Mark Kuno

Money will not make you happy, and happy will not make you money. Groucho Marx

[₿itcoin ₿utcher 🥩 🐑 🐷 @bitcoinbutcher1]

$CIFR @rftylerpage likely embracing BTM and hiring Blevins as insurance related the increased political environment in Texas regarding grid access via @ErcotTx @GregAbbott_TX

[phads @PhadsEth]

https://t.co/b7QUMb5JYU

[Frans Bakker @FransBakker9812]

For those that missed it, our $IREN space starring @mikealfred, who talked about the past, present, and far distant future of the AI Cloud space.

Also thanks to @LandoInvests for speaking & @bitcoinbutcher1 for hosting.

See you next week 🫡
https://t.co/hUj6XDD752

[₿itcoin ₿utcher 🥩 🐑 🐷 @bitcoinbutcher1]

I’m old enough to remember when 🇨🇳 🇷🇺 tried to ban $btc

Short term there’s always volatility in newer technologies that challenge the status quo, but that’s not something to fear. Embrace the the revolution

Every revolutionary technology creates the urge for governments to try to harness the breakthrough to retain power. The governments that choose to ban give a tell. The new technology is powerful enough to disrupt which incentivizes their adversaries to embrace the revolution. Game theory 101

The 🇺🇸 @AnthropicAI will find a resolution much like 🇺🇸 @nvidia to protect national security while simultaneously giving the 🇺🇸 an edge on foreign competitors

Sovereign AI shows signs of exploding and that makes me particularly bullish on $iren following the @MirantisIT acquisition along with 🇨🇦 🇪🇸 🇦🇺 presence to diversify

We are in a global arms race. The pace will not slow down but only accelerate

[₿itcoin ₿utcher 🥩 🐑 🐷 @bitcoinbutcher1]

$iren Horizon 1: When Production Hell Freezes Over

I took a trip down memory lane today with @FransBakker9812 @danroberts0101 with the help of @XCapitalMgmt to revisit our interview and where we are three months later. Here's an excerpt related to production bottlenecks:

"There's about 1,000 of them and you've got to juggle them all in parallel and bring it together. And I think this is why we see delays everywhere. And it feels a bit like Groundhog Day. We've been here once in the Bitcoin mining industry, and it feels like history is repeating itself, where people are struggling to deliver building real world infrastructure when supply chains are tight, it's not easy, and you've hinted at some of it, labor, supply chain of components. Again, I'll reference the memory side of things, generators, package plant for your liquid cooling systems. And unless you line up those supply chains and have a pretty detailed active procurement team, it is difficult."

@elonmusk @Tesla famously struggled in 2017 and 2018 to scale up car production for Model 3 demand, an entry level sedan with a lower retail price and lower profit margin per car than the Model S and X that required mass production to recoup fixed costs.

The initial production goal aspired to reach 5,000 cars per week by the end of 2017. By the end of 2017, the factory produced fewer than 2,000 cars total and weekly production stagnated at 2,000 to 3,000 per week before Elon took control and worked with his team to meet the target rate for approximately 4-6 months to address supply chain issues and over automation that created bottlenecks unintentionally. Sound familiar?

At the end of 2017, the market cap of $TSLA valued the company at approximately $50B while today that number grew to $1.5T or a 30x in market cap. The right leaders find a way.

We all know the guidance misses and the $33m of quarterly revenue of last quarter, but where you have been does not decide where you are going. Can Dan and Will figure this out? Jensen seems to think so.

My read; the company began building Horizon 1 and initially designed the DC for Rubins only to find out that the Rubins were not available and work had to be redone to satisfy their new customer and partner $msft. Pair that with potential learnings curves in the first retrofit at Prince George and Production Hell followed.

If you were Dan and Will, would you sign additional backlog and promise new deliveries without taking care of your initial promises? I better empathize with their mindset as it pertains to delivering on time before making more promises.

With that in mind consider the work of @Sean__James @_Sgr_A_Star to track the bitcoin:native production, and the $iren wallet appears to be producing fewer than 8 coin per day with roughly 12.5 EH that consumes roughly 175-200 MW of Critical IT.

Now consider that Canal Flats has roughly 25-27 MW IT and to me it's becoming more clear that Childress in real time continues to transform.

Let's assume 150 MW IT remain at Childress that consume ~200 MW Gross power at a 1.3 PUE.

That means 550 MW are dedicated to AI with the following break out
1. Horizon 1-4 for $msft / 300MW
2. Horizon 5-6 / 150 MW
3. Air cooled / 100 MW; a combination of $nvda and the Childress portion of the 50k GPU purchase

Things to appear to be back on track, and I expect Dan and Will to come out swinging after exiting Production Hell with the confidence that the worst is behind and can confidently negotiate delivery with more GPU certainty after the $nvda partnership and the experience that laid the foundation to more scalable solutions for the remainder of Childress, Sweetwater, Kiowa, and beyond.

[Frans Bakker @FransBakker9812]

$IREN Weekly Space 6/14 @ 9 PM ET

Join me and @bitcoinbutcher1 for another IREN themed space.
We will also talk about the news topics of this week, including the Anthropic export ban, data center scrutiny in Texas, and more.

Will be recorded ⏺️

https://t.co/3Xc6pBTnaL

[franklee6924x @franklee6924T]

NVIDIA DSX System: IREN’s Co-Development Role and Commercial Potential (I)

NVIDIA DSX (Data Center/Factory System eXperience) is a major platform officially launched by NVIDIA in early June 2026. It aims to provide infrastructure builders with a complete “AI factory hands-on playbook” from chip to power grid, and from design to operations.

The core objective is to achieve “Lowest Token Cost” through deep software-hardware co-design (Co-design), meaning maximizing intelligent output per megawatt under a fixed power budget.

1. Overview of the DSX system: content and components

DSX is an integrated framework that spans the entire technology stack, bringing together computing, networking, storage, software, power supply, cooling, and partner technologies.

Core components:

• DSX Reference Design: A validated AI factory architecture blueprint. It covers everything from rack-level compute clusters to building physical structure, power distribution, thermal design (such as 45°C liquid cooling), and civil engineering recommendations.

• DSX Sim (Simulation): A high-fidelity digital twin platform based on NVIDIA Omniverse. It allows users to simulate the entire factory lifecycle, performance validation, and bottleneck analysis before any physical assets are deployed.

�� DSX OS: An open-source, modular infrastructure operating system designed for large-scale AI factory operations. It provides lifecycle management, intelligent scheduling, runtime consistency, automated health inspection, and resilience management.

• DSX MaxLPS (Maximum Logic Power System): A power optimization technology suite. It combines liquid cooling with rack-level energy efficiency management, dynamically adjusting GPU efficiency points to enable up to 40% additional GPU deployment without affecting performance.

• DSX Flex: A grid interaction layer. It connects the AI factory to external power grids and dynamically adjusts workloads and energy scheduling based on electricity prices and demand response signals.

• DSX Exchange: A communication hub between IT and OT (Operational Technology). It aggregates physical factory sensor data (temperature, power anomalies, etc.) via MQTT protocol for coordinated software scheduling.

• DSX Air: A cloud simulation environment used to simulate computing, networking (Spectrum-X), storage, and orchestration software, ensuring configuration and “Shift-Left” development before equipment arrives.

2. Standard setting and execution logic

DSX follows a Full-Stack Co-design principle:

• Standard setter: Through DSX Reference Design, NVIDIA is effectively defining the industry standard for modern AI factories.

• Execution logic:

– Simulation-first (Sim-first): Before physical construction, a full digital twin validation is completed in Omniverse.
– Programmable infrastructure: Infrastructure (power, cooling) is no longer static but dynamically adjustable through DSX MaxLPS based on GPU load demand.
– Automated operations: The traditional “fault alert” model shifts to DSX OS-based automated proactive remediation.
The above is a general introduction to the DSX system. This is a complex framework that takes considerable time to understand. Unlike the GPU era, where performance iteration cycles were easy to follow, the launch of DSX marks NVIDIA’s transition into system-level control and operations.
As Jensen said at the GTC conference in Taipei in early June:

“Previously NVIDIA was a GPU company, but now we are evolving into a systems company. NVIDIA has truly begun its transformation into an AI infrastructure company that helps customers build entire AI factories, not just sell servers.”

At the same event, Jensen also explained how AI factories are built, saying: “They must first be validated in a digital twin system before the first rack is deployed.”

On the same day, $IREN and BE Networks announced a DSX Air digital twin collaboration based on NVIDIA DSX Air architecture, building a large-scale liquid-cooled AI factory at the Childress site capable of hosting approximately 50,000 Blackwell GPUs, targeting next-generation high-density AI infrastructure.

I checked the roles of IREN, BE Networks, and NVIDIA in the design, testing, and construction of AI factories.

NVIDIA is the system designer; IREN is the engineering execution partner; BE Networks is the bridge between digital simulation and real-world engineering.

NVIDIA’s design is first simulated in DSX Sim, building a virtual AI factory. However, to achieve real value, the virtual factory must closely match reality.

This consistency is not only reflected in data center power systems, cooling systems, network topology, and rack layout, but also in GPU deployment sequencing, real-time sensor data, equipment failure modes, and daily operations.

In this process, BE Networks plays a key role. It digitizes, structures, and standardizes all physical infrastructure data in the data center, and synchronizes it in real time with Omniverse USD digital scenes (USD = the “world file” of digital twins, like an entire map in a game, but at industrial and physical-grade accuracy).

In other words, BE Networks acts as the bridge between IREN’s physical infrastructure and NVIDIA’s Omniverse digital twin platform, enabling the virtual world to accurately reflect real-world operations.

In one sentence:

NVIDIA builds the virtual AI factory and completes simulation via DSX Sim;
BE Networks converts simulation outputs into executable engineering plans;
IREN builds and operates the physical DSX system flagship AI factory.

Clearly, cooperation among the three parties has already entered the engineering execution stage.

Jensen’s recent trips to Taiwan and South Korea were aimed at supply chain coordination, ecosystem alignment, and market mobilization for large-scale deployment of the NVIDIA AI Factory system. He no longer positions NVIDIA as a pure chip company, but as an AI infrastructure company. DSX, DSX Air, Omniverse, Spectrum-X, NVLink, liquid cooling systems, and digital twin technologies all belong to this system.
What $IREN is doing is making DSX-based flagship AI factories become reality. A new era of AI computing infrastructure is unfolding.
I asked several models to estimate how long NVIDIA and IREN had been planning and collaborating before entering physical construction.

The estimates are broadly consistent: for DSX systems, from planning to execution likely takes 12–24 months, with the most likely range being 15–18 months. This aligns closely with the timing when Jensen first introduced the AI factory concept, and also with the timing of IREN’s Sweetwater site going quiet.

In Q4 2024, IREN engaged with multiple hyperscalers regarding large-scale data center partnerships and even hired Morgan Stanley as an advisor. Shortly after, the matter ended without result.

It is now highly likely that the use of the Sweetwater site had already been determined by late 2024. The design and planning of a DSX AI factory requires a fixed site, otherwise system design cannot proceed. It also requires a partner like IREN, with long-term experience in data center engineering and high-performance computing operations.

Many parts of the DSX system require close coordination with experienced engineering partners.

In data center construction, IREN acquired a Canadian data center startup before its Nasdaq listing. After engaging in Bitcoin mining, it invested heavily in operational data collection for HPC data center operations. Later, John Gross, a top expert in liquid cooling, joined IREN. He is Vice Chair of a key committee in ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers). This ensures IREN can provide critical input on AI factory design and construction.

More importantly, IREN’s vertically integrated model allows it to provide the fastest real-world operational feedback for DSX design and planning. IREN also has multiple expanded sites in Canada whose intended use has not been disclosed, possibly related to specific application testing.

Over the past year, IREN has remained relatively low-profile, and even some execution consistency seen by investors has shown deviations. This may be due to coordination complexity in operating a larger system. This is speculation, but it is clear that IREN and NVIDIA did not begin collaboration only after last month’s DSX AI factory announcement.

Rather, collaboration likely began at the earliest design stage of the system. IREN’s Sweetwater site began foundational construction early. Once concrete foundations are poured, substation layout is already fixed. IREN must have understood NVIDIA’s DSX requirements for power density and liquid cooling interfaces in advance. NVIDIA’s DSX design must also have engaged early with real-world engineering operators.

BE Networks is an NVIDIA-recognized DSX execution partner. IREN’s cooperation with BE Networks marks the transition of the IREN–NVIDIA–DSX flagship AI factory from virtual design to real-world construction, with the digital twin system already mature enough to support physical deployment.

IREN is a co-builder of NVIDIA’s DSX system and will be responsible for physical construction and application, becoming both the builder and an implicit standard participant of the flagship AI factory.

The AI infrastructure industry may therefore be reset. What will its commercial prospects look like? I end with one of Jensen’s statements, which is also the opening for the next deep dive:

“AI factories are moving toward 1 gigawatt per site, with capital costs of $50–60 billion, soon reaching $80–100 billion per gigawatt. These facilities must start successfully in one go and must operate immediately—because any delay is extremely expensive idle capital.”

Jensen also provided an output estimate formula for such AI factories. Goldman Sachs and Morgan Stanley estimate that such facilities could generate $100–150 billion in annual output.

The commercial potential of AI factories is still under study and review. SWEETWATER is currently the largest single-grid renewable energy site in the U.S., and as a DSX flagship site, it may become a landmark symbol of the AI computing industry’s transition to a new phase. I will continue further deep analysis on this topic.

[Small Cap Snipa @SmallCapSnipa]

$IREN satellite image of planned data center in South Australia (google earth) 🇦🇺

At 800 MW this would be the largest data center in Australia. The current largest is CDC data centres’ 504 MW campus.

The real question is how long till delivery and will Anthropic + Microsoft’s recent investment in the region have anything to do with this project.

[Lando @LandoInvests]

The article for anyone interested. RAISE is WAY bigger than I thought: https://t.co/NeGgA2SZCx

[𝐀𝐠𝐫𝐢𝐩𝐩𝐚 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 @Agrippa_Inv]

$SPCX & the Neo-Cloud Sector

Before getting into why I believe $SPCX could act as a positive tailwind for the broader neo-cloud space, let me first give you my quick take on the newly IPOed stock.

The way I see it, $SPCX is grossly overvalued, trading at an absurd P/S of well over 100. That's insane, especially when you consider they aren't even profitable. In fact, they posted net margins of NEGATIVE 26% in 2025.

In other words, $SPCX is the most expensive turd in the world.

I expect this stock to crash at minimum 50% over the coming 12 months peak to trough, and likely substantially more than that. I wouldn't be surprised to see $SPCX trade sub $1t market cap sometime next year.

That said, this seems obvious to everyone and appears to be the overwhelming consensus amongst investors.

Even most $SPCX bulls seem to hedge their bullishness by claiming to be in the stock for its "long-term" potential. Hardly anyone is bullish over the short-term.

Typically, when opinions are that one-sided, the complete opposite happens, which is what I'm expecting.

In other words, I believe the stock will follow something like this:

→ $SPCX does relatively well initially.

→ A good amount of bears and people on the fence capitulate, FOMOing in and leading to a multi-week / multi-month rally in the stock.

→ Then reality settles in, with the stock eventually crashing dramatically.

This pattern is supported by the fact that the initial float (amount of shares publicly available to trade) is incredibly tiny at sub 5%, while insider unlocks could lead to substantial selling pressure over the coming 3-6 months.

In any case, I don't have a horse in the race. I'm neither long nor short the stock. I'm just an observer.

However, as someone who is long $IREN, I do believe $SPCX could act as a strong tailwind for the broader neo-cloud sector.

Their management, namely Elon, is clearly trying to position SpaceX as an AI cloud provider, as evidenced by the recent deals signed with Anthropic and Google.

Much of the company's future revenue is now inherently tied to this segment.

Ironically, because $SPCX is this expensive, it makes the rest of the cloud sector, including pure plays like $IREN, $NBIS, and $CRWV, look cheap... comparatively speaking.

As a result, I wouldn't be surprised to see some $SPCX enthusiasm trickle over toward the rest of the neo-cloud sector.

[franklee6924x @franklee6924T]

$IREN: The Decisive Role of Data Center Technological Transformation in Enhancing Computing Power

The current market’s main impression of $IREN is that it is a company relying on pre-positioned power and land, plus vertical integration, as its core competitive advantages. In particular, the pre-occupation of land and power is the primary basis for how the market understands and values IREN. As other former Bitcoin miners shift into AI, and CRWV and NBIS successively announce plans to reach 5GW of power by 2030, IREN’s comparative advantage in this area has become less obvious.

For investors and institutions with limited knowledge, this view is understandable. But stopping at this level of understanding means missing a major investment opportunity. The AI industry has only just begun. Infrastructure development is still in a chaotic phase where each player operates based on its own understanding. The sharp surge in hype creates real challenges for both industry participants and investors in clarifying the development path and grasping the core elements.

IREN holds enormous research value because it is a long-term practitioner and deep thinker in the HPC industry. The moat it has built for itself is not physical pre-positioning but technological strength and an irreplicable scale. It never chases short-term market hype; instead, it builds its business based on its own foresight and deep understanding of the entire AI industry’s development.

Investing in the AI industry is a vast and complex undertaking. Studying IREN is an excellent entry point. We can observe and compare CRWV and NBIS, directly engage with NVIDIA and Dell, as well as Anthropic and OpenAI. We also track AMD and AVGO, and stay informed on developments at GOOG, AWS, Microsoft, and META. On top of that, sovereign AI has now emerged as a massive potential market. This multifaceted connectivity itself says a lot: IREN is not simple. Even from the limited information it has disclosed so far, a far grander and more complex future is already visible.

As mentioned earlier, the market’s mainstream view of IREN remains focused on physical pre-positioning and does not see it as a major advantage. Even after IREN announced last week that it had secured power access rights for Australia’s first 0.8GW site, some people still concluded that “this looks easy.” This shows the market’s understanding in this area is still at a very preliminary stage. Improving awareness here simply requires paying closer attention to various industry developments. In my view, this aspect is an important component of a company’s long-term moat — but only if executed properly. Pure pre-positioning advantage alone lacks sustainability.

Many people ask: once power supply constraints ease in a few years, what will IREN rely on to stand strong? This article answers exactly that question and explores what IREN’s most fundamental moat really is.

First, predicting exactly when power supply tensions will ease is extremely difficult. The current reality is that the situation is becoming increasingly tight. IREN has undoubtedly built an impressive lead here. But the key is what enduring, irreplaceable, long-term leadership actions it can take during this window of advantage — turning an effective moat into a profound, completely unreplicable long-term capability. I believe this is the fundamental criterion for judging whether a company deserves long-term investment.

The reason I have devoted significant effort to researching IREN — beyond it being a key gateway into the core AI investment circle — is that I believe this company has a profound understanding of this issue and has been putting it into deep practice. On this point, the market’s current awareness and the valuation it assigns are, in my view, zero.

IREN’s accumulated experience in data centers and the many technological transformations it has made to support AI development are the most deeply hidden aspects and the least noticed by the market. This is not because of deliberate concealment or lack of market interest, but because such a complex, systematic technological integration cannot generate matching commercial impact and attention without a landmark event to spotlight it. I believe that moment is now brewing. The “big thing” referred to in the company slogan that IREN is vigorously promoting is exactly this landmark event.

I have had many private exchanges with @brianfry01. He believes the data center industry has remained stable and conservative for many years. Their startup wanted to drive real change in the field but ran into the reality that smaller companies didn’t need it while hyperscalers prioritized stability above all. Later, their team moved to hyperscale companies and ended up with relatively little to do. After IREN acquired them, it had already implemented numerous industry transformations during the Bitcoin mining phase and achieved substantial economic benefits. I believe the era when these 20 years of accumulated efforts will truly shine is the AI industrial revolution. IREN’s modular thinking in data center design — one room adaptable to multiple chip types, allowing seamless switching between multiple users, and pushing every watt of power utilization to the extreme — is now being realized and implemented. The addition of MIRANTIS in particular will release enormous energy from this transformation.

One core purpose of IREN’s vertical integration model is to provide the necessary framework for data center technological transformation. Transformation requires rapid response; without the right model in place, change cannot happen. Therefore, when comparing competitive factors between CRWV, NBIS, and IREN, while BTM power costs are important, the technological transformation enabled by vertical integration is far more critical. This is something competitors simply cannot achieve or even imagine. Even if third-party partners deliver well, making any changes to align with superior hardware and software performance would be extremely complex and basically impossible.

IREN will prove to the world that it is the expert in AI data centers and will thereby build an irreplicable moat. This is the true core of its positioning at the center of the AI industry — and I believe this major event has already begun to unfold.

Why did NVIDIA choose only IREN to build the DSX flagship smart factory? Is it simply because the already-powered SWEETWATER site offers massive scale advantages? That is certainly an important factor, but only one of them. I believe the more important factor is technological. Let’s look at what transformative data center technologies will bring to computing power enhancement.

In the cloud computing era, power supply determined data center scale. With the arrival of NVIDIA’s GB200 NVL72 architecture and Rubin, this narrative is undergoing a qualitative shift. Once computing power enhancement enters the era of systematized GPU clusters, data centers are no longer simple warehouses of compute — they become engineering systems that enable efficient collaboration across GPU clusters of different scales. This means that, through system-level optimization, a 2GW power facility has the potential to deliver effective computing power equivalent to 4GW or even 8GW.

This is a climb up the efficiency gradient. In a small 10MW cluster, system engineering optimizations may only bring minor gains in single-machine utilization. But during expansion at 100MW, 500MW, or even 1GW scale, these system capabilities no longer produce linear returns — they deliver multiplier effects, even geometric growth.

The multiplier effect comes from multiple aspects. First is topology awareness. Communication bandwidth differences between GPUs are significant, and the larger the cluster, the greater the differences. If the scheduling system does not understand the physical topology and fails to assign tightly collaborative tasks promptly and accurately, even the most powerful GPUs will idle due to data transmission delays. Vendors with system-level scheduling can precisely “pin” compute tasks within physically neighboring NVLink domains, pushing communication efficiency close to the theoretical limit.

Second is integrated thermal management. Under prolonged high load, GPUs automatically throttle due to rising junction temperatures, causing roughly 20% computing power loss. In traditional air-cooled data centers this is unsolvable. In transformative AI data centers, however, liquid cooling infrastructure is planned together with building thermodynamics, keeping GPUs in their highest sustained performance range at all times. This not only saves energy but fundamentally reshapes computing efficiency.

Third is software-layer orchestration. In a ten-thousand-card cluster where hardware failures occur constantly, achieving super management and task allocation to ensure continuity is where the Mirantis-IREN combination will shine. Building an operating system capable of commanding hundreds of thousands of “GPU neurons,” while delivering cluster-wide efficient operation, secure isolation for users, high system utilization, and rock-solid stability — this will be the most important breakthrough in solving the industry’s key pain points.

Together, these three elements deliver a massive efficiency boost in converting power into computing power. They create a true multiplier effect and represent the best solution to today’s energy and power constraints. IREN itself also possesses additional unique advantages that further amplify this multiplier — such as the scale of single GW-level sites and the stability provided by grid power.

Why is the DSX flagship data center jointly developed by NVIDIA and IREN so significant? Because its success will provide the industry with a replicable template for AI smart factories. Leveraging IREN’s single-site capacity advantage and its rapid transformation and response capabilities in data centers, NVIDIA can test real-world performance of GPU clusters at different scales, make corresponding technical adjustments, and ultimately build a mature, market-competitive upgraded computing power system.

Why can only IREN do this? Because it can offer already-powered, high-quality single GW-level sites right now. More importantly, its years of accumulated practice in data center development and transformation, combined with its vertical integration model, give it the exact conditions needed.

Currently, although CRWV and NBIS’s software can push each GPU to its limit, they are likely to face fundamental structural obstacles in the next phase of technology — deep topology awareness, cross-node memory orchestration, large-scale failure domain autonomy, and specialized software like Mirantis that optimizes cluster quality and stability. In other words, IREN’s vertical integration model is not merely a cost advantage; more importantly, it is a rapid-response advantage. When technological transformation in data centers becomes a key driver of AI computing power growth, IREN — as a vertical asset owner with strong data center technology capabilities — can immediately implement affinity designs between building structures and server racks, rapidly improving computing efficiency.

This is something that leasing models or reliance on third-party construction simply cannot achieve. When the underlying hardware architecture of the industry undergoes major change, the old assets that were quickly leased to bypass waiting periods become obstacles to pivoting. No matter how perfect their software is, their development space is likely to be constrained by the physical hardware environment. Although AI’s commercial potential is enormous, becoming a player with true pricing power will be basically impossible for them.

At any time, in high-tech industries, it is comprehensive technical capability that forms the true foundation of differentiated competitive advantage. The edge gained from physical pre-positioning is only temporary. Only through composite capabilities can a company build the deepest, most enduring moat.

[𝐀𝐠𝐫𝐢𝐩𝐩𝐚 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 @Agrippa_Inv]

$IREN: The cloud market's dark horse

I bet most $IREN bulls are starting to get increasingly exhausted by the price action. I certainly am.

However, as long-term investors, we should see day-to-day price action as nothing more than noise.

$IREN is particularly "noisy," which makes it an especially difficult hold. Yet in times like these, it's important to step back and refocus on the company's fundamentals rather than let price action sway one's emotions.

And the way I see it, $IREN's competitive standing is rapidly improving.

I recently came across an interesting research report by Goldman Sachs that highlighted the discrepancy between planned data center capacity and realized capacity.

Out of the ~18 GW planned to be commissioned over the past 6 quarters, only about ~11 GW actually got built.

Not only is the gap between planned and realized capacity rapidly widening, but the rate at which new capacity is coming online has actually declined over the past couple of quarters.

Much of this discrepancy comes down to power continuing to be a major bottleneck.

As grids get more and more constrained with lead times reaching 5+ years, many developers are moving toward behind-the-meter (BTM) generation (on site power generation), circumventing the need for grid connectivity.

Yet that comes with its own set of problems and bottlenecks. The end result is an increasing amount of delays and outright project cancellations.

This industry backdrop plays directly into the hands of $IREN, which now has 5.8 GW of secured grid-connected power across global jurisdictions.

The only reason the industry is switching toward BTM is that it's the only option if you don't want to wait in multi-year queues to secure grid connections. But don't get it twisted, grid-connected power remains the preferred option.

$IREN is in a unique position to capitalize on this structural bottleneck and become one of the few cloud providers that can actually bring on 5+ GW of compute capacity over the coming years.

I'd even go as far as saying that this structural advantage is the primary reason the $NVDA partnership came to be.

While $NVDA undoubtedly remains king of the hill, even they face a real dilemma that could cause cracks in their growth trajectory.

On the supply side, they have to come to terms with the fact that the gap between planned and realized data center capacity is widening, while the trend of new capacity coming online is actually decelerating.

This is the issue I just flagged, and it could act as a potential growth bottleneck for $NVDA, since fewer builds means fewer GPU sales.

Layered on top of this is the demand side. It's perfectly clear that demand for $NVDA's AI hardware remains insatiable. However, when looking closer, it's also apparent that competition is increasing.

Pretty much every hyperscaler is working on their custom chips (TPU, Trainium, Maia, MTIA), and not exclusively for internal use cases anymore, but increasingly to service the compute needs of large AI labs. Anthropic alone has signed deals worth billions for Google TPU and AWS Trainium capacity.

Then you obviously have the likes of AMD and Cerebras directly competing against the AI giant, trying to claim market share.

Taken in aggregate, these two issues could gradually lead to a growth problem for $NVDA if not addressed.

This is exactly where $IREN comes in.

They've got the largest secured power portfolio of any neo-cloud at 5.8 GW and growing fast, they develop 100% of their data centers themselves, and they're not building competing silicon.

That makes them the most reliable demand outlet $NVDA can partner with at scale.

The Sweetwater partnership, positioning the 2 GW campus as a "flagship DSX deployment," isn't $NVDA doing $IREN a favor. It's $NVDA solving its two biggest problems at once.

I'm sure you know the popular saying that "history never repeats, but often rhymes." I think today's neo-cloud market is somewhat similar to the dot com era search engine war.

Back then, the front-runners leading the race were AltaVista, Excite, and Yahoo, while Google was a latecomer that ultimately came out on top.

Today, the vast majority of investors in this space are declaring either $CRWV or $NBIS the obvious winners in the race to become the next hyperscaler.

However, I believe the real dark horse that the mainstream doesn't give much credit to is $IREN.

I believe they have all the ingredients to leapfrog every competitor in a short amount of time, in large part due to their structural advantages and pursuing the right long-term strategy from the get go.

The asset-light model, which both $CRWV and $NBIS have been leaning into, doesn't work well in capital-intensive industries, at least not over the long run.

It's somewhat of an oxymoron, since it seems intuitive that one way to circumvent some of the CapEx burden is to outsource from colocation providers.

Yet that approach leaves you with less control, less flexibility, and ultimately higher costs in aggregate in the form of operating expenses (the landlord also has to earn $).

I studied the Bitcoin mining industry for years, and the asset-light model was once a popular strategy around the 2021 bull market. While it proved to be a strong growth lever, it ultimately ended up being a disaster for anyone who adopted it.

Companies like $MARA are the perfect example.

$MARA heavily adopted the asset-light model and grew to become the largest $BTC miner, yet ended up as one of the most unprofitable public miners of all, leading to significant value destruction for shareholders over time.

Once it became obvious that asset-light wasn't a sustainable strategy, $MARA tried to pivot away from it by increasing self-deployments. But developing infrastructure in-house is a much harder discipline to master, and you don't simply switch into it overnight.

$IREN ultimately won the mining race last cycle by doing the exact opposite of $MARA from the start.

They developed all of their data center infrastructure in-house, backed by a seemingly unlimited pipeline of secured power, which ended up making them the fastest growing and most profitable miner of all time.

While the cloud sector has significant differences from the mining industry, the primary drawbacks of the asset-light model carry over.

Over time, it will become obvious to Wall Street and the broader market that this strategy sounds great in theory, but in practice leads to a stack of operational issues and severe margin compression.

Out of the two current front-runners, $CRWV and $NBIS, I think Nebius will do better. They've at least started moving toward a more diversified mix of self-owned capacity rather than purely relying on hosted colocation, which is the right direction even if they're still early in that pivot.

That said, as the $MARA example showed, developing in-house gigawatt projects at scale is not something you learn overnight.

It's clear to me that a player like $IREN, which has been building this discipline from day one, has the most realistic pathway toward sustained, profitable growth in this space.

In my view, $IREN is the dark horse that will end up winning the race. Thus overthinking today’s price action wouldn't do me any favors.

Cheers guys, have a great weekend! ✌️

[franklee6924x @franklee6924T]

The Market’s Current Obsession and $IREN’s “Bottleneck-First” Principle

Today, IREN announced that it has signed a transmission connection agreement to support the development of an 800MW data center campus at Bundey in South Australia. The project has secured a high-voltage transmission connection to a utility substation and is expected to begin energization in 2028. Through submarine cable connectivity, it will be able to serve major demand centers across the Asia-Pacific region. The power supply will be primarily supported by renewable energy sources.

Under the agreement, IREN has secured access rights to four 330kV feeder bays at the utility substation, providing support for up to 800MW of load capacity without requiring grid upgrades. Subject to regulatory approvals and the satisfaction of conditions associated with the transmission connection agreement, IREN intends to commence early-stage construction activities and equipment procurement.

Several key points stand out from this announcement:

No grid upgrades required means the project can be deployed as quickly as possible, making this aspect particularly valuable.

South Australia’s high penetration of renewable energy provides long-term access to green power.

The 800MW scale creates significant economies of scale—and this is only the beginning.

Australia serves as a launch point for reaching the broader Asia-Pacific market.

Overall assessment: considering scale, expandability, environmental sustainability, grid integration, geographic reach, population served, and economic significance of the surrounding region, this is an A+ class scarce asset.

IREN’s current portfolio of 5.8GW power sites broadly meets the criteria of A+ scarcity assets. AI data centers are increasingly becoming an important financial asset class and will gradually emerge as a key valuation anchor. At today’s relatively early and unsophisticated stage, the market has not yet fully recognized this reality. The prevailing attitude is still “as long as there is power available, that’s enough.” However, sovereign AI initiatives are already demanding much more than that, and the value of these attributes is likely to become increasingly important as the sovereign AI market develops.

Sovereign AI is not limited to governments. It revolves around ownership and control of data. Industries such as finance, healthcare, energy, and defense cannot tolerate data leakage or dependence on opaque cloud infrastructure, and are increasingly moving toward sovereign computing environments. This migration shifts AI data centers with sovereign-AI characteristics away from low-margin customers and toward strategic customers with larger budgets and stricter compliance requirements, creating substantial premium opportunities.

Through segmented compute zones and physical isolation, operators can transform closed environments into certainty and trust, providing localized, high-value operating environments for financial institutions, governments, healthcare organizations, and advanced foundation-model developers. As a result, data centers can move beyond commoditized competition and become high-barrier sovereign infrastructure.

These assets provide not only large-scale dispatchable green energy but also a form of irreplaceable exclusivity. Once such sites become foundational infrastructure for sovereign AI training, their asset characteristics may eventually support securitization.

Because these assets combine multiple forms of physical scarcity, each one secured reduces the pool of available opportunities. They are fundamentally difficult to replicate. Due to the background and experience of IREN’s management team, they recognized this years ago. Site selection efforts were conducted globally long before the market appreciated these dynamics. Work that began eight years ago has evolved through continuous learning and industry development into a highly refined understanding of what constitutes a truly valuable site.

This is fundamentally different from today’s industry behavior, where many participants simply pursue any available power source without regard for broader considerations. The commercial outcomes of these two approaches may ultimately prove dramatically different.

In a recent article that I refer to as the “IREN Development White Paper,” CEO Daniel Roberts argued that these scarce, high-quality sites have already been largely secured by early movers. New entrants may soon discover that even if they are willing to wait, sites of comparable quality are simply no longer available. Even paying a premium lease rate may not be enough to gain access.

That opportunity window has effectively closed. Over the next two years, additional windows may close as well. The ladder leading to the top tier of infrastructure operators with genuine pricing power is gradually disappearing. While AI still presents many opportunities, much of the remaining space is likely to become increasingly commoditized and competitive.

The market today has not fully interpreted these dynamics. As a result, $IREN’s stock merely finished positive while broader indices declined. The market’s current obsession is straightforward: companies such as $NBIS that continue signing contracts with hyperscale customers are viewed as the winners.

Questions such as:

How much power has actually been secured?
What is the source and quality of that power?
Does the project depend on third-party partners?
Could delays occur?
Is it environmentally sustainable?
Could environmental objections force a redesign?
Will more expensive behind-the-meter solutions eventually be required?

are entirely ignored.

As long as contracts are being signed, early access to systems such as Vera Rubin is secured, and high-profile supporters are involved, investors are eager to buy.

Meanwhile, IREN’s advantages in scarce resource positioning and cost structure receive far less attention. Some NBIS supporters argue that these advantages can simply be purchased later—that NBIS could buy IREN, lease IREN’s facilities, or otherwise replicate these capabilities. As amusing as that may sound, many people genuinely believe it.

Markets naturally focus on what is immediately visible. Looking purely at reported financial results, NBIS currently presents stronger numbers, while IREN has missed expectations. Share-price divergence under those circumstances is understandable. But if investing were only about reading surface-level metrics, the process would be much simpler than it actually is.

Anyone familiar with IREN during the Bitcoin mining era will recognize a recurring pattern. In HPC infrastructure, being first is not always advantageous.

For years, IREN remained a secondary player in mining. It waited until its own data center infrastructure was complete and mining hardware efficiency had improved dramatically. Only then did it move aggressively, eventually leaving competitors behind and becoming the only consistently profitable miner.

The AI cloud industry is significantly more complex, but the principle remains similar.

Consider CoreWeave. It moved fastest, but is its current situation ideal? Its debt has been rated below investment grade, resulting in high borrowing costs. Regardless of how attractive the industry may be, many sophisticated investors avoid businesses that develop credit-related concerns. Operational mistakes can be forgiven; credit problems are far less acceptable.

NBIS currently appears to be performing best. But is it truly operating optimally?

Forget software advantages for a moment and focus on basic business logic. Its own secured power resources are relatively limited, yet it has already committed portions of those valuable resources to customers through bare-metal contracts. While positioning itself as a full-stack cloud platform, it has sold its most important resource at bare-metal economics.

By contrast, IREN is often viewed as the pure bare-metal provider despite the fact that it has not sold a single watt.

At the same time, NBIS relies heavily on third-party power arrangements. Environmental approval issues have already forced alternative plans, increasing costs while still leaving uncertainty regarding successful execution. Similar challenges may continue to emerge in the future.

Forget about how ‘brilliant’ this team claims its tech is — just look at these two decisions. Most corner‑shop owners would’ve shown better judgment. Running a business doesn’t magically change just because you sprinkle some AI on it.

IREN has returned to a position of patience. It has spent more than six months without signing major contracts. During that time, The unit price for GPU compute leasing has surged by roughly 30% compared with the levels when CRWV and NBIS signed their contracts, while demand remains extremely strong.

Yet IREN continues to wait.

Its approach is different. I call it the “bottleneck-first” principle: solve the hardest problems first, and you gain both optionality and pricing power.

Bottleneck #1: Power Resources

IREN began working on this challenge years ago and focused on securing high-quality assets rather than simply accumulating capacity. Those efforts are now beginning to produce visible results.

Over the past six months, investors have watched IREN nearly double its portfolio of premium power assets across major economic regions worldwide. I believe we will continue to see additional sites secured.

Bottleneck #2: High-Performance Data Center Technology

This encompasses rack density, liquid cooling, orchestration, networking, topology optimization, operational management, and overall performance at gigawatt scale.

IREN has now advanced to the point of partnering with NVIDIA to build the DSX AI Factory, which is expected to become the flagship deployment site of its kind.

Bottleneck #3: Large-Scale Compute Deployment

IREN now controls approximately 5.8GW of power capacity. Much of this infrastructure can be energized before 2028. Leaving such resources unused would represent an enormous waste.

For IREN, the pressure to activate power capacity is as real as Anthropic’s accelerating demand for compute. The challenge is not securing symbolic advantages such as being among the first suppliers to receive Vera Rubin systems. The challenge is deploying GPUs safely and efficiently at massive scale.

That is why IREN is working with BE to use digital-twin technology to evaluate the performance characteristics of a 50,000-GPU Blackwell deployment before large-scale implementation.

These issues are far more important than near-term contract announcements or short-term AI revenue growth.

The relationship between markets and Companys is often like the relationship between a person and a dog on a leash. The key question is whether the dog is dragging the person, or the person is leading the dog.

Those things that please the market in the short term are often nothing more than a trap.

[Frans Bakker @FransBakker9812]

$IREN
AFR article covering the new 800MW datacenter site in South Australia.

"Roberts said Iren had started talking to potential customers including big US cloud services companies and large language model owners."

Anthropic anyone? 😎🔥

[Mark Kuno @drawingcoop]

RT @jiahanjimliu: $IREN: Australia 800MW Site

@matthew_sigel has a great take on why Australia has great potential for $IREN. MSFT has $18…

[Wall St Engine @wallstengine]

$IREN signed a transmission connection agreement for an 800MW data center campus in Bundey, South Australia.

The site includes four 330kV feeder exits supporting up to 800MW without network upgrades, with energization expected from 2028.

The project gives IREN its first announced Australian data center campus, with submarine fiber connectivity to APAC markets including Singapore, Indonesia, South Korea, and Japan.

[Brian Fry @brianfry01]

Dan and Will Roberts of $IREN are a national treasure for Australia — and increasingly for the world.

Dan’s comments today at the AFR AI Summit capture the opportunity perfectly: Australia has the land, renewable energy, and Asia connectivity to build serious AI infrastructure right here. The call to “monetise it right” and “produce the value-add here” is exactly right.

We need global AI Factory infrastructure designed with sovereignty at its core — secure, regionally controlled compute that nations can trust.

The Roberts brothers are showing how it’s done with sustainable, scalable capacity. This is the model the world needs more of.

#AI #IREN #AIFactories #SovereignAI

[franklee6924x @franklee6924T]

IREN — The Overlooked Massive Significance of DSX Air: A Supplementary Explanation

@TrentBuysValue
I like the thought process. But not sure if IREN will have anywhere to operate VRs right now. If we are the test bed for VR we’d be testing them now as production is ramping right? Didn’t Jensen say VR is in full production. With press release “ramping into full production”. If that’s the case these will be running in DCs before IREN has SW up and running.

Thank you for your detailed reply and sharp questions — they are completely fair and give me a great opportunity to lay out the full picture.

Why not just test with Vera Rubin directly?

The core logic of Digital Twin simulation is this: a virtual model isn’t “making up a Rubin from nothing.” It must be calibrated against real physical hardware to be truly reliable. That’s exactly why IREN is currently running a 50,000+ Blackwell Ultra digital twin instead of jumping straight to a Vera Rubin simulation.

Here’s why:

1. There is currently no large-scale Vera Rubin hardware deployed anywhere in the world

Two days ago (May 31, 2026 at GTC Taipei), NVIDIA officially announced that Vera Rubin has entered full production / ramping into full production. But “ramping production” does not equal “mass delivery to customers.”
The official wording is clear: volume shipments only begin in H2 2026 (this fall). Right now only the supply chain (TSMC, server OEMs, etc.) is manufacturing at scale.
No hyperscaler or AI cloud provider has a 50,000+ physical Vera Rubin cluster up and running yet. Early samples may exist, but they are nowhere near the scale needed to generate meaningful real-world operational data.
Therefore, trying to build a high-fidelity digital twin of Vera Rubin without large-scale real hardware would result in lower simulation accuracy.

2. IREN’s 50,000+ Blackwell GPUs are “about to go live” — real, contracted hardware

IREN’s current contracts (with Dell and others) call for large-scale Blackwell Ultra deployment first. DSX Air digital twin is precisely the tool being used before the physical data center is built and the GPUs are racked — to fully validate the entire AI factory stack: network topology, automation workflows, storage, orchestration, security, etc.
The official press release (IREN + BE Networks, June 1, 2026) explicitly calls this a “production-representative digital twin” designed specifically for IREN’s upcoming 50,000+ Blackwell Ultra deployment.

3. Mutual calibration between virtual and physical is the real power of DSX Air

NVIDIA DSX (including DSX Air + Omniverse DSX Blueprint) was designed from day one for the Vera Rubin era (the Vera Rubin DSX AI Factory reference design was released in March). The actual workflow is:First use real Blackwell hardware for calibration → run simulations → collect massive telemetry data on GPUs, networks, power, failures, etc. → make the digital twin extremely accurate.
Then layer in NVIDIA’s official Vera Rubin reference design (GPU, Vera CPU, NVLink 6, Spectrum-6, etc.) → instantly upgrade the already-calibrated “factory production line” to Rubin specifications.

Result: When Vera Rubin hardware arrives at scale, IREN’s Sweetwater 2GW flagship site (NVIDIA’s designated DSX architecture flagship) can achieve near plug-and-play deployment with far superior speed and reliability.

This is exactly like building airplanes: you first run full-process digital twin rehearsals with the current engines (calibrating every manufacturing step, automation, and supply chain).
When the new engines (Rubin) arrive, you simply apply the already-mature production line.NVIDIA itself emphasizes: CoreWeave and other partners are using DSX Air to run “operational rehearsals well ahead of physical delivery.”Special note on “operational rehearsals”:
This is the part CoreWeave (CRWV) and Nebius (NBIS) are handling — they are the first to receive and run Vera Rubin hardware in the real world, getting it up and generating revenue early.

That’s one side of the coin. The more strategically important part — the one IREN is using DSX Air to run production-grade digital twin testing on its 50,000+ Blackwell GPUs that are about to go live. IREN is validating the entire end-to-end “installation and operations production line” (design → simulation → deployment → operations) for the Rubin era at massive, replicable scale.
CoreWeave/Nebius getting hardware first and IREN building the production-grade digital twin with real, soon-to-be-live Blackwell hardware are two sides of the same coin — different phases, same goal: scaling Vera Rubin.

IREN has 2GW of already-powered sites ready. That positions it to do the heavier, longer-term, non-replicable work: establishing the standardized, infinitely replicable “AI Factory” template for the entire industry.

This is the real core of NVIDIA’s “AI Factory” moat — not who gets the first batch of new GPUs. Plenty of companies can get early Rubin hardware. But only IREN is doing the next-level, large-scale deployment testing and standardization of the full production line (design-simulation-deployment-operations). That cannot be replicated overnight.

Does this significance far outweigh simply being first to take delivery?

Absolutely. It just requires a deeper level of understanding. The market may take a little time, but once it clicks, the reaction will be the right one.

[The God Particle @_Sgr_A_Star]

$IREN

Microsoft GPU Final Score:

GPU Capex: $5,810,000,000

Funded by:

1. Pre-payment: $1,932,199,124
2. Debt-financing: $3,650,000,000 (6%)
3. Cash/Equity: $227,800,876

The biggest news out of the finalized numbers is that Fitch and DBRS gave the transaction ratings of A and A(low) and is a huge vote of confidence and credibility boost in IREN and should help IREN broaden access to capital pools that have lower costs of capital. This will be critical as they scale.

The other thing is that IREN is using less than 4% of cash/equity out of pocket to procure 5.81B worth of GB300s. Making the CSP business a capital-light business.

✅98,704 GPUs now fully funded (PG and MSFT)
✔️ 71,904 left to go (Mackenzie, NVDA, Childress 50MW)

[The God Particle @_Sgr_A_Star]

$IREN news.

👀