5️⃣ Reasons Why I am Bullish $IREN

$IREN Ltd(IREN)$ Reports Earnings a few hours ago!

5️⃣ Reasons Why I am Bullish

1/ Scale

While other neo-clouds focus on small data centers of a few hundred MW, $IREN focuses on massive 500MW and 1GW+ scale locations.

Smaller data centers are cheaper, faster, and easier to build, but they are less efficient and more expensive per unit of compute in the long term.

- 750 MW Childress

- 1.6 GW Oklahoma

- 2 GW Sweetwater

4.35 GW of efficient large-scale capacity!

2/ Huge Demand

"We can't meet the demand fast enough," Dan Roberts, $IREN CEO

There is a massive demand for AI computing power, as hyperscalers invest hundreds of billions of dollars.

IREN is perfectly situated to meet that demand.

3/ Focus on Bare Metal over Colocation

"Colocation would be a lot easier, but we don't feel that it is the best value-creating opportunity." Dan Roberts

AI cloud (bare metal) services can generate roughly $10M per megawatt, whereas simply leasing data center space (collocation) only brings in about $1.5-2M.

We can see this in the $Microsoft(MSFT)$ contract.

The deal involves a 200MW deployment and will generate $9.7B over 5 years.

A colocation contract would have been worth just $1.5-2B, 5-6x less.

4/ Competent Leadership

The Roberts brothers are competent leaders whose vision built IREN from scratch into a large-scale, institutional-grade infrastructure company.

They’ve consistently focused on low-cost, renewable-powered operations, which are more resilient and in higher demand.

They also showed strong vision by pivoting from $BTC

to AI when the opportunity presented itself.

This clearly demonstrates strategic adaptability and long-term thinking.

5/ Growing TAM

McKinsey estimates that the global data center capacity will grow by 3.5x by 2030.

124 GW of incremental capacity will be added over the next 5 years.

$IREN is perfectly-positioned to serve this growing TAM.

6/ Bonus Point Valuation

With a 2026 ARR guidance of $3.7B, $IREN trades for 6.5x FWD ARR.

Analyst 2028 estimates are grossly pessimistic, but even looking at them, $IREN trades at 7x 2028 EBITDA.

Considering the growth opportunity, surely a fair multiple should be higher than that.

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