Company Insights - Iren has demonstrated exceptional operational execution, completing projects on time and under budget, which is a rarity in the institutional Bitcoin mining space [7] - The company has recently seen significant stock performance, with a rise from $2 to over $30, indicating strong market confidence and potential for further growth [5] - Iren is positioned to compete effectively against established cloud providers, challenging the conventional wisdom that software and middleware are the primary drivers of value in the industry [8][9] Industry Trends - The Bitcoin mining industry has faced multiple drawdowns, with three instances of 50% declines occurring within a two and a half year period, highlighting the volatility and risks associated with this sector [23] - There is a growing recognition that controlling physical infrastructure is crucial for service delivery in the cloud computing space, which may lead to competitive advantages for companies like Iren [10] - The integration of AI into infrastructure operations is becoming increasingly important, with companies that understand this trend likely to outperform those that do not [27] Investment Strategy - The investment approach emphasizes concentrated positions and a deep understanding of management teams, which can provide a competitive edge in identifying undervalued opportunities [2][4] - The strategy involves applying traditional value-oriented principles to the crypto space, focusing on companies with hard assets and optionality for other forms of compute [26] - The investor's philosophy includes a permanent capital mindset, avoiding over-management for short-term volatility while aiming for substantial long-term returns [24][25]
Mike Alfred on contrarian investing, bitcoin mining, AI, and IREN
Yahoo Financeยท2025-09-17 19:34