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@Agrippa_Inv
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@Bare_Birk @qwertyuipasd11 @grok explain to this guy that iren is nvidias customer not the other way around please
I strongly believe in hybrid models when scaling into the unknowns ... ie this new AI stratosphere ... at times, particularly if/when you need a ton of capital, you may want to take note of at least some investors preferences market is telling, quite loudly, colo is an appreciated model, as it gives (perception of) stability for much longer than csp (10/15 years) that means higher market cap, easier access to capital and - above all - lower dilution for current shareholders going all in GPU as-a-service seems more ideological than first principled (at least for me & several investors I regularly talk to) ... it's a bet without para-shoots ... closer to reasoned gambling than fundamental investing ... it may turn out to be a huge win, as possibly a dramatic defeat ... 90/10 ... 50/50 ... 10/90 ... nobody knows odds now days ... we'll know in two years maybe I understand NBIS & CRWV seemingly winners in the GPU-only model ... sort of supporting the idea that a vertically integrated GPU as-a-service provider will necessarily win even more ... but that's a wrong take imo !! they seem to win as they are 1yr ahead in the cycle (ahead by leasing DCs here & there instead of building them out/owning) ... their anticipated cash flows are winning (as it happened with MARA & RIOT back in the day, in mining) ... but the business model - beside initial anticipation - is structurally weak and their current market cap proves nothing (they better raise at these levels, in fact). All in all ... GPU as-a-service only is an unproven model and colo is a fantastic tool for smoothing/balancing out upside & downside. No need to prefer one over the other ... just do both. Pretty sure IREN would trade at $100/sh if it had signed a colo deal with MSFT. Or if it would sign a similar size colo-only deal with any top HS in coming weeks/months. My take, in a world of unknowns and having secured a ton of GWs, is to present the market - aspirationally - a 50/50 colo/GPU model. Taking the most out of either. Going all in GPU-only is limiting your many options. For no reasons.
March 2020. ๐ Six years later, the vision is very much alive. @MichaelDell ๐
$IREN Prices Upsized $2.6 Billion 1% Convertible Senior Notes Due 2033 @IREN_Ltd announced the pricing of its upsized private offering of $2.6 billion in 1.00% convertible senior notes due 2033 (increased from the previously announced $2 billion). Key Terms: - Coupon: 1.00% (paid semi-annually) - Maturity: December 1, 2033 - Initial Conversion Price: ~$73.07 per share (32.5% premium to the $55.15 closing price on May 11, 2026) - Conversion Rate: 13.6848 ordinary shares per $1,000 principal - Capped Calls: Entered with a cap price of $110.30 (100% premium) to reduce dilution upon conversion Proceeds & Use: - Expected net proceeds: $2.57 billion ($2.96 billion if the $400 million option is fully exercised) - ~$174.5 million to fund capped call transactions - Remainder for general corporate purposes and working capital The notes settle on May 14, 2026. This move provides IREN with significant low-cost capital to support its AI cloud and data center growth.
My opinion on the $IREN converts. They will primarily use them to retire old notes as said in the filing. This is a normal strategy many companies use to retire old notes. Since the stock price is near ATH itโs a good time to announce it incase of any macro pullback. I will wait until pricing to see full details.
