trading [1] - Circle and MARA saw an increase of nearly 4% [1] - Coinbase and Strategy recorded gains of over 3% [1]

Core Viewpoint - Iren Limited is experiencing rapid growth as a neocloud company, driven by its strategic contracts and supply of AI GPUs, leading to significant stock price increases and revenue projections [1][4][9]. Financial Performance - Iren's stock rose 29.4% in October, following a 77% increase in September, reflecting strong market enthusiasm for AI-related investments [1][2]. - The company raised $1 billion through a convertible notes offering, which was oversubscribed, indicating strong investor interest [6][7]. Contracts and Revenue - Iren secured multiyear contracts for 11,000 of its 23,000 AI GPUs, projected to generate approximately $225 million in revenue [4]. - The company aims to achieve a $500 million annualized revenue run rate (ARR) by year-end and has plans to expand its GPU capacity to 100,000 [5][9]. Future Growth Potential - A recent five-year deal with Microsoft worth $9.7 billion is expected to increase Iren's ARR from $500 million to $2.5 billion, with projections to rise to $3.4 billion by the end of 2026 [9][10]. - Iren has additional contracted power capacity that has not yet been utilized, indicating further growth potential [11]. Market Position - Iren's current market capitalization stands at $17 billion, with a gross margin of 22.08% [3]. - The stock trades at five times its 2026 ARR guidance, suggesting a potentially attractive valuation in the context of the AI industry's hypergrowth [10].

Core Insights - Retail investors have shown significant interest in five stocks this week, driven by earnings reports, retail hype, AI developments, and corporate news [1] Tesla Inc. (NASDAQ:TSLA) - Tesla's annual shareholder meeting resulted in a 75% approval for CEO Elon Musk's $1 trillion performance-based compensation package [5] - The company introduced software updates, but European sales have halved in key markets due to competition, and a recall affected 6,197 Cybertruck units [5] - The stock has a 52-week range of $214.25 to $488.54, trading around $451 to $453, with a year-to-date increase of 17.57% and a 50.18% rise over the year [6] Palantir Technologies Inc. (NASDAQ:PLTR) - Palantir's third-quarter earnings exceeded expectations with revenue of $1.18 billion and adjusted EPS of $0.21, driven by 122% growth in U.S. commercial sales and increased AI Platform adoption [6] - The stock has a 52-week range of $53.55 to $207.52, trading around $76 to $178, with a year-to-date increase of 132.81% and a 213.26% rise over the year [4] IREN Ltd. (NASDAQ:IREN) - IREN announced a significant multi-year GPU cloud services contract with Microsoft valued at $9.7 billion, providing access to NVIDIA GB300 GPUs [11] - The company reported first-quarter FY26 earnings of $240.3 million and adjusted EPS of $1.08 [11] - The stock has a 52-week range of $5.12 to $76.87, trading around $68 to $69, with a year-to-date increase of 540.15% and a 497.32% rise over the year [12] Strategy Inc. (NASDAQ:MSTR) - Strategy purchased an additional 397 BTC for $45.6 million, increasing total holdings to 641,205 BTC valued at approximately $47.5 billion [12] - The third-quarter earnings call highlighted a balance sheet transformation with digital assets surging from $7 billion to $73 billion year-over-year [12] - The stock has a 52-week range of $231.51 to $542.99, trading around $236 to $238, with a year-to-date decrease of 20.94% and a 12.41% decline over the year [13] Advanced Micro Devices Inc. (NASDAQ:AMD) - AMD reported record third-quarter earnings of $9.25 billion and non-GAAP EPS of $1.20, driven by data center sales of $4.3 billion and client/gaming revenue of $4.0 billion [10] - Anticipation is building for the upcoming Analyst Day on Nov. 11, where new CPU and GPU roadmaps will be unveiled [14] - The stock has a 52-week range of $76.48 to $267.08, trading around $237 to $239, with a year-to-date increase of 97.05% and a 58.66% rise over the year [15]

Group 1: Major Deals in Bitcoin Mining - Cipher Mining signed a 15-year lease agreement worth $5.5 billion with Amazon Web Services for 300 megawatts at its Bear Lake facility, set to launch in July 2026, highlighting the growing demand for AI workloads [3][4] - IREN entered into a five-year, $9.7 billion cloud compute agreement with Microsoft for 200 megawatts at its Childress, Texas site, alongside a $5.8 billion procurement deal with Dell for hardware [5][6] Group 2: Market Reactions and Stock Performance - Despite the significant deals, Cipher's stock fell over 10% amid a broader tech-sector sell-off, with the deal value exceeding its $8 billion market cap, indicating investor enthusiasm for AI-related mining ventures [4] - IREN's shares also dropped approximately 10% on the same day, although analysts described the Microsoft agreement as a "watershed moment" for Bitcoin miners transitioning towards AI and high-performance computing (HPC) infrastructure [5][6] Group 3: Industry Trends and Future Prospects - The partnerships signify a shift in the Bitcoin mining industry towards providing power and infrastructure for AI tenants, while GPU management is left to specialized partners, validating the "powershell" model [6] - IREN's 20,000-unit Neo Cloud cluster may serve as a testing ground for independent AI compute capabilities, although uncertainties remain regarding its GPU strategy [6]

Core Insights - Bitcoin mining firms are transitioning from cryptocurrency mining to AI data centers due to rising energy costs and reduced halving rewards, marking a significant industry shift [1][2][3] Industry Trends - The April 2024 halving event reduced Bitcoin mining rewards, causing a decline in average hashprice from $0.12 to under $0.05 by mid-2025, prompting miners to seek alternative revenue sources [3] - AI infrastructure requires substantial energy, and existing Bitcoin miners possess the necessary resources, including energy contracts and hardware, to support AI operations [5] Financial Implications - Analysts from VanEck estimate that Bitcoin miners could generate $38 billion in annual revenue by converting their infrastructure for AI and high-performance computing, which is 25 times more profitable per megawatt than traditional mining [6][7] - Public miners have raised over $4.6 billion in debt and convertible securities since late 2024 to finance this transition, increasing execution risks associated with the pivot to AI [8] Company Developments - Core Scientific has committed to AI hosting, utilizing its 1.3 GW capacity and has signed a $10.2 billion contract with CoreWeave for AI compute services [10] - Iris Energy has expanded its AI cloud infrastructure, scaling its GPU units to over 4,300 [11]

IREN Limited (NASDAQ:IREN) shares were up after the company released its first-quarter earnings report after Thursday’s closing bell, beating estimates on the top and bottom lines.IREN reported quarterly earnings of $1.08 per share, which beat the consensus estimate of 14 cents per share. Quarterly revenue came in at $240.3 million, which beat the Street estimate of $235.5 million."IREN continues to execute with discipline, delivering record results this quarter and meaningful progress in our AI Cloud expan ...

Core Insights - IREN Limited reported a significant increase in Q1 FY26 financial results, with total revenue rising 355% year-over-year to $240.3 million and net income reaching a record $384.6 million compared to a net loss of $51.7 million in Q1 FY25 [1] - The company has transitioned from a Bitcoin miner to a leading AI Cloud Service Provider, capable of assembling over 3 gigawatts of power for AI customers [2] - Analysts had previously downgraded EPS estimates for IREN, but expectations may improve due to the booming business outlook [3] Microsoft Partnership - IREN signed a 5-year $9.7 billion AI cloud deal with Microsoft to deploy NVIDIA GB300 GPU systems at its 750MW Childress site, requiring an upfront hardware purchase of $5.8 billion from Dell [4] - The partnership is expected to generate $1.9 billion in annual recurring revenue (ARR) and is viewed positively by investors, with Microsoft highlighting IREN's expertise in AI cloud infrastructure [5] - IREN projects that this alliance could lead to $3.4 billion in AI Cloud ARR by the end of 2026, supported by multi-year contracts with clients such as Together AI, Fluidstack, and Fireworks AI [5] Analyst Outlook - Analysts are expected to revise their models and growth forecasts for IREN following the new partnership and financial results, indicating a potential buying opportunity as EPS estimates have already been significantly reduced [6] - The recent developments have generated excitement among investors regarding IREN's growth outlook in the AI Cloud sector [7]