$IREN Weekly Space - Open Mic

Hosted by @Frans Bakker · 2026-07-06 · Tags: IREN

TLDR

Participants debated IREN’s controversial executive equity grants, weak shareholder sentiment, and whether improving AI revenue can outweigh governance and dilution concerns. They remained broadly bullish on Horizon, Sweetwater, NVIDIA and Microsoft opportunities, while disagreeing over near-term price risk and the usefulness of technical analysis.

Speakers

Notable quotes

Transcript

Gosi: .

Frans Bakker: Welcome, guys. Good evening or good morning, wherever you are. For me, it's morning. I just thought about starting this one sort of impromptu. I didn't really have any plans this week. Too much has happened last week, in the past week, I should say. So I didn't really, you know, have a strong plan to run the weekly space this week. Obviously, as you all know, my co-host, my regular co-host, Bitcoin Butcher has liquidated his iron positions. So unfortunately, that also means he's taking a step back in running these spaces with me. And on every other week, it means that I can only start the space, you know, like around this time, rather than the typical 9 P.m. Eastern time. So until we get rid of daylight saving, It will be like that every other week. I'll try to, host a space on 9 in every other week. So it's going to be like 9 P.m. every, every, well, 9 P.m., 10 P.m., like changing every week. So anyway, I see there is a first person to come up and speak. Please don't let it be Sean. Okay, it's... that's okay. No, I think it's too early to expose Australian pedo rings. I'm sorry. I've never had you as a speaker. I just want to take this easy. So if anyone wants to come up and speak about Iron or has any thoughts on anything that happened in the last week, feel free to come up. I made this an open mic version. I see Fram is in the room. And I see a bunch of other people that I see. Finn is also here. He's going to raise. Mark is also here, a regular speaker. And maybe Jeffrey wants to give his thoughts as well. So anyone who wants to come up, just shoot me a request. Okay, we got Frem here first. So yeah, it's been a pretty rough week. We obviously seen the sentiments sink below the lowest that it already was when the grant package was announced. I have not been very vocal about judging it or condemning it, despite my post with the theory around replacing the board of directors. That was basically more of a why and why now answer, not so much as a, opinion on the no performance milestones or the amount of shares. So it was more to just approach it to like, why would they announce something now? Obviously, there is the end of the fiscal year, but you know, there are a lot of things that they will announce in August with regards to the end of the fiscal year. So I made a post a few days ago where I talked about the good and the bad in the earnings. I expected earnings to be in the first week of August, but I got corrected by investor relations that it's most likely by the end of August because they have 60 days after the quarter, after the fiscal year ending, as opposed to 40 days. after the quarter closing as iron. So that doesn't count for everyone, but it's in their particular case since they are like a new accelerated large file or something. Anyway, so I don't expect earnings to be any time soon. It's probably about 7 to 8 weeks out. Seven is probably more accurate. So anyway, the post I made mentioned a lot of negative things. I can see if I can shoot it in the nest. Just bear with me one second. It's post went pretty, almost for my impressions, pretty viral. I mean, it wasn't like a million impressions, but it was more than 100,000, which I often don't hit. So let's see. So I listed a bunch of negative things, and like I said, they're all very likely. One of them obviously was an extraordinary extraordinary amount of share-based compensation, end-of-year bonuses, RSUs, grants, and other expenses associated with attracting and retaining talents, massively inflating SG&A well out of proportions to the realized revenue growth. Well, I would say that's pretty spot on. Obviously, it's a bit exaggerated, but is it really exaggerated with what we know today. I think, no, I think it was spot on. But instead of the waiting until earnings, they just, sling it out there. And, now we know this one won't be announced at earnings because we already know it today. So that means we can put a checkbox at #4. Of course, they can still surprise us with regular share-based compensation, end-of-year bonuses, and other things associated with anyone but the founders. We know the board of directors got a small amount of RSUs, and you know, but I think the big, you know, question mark is how much did they pay and award all the other new C-suite people and a new talent that they got in. So I guess we're still going to have to take a, you know, swallow a big amount of SDNA regardless of this grant thing. So not particularly looking forward to the BNL of the fiscal year or the fourth quarter for that regards. It's probably going to be a kind of underwhelming slash disappointing miss on multiple fronts. I just don't see how they will get away with, you know, front loading all these expenses, a lot of one-offs, the accelerated depreciation of the mining stuff. It's just going to look horrible. But It's probably going to look a lot better on terms of, like a gross margin profile. I think it's going to, their operating income is going to look very healthy, but it's just that they are still behind with the big AI revenue growth because Horizon is not contributing to the revenue as of now. Even today, I'm pretty sure, I am sure that the Horizon One is not billing as of today. But it will be billing soon. You know, I'll say soon and you can make your own conclusion, but it's definitely going to be operational before earnings. Now I can say it with even more certainty because earnings has moved forward to the end of August. But so yeah, I personally think this will be the last earnings that will look, sort of bad. Of course, the quarter over quarter growth will, be acceptable. But I think we should really start looking at the, their operating margin. I think that that's going to tell the story. And all the other stuff is just noise. the one-offs. Of course, the big amount of grants is not noise. It's, you know, it's more than that. It's completely wrecked the whole sentiments on X with regards to the shareholder base. But with regards to the P&L, I think Agrippa wrote about this is actually convenient that they did this at the absolute bottom of the bottom. So, yeah. Now we got that out of the way. analysts can model it in. And here we go. So it's almost as if they gave themselves a little bit of a clean slate going forward, by front loading a lot of the bad stuff and cleaning it up in the last quarter of fiscal 2026. Fiscal 2027 is where they can finally have their aha moment. And I think the whole markets outside of the people on acts that are informed We'll have an aha moment and we will all be pointing at it and see, I told you. So it's going to be a period where we're going to say a lot of I told you so, in my opinion, I expect that to happen. It's not financial or investment advice, but I've been here before. So yeah, the good thing about being in contact with a lot of people, that's basically what I'm doing. not just through my subscriber base, but I network a lot on Twitter and beyond. I travel to Australia every year to meet the people that know the people. And I keep doing this. And I was actually planning to go to the US this summer as well, but it's kind of got delayed with the replacement of my passport, which still hasn't arrived. So I'm going to have to postpone that. But I'll definitely be there in the first half of 2027 to, take a good look at Sweetwater, et cetera. So, but yeah, so why am I saying that? I hear a lot of things that come straight from the people that work on these projects. So that's how I can confidently say when I expect Horizon to be energized, et cetera. Just give you guys a little nugget. There was a successful energization of the first building of Horizon 2. So, you know, some of you may not be aware, but Iron's already staggering the energization of the building. So this is not related to GPUs. This is just the actual building. being energized or electrified. I don't know if it's a better word for a building, but anyway, yeah, so that went really well. No fires broke out, no generators got blown up. It's all looking very good. So, you know, just because Horizon One hasn't been building yet doesn't mean that they're standing still. It's not going to be the case that when they announce Horizon One, delivered or completed or handover, it's not going to be another waiting time of months before you're going to see, okay, and now we have Horizon 2 billing as well. It's going to, the gap between 1:00 to 2:00 is be a lot, you know, it's going to, let's call it 8 weeks, then the gap between 2:00 and 3:00 is going to shrink compared to that. So you're going to see a faster delivery of each subsequent horizon. And that's why I'm still confident they can deliver the complete project in this calendar year. So the X is glitching on desktop, so I'm not sure if Frem is still here as speaker. Frem, are you here?

Frem: Yeah, I'm here. What's up?

Frans Bakker: Hey, man. Yeah, well, what's up? I should ask you what's up. You've been you've been pretty dramatic with regards to the grant thing, if I can call it like that. How are you feeling about it now a couple of days later?

Frem: So yeah, hey, everyone in the peanut gallery, not being derogatory here, that's literally the name Mike has given this community. I took a while to process it and obviously part of writing that post is not to be insinuating anything. It's literally just observations. Like I've made it very clear that Aaron still is and remains my largest position. And I guess where I was coming from there was, look, this is a stock that I've wanted to hold for over 10 years plus, right? And the only issue with it now is just the question marks regarding governance. right? It's not to do with the stock price or anything like that. It's just to do with how did this get passed through? What was the rationale behind it? You know, it's completely unprecedented on any scale, right, if we're honest here. And I think the positive to take from all this is just the fact that the community has been really strong to the point of even justifying it without any information. What has been disappointing was I guess not getting information yet, and then being made a fool of it by Mike. That aside, I don't think it's a big deal, guys. Like, if we game theory this and we just think about, if we boil it down to, I guess, the Roberts brothers being greedy, I assume that that's probably a good thing for us, right? We want CEOs that are aggressive, that want to hit in a grippers terms, arbitrary terms, like being the richest people in Australia, like we want our guys to be motivated like that, right? Whether it's a leading indicator into, oh, well, do they have absolute control of the board or not? That's to be decided later. But at the very least, we know that our guys are motivated. There isn't explicit interest in then driving up the share price, but there is vested interest in the sense that they're not getting cash for this, they're getting RSUs, which would obviously be worth more if the share price is higher. We have vested interest in there. The only risk is that they still get a payout, regardless of where the share price lands. That's a vested interest on the upside, that's not vested interest on the downside for us. I think I have trust in the board, the integrity of the board. I have trust that if Mirantis is selling their company to Iron for 100% shares and Ken Bees is leaving Oracle for Iron, they on some level trust the integrity of the company. And there must be some reason that they cannot come out and give that information to us. And it just boils down to trusting of the day. For me right now, actually, before I bought Iron, the trust was mostly in the management team, like just watching interviews of Dan and Will and looking at their background, like for context, in the Australian environment, what these two brothers have achieved at such a young age, you can't really get to that level at that age without integrity and hard work. You just can't be that high up at Macquarie and Palisades and all that stuff. You just, You need a level of integrity and hard work to even achieve what they did before Iron. And so all of that was sort of-- because you're buying into the leadership team, and that was the main reason I bought Iron to start with. Assets and all that was secondary. Now, it's sort of flipped for me. Like, I look at what gives me comfort in all this is just like the balance sheet. The fact that if you look at the PP&E line of the balance sheet, you know, I question whether that's, that's probably very understated because the land and the energy itself is probably valued by a valuer that doesn't slap an AI multiple on it. So if you go and say, well, okay, we're trading at 14 billion right now and let's say for whatever reason we go into liquidation, I'm pretty sure they could sell this whole company to another tech firm for a couple of multiples on top of what it's trading at now. So this is what gives me comfort at the present time. I hope leadership swings through and we have comfort on both ends, not just comfort from a trust perspective, but from an explicit perspective. But What can you do, right? That's the bargain that we have now. That's why the stock is at $40, which is a criminal price, to be honest. I would be selling a kidney to, obviously not investment advice, to be buying more. But I need a backup kidney. So yeah, that's kind of where I'm at with this. The other thing I want to say is I think we're at a very interesting inflection point, Franz, and it's so interesting because our deliverables are coming through with the alpha you provide. We know that revenue is going to hit the P&L at some point, and that's the main criteria that institutions are looking at at this point, that is going to eventually come through, and then subsequently, a deal should follow up because we need to line up a backlog, right? And then you're getting the stock at such a cheap price. So the time risk of this is like very low, in my opinion, because like I bought this stock nine months ago, it hasn't done anything. I'm extremely jealous of the people that can buy it at this price where the time risk is like not even there anymore in my perspective. What I'm interested to know is about this rumor with the anthropic leaked documents. whether I've been reading the Discord and the general view is that this can be us because we're not energizing anytime soon in Australia and so forth. But then when I think about who else is in the Australian landscape, like Sharon AI, Firmus, what's the other one? There's another private company I can't remember. When I look at those three years, They don't have the best reputations. The closest one is probably Sharon AI, because Leopold took a stake in that. But I'd be curious to know, Franz, if you have insight into how far Sharon AI is down the road in terms of energization, and are they sort of on par with us in terms of pace, or are they ahead? what do you think about this general rumor?

Frans Bakker: So there has been a couple of rumors around Anthropic and Australia before. So it's not the first time that we hear about this. I think the first thing I heard a while back was that they were looking for like 5 sites of around 250 megawatt. This new leaked document stuff is also talking about, it will preferably be caught up into a couple of smaller sites, potentially to de-risk the, you know, the concentration. I did see the full article, just don't recall exactly, but I think they mentioned Next DC to be the number one contender for 500 MW that they have. I know that in near Sydney, there is a park, like an industrial park, where a bunch of these companies like Air Trunk, Next DC, Stockland, and Microsoft as well, they all have or share projects around the same Mamay Street or something. I don't forgot. I forgot the exact name of the street, but it's all in the same park and it's all near the same substation. And it was rumored that Iron has some land there as well. And of course, it was found out that they have a new, I mean, I see Neil in the crowd, Neil found was the first one to tell me about their Opal Asset Co. So the Sydney subsidiary. or the New South Wales subsidiary. And, one and one didn't make 2 yet. We didn't find anything. There was mostly based on rumours and talks with people who talk to people. But it's true that they did establish this subsidiary. And we did find some other iron-related land and, you know, rumours in South Australia. Well, that turned out to be based on facts because they did announce that substation. I poked Dan with this before when I said you should look into the Bundy substation and they have like 800 megawatt available and then later they announced it. So that was it was funny, but so I don't know how far they are, but the article specifically mentions that next DC with 500 megawatt is the one that has the main, the best papers, completely dismissing 850 megawatt that Iron has. And then it's like, oh, it's because it's 2028 and Anthropic needs 2027 power. Well, I don't know exactly what the timeline of Iron's power is because they said the substation is already built out, then the transmission infrastructure is in place. So you are looking at why is Iron talking about 2028? That's just simply because they need to, you know, get the funding, they need to get the people, they need to start all this stuff. And I think they will also need to go through this permit process. I don't know if it's like a real permit, but it's like a review process for a new data center project. So that takes a lot of time. I guess it's not, what I'm trying to say is it's not like with Sweetwater that they are like really waiting for a bulk substation to be constructed per se. I guess that what they could do is, you know, build some kind of a smaller substation that can plug into the Bundy substation. I don't know if that is technically possible. I did actually I got a satellite image of the Bundy substation from yesterday. Maybe I should just give it a quick look if I see anything. But so I don't know if Iron is really a contender. I know that Iron has been talking to Anthropic for a while now, but it's only circumstantial so far. It's only, you know, we know they are talking, but that's it. I personally don't really hold my breath for anything with regards to Australia being announced in the coming like 12 months. I think it's more a second-half of next year's story. So I don't know, it's not my main focus right now. I do believe that Iron, ultimately should really work with Anthropic, but I don't know if it necessarily has to be in Australia first. So there are sites in Texas that would rhyme a lot better with Anthropic, in my opinion. That's my take on it for now.

Frem: Yeah, and also, the anthropic thing is an interesting case because there's sort of two parallel narratives going on right now where you've got this narrative where, okay, Irene is sort of Jensen's vehicle to being on a hyperscaler. because they can't sort of be upfront about being a hyperscaler at the risk of Amazon and all that sort of ramping up via chip production and not buying Nvidia chips. So you sort of go through a backdoor. But then the problem with that is you're, okay, well, you're then going to deploy Nemotron, the open source model directly into that and leverage that. And Liz talks about Palantir, sort of that partnership. But then how does that correlate with Anthropic being literally the opposite contend of what Nvidia wants to do, right? I haven't been able to reconcile the two theories. And when I think about people talking about, yeah, Iron's going to be like the open source solution for NVIDIA and compute wise. It doesn't make sense to then be in bed with Anthropic at the same time. I mean, I could be overthinking this. I mean, there could be a reality where you kind of just, you service both and you're kind of agnostic to both approaches. But it also kind of explains why we've been so late to Anthropic. Like, I mean, they've been starving for compute for so long. why hasn't anything been signed with them yet? Is this some sort of strategic thing that's going on that they're holding out for? me, it would make a lot of sense to back NVIDIA because you kind of want to have that, you kind of want to be the open source solution. You don't have vendor risk. But yeah, I don't know how to reconcile it if someone has a better viewpoint on that. Like maybe there isn't because we don't literally have no information. But yeah, I'm just curious to know like with the pieces on the chessboard, what is the next deal, right? Because we know like they're going to do something like when the Microsoft deal is delivered, what's like the next thing for us? Is it just another Microsoft extension? What's going in SweetWorld? This is the biggest question. And how long are they going to wait? Because sentiment is all-time low. I don't know if I'm overstating the PR problem they have right now, but I do feel that it's pretty bad. I don't know what's going to happen at Ray's. Are people going to just approach them and ask them about the CEO's compensation? It just seems so overdue for a deal. I'm trying to speculate on like, what is this massive strategic thing that Iron is going down? Because if they're walking away from all these hyperscaler deals, there has to be something and like, what is it? Yeah, that's the question I want to know because I do feel like at some point this year, we're going to get color. Most of the people that I'm reading from and listening from is basically saying it's a foregone conclusion that we're Nvidia's hyperscaler ***** and we're just here to be Nvidia's hyperscaler backdoor. But is it just that, or are we doing both? Yeah, that's the question I want to know, because that is going to determine how I view this company. I would prefer that we try to be our own AWS, but if we go down a dual model where we go AWS and then we also give the frontier models their compute and we do everything, that's okay too, I guess. But yeah, I'm not sure where I'm going with this, but that's what I'm speculating. I don't know, Franz, if you have a take. if you even care about speculating, like anyways, the revenue will hit the line, the bottom line, but it does matter from like a margin perspective and like a moat perspective. So yeah, if anyone can like weigh in on what they think that the next sort of big, big news is going to be, I'd be keen to hear.

Frans Bakker: Yeah, so. Somewhere last year I started to talk about the most important thing of scaling Iron's power portfolio into compute is partnerships. And I've been like really banging the table first about partnerships in general, but then more specifically NVIDIA. When they announced their partnership with NVIDIA, I've been like reposting a lot of my stuff from last year. And then at my first, I see I told you so moment of 2026. But yeah, so partnerships are key. And I think the next part of that partnerships is nurturing these AI native companies, fireworks together. You may Base 10, all these guys are starving for compute. And their only way for them to grow is buy more compute, contract more GPU hours. And I think it's in Iron's best interest to keep these companies close. And now with Nvidia also back in the picture, It's all becoming one, puzzle that makes a lot of sense when you see Lin Chao from Fireworks AI sitting with Jensen at GTC. You know, as an iron shareholder, you feel sort of proud. Yeah, it sounds really, really weird, but it's like, look, our baby has grown up. And of course, it's a bit of a unrealistic to call Fireworks AI are baby. They obviously work with 20 plus data center providers, but it's just, I always looked at it like that in a way that, they need a lot of compute and we now we know that they are also the customer of Iron's AMDs. It makes it a little bit more special, you know, that we know Fireworks has three clusters at Iron, one AMD and two NVIDIA. And now Fireworks is just putting on, they've raised the NVIDIA banner, so it just matches so well. And I just see them really as one of the main takers of our 50,000 B300s. And Base 10 is also probably taking a chunk. I think Together AI is taking a chunk. I think these GPUs are just going to go to all these guys because they need it. the most and they are able to pay with all these raises that they're doing. These companies are the ones that we want to sign for one, two, three, four years. And I think that this is the logical next deal that we should expect. But I don't think these are announceable events, like disclosable events. I think these are just natural going to happen over the course of the coming couple of months. if you take the base 10 interview as a sort of foreshadowing what's going to happen, I am very confident that Iron's going to lock these guys in with the B300s, deploy them in 2026. If I'm really honest, I'm not really starving for a announcement per se. Now that we know that they are all, that they're kicking the can basically to 2027 by front loading all the bad and the negatives and the expensive and, you know, the unprecedented stuff first, the P&L is just going to be trailing behind that with, you know, three to six months, more towards six months, it appears. So I think the market doesn't appreciate the most healthy unit economics of 2027 in 2026. That's just a reality as an Iron investor. That's what Iron is doing. So they are squeezing out the most margin out of these guys, these AI native companies like Fireworks, et cetera, these are the guys that are going to take the 50,000 GPUs for the most part at least. And those are the guys that are going to pay very healthy margins. And it's just going to show up next year or maybe some of it's going to show up. No, I don't think it's going to show up in November. It's going to show up most likely in February next year. So Further than that, other than that, I assume that Microsoft's going to take Horizon 5 and 6, which is obviously an event they're going to disclose. It is an announce, but that's a natural extension of an existing customer. And so the trend here is that Iron has contracted guys that they're going to extend with all across the the layers of the customer segment, so Microsoft's gonna extend into Horizon Five and Six, Nvidia's gonna take more power, more to use. So they're going to sign new contracts with NVIDIA next year, maybe in the second-half of this year even. And they're going to sign more computes with the existing, you know, AI native companies that are already customers now. We know Base 10 is a customer. Iron has never specifically announced it, but we know that they are buying computes from Iron, or at least Iron is the end supplier. could be white labeled, not entirely sure. But so this is what I see as the base case of the new revenue that's going to come in over the course of the coming, let's say, 12 months. So I don't know which one is going to be announced first. I assume it's going to be horizon five and six. But they are definitely going to do more with Nvidia as well and with all these other companies. So then you're going to start to look at what else can they really sell. And then it's going to, you know, you start to look at the remaining air cooled capacity in Childress. You start to look at the Kennel Flats, maybe some more power in Prince George, and then of course, Sweetwater One. And I think that this is where they are going to surprise. I think they're going to announce something for SweetWater One that's going to be pulled forward. And will that be, who will the customer be? Yes, I understand what you said, Frem, about Anthropic not being an ideal customer in terms of a proprietary large language model. But I mean, I guess Iron will just have to at some point get in that with a company that has a language model like that. I mean, Microsoft doesn't have one. Nvidia doesn't have one. And these are our anchor tenants for now. But, you know, these are probably not good enough to take our Sweetwater side. So it's, I don't know if, it's going to be an AI factory that's going to be just cut up into small pieces for enterprises with a joint venture with NVIDIA or if there is going to be like a big anchor tenant. I honestly don't really know. I tend to lean to no hyperscaler right now. But yeah, I mean, I, like you said, I can't really give you an answer. I just know that Iron is focused on partnerships that can scale with them. So, does picking Anthropic lock out a part of the market? That's how you should look at it. Like, I think you should approach it that way. If Iron would work with Anthropic, does it mean that they can no longer work with OpenAI or does that lock them out from potential sovereign contracts? I think that Iron will most likely go for the most neutral partners as possible. So the ones that keep that make them retain some form of optionality, because that's always been their game. And no matter how you look at it, Anthropic is pretty polarizing. So, it's kind of like extreme to a certain degree to go with them. Of course, they are also the very well capitalized and they're the hot company right now. But if you really look at Dario's look at the world, you know, it is even for a company like Iron that has ESG pretty high, to their standards, I think Anthropic is like too socialist for even Iron. So I guess we're going to see. It would fit very well in Australia, I guess, and maybe in Spain as well. But I think if for a US power, Is it really the best idea? I don't know. So yeah, I mean, it's just speculation. I'm just trying to like come up with an answer while we are talking. I don't really know what to say other than that. It's just, I guess we're going to have to find out. The base case is that they're going to extend with existing customers. And, you know, I think the one new anchor tenant or big customer that they're going to announce that is going to be new, that will predict the course of Iron going forward.

Frem: Yeah, I agree with you. The only thing that I fear is that right now we're in a weird situation where I think an extension makes the most sense because you don't have to pick a side yet. Where I feel a bit iffy is that we seem to have a really key man, key entity risk with Nvidia. Like we just need the GPUs to generate revenue, seems like. And the issue with this is like it just feels like unless they commit more to us, like scaling us up as their pseudo hyperscaler extension or whatever, or giving us more of a partnership than I guess Nabius and all that has, it just seems like we're losing optionality to go to like a different GPU provider than like AMD. I don't know, just I feel like Jensen's hand is on our wheel and that can be a good thing, but if it's just there to like sell us GPUs and nothing more, I'm interested to see what the game theory is. on Dan's side to kind of break out of that. It's kind of like having a, it's kind of like having, how do I say it, like a fiance that doesn't really want to marry you. Like it just feels like we're in a stage where like we have something with NVIDIA, but like nothing's real yet and we can't really move on and do other things until we kind of know. It's just a very weird situation. Maybe it's already finalized and they just haven't announced it yet. But yeah, just I mean, like we missed last earnings because of what GPU delay or something like, would that have been a different situation if we had supply elsewhere? I don't know. But I'm just hoping for something more. I personally like the theories that are coming out that we're going to have some like massive partnership drop with Nvidia that's bigger than bigger than like what Nebius has. And we're literally like just a levid play on Nvidia. Like that's what I like. But I don't know how long we can drag this out because like, yeah, like there is really lucrative revenue opportunities with Anthropic. And if Jensen's kind of out there like telling us, oh no, don't go there, like you can't support them and You got to support my open models approach. And yeah, I don't know. Are we getting held back? There's a lot of things we don't know. And then you add this compensation thing to the mix, and then it gets really weird. It's like, are you just giving yourself a huge pay package for the sake of it? Or is there like some massive thing that's coming that would validate the whole hyperscalar thesis. I think this is why the stock is so low right now, because there's just too much uncertainty. There's too much bad news right now that isn't offset with some sort of justification. I'm hoping that what happens going forward is that this is some sort of strategic confidentiality thing that Mike has alluded to. We can't tell you now. It's a pivotal moment. And then at some point they kind of just reveal the cars. They kind of just tell us like, okay, this is what Iron is gonna be in the next 10 years. Like this is the exact vision. And then they just stop with this like ******** of like hiding everything. And they at least like keep us updated on what the business model is. 'Cause like, we don't know what... There's no clarity on what the actual business model is right now. Like everyone's just guessing. And I just hope that they reveal that to us at some point when it's strategically advantageous. And then they kind of just like prioritize keeping us updated on that mission and whether it's on track. Because at some point you have to. We can't just have these charades where like you're giving out these exorbitant packages and no one knows Why are we paying you this much without a performance target? So I hope that investor relations call that you have is kind of revealing to that, or they have some sort of announcement at some point, because what is the damages of this if this prolongs, right? Like, what if our share price tanks so badly and we can't raise capital at a favorable rate and we're tapping the ATM at $20? This is real at this point, and we know that Iron is conscious of this. It seems like whenever the stock dips too much, they give us something to bring it back up. I think this one was a curveball. I don't think they anticipated this to be a massive problem for them, because these compensation plans aren't announced on Twitter or whatever. They're done in a filing, and then they probably underestimated how obsessed we are with this stock and it just kind of blew up.

Frans Bakker: No, no, I don't think so. I think they knew this was going to be received the way it did. Obviously, there is the Short term optics are completely irrelevant for Iron, and they've time and time confirmed that they don't really care about the short term mindset, whatever that is, share price related or optics related. I mean, it's just it's not relevant for them. And they keep pointing at five years into the future, as in that's what we're building. look into the future, And that's also why I said, well, I want to look at something with you if you're going to tell me what's it going to be. And I called it colonizing Mars before to Mike Alfred, because I think that we need our own kind of like civilization on Mars kind of a future plan, like as a vision of what we want to establish or want to build. And I think that's lacking in the whole Iron 2031 story that, yeah, we know they are, they plan to make 5 gigawatts of compute with NVIDIA, but it's not really clear, you know, with who are the customers, what is going to be the use case of the compute. I mean, obviously they don't really know to that degree, but because It is so wildly not talked about, people just start to fill in the blanks themselves, And that leads to these weird speculation and discussions. And, I think personally it was pretty brazen to announce this grant. That's just the word I'm going to label it as. they very well know that the current information that's out there is not sufficient enough to just, say, just brush this off as, okay, it's just a grant and we are happy to have the CEOs here for another six years. I mean, of course, I'm happy that they are going to stick around for six years, but they would have stayed around anyway. without this grant. I mean, let's be honest, they have so much shares. It's in their best interest to stay and perform because who else can make this company $200 billion or more but Dan and will, right? I mean, it's pretty clear that they think that they are the only ones that they can really do it. That's also why the board has granted them this amount of shares, because obviously, they are the chosen 2 and they are the founders. And so, I don't know what to tell you, but it is clear to me that something is coming. Because if there isn't, I think the best way to approach this is from the other point of view, like why would they do it if not for, so the same way that they gave these or promised these investment rights to Nvidia for delivery of GPUs, would Nvidia agree to that if not being privy to certain information that would make the stock price, you know, 100% impossible to be below $70 before the end of 2030 or 2031. So I think this is, this package is just, the current package is just another circumstantial but highly weighted kind of announcement that you can look at it and it's extremely polarizing, right? Either it's criminal and there's nothing coming and they can slack, that's the one view that's been articulated too much on X in the last couple of days. Or it's the other one where they are being locked in and the six years is, you know, the amount of time that we should be grateful for having them around because what they are going to do next is going to blow our minds. And I just think that we should give them a chance to prove that. I have not really been shown my opinion on this grant package at all. I mean, like I said, it's just the order of things don't really mean that it's good or bad. It just means that this is the order that they announced it as. And, you know, we've all, on Twitter, we've all been very vocal about their capitalizing on momentum or better, the lack thereof. Iron has never been like great at, you know, keeping the momentum. It's always been, oh, we have a green week and then the next week they announce something that is like, clumsy or, negative, or it's just getting completely quiet and peers are announcing all kinds of stuff and then irons being forgotten and, the stock goes down again. It's just, yeah, they've not been particularly great, at managing their stock to remain up or keep the momentum. And, there are, then there is the 1st way to look at it is, but does it really matter in the short term if you are not having short-term options? But it's also just, it just, your stock is your, is your business card, right? I mean, to a certain extent, I think if you work at Iron as a VP and you're talking about your stock at your company and people look it up on Google and they see like this chart and they're like, what happened here? You know, I mean, it's just, I mean, there are a lot of stocks that have very weird charts, but the Iron chart is pretty extreme to all kinds of degrees like up and down and the time in what time frame and it's like I'm it's not like a charge you would proudly share to anyone. I mean, obviously on a 12 month trailing basis is still it looks OK, but I mean, yeah, it's not the kind of volatility that you would wish upon anyone. to be honest. And that's also why a lot of institutional shareholders just don't want to touch this stock. And my fear has been in the past that I told you, some of you, as I feared that some institutional investors will just point blank never touch iron ever again because of how this stock is behaving, you know? This talk can get people fired at hedge funds. I mean, it's just, it rocks you like out of nowhere to the extent that you think like the world has ended. Like we, as an Iran investor, you see Iran being invaded almost twice a month, you know, if you look at the stock. And it's just, you know, I don't know, they can say, we need to look into the future five-year mindset and don't buy short-term options. But to a certain extent, you need to keep the hygiene of your stock in order. And I don't know, it's just we are breaking all kinds of records with this stock. And I think now is the time for them to take the stock a little bit more serious. And.

Frem: Yeah, I agree with you. I agree with you. I just think it's this idea that we need to retain Dan Will by paying them this much is asinine. Like, were they ever going to leave? Like, really? They're going to leave the company that they spent eight years building? And it's not like the power goes with them. The power stays with Iron Limited, right? So it's not like they can just start another Iron, right? So And you say it's polarizing. I get it. And we're trying to defend it as much as possible. But even the defense is more like, oh, yeah, but they have vested interests. They want the share price to also go up. It's like, yes, that's true, but what happens on the downside? We haven't even processed that yet. What I'm worried about is I'm here for the long term. What I'm more concerned about are the things that you mentioned, like if institutions don't want to touch it, yeah, we can get to a point where revenue starts coming and hitting the P&L, and then institutions will come, but you have to realize there's a cost of generating revenue, and that cost is raising capital via the 6 billion ATM. What happens if the stock tanks to 20 bucks, and we're diluting at twice the rate? This is an operational problem now, because your stock is a financial instrument to get you there. It's the reason why Tesla and these overvalued stocks like Palantir can actually grow revenue and grow into the evaluations. It's why Bill Ackman said that it sounds simple, but when a stock goes up, the company is valuable in line with the stock. It sounds dumb, but what he's saying is that When your market cap is high, you can actually raise capital at a more favorable rate, and then you can actually grow into that position, into that market cap even better. What happens when the stock-- again, I do feel we can sit here and pretend that they're perfect and have this perfect view of the world and we should trust their five-year-long vision, but we also have to understand that people make mistakes too. it was only seven months ago, eight months ago, where they said software was not important. And then we made an acquisition of Mirantis. And now we're hiring software people. Like, people can't.

Frans Bakker: Yeah, but you shouldn't be looking at every little word that Dan says as a... Oh, no, I mean, I mean, the AI world is ever-changing. It's not standing still. It's not waiting for everyone, for anyone. Of course, there is margin in software, even in the age of LLMs building software. There is something to capture in this part of the chain. And, you know, you should look at it like this. If Iron is now interested in, you know, adding, going up the stack from a bottom-up approach, that means that their foundation, their bottom, is pretty certain and secure. And I think, I'm a big believer in vertical integration from the ground up. If they have the time and resources to now add software step by step on top, that means that the bottom part is solid, it's taken care of. And the main concern I have with some of our peers is that they still need to prove that they can build, that they can acquire power at scale. I mean, announcing that you have an agreement with Bloom Energy is not the same as having operational power running through your GPUs. I mean, there is still execution risk. And, you know, I think that it just comes down to the belief that the top down approach is inferior to the bottom-up approach. And I will die on that hill until I'm proven wrong. And I am not proven wrong just because a peer has run 300% in six months because they capitalized on an existing data center and a co-location or a co-location site that already existed. The challenge is going to be in the coming 18 to 24 months where power needs to be constructed. It needs to be built from scratch into GPUs. And as far as I'm aware, Iron is one of the first neo-clouds, if not the first one that's going to deliver this much capacity in Horizon in this short period of time. I think, of course, Oracle and Stargate is another example, but That there are a lot of things we can say about that as well. It was not the project that it was supposed to be, but we are up there with in terms of construction, and I think that it's just a normal business development that they're now looking into adding some orchestration, some Kubernetes, and now they have Mirantis. You know, there can be a lot of reasons why they acquired Mirantis. I mean, there's a lot of people that say that Jensen was behind this. At the end of the day, Jensen probably likes Iron a lot for their amount of grid-connected power. And to be better friends or best friends with Jensen, if Jensen said you need to add orchestration to your stack, obviously, Dan is not going to tell Jensen, yes, sorry, in an earnings call in February, I said that software is a commodity, so we can't do this. What will all the people on X think of me that I said this? is not important. I mean, things change and not, I don't think we should, you know, make Dan never be able to say anything ever again by following him every word that he says. And I think that this is the same thing as what he said about with Nvidia, you don't need you don't need a sales team. You know, it's being completely blown out of proportions. Obviously, it doesn't mean that you don't really don't need a sales team at all. It's just people just want to take everything literally just to find a weakness, just to find a narrative and influence how the sentiment is around the company. And I think it's just a little bit childish. So I hope that with these spaces and with the research that we do, we can talk more to a factual approach and don't let these noises, cloud, cloud's judgment. So, and with regards to tapping the ATM at $20, I think that's a, it's a dramatic take. And I think it's in line with some of your dramatic takes from earlier this weekend about the grants. I mean, it's, I don't want to, you know, throw shade on you, but it is kind of dramatic to expect Iron to tap the ATM at $20 going forward from here because Obviously, they would not award themselves this grant if there was not something coming. I mean, regardless of what you think of it, if it was too much or too easy just to stay around, it doesn't matter. They are getting this because there is something that will bring the stock up and it's going to be a lot more. Those shares are going to be valued a lot more by the time that they are Vest, they're vested and able to get sold by the founders because that's in their best interest as well. So I think I think it's too dramatic. It's an overblown bear case to think about ATMing at $20. It's just not really. I think that's dismissing. the fact that everything that they've built so far and we know how the P&L is going to look next year. And we're only like, we're less than six months from 2027, you know. There's just no way that they're going to have extremely poor earnings next year. There's literally no way because In the absolute worst of the worst case, if Iron would somehow lose the Microsoft contract, they own the data centers and the GPUs and they can rent them out at much higher prices. I know that it will be a big hit on stock. We will probably need to find money from somewhere to cover some GPU finance that's been locked in on the back of the Microsoft contract. But if you follow the construction and what part of the energization they are, what part of the delivery of the buildings they are, they're going to monetize these GPUs. If Microsoft would somehow not take it, that means that someone else will. I mean, there will not be any GPU idle in 2027. It's just not going to happen. And so this is also a very dramatic case. I know Microsoft's not going to cancel because Microsoft wants these GPUs at these low prices because it's great for them, obviously. But what we know is that these earnings are going to come. And we're just in the waiting room for big earnings. And everything that happens in the intermediate time is just noise. I mean, respectfully, this all these negatives that they're front loading in 2026, we will be completely forgotten about them come 12 months from now, because you're going to have beautiful earnings in May 2027, and everyone's going to be happy, and we won't talk about this anymore. And I know that it's also, you know, the haters will say, yeah, that's exactly why they announced it now, so people will forget about it. Yeah, well, I mean, Unfortunately, this is the cost of doing business with the Roberts Brothers. If you want these guys to run your company, they are going to take a big chunk of the stock. They're going to be committed to the company for a long period of time. I don't even want to go into if it's fair or not. Apparently, Agrippa thinks it's not fair, but it's smart or it's, I don't know. But what matters to me is I just want to see solid earnings next year. And I know that August is not going to be pretty. November is going to be much, much better, but we're not there yet. And next year is going to start to look really good. Yeah, so I'm probably ranting all over the place.

Frem: Yeah, no, I didn't mean to set you off, Franz. I think the word I used wrongly there is mistake. I don't think that's the right word. I think it's just being able to see around the corners. I think you can say software is absolutely not a mistake, right? It's a changing landscape, perhaps being able to see around the corners and seeing whether that's that could have been anticipated. That's a different story. I do think you're right that there is no way that they can see around the corners of what this news of the compensation would mean. It is, I mean, I've told many, there's so many people have DMed me going, Oh man, are we going to 20? Are we going to 15? I said, you know, I've been telling them there's no chance. Like, they're just not gonna, they're just not gonna let it happen. And in that is a seed of, I guess, hope that they are front-loading this in anticipation of something else that's positive to come. That's why I'm holding this. So yeah, I think, They are definitely sitting around the corners on this one. And I'm just waiting to see what that is. I want to know. I'm just trying to guess with the best I can of what is possible. But you are right. At the end of the day, we don't have to guess anymore about deals and all that when we get to November and revenue starts hitting the bottom line, which is only about a few months away, right? So we just kind of have to survive until then and just hopefully the market and some good news along the way gets us to that part where the flywheel starts spinning. And then we don't have to guess anymore. This should just be an easy stock to hold. Like Franz, you have sort of speculated in your posts of what are the positive things that are likely to come. And you've sort of said that, you know, horizon delivery, in terms of the deal, like you don't have any ideas of what that could be, right? It's just kind of, they will contract it out. But yeah, I'm just sharing sentiment that I think everyone, I feel like most people I know in the stock, they know this flywheel is going to spin and the revenue is going to come. It's just a matter of like, are we going to get there, right? Like, are we going to survive until then? I'm positive we will. Yeah, that's just my take. I don't think the Roberts Brothers have made any mistakes or they haven't, how would I say, done anything egregious? I think it's just more seeing around the corners. I don't know. Maybe it could have done better. Potentially, if we foresaw that GPUs would be a constraint, maybe we could have foresee that Jensen would impose a software requirement at some point. I don't know, right? No one's perfect. I'm just saying that hopefully, obviously with their financing background, right, with their background and that being their strength, they know what this will mean to the stock and something they're going to have sort of a cut up their sleeve for that. I'm just excited to hear what it is. From what I gauge, it's not something in Australia. Hopefully, like an extension of the Microsoft deal, that should be good enough. But yeah, just want to clarify that and obviously not set anyone off. I'm still in the stock. I believe in them. If this is the cost of doing business, fine, fair. But yeah, hopefully they have something to just kind of address this and, you know, put the haters to bed in terms of like why it's not performance obligated or maybe there's a deeper reason for it. I don't know. But yeah, it'd be good to see Franz if you're able to get that out of them in the next call.

Frans Bakker: Yeah, so I haven't made an exact day and time yet for the call, but I'll I'll probably have some updates later in the week if it does happen. So a lot of speculation. Obviously, we have the race summit coming up. I am still very bullish. I know I made that post where I gave out all the negatives, but it was like mostly exaggerated to, you know, draw some attention to people thinking that August earnings are just another part of the earnings. I think it's been proven in the past that the August earnings are typically the worst of the year in terms of the one-offs and stuff like that. So I just thought it would be, you know, and of course there was some sentiments for me in there. I'm also frustrated with the way that it's been, you know, going this year. Year to date, it's been pathetic, especially compared to peers. So, I expected better, but it's just not Aaron's time yet. I think the second-half of this year will be a lot better. And of course, like I said, next year we will print. So I hope the market will front run our 2027 P&L in the second-half of this year. That's just how how I take it now from here. So without dwelling further on this.

Frem: Just before you move on, there's an interesting theory in the comments. Franz, can I just get your quick take on it? One guy said, maybe this is, hang on, let me just, could this be client's request to have 100% dedication that CEO stays on boards for X amount of years? That's the last thing I'll ask of you on this.

Frans Bakker: I don't know. I mean, I don't know if that is typically a client requesting. I honestly don't think that is the reason behind this grant. I mean, there are many ways you can come to this, to a conclusion around why and why now, but I don't know. It seems, they could have also done this differently. If Dan and Will needed to stay on, if that was the main goal, I think there were, there would have been different opportunity, different ways to do that. I don't think that this particular package is the most fitting to that. I mean, It's not like they need to be persuaded to stay around in exchange for shares. So I don't know. Maybe. But it doesn't seem very likely, honestly. So yeah, let's move on from this thing. Just to summarize, I think the market is going to forget about these grants. The earnings will improve. August is not the time yet, but it's going to be better than the previous two, obviously, at least in terms of revenue and operating margin. But other than that, don't quote me. I don't think it's going to be great in terms of the costs and expenses. We will grow into those. That's my prediction. So yeah, we have Rays coming up. It's going to be an interesting week. There are a couple of people going to Rays and also going to the private event that Mirantis and Nvidia and Iron have together, like the happy hour thing. So it's going to be interesting to see if some of the regular faces on Twitter are going to come back with some pictures, maybe some conversations with Mirantis people or maybe even Iron people. So, yeah, do I expect any announcement? Like, I don't really hold my breath for it. Typically, these things have a very high, you know, disappointment factor. A very, people anticipate something and then nothing happens. I think we should just take as much information from these days and let's see if we can find some nuggets in what they're talking about. At least I expect all the content to be recorded some way or another. And that's typically been the issue that there was like a keynote or a panel where Kent would be participating and then we would never be able to see it. I think that will not be the issue this time. Yeah, and other than that, we are, there's not really much more to say that I expect right now outside of, these calls that we have scheduled with IR. not really scheduled, just, it's going to be later this week. So, Other than that, I don't really have anything today. I mean, stock is up overnight, which is not a real surprise because most stocks are up overnight. Most stocks were also down on Thursday, by the way. It's not like Iron was particularly the worst performer. I think Cipher did worse. You know, you can say a lot about these negative things around Iron, but Even the iron-specific negatives are usually not the reason we go down. Usually, iron just goes down because something outside of iron happens, like, you know, a bomb is being or rockets being launched or Trump tweets something or, you know, Meta announces something. It's usually external. And then Iron as a high beta is usually the one that reacts the most dramatic, unfortunately. But I think it's really a countdown until the fundamentals are going to play a bigger role again. And yeah, I hope that it's, you know, that we're going to front run some of that in 2026. So other than that, I don't really have anything.

Frem: Franz, we got a guy called Ghosty. He wants to ask a question regarding Iron. I'm not a co-host, wondering if you want to bring him up. Ghosty, are you there? We can't hear you if you're talking.

Frans Bakker: Oh, and he ghosted us.

Frem: I mean, what do you think is the reason for Aaron going hard and like trying to be the headline sponsor for Raise? Like, what do you hear me now? Yeah, okay, yeah, we hear you, yeah.

Gosi: Yeah, so I mean, I heard you guys talk about the iron's margins coming up, but I had a question. I mean, I know a lot of revenue from iron comes from Bitcoin mining still. So what if Bitcoin price goes really down? Wouldn't that impact the margins moving forward at least midterm?

Frans Bakker: Well, currently iron is mining with a roughly I think it's even less than 200 megawatts. So it's been substantially brought down from their 50 exahash that they had by the end of June of last year. I haven't looked at the most recent prints, but they're mining less than four Bitcoin a day now. So it's I think the results in August is going to show that they have had done more AI revenue in the quarter than Bitcoin revenue. So I think that the Bitcoin price in Iron's fourth quarter, which ended on June 30, was not that much better or worse than the Bitcoin price in the quarter previous to that. So I think it's mostly going to show higher operating margins due to a higher chunk of AI revenue in the total revenue. So the margins are going to significantly improve because they're going to have a lot less electricity cost as a cost of the revenue. So it's actually going to improve significantly and it's going to keep improving throughout the rest of this year because they're going to bring down the hash rates. They're taking off line these miners. They're actually demolishing some of these buildings soon. And it's funnily enough, it's going to improve their margins. So it's like we take a one-off hit on the displacement of this stuff and they're going to probably rebalance the estimated fair value of the miners and then sell.

Gosi: No, no, no, no, France. No, I mean, I'm bullish on Iron. I mean, the thing is like the first run, the first like 10x run it had last year, basically I missed that. And a lot of things on the chart I pointed out like we're going to go much lower if you even take Iron versus the NDX, which is the NASDAQ. I mean, I don't know if you guys are charted or not, but I mean, showing a lot of different factors. There's a big likelihood we go down. There's a gap. There's a gap at 25. So that's my first target. I mean, I have been posting why I think that because I'm long-term bullish on iron, but on the mid-time frame, like we're going probably down.

Frans Bakker: Yeah, now I remember it. Didn't you buy those puts last year on iron? Wasn't that you?

Gosi: No, I never said I bought puts, but I was, I said I was bearish or limited upside.

Frans Bakker: Okay, well, I'm not a chartist. I don't even know if that's a real thing, but I do think that we have most likely seen the worst of the stock downtrend, the downturn of the stock for this particular part of the year. Seasonally, iron is typically strong over the summer. Last year, we really made a comeback from August till October, I think. And then of course it was to sell the news that when we announced the Microsoft contract. But I mean, as a chartist, you probably have a different look at it, but I believe in seasonality more than in squiggly lines. No disrespect. But what I just said is that they're going to show better earnings, relative better earnings. They're going to show better margins. that are going to show quarter over quarter AI revenue growth that's going to be better than what they did before. So the fundamentals are improving and seasonally it's also, you know, if that's a real thing, then it's in our favor. So I don't think, and even to give you some response on the charts, There are also people that say it is massively, massively oversold on the RSI and whatever.

Gosi: I understand and I don't want to, I don't want to talk, I don't want to sound cocky, but a lot of my predictions, I'm always, I'm right a lot. Let's put it that way. And I combine technical analysis and fundamental analysis as much as I can. You know, I don't fully deep dive on any. every ******* ticker. But if you combine fundamentals, like, for example, a guy like you, you can be oversold on the RSI, but you can still go down a lot. And I have many different examples on that, on many different tickers. So it depends how you read the indicators, too.

Frans Bakker: Okay, well, I guess we're going to find out. I'm bullish. I think we are.

Gosi: No, no, sorry to call you off because like what I normally tell people, I'm bullish on iron too. I'm not saying I'm very midterm, but when I hold a big long term position that I already have one year more capital gains, what I do is I hedge because if I were you guys like you're not going to sell the position, you believe in the position, but you could hedge to a downside in case what I'm saying is true. That's what I'm trying to say, basically.

Frans Bakker: Yeah. We have a permabool here, so let's hear Bitcoin AI guy respond to you.

BitcoinAIGuy: Yeah, thanks. Hey, adults are talking now, Gosi. Thank you. Yeah, so now that that ****** is done speaking, I think we should focus on making money. And if you want to talk about charts, Let's look at the iron Nibius chart, iron denominated by Nibius or Nubius. It's at a bottom, right? Like, you know, they did a good job pumping that stock. And I think it's now time for the rotation, right? I mean, I think this is a screaming buy, my opinion, And I am a permeable because I think the thesis is getting better, right? I mean, when I made my thesis in 2022, it was just Bitcoin operating leverage, right? And velocity of the operating revenues, right? And that was all tied to Bitcoin. Now it's AI, and this is like a much bigger story. And I had no idea that this would get this far. But the sentiment, which is also some serious alpha, everyone's capitulating, right? It feels like it's $10, $7 again. And I'm looking at the ticker, I'm like, I'm up, dude. I feel pretty good. But my bias is that I got in very early. Here's some alpha serenity. you know, they them unblocked me a few days ago and now it's bullposting iron, right? I mean, I think there's something there. I think the tourists are coming back, right? Typically when Ghosty starts talking on these faces and starts tweeting about iron, that marks the bottom, right? So I read these sentiment cues, but I'm focused on the, you know, the three, four, five year vision, right? And I think what is actually valuable is not doing analysis, right? I think you should ****** max all the way in the stock. You should not play with options. You should have a long-term thesis and size that position in a manner where if you win, you win big. And if it doesn't do anything for 12 to 18 months, it's not going to affect you. Right. And I think that's the way you win with this particular equity. That is financial advice for Ghost, because I'm sure it didn't money any years.

Gosi: OK, now you spoke, now it's my turn. And I just, you told me to look up about the Nivius Iron chart, right? I actually put on the comments the analysis I did comparing Nivius versus Iron. I did it back in February and already posted on the comments and you can see how Nevios really outperform Iron. So you have that fact there. Go see it. I already posted it.

BitcoinAIGuy: Yeah. So so thanks for for interrupting.

Gosi: No, no, I'm not interrupting. I'm just clearly stating facts.

BitcoinAIGuy: All right, let let let the adults talk. Go see. Let the adults talk. So, you know, the transsexual unblocked me a couple of days ago. and is now bullposting IRED. So I think there's some serious alpha there with respect to the compensation plan. I mean, personally, like the thesis hasn't changed, right? I think there's another 10x year over the next three to five years. And I'm not a communist, right? Like, I want these people to make money. I'm going to be making money, right? Hopefully Franz makes some money, go see, you know, once he finishes his shift at Taco Bell, he might get some money too. He bought the top, so he's going to make some money at some point. But it's a longer-term play, right? I think if you get two attachments to weeds, what's going to happen next quarter? Who cares about next quarter? I don't care about the next three, four quarters. I care about the next three to five years, right? And there's going to be stocks that outperform in the short term. There's going to be at least a dozen stocks that are not related to neoclouds that are gonna run 300%. And then some guy's gonna be like, I told you so, right? Iron's a ******* dog. Like, it's a management enrichment scheme. It's a dilution dog. You should just dump it. But I, you know, I truly believe this is gonna be a trillion dollar company, but it's not gonna happen overnight. And yeah, I mean, it's hard not to be bullish, but you have to get to a state of mind to where, you know, you're gonna see your bags get cut in half multiple times a year, maybe once a quarter, right? And if it doesn't happen once a quarter, you're gonna be like, oh damn, I'm feeling hot right now. Like, that's just the nature of a high volatile equity. And it's funny because when the stock was $2, $3, $4, $5, I was like, once the stock 10x is, we're going to be cruising. It's 10x and it's the same stock. It's behaving like it's still a single dollar stock. Maybe that's different once there's billions of dollars in revenues per quarter. But why would that change, right? I mean, we're in the hottest sector. This is an asset that's growing 69 to 100% per year CAGR over the next three to five years with my napkin math, why would the volatility stop? I think we're going to see more capitulation. We're going to see more and more coverage as the stock goes up. And we're going to see those guys hold spaces. It's not going to be Franz, if Franz is stubborn like myself. But there's going to be some other new people, right? Like maybe it's from, like maybe we have to sacrifice from, right, to get to the next 10x, right? And I think we're all willing to make that sacrifice, you know? And every time the stock goes down 50% or 40%, you're going to see Ghosty up on stage because that's the only time he has confidence to speak. He's like, I told you so, I drew a line, it's going down to 20, right? There's a gap. Bro, you have a gap in your head, bro. Like, this is a $550 stock, and the guac candles are loading, and you're just too focused on the negative, but you should be focused on the next ten x. And we're delivering the alpha to you, Ghosty, and you should be taking notes, my son. Thank you.

Frem: Yeah, I think you're a bit bearish, Bitcoin AI guy, because you keep saying 550 like it's your exit price, but iron's not even a trillion dollar market cap at that point. So I think you're going to have to wait a bit.

BitcoinAIGuy: I look at this as a 10x at a time, right? Yeah, I get it. It's a stepwise type of thing. I think the next move could be a 3 to 4x, right? Or a major move is like a you know, four to five x, five to 10 x, right? But that's how you have to think about the risk reward. I mean, there are people that like are in my DMs and they're like, dude, the key to the stock is when it hits 55 to 60, you get, you get to sell it. And when it hits 40, you buy it. I'm like, dude, you're ******* genius. Like, that's going to work every single time, right? Absolutely not. It's like not how I think.

Gosi: The Qs went parabolic, the NASDAQ went parabolic, and Iron didn't make a new all-time high. Do you understand how to read charts or you're *******? You're not Mike Alfred, bro. Chill the **** down.

Frem: All right, I think it's time to move on, Franz. Just one, there's a question in the chat just before Nick talks. I want to hear from Nick. There's a question basically asking from Ricky. When the new 50K GPUs go online, will Iron rent them to multiple different companies, or are they looking for one bigger long-term deals? At this point, do we know exactly how many GPUs are online? So we kind of alluded to this, like we're kind of like guessing on like who the next, what's the business model, because it's not really clear right now, like what Iron's trying to do. Like, are we going to go and go after all these, you know, big single entity vendors like Anthropic, Google, Amazon, or we're trying to be a hyperscale ourselves. One thing I'll point everyone's attention to is a really important LinkedIn post by Ken Bees, our new Chief Product Officer. I shared the posts on one of the posts I made last night, but he basically spells it out like what they're going for. I'll just like read the one paragraph that gives it out and then I'll hand it over. He basically says, so that is why I'm so excited about what we are building at the next layer of the stack. By unifying Iron's physical ownership with our platform and services layer powered by our open coordinate AI super control plane, we are delivering a secure, automated and vendor neutral cloud platform built for frontier and ever expanding AI workloads. So I'm not sure if you were supposed to post that, but it's pretty revealing of sort of where they see themselves going. And hopefully that sort of gives some color onto that question that you have. And in terms of the short term, we don't know who it's going to be, but it seems like that's the long-term vision just from what he posted.

Frans Bakker: Yeah, very interesting. Indeed, those two new hires. Also the guy who does the who is now the chief development officer, I guess he's going to be the boss of our a regular VP or yeah, I think he's VP now who does the Kiowa I just have a black eye. I forgot his name. Anyway, it's interesting to read those LinkedIn posts where they just talk shop. I would recommend to follow them on that platform. It's interesting to me that these companies like Iron, they still believe that LinkedIn is the platform that has any relevance in the business world. I mean, I know that it's like your the way to meet people in terms of contact each other for the first time when you're you go through your business profile on LinkedIn. But like some of these people just treat that like Twitter and then they if you see, for example, Iron posting on LinkedIn, they get like 112 likes and eight comments and then if you see them on on Twitter you know it's like 10 times as much or more it's just you know this it's almost like iron has a policy where they are where they tell the people that if you work here you cannot post on Twitter you can only use LinkedIn or something it's really weird but anyway it doesn't really matter let's go to Nick Before I close the space, I want to hear Nick. Nick, how are you?

Nick: Good, man. Well, well, well, Bitcoin AI guy. We ended up in the space anyways, bro, after the local sports ball match here. But I guess there's just a lot that I kind of want to dissect for you guys. Just give you my opinion. I guess like the first thing, really sad to lose Butcher because I think he's like a really smart guy and really good analyst. But, you know, like. I never sized him up to be a great trader, you know, so with his options and things like that, we talked about some of his positions and you really didn't do so well with him. So I'm, you know, I hope he does really well. I look forward to his coverage in Wolf. Obviously, you know, from the same hometown, so going to miss him, but we'll still keep in touch and communicate, I'm sure. The second thing is, like, I'm just going to follow up with Bitcoin AI guy said, like, Guys, you have to look at this as a really long-term play. And I think like modern society is just kind of like smoked everybody's dopamine, right? Where it's point and click and scroll reels and scroll X and nobody has the patience for really getting wealthy investing. And it takes time, right? And if you're in high beta names, like we are here, particularly in Hiren, You got to have a lot of patience. And like the guys that were around when we went from 15 down to six, then back to 15, then down to five, I mean, try taking like a 70% drawdown, like multiple times a year, because that's what it took to get here for all the early investors. And so we could come up with a million excuses as to why the price action did what it did during those times. But plain and simple, I mean, it's just the nature of the volatility of the equity that we're in. And at every turn, the smartest people in the room, meaning, you know, the funds and the best traders in the world are going to try to side op you out of your shares. And if you think that news is coming at a particular time and it's just a coincidence, I got news for you, it's not right. All this all this is coordinated behind the scenes. So that's kind of the first thing that I would say to those who need to stomach the volatility. I mean, you just got to hold on, right? And if you're overexposed or over levered or you have expiring options or any of these things, it can whipsaw you out of your position. And it's going to be at the cost of building long term wealth, you know, for yourself and your family. And so the second part of this is like. does the fundamental thesis remain intact throughout the investment? And the answer for me, for Iran, obviously, is yes, I'm still here. Franz is still here. You know, a lot of the guys that we started with earlier are still here. And I know that sentiment was already low, right, because of the declining share price and a multitude different things. And then this pay package hit. But, you know, there's reasons to argue that the pay package is egregious, but We really don't know, guys. Like, you know, there's a board of directors sitting there and they see everything and we don't see everything, right? So, you know, does Jensen Wong only want to work with Dan? Is there particular vendors that love these guys? Do they want to get locked in? I, you know, I read, I read the article that was put out this week on the Substack. Jesus, I can't remember his ******* name. The I can't remember his name. What was it?

Frem: Agrippa.

Nick: Yeah, Agrippa. Yeah, I'm sorry, man. It's getting late over here. Yeah, I read Agrippa's substack. I'm a subscriber to it, but I also read the comp article and I thought it was really well nuanced, right? But I think the one thing that it left out is like even as well nuanced as it was and even taking into taking into account the gap standards and how it would be accounted for and how it would hit the P&L and how it would affect the trajectory of the company long term. If you're a long term investor, it still lacked the insider knowledge as to why they did what they did. And, you know, I think with time, that's going to be that's going to be something that comes to the surface and reveals itself because it's like, It seems like Iron always does this. This is their communication skill or their communication style, I'd say, not even a skill. So they just keep everything close to their chest and they make these decisions and retail gets all up in arms about them. And the share price goes berserk one way or another, and then it overcorrects or whatever it is. And then in hindsight, we see the reasoning behind the decision. And that's something that you just kind of have to trust in the vision of the company and the long-term thesis. And so nothing's really changed for me. this is like, we're so far ahead of where we started that it doesn't really matter for me anymore, right? This is just, it's just going to sit in my brokerage account and just multiply for the next, whatever it takes, 2, three, 4, five years until the fundamental thesis no longer holds true. But in the meantime, all of this is just noise, right? And so if you're not a trader and Very few people are good traders, right? Like most traders lose money. It doesn't matter if they're swing traders or short term traders. Like all these guys you see posting charts on exit may go this way, it may go that way, may go up, may go down. Like I'd like them to compare their portfolios and their their PNLs and their portfolios to like, you know, me, Franz, Bitcoin AI guy over the last 24 to 36 months. And I guarantee you 99.9% of them probably aren't matching. So the point in saying all that, and sorry if I'm a little long-winded, is like being whipped around by price action is just par for the course, right? And you guys got to think of this as a long-term investment, which it is. The core thesis hasn't changed, and that's really it. I mean, these guys are better analysts than I am, so I listen to them in that regard. But we're hanging out and look forward to 5, 10x over the next two to three years.

Frans Bakker: Thank you, Nick. Well said. So yeah, I agree. We are going to do fine. There's so much that's different now from a year ago. And I just want to make people understand that as soon as they deliver Horizon 1, And to the best of my knowledge, it's going to happen this month. They are going to copy paste this in various shapes across all their data center sites. You know, of course, we're going to see the retrofitting being done over the coming 18 months. I don't think it's going to take 18 months, to be honest. They will finish. McKenzie this year, and a part of Childress will be done this year. The rest will be done in the first half of next year. But after that, it's just going to be new builds. And delivering Horizon 1 is going to be the first AI data center that they've built from scratch with liquid cooling and everything included. So if you stick around, it's just a matter of time. you know, until the stock is going to reflect the fundamentals. And you can try to time that and wait it out, expect some kind of gap to be filled at $24 or $25. I don't know how you want to approach your investments, but what I will tell you is that we are closer to, you know, the fundamentals really making a dent in the in the P&L than not. I mean, it's a completely different world from 12 months ago. And now we are, you know, we are 10 months until May earnings in 2027, which is going to be a $1 billion plus AI revenue quarter. As far as I'm concerned, that's still on the table. So within now and 10 months, it's up to you to decide how much you want to allocate, if any, how you want to feel about grants packages and SGNA and whatever share-based compensation they're going to put out there, and how bad their comps are. But one thing is for sure, for certain, and it's that they are going to print AI revenue next year. So You can try to time it or you can stick around and add on dips or don't add and just hold or just watch on the sidelines. I know that people have sold over last week, you know, the disclosures from Iron. A lot of people are angry or impatient or sad or a combination. But You know, I've been here since 2023. I will certainly be here in 2027 as well. So I will keep you all informed, up to date. And, you know, I still believe we are seeing the worst sentiments, you know, behind us. I think it's not going to get much worse than this, to be honest. Even with the August earnings not being great, I think that the worst is probably behind us. So yeah, that's all for me today. It's a lot of speculation, a lot of estimates and a lot of personal guesswork, but I think we are in a good spot. And I would really, I'm looking forward to next week's space when we have raised behind us and hopefully some good calls with investor relations. Let's build on that going forward. I'm going to close the space now. So I want to thank everyone for joining. It's a bit of a messy space today, but that's what you get with the open mic. You know, I didn't really have any schedule for topics. I think it was good. We had a little showdown between Bitcoin AI guy and Ghosty because, you know, it's a bit of a relief for the sentiments. You know, everyone's been very on edge with this grunting and a bit of a bit of personal, you know, a little discussion or fight or whatever you want to call it was, I think it was a good relief for the sentiment. So thanks, everyone, and I'll see you next week.