$IREN(IREN.US)

Context: IREN shares have lost about 5% last week even as demand for the company’s AI computing capacity remains strong. The concern is what that growth will cost. IREN plans $25 billion to $30 billion of fiscal 2027 capital spending, raising questions over financing and future returns. Against a planned $25 billion to $30 billion of fiscal 2027 spending, IREN has about $14 billion of cash, committed GPU financing and customer prepayments. It is targeting another $8 billion from GPU financing and prepayments, with the remainder expected from data center financing, operating cash flow and other sources. That does not mean IREN needs to raise $30 billion from shareholders. But it does mean the company still has to secure billions more in funding, build the capacity on time and generate enough revenue from it to justify the cost.

My Trade: Holding on to my current position and looking to add if it drops below $40. Looking for a long term target once the company starts turning profitable.

Takeaway: The funding has become more expensive as borrowing costs have risen. The U.S. 10-year Treasury yield touched 5.34% Thursday, its highest since 2002, increasing the cost of financing a buildout on this scale. This is one of the recent concerns. @Captain's Treasure