igoringa

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They could ….. but it doesn’t mean this chips will be in use…

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they will be in use if they are subject to a binding five-year contract. This is the part that I'm not understanding. A customer has contracted the use of the asset four or five years at consistent revenue levels for the five years. Under what perversion of US GAAP would one suggest that a useful life should be less than five years in that pattern or should be anything other than straight line.


If under a standard five year revenue contract like the example I gave like so many of these deals are any acceleration of depreciation with materially mistate the comparability and economics of the contract.

No, yes I know there is GPU purchases that are not subject to these contracts - but if you have a significant portfolio of a counterparty signing five year deals for the use of a specific chip. I find it rather challenging to argue as useful life is overstated if five years is used.

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We don't know that to be the case. Also what Burry is saying is that the deprecation isn't matching the revenue.

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We have had multiple deals in the past several weeks that are based off this, so we do know some of these are clearly the case.

For example, the IREN MSFT deal is a 5 year revenue deal - $9.7 billion ratably over the contract with IREN responsible to provide the B300 chips for 5 years. That is the term of the agreement - why would they not depreciate these over 5 years at a minimum.

If they have other similar GPUs for other non long term arrangements - I would really question a delta off 5 years given the nature of these contracts.

so what you guys are telling me is the most stable and predictable stock in my portfolio is a pre-revenue Canadian graphene company - that is not exactly a badge of honor lol

I just couldn't have asked for a better earnings report today. It's just nuts. Live by the sword die by The Sword - still ended up over six figures on the data center option run, but man has it drops these last few weeks - on good news lol

NBIS is clearly a premium provider and deserves a rich premium over the bitcoin gang per MW. i love both (Nbis and Iren) for what they do.


of course, both are gonna kill me on this option cycle - if earnings and news like today cannot move double digits and confirm the data center game is still early - i do not know what could

so I've been out all day - has the market decided that we have excess computer in this world now?

Is this the burry put spin off? Or did I miss something that's actually real?

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This is exactly the kind of thing I was worried about earlier in the week when I essentially said that announcing a deal like that before earnings is meant to hide the fact that you wouldn’t otherwise have anything to show.

They are hiding the actual EPS.
No matter how I look at it. That’s not good. I’d be thinking twice if NBIS did something similar.

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? Again as I said I agree not to put any credence into EPS for IREN as it has a lot of static, but I mean US GAAP is US GAAP. Recognition of unrealized gains and losses on derivative instruments is not optional in any shape or form - it is not like they were trying to trick - I mean should they not follow GAAP? I hope you would expect NBIS to follow GAAP?

And note IREN did not tout EPS at all - in their presentation of highlights (first slide - they did not meantion EPS, and when mentioning net income actually went out of their way to be Unrealized gains on forward and capped calls). They then literally showed on that same page an Adj EBITDA to back it out of EBITDA!

In fact, I do not even see EPS in their presentation at all. Presentation

Further in their press release they did not promote EPS. So I am lost how this is shady or tricky or hiding?

And in terms of 'nothing to show', this board spent a lot of time talking about the incredible growth rates of NBIS - this release shows going from $7.3 million for a quarter to 3.4 Billion ARR - if that is nothing, I would like to see what growth rates, including NBIS, that match or beat that.

Edit: Probably came across crankier then I meant it lol. TLDR, the Company calculated EPS in accordance with GAAP as required and in no way promoted it (others online did). They went ouf of their way to show ADJ EBITDA backing out the GAAP craziness. So I do not see that as tricky or shady - unless I am missing something

So on Iren earnings -

1) Yeah Ignore EPS - not a relevant measure with the unrealized gain and honestly who cares about EPS of Q3. I mean they literally had a few weeks of compute (AI Cloud revenue 7.3million). EPS is not a relevant metric for this company. EBITDA of $91 million more relevant but again - $7.3 million AI revenue when they project $3.4 billion ARR by the end of next year. This quarter is completely irrelevant.

2) What is relevant is the ARR if you believe it (I do). A little over 5X future year ARR that utilizes not even of 16% of available power not including pipeline. I mean that is incredible. This has gone from a hope and dream (with no market multiple made sense because there is nothing substantive) to a very conservative multiple (IMO) very quickly. I could not be more ecstatic

3) The other relevant piece is do you believe the IRR math they discussed in the call or the bears on twitter. That is an important judgement.

I will say this, if you told me 2 months ago when I made my first investment that we would be looking at end of 2026 ARR of $3.4 billion as projected now lol insanity.

I will take my lumps on the options I have left - but in terms of long term thesis - this was truly lights out in my opinion.

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What are you IREN holders thinking you’re gonna do? Hold or sell?

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Shares I hold for long-term, so I'll put those aside.


so coming into this week, I had a tranche of 11/21 65's and 85's with the 85's bought at the absolute peak three weeks ago.

I took significant profit Monday on the 65s - the 85 I'm still actually actually at a loss right now lol - I will decide after earnings on 7th.

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Hopefully we get a dip

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Speak for yourself! lol

ring the bell now! lol