247Wallst·2026-02-15 23:13Core Insights - IREN has a significant advantage over Cipher Mining due to its operational capacity, contract terms, and strategic site development, making it a more attractive option for long-term investors [1] Group 1: Operational Capacity - IREN has 4.5 gigawatts of total power capacity compared to Cipher Mining's 3.4 gigawatts, with 810 megawatts of operating data centers versus Cipher Mining's 477 megawatts [1] - IREN has 460 megawatts specifically energized for AI, while Cipher Mining has a lower number, and IREN is projected to energize its 1.4 gigawatt Sweetwater 1 facility in April [1] - IREN is expected to close the year with two gigawatts of energized power for AI, while Cipher Mining's significant milestone will not occur until 2028 when it is expected to energize 2.5 gigawatts [1] Group 2: Contract Terms - IREN secured a five-year deal with Microsoft valued at $9.7 billion, translating to $1.94 billion per year, with a 20% prepayment to assist in financing additional AI data centers [1] - Cipher Mining's 15-year agreement with Amazon is worth $5.5 billion, equating to $367 million per year, indicating that IREN's contract terms are more favorable [1] - IREN's strategy of owning and maintaining Nvidia GPUs allows for potential appreciation, while Cipher Mining's model resembles a landlord arrangement, which may limit revenue growth [1] Group 3: Strategic Site Development - IREN announced a 1.6 gigawatt site in Oklahoma, enhancing its gigawatt pipeline lead over Cipher Mining [1] - IREN focuses on large-scale sites that can support at least one gigawatt, making maintenance and cost-effectiveness more manageable compared to Cipher Mining's smaller, dispersed sites [1] - The concentration of capacity in fewer, larger sites is likened to real estate investing, where larger complexes are easier to manage than multiple smaller properties [1]