IREN Limited: The Market Is Too Pessimistic

Cyn Research 1.1K Followers Follow Summary IREN’s AI transition is moving faster than I expected, with AI cloud revenue already above mining revenue and around $4B of contracted ARR. The biggest positive for me is the contract economics: pricing per MW is rising while customers increasingly help fund the required infrastructure upfront. The $25B-$30B FY 2027 CapEx plan looks extreme, but IREN is relying much less on equity (previous overhang) than the headline number suggests. The main thing I will watch now is whether the contracted capacity comes online on time and whether revenue scales faster than the sharply rising cost base. VisualAviation/iStock via Getty Images Introduction My previous "Strong Buy" rating on IREN Limited ( IREN ) has not fared too well, with the stock being down 27%, while the broader market ( SPX ) managed to gain 16%. The heavy dilution is hitting This article was written by Cyn Research 1.1K Followers Follow Hi! I'm a passionate investor who has been researching publically traded companies for over 8 years. My primary focus is on identifying great businesses at reasonable prices and holding them for the long term but I also dive into trend following strategies from time to time. While I have a slight bias toward technology companies, I maintain a broad perspective, including opportunities in crypto. I take a global approach to investing, occasionally seeking value beyond the U.S. market. Thanks for reading! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.