Maestro Invest

$IREN: First Strong Execution Quarter Since Q3 2025 Revenue: Execution $IREN has delivered 228m ARR of which 28m is BTC, ~170-180m is bare metal GPUs and 20-30m is Mirantis managed services. For reference, $NBIS hit 227m in Q4 2025 and went on a great run in the following quarters based on revenue growth. Mirantis managed services will scale well now they have IREN bare metal compute to deploy to. This is evidenced by their managed services level economics in some of their newer contracts. $IREN is are getting a long term 5-year contract at 22m/MW and 90% GPU prepayment. GPU cost is ~64% of total cost so that's ~57.6% of total cost. $IREN is also able to participate in short term contracts at 40m/MW for likely B300s. Power Pipeline and Margins Many companies publish their pipeline as secured power. IREN has 5.6GW of secured power and for the first time ever, $IREN has published that they have a 35GW pipeline. If $BE fuel cells stay valuable that 35GW pipeline remains valuable as it uses renewable energy rather than LNG. Not only is renewable energy easier to meet regulations but also much cheaper. Over 15 years, a 1GW site using West Texas renewables saves 11.82B over LNG as calculated from the Riot x Anthropic deal (1). This advantage in energy cost is what allows $IREN to have 86% AI Cloud gross margins on revenue pre-dating it's managed services. Uptime and Service Quality The key metric for uptime is revenue because penalties are shown in decreased revenue. The key metric for service quality is renewals. Despite all the @SemiAnalysis_ FUD, IREN has secured expansions with not only FireworksAI and TogetherAI but now a 2x capacity expansion with a Leading Frontier AI Lab. At the very least, this means what issues IREN has, the customer sees IREN capable of fixing it in the near term. Financial Strength IREN has 9B in cash and committed GPU financing and prepayments and 21B in total assets which includes delivered GPUs and datacenter equipment built and pre-built. Crucially it has 6B in data center assets that it can do asset back financing against. This will be funding without dilution. Yes today there was a scare article stating that banks were looking to sell ORCL's datacenter loans but those are sites that ORCL is facing delays on. Horizon Delays Yes, my information that all of 4B will all be this quarter is wrong and it's now confirmed that there is a 1 month delay on some of the 4B ARR and clarified as customer requested change and supplier timing. This is the networking changes I've been talking about and the liquid cooling equipment which had an issue and needs to be replaced. I have information that this equipment is separate from the sulfur contamination which was flushed earlier and will be billable with insurance as a defect. At the end of the day, B300s are netting 22m/MW for 5 year contracts. If $MSFT backs out that would be great for $IREN as the GB300s would net more than 22m/MW which is well over the 9.7m/MW it's getting now. This is why $MSFT will not back out. Yes, I am disappointed in this but H1 billing with GB300 Exemplar Status tested as a 19k GPU Cluster has me not worried that H2-4 will finish. Note that the Exemplar Status on 19k GB300s tested as a cluster confirm that the networking is not an $IREN issue but optimization issue for $MSFT's specific workload. This is most likely due to some misunderstanding in Infiniband specific details related to the model that $MSFT is training. This will not be a big problem in managed services as inference clusters are easier to network. I do not know how much of the Horizons are part of the delayed whether it's H2, H4 or both but H2 is undergoing GPU deployments. I am glad to see that Mackenzie Halls 1-4 and Aircooled Childress Halls 1-3 are undergoing GPU deployments and will be billing by either EOY or Jan/Feb. Customer Mix It is now confirmed that Prometheus, @baseten, Higgsfield are all customer! These are also key $CRWV and $NBIS customers and shows that $IREN has the managed services needed to serve these fast growing AI Natives. These AI Natives do their due diligence on managed services and are a better signal than @SemiAnalysis_ ClusterMax Rankings. At the end of the day, AI Natives put their money as skin in game while @SemiAnalysis_ is getting paid by clients and has sponsorships with certain clouds to talk the talk. Upside IREN had 1 year contracts on some of their H100s. Now they are contracting them at over double the price! This is fully paid off and a huge tailwind. At today's GPU prices, and VR200s on the first 200MW IT of SW1, $IREN will be able to achieve 16.5B+ ARR by end of 2027. Furthermore, with 90% GPU prepay, $IREN is getting 0.4yr payback on GPUs and 2.4yrs on GPU + Datacenter full payback. Datacenter reits are trading at a premium right now.