Huge IREN GPU & ATM Update + BTBT, FUFU, CLSK & CORZ News!

Hey guys welcome welcome back to the channel McNally money the official home of power analysis

a big episode in store for you today courtesy of iron with news out last night in relation to

a massive GPU purchase order and an updated ATM program we're going to be discussing that in

addition to our first production reports from the month of February in today's episode before

we get into it take a second smash a like button guys big help to myself in the channel Anthony

absolutely loves it if you're not already subscribed McNally money feel free to join and let us

know in the comment section below what you thought about iron's news last night and if you're

buying or selling based on that press release with that being said let's get into today's video

okay guys Thursday afternoon this is going to be an interesting episode for you some big news out

from iron last night in relation to their ATM program and a significant GPU purchase that's

going to be the focal point of discussion but before we get to it Anthony we did want to give an

update on both Bitcoin price and the miners both of which unfortunately in the red today

yeah Bitcoin price you know pull back a little bit but they had a massive day of

stay probably one of the biggest rises in a day since I've been following Bitcoin to my

you know it's languishing in the sort of like 66,000 range and managed to get all the way up to

74,000 so you know having a big big rise yesterday probably outplayed some of the miners yesterday

in terms of increase there and that's unusual because Bitcoin's not as volatile as the mining

stocks so if you say Bitcoin has volatility of around about 3% you could argue the mining stocks

are probably closer to 6% volatility so maybe twice as volatile as a Bitcoin price and we didn't

see that yesterday we saw growth in the mining stocks but not as big as as the downfall was

on the previous day so pull back a Bitcoin price today also a pullback on the on the stocks as well

and apart from bit zeros he was having you know having a good day but experience with you

a bit of a bit of a red day today and not to be expected I mean yesterday was a really really

you know as I say good day recovery there and and the market's just seeing it a bit of a

downturn if we look at the heat map so obviously turned a lot more of those cells from white and

green to actual red now you can see across the board there majority of cells for those various

five dates are in the actual in the actual red we're still seeing strong performance from a year

point of view from those top six and it would take something significant for that to get a lot

lower but you can see quite a few minus now struggling with negative figures across all five

periods and that's that's that's that's what can happen it's you know we've had a bit of a

topsy-turvy week Monday was was was a good day choosy who was a down day Wednesday back up

Thursday back down what's right even the wolf was Bryce yeah it's a good question and as we

said yesterday the volatility is all over the map obviously a lot of geopolitical tension going

on as well now specifically we wanted to call out iron there down double digit percentages today

we're going to come back to that in a second here but again some big headlines big press out

from iron just last night I wanted to get into a few production updates first bit digital

they've obviously converted from Bitcoin to Ethereum they've built out this Ethereum treasury

strategy we know that involves staking and actually generating yield on that Ethereum as well

they've come out with their production report for February and again it did not disappoint

yeah another good update from bit digital there obviously fully focused now on Ethereum rather than

any Bitcoin mining as previously there the company is managed to grow its Ethereum

total within its treasury now to 155,434.4 and if you base the closing price of

$1965 that gave them a holding in terms of cash equivalent balance there of 305.4 million dollars

now the company's total average Ethereum acquisition price for all holdings is currently

approximately $3,045 per coin and you know obviously at the price at the end of February with

$1965 there's a significant difference there but Sam Sabar came out today and he believes

from what he's seeing in the charts it looks like we've sort of hit in a bottom and maybe there's

a bit of a now move upwards for Ethereum as I say you know we get a lot of people you know

saying about prices there we don't give price on the felt but one sickly good reason because

we'd probably get them wrong every time so we'll leave Sam and the rest of the team there but I

personally hope for his sake and the fact that I've got a few amounts of Ethereum on my wallet

that price does rise and we just sort of seeing I think we're feeling you know there's maybe

potential or outside now especially if we can get more of a solution in the Middle East and also

the fact that in the US the president wants to sign that clarity act in fairly quick order.

Now with regards to staking bit digital state the majority of that Ethereum there they

stake about 89% of it and for that benefit there they've received just short of 314 Ethereum

for the month there so effectively you know around about just over $630,000 which you know

just for staking Ethereum it's not a bad return at all that represents an annual yield of about

2.7%. Now if you look at the outstanding shares they have 324.8 million shares as at the 28th

of February and they maintain ownership of 27 million white fiber shares which have a market

value of 455.7 million as at the 28th of April. Now if we go to the bit digital website brides you

can tell us more about how that applies there because they've got a bit digital net asset value

calculator on the website itself. Yeah I love doing updates here this is on the bit digital homepage

you can go in you can see two line items the value of Ethereum that you just mentioned also the

value of their publicly traded white fiber shares giving you a total of their net assets

compare that to their current share price and you're getting right now a 9% discount just mind

blowing when you think both of these are publicly traded assets that you can measure the value of

and still getting a discount. Now moving over to bit Fufu this is another production update for

the month of February you've got your table here to go through the numbers they also call out a

couple of key updates in terms of strategy flexibility in light of this recent Bitcoin pullback and

pullback in hash price so we know obviously bit Fufu does the cloud hash rate or cloud hosting

that's proven to be very successful as we see this downturn in Bitcoin and they comment on that

specifically in the update. They do and just to start the process we'll go through there month

the update and then we'll refer it back to some of the comments that they've made there I think

they're really important to understand in terms of February's updates they the total amounts of

Bitcoin mind from an organisation perspective this is not this is the self mining and also for

the cloud hash rate 227 Bitcoin remember February is only a 28 day month so compared to January it was

actually a good month 229 in January but three more extra days mining in January in terms of self mining

was 46 in January down to 37 in February and energized hash rate obviously you know one of the

reasons for that there the total self mining hash rate came down from 3.7 to 3.6 that's a reduction

of 3% there operational power also reduced from 520 megawatts to 463 and the total energized

hash rate of all the business there dropped 11% from 29.6x hash down to 26.4 now efficiency remains

one of the one of the lowest in in the North American public sector there and you know 17.5 you

know you've only got the likes of clean spark you've got the likes of American Bitcoin and obviously

iron slightly ahead of them there but 17.5 means you're I'm using less power to mine a Bitcoin then

your peers or majority of your peers and if you've got a cheap power cost then that's a that's

a win-win now one thing that BitFooFoo have done this month is they've added 34 Bitcoin to their

Hoddle so that Hoddle now is at 1830 Bitcoin they've grown it from 1796 that's a 2% increase there

and the value that Hoddle and this is really down to the Bitcoin price if you think about where the

Bitcoin price was at the end of January 78,612 in the January 66,995 at the end of February you know

that's effectively nearly 12,000 reduction in Bitcoin price over that month and you'll see that

reflected in the difference between the Hoddle value at the end of January which was 141 million

with less Bitcoin held now down at 122.6 million and that's a 13% reduction now one thing that

we can say about BitFooFoo is that they've been growing they've been growing their Hoddle

without overleveraging so they're not doing anything else they've they've actually cut the

borrowing rate down from a hundred million credit line from 40 to just 15 million now and the

cloud mining business just keeps generating positive cash flow 190 the 227 produced in February

came from cloud mining customers and remember we've taught before about you know BitFooFoo if you

look at quarter by quarter I don't think any other public miner has achieved as many

positive net income positions over the last sort of eight quarters and BitFooFoo they generally

produce you know a positive quarter and one of the reasons for that there is exactly you know

the fact that most of their business is cloud mining and with cloud mining you're getting your margin

irrespective of the Bitcoin price and so you know they've got a significant amount of their

business devoted to cloud mining hash rate and so that margin is there month by month and it

seems to work better you know for companies when the Bitcoin price is actually dropping there we

we heard this from BitDeer a couple of years ago because they had a significant cloud

hash rate as well where investors were coming in they want to purchase

some hash rates and the ability to do that is go to miners like BitFooFoo and previously BitDeer

and they'll buy the machines on your behalf and effectively run those machines you'll pay for

the power cost you'll pay margin for them to be hosted so you don't have to go out there and buy

facilities and if you like that you can just have that hash rate keeping on it there but obviously

the risk is if the Bitcoin price falls there might not be enough revenue to cover all your cost

remember you're paying for these machines you're paying for the energy and you're paying for

effectively that hosting fee from BitFooFoo's point of view all their costs are covered they're

getting the cost of the mining machines they're getting their margin and the energy cost is a

pass through cost so and it works really really well and when you think about them they have

something like 600,000 customers and it's these sort of monthly updates that you can see

why because they'll be bringing out their number shortly and hopefully we'll see some positivity

and for that last quarter of 2025 see if they can book the trend because the majority of

results have come out so far have shown a lot of big losses for a lot of the miners and in

generally it's some of the non cash cost books in the day you know a a net losses a net loss

yeah it's a good update and like you say a consistency is one thing FooFoo definitely brings to

the table now clean spark also released their February results again some notes from the CEO

Matt Schultz talking about the share repurchase program so we'll obviously talk about the iron ATM

program in a second here clean spark going the other way repurchasing 20% of shares off the

market in the last 18 months obviously great for shareholders the other update that was accomplished

in February the edition of 300 megawatts of ERCOT approved load in Texas so clean spark again pivoting

to AI we've yet to see a deal but in terms of the Bitcoin mining I'll let you walk through the numbers

there yeah Bitcoin mining obviously their main focus as a company has been for the last four or

five years since they've been transitioned into that space and you know you can see from

February's update they're 568 Bitcoin that's only 1% lower than January with three days less

mining so only five Bitcoin less and when you think about they're producing 20 a day they were

really you know producing 10% more Bitcoin on each day in February than they were in January

so that gives them a really good return their hash rate in terms of total hash rate has remained at

50x hash I'm expecting maybe that could increase during 2026 and other than they've totally given

up on Bitcoin mining I think they want to you know utilize maybe they could increase the efficiency

of some of the miners in their locations increase that the actual total hash rate because more

efficient machines mean you're using less machines to go into a facility so you improve the

efficiency of the fleet with with machines in there and you can you can do that by replacing some

of the older models with some of the really new models that are really really efficient in terms of

average operational hash rates and 43.2 so a bit of a gap there from from the total energy

hash rate you know that's nearly 7x hash obviously February was probably still a month where maybe

a lot of cutelmen was going on there so heading towards 15 towards 20% in terms of cutelmen there

utilized operational power didn't change 808 megawatt so that hasn't changed for quite a few

months now efficiency and only the likes of American Bitcoin and Iron can boast a more efficient

or attention more efficient fleet than clean spot there but 1607 puts them in that top tier

without any doubt whatsoever they sold 553 Bitcoin there they've used 165 Bitcoin for some sort

of a derivative transaction there as well so their total hodl and when you compare to Bitcoin

mine is probably about 720 difference there but some of that Bitcoin as I'm other I did it's been

used for a trade and so they're probably still counting that along the lines there as it hasn't

been sold yet it's just been used as a probably as a supporter trade now one of the good things about

clean spark is is there you know they're in that sort of top echelons of in terms of public

companies that have a hodl 13363 as I say this month is probably one of the few months that they've sold

more than you know the normal and the value of the hodl now because the Bitcoin prices dropped

is only 895 million as opposed to just over 1.06 billion as it was in February that's a drop of

16% that's all down to the Bitcoin price I'm afraid there so unless we see some rapid movement north

as the Bitcoin price in these last sort of three weeks of of March it's going to be a challenging

Q1 for many of these companies yeah it certainly is expecting a pretty dismo Q1 here based on

current hash price interesting though we're starting to see many of these miners start to sell

or pick into their hodl and strategically sell off some Bitcoin so more to come on that the other

one we wanted to talk about here of course scientific securing financing for up to a billion dollars

from Morgan Stanley and we've got a couple of numbers here to share very attractive rate from what

we can tell yeah so they've initially closing of a 500 million dollar 364 day loan facility provided

by Morgan Stanley and this will effectively provide also for a potential increase of a further

500 million that takes a total of 1 billion and the borrowings if they can be used as a facility

will bear interest at the rate of the secured overnight financing rate the sofa rate which currently

sits at 3.7 plus 250 basis points when you hear 250 basis points that's 2.5

percent if you have 3.7 and 2.5 percent you get 6.2 percent now for anyone out there that's been

looking at debt and if you're looking at debt in terms of Bitcoin miners not too long ago

that's 6.2 would have probably been three times as high I remember even the likes of bit farms

having loans in the sort of 18 to 90 percent range back in 2021 2022 and many other companies were

in the same position as well our gold blockchain has some very very high rates but this is exceeding

the good rate this is a really good rate for for core scientific and the reason I say it's a good

rate is is that our good friend Matt Siegel has actually highlighted the fact that if you want to put

this into context this rate they've achieved applied raised 2 billion 5 year films at 7.23

percent only yesterday so core scientific we've got half that amount at 1 percent less interest rate

per per year APR so that's a great that's a great deal for core scientific and it just gives them

that buffer zone they don't have to utilize it but it's there if they need to and it's also there

if they need to use even more so it's you know up to 500 but potentially up to 1 billion

and with a really really solid interest rate to work from as well very attractive rate for

core scientific and nice to see holding its ground versus some of its peers now the main event

for today obviously iron this is a multi part update so they came out with a few press releases

last night so they came out with a big press release last night along with a few SEC

we're going to break down the news first then we'll get into some of the response the reaction

the analysis so three partners essentially Anthony talking about the purchase of a significant

number of GPUs 50,000 B-300s they also introduced a new ATM program and gave us a nice little

update on their strategic partnership with Bell Canada so to start off here the GPUs we had

talked about iron initially in that 140,000 GPU range for 2026 they've now increased that

to 150,000 and came out with this significant purchase order yeah so this this purchase order is

for 50,000 Nvidia B-300 GPUs that will expand its total fleet to 150,000 so potentially if you go

back to the previous numbers there they were looking at 140,000 in total fleet numbers there

this goes up by another 10,000 but interestingly these are at the B-300 so they're probably the

most latest GPUs on the market and you know the company have said that you know the time to compute

is an important factor in today's AI cloud market and so therefore early procurement enables

iron to bring cloud capacity online with greater speed and certainty ensuring the timelines remain

on track as a customer agreement progress now they've got this 200 megawatt deal with Microsoft

that's 76,000 GPUs going to children's there and they're also massively building up the British

Columbia sites as well and so really focusing on a lot of you know CSP GPU sorry CSP contracts

and providing you know the full HPCAI service to clients themselves so let's break some of the

numbers down there if you look at the 50,000 in video B-300 GPUs they're going to cost about 70,000

dollars each that's a total of 3.5 billion now the the the 150,000 GPUs expected to support

a new annualized run rate of revenue of over 3.7 billion that 3.7 billion if you then look

at that term divide by the number of machines that's going to give you an average of 24,66

of revenue per machine and for the current price there if you go back to what they previously

had highlighted which was 3.4 billion for 140,000 machines that's a lower figure of 24,285 as an

annual revenue rate for that for that level there so slight increase there but then you'd expect

slight increase there these are sort of like higher spec machines and so therefore you probably

expect them to get a premium there now now the issue now is obviously we know that all the machines

going into the Microsoft deal at Childress that's part of the 9.3 billion they've all been paid already

so obviously this applies really for those machines that are probably going to British Columbia

and any other machines I'll now going to be positioned at Childress it looks like from the

update they're going to be sending them to McKenzie in British Columbia and the Children's in

Texas as well so you know it might be that there's more machines going down into Childress because

it looks like they're going to start reducing their Bitcoin mining down there and they've already

started doing that if you look at their earnings updates they were operating now about their total

hash rate about 46X hash and they expect that number to start coming down once buildings three and

four horizon three and fours are activated and if they start to look at increasing horizon three and

four with further buildings in Childress then that number comes down significantly unless they can

find a suitable home for those Bitcoin mining machines but again you've got to think about the

mining metrics at the moment you know is that something that iron really wants to be focused on

is that going to be a distraction as they're looking to grow out over three gigawatts of power

if you look at the Oklahoma site which is due to come online I think around about 2028 so I think

that that focus is really driving now in terms of you know HPC they've started obviously with

using a lot of these for delivering the service themselves or this big CSP contract with

Microsoft are they going to maintain that with the rest of the power we'll discuss that a little

bit more in a second yeah we certainly will and some interesting numbers there to look at now the

other component of this is the ATM program so they had an existing one billion dollar ATM

last year they've now come out with a new program for a fresh six billion dollars obviously the

market mixed on this one what are your thoughts on the ATM component here yeah I mean we do ask the

question to a a number of you know CEOs as a regular question about you know as you're growing

in size now what levers do you have available to grow there's no doubt that the miners that are

entering this space here now in terms of the HPC AI space will need significantly more

levels of capital than they ever dreamed of when they were doing Bitcoin mining I mean you know

the numbers for children 9.3 billion just to deliver 200 megawatts of compute you know and you

know effectively utilizing close to 300 megawatts of power if you take in the ancillary power that

will be used to support the compute power there nearly a further 100 megawatts on top of that

there but 9.3 billion dollars that's you know there's only one minor at the moment with the

market capitalization anywhere near that and that's actually iron you know these are significant

numbers as I said before that only taps into something like about 9 percent or 10 percent of their

total power that they have available at the moment so you know if they start you know filling out

more of children and then moving on to sweet water one which is due to be energized in the very

very near future probably you know very early in the next quarter and then sweet water two which is

which is another 600 megawatt facility due to be energized in 2027 you know you've got another

two gigawatts of power there you've already got you know another 450 megawatts of power at the

children's sites as well that you've not even utilized yet for HPC so this is the very very start

and we're talking tens of billions of dollars just to get started so this six billion now I mean I

think some some retail investors might have thought that was 600 million but there's there's

there's nine zeros in that number there so six billion that's probably a bigger number than probably

95 percent of the market capitalizations of the North American public miners only probably

terror wolf and cypher digital that can be close to that as well as iron obviously now it does give

them an opportunity to you know raise you know capital in a different way I mean you know they've

used convertible notes they've had a number of convertible notes they've actually repaid convertible

notes as well I mean that's um that repayment happened during the uh uh previous quarter there

and few member they paid part of that convertible note about there but the the cost of paying

past that convertible note I think there's around about 1.6 billion dollars not for the thing

hearted um there are obviously you can go and and do exactly what um you know of course

scientifically done there and gets you know loans there and maybe get attractive rates there and I

think retail investors you know would probably prefer the the debt where you pay an interest

and and not go into a dilution because an ATM really is just you know you're selling more shares

of the company so um you know if you think about how many shares an issue at the moment and how many

potential shares could be sold to achieve that six billion uh dollars there today share price

of around about forty dollars that would be another hundred and fifty million share sold which if

you add to their current share count of three hundred and thirty two million shares that could

take it very close to sort of five hundred uh million shares uh by the time they've used that ATM

up and that's if they get most of the uh share sold at sort of like current prices um so you know

that shareholders won't be too uh too happy with that but what you're going to remember is the key

thing is is what are they going to do with the money and that's that's the part we'll talk about in

a second breath yeah and I just wanted to throw in on the ATM uh component there two things we've

seen Dan talk about this balance of debt and equity uh consistently in their investor presentation

so we expected that there would be some sort of an ATM program if we zero in on their last ATM

Anthony we ran the numbers there I think it worked out to about fourteen dollars per share so we

know that iron has used these in the past but when you compare that fourteen dollar price to what

you just stated there at forty dollars obviously a lot more effective issuing shares at these current

rates yeah and I think the the the ATM they did another ATM I think towards the end of the year

where they raised this one point six billion dollars in um capital to pay for the convertible note

to clear that there they raised that and I think that was very close to a forty dollar

per share there and um you know you can see that was obviously during the period where the share

price has started to rally significantly it took advantage of that and they did that over a very

very short period of time one point six billion in in the space of a month or so and they've been

known to do some of these um ATMs in very very short space of time I think um couple of years

ago they had a five hundred million one there and that went within the first quarter of the year um

and so you know yes it's you know it's raising capital they have a plan um nobody can really

complain also now the plan seems to be going well I think shareholders any share that's had you

know shares in in iron for the last um you know for over for the last year or so um has probably

benefited significantly if you were buying shares maybe in March April last year when the share

price was probably aiming towards five dollars um you know and look at the share price in October

last year you would have made significant inroads even at today today share price you know you're

looking at eight you know seven eight hundred percent return on your investment and you know the

share price you know just continues to get all time highs in the sort of third quarter of last year

all the way up through to October where it it closed at seventy six dollars on one day I think at

an inch a day of about eighty dollars there so um really really been a good performing share price

if they can uh obviously increase the deals that they have they've got this one big deal with

Microsoft at the moment it looks like you know they're preparing for something big um I'd like

to see that six billion used um to um to to buy you know uh where they buy GPUs or to to start

building out um you know maybe sweet water um if there's an opportunity to go with the co-location

are quite like the co-location deals um the knowledge capsule intensive and the risks associated

with them um and not as risk uh risk versus as as some of the CSP deals because you've got to remember

you've got to buy the GPUs that risks it with you there and we're hearing all positive things but

remember from the Bitcoin mining days where there were lots of problems with certain models of

mining machines are we going to see anywhere like that with GPUs going for we know the H-100

is still operating they're still driving good revenues in fact the last three or four months we

send the revenues for H-100 is gross significantly um so still attracting good revenues there and

iron buying some of the latest machines on the market um I just feel I don't want to put oil

in the basket maybe have some co-location as well so that's just a risk you know just reduce

his risk there and gives the company still a premium look at the premium that site for digital

and terrible from their deals there and iron potentially can can dwarf those two

added together you know they're you know with the amount of power they've got available

there but he's not in the space and um you know with 4.5 4.6 gig or what you know coming online

in the next two or three years um you're going to need a significant amount of capital to build out

that and if you're going to go CSP you're going to need significantly more than anybody else to

deliver it and if you think about it price 6 billion doesn't get you that far really

yeah it's it's interesting to see these numbers and know that's only a portion of the capital that

these companies will require now speaking of capital again if we pull up their most recent deck they

talked a lot about the capital strategy the GPU financing so when we start to think about potential

uses for this 6 billion dollars wanted to get your thoughts there yeah I mean you know

we know already um the 76 000 GPUs that they're providing for that one contract for 200

megawatts that's 5.8 billion dollars so 6 6 billion dollars effectively pays for another 200

megawatts of a CSP contract in terms of the GPUs only remember the cost of building the 200

megawatts in terms of horizons 1 2 3 4 that's 3 billion alone so you'd have to have 3 billion

plus another 6 billion to deliver the same contracts again so again you know far more than

the 6 billion now if you're looking at you know a CSP route sorry now if you're looking at

the like a tier 3 co-location deal remember we've seen some of the other miners there quoting

around about 8 million to 12 million per megawatt of IT load for the modern data centers and

and that could give you a rough infrastructure capacity using that range at 6 billion could build

roughly 500 to 750 megawatts of tier 3 AI denseens capacity and you know this this could be you

know a sweet water the starter sweet water there attracting you know potentially a large

hyperscale campus or a multi-campus hyperscale AI infrastructure site there so you know it depends

what route they go if they're going to go at CSP you're not going to get as much

site for your money but we know that the potential revenue streams that they could deliver from

those and remember their annualized rates of revenue for the for the end of 2026 has been increased

to 3.7 billion now so that's like year on year but you know if you can deliver 500 megawatts

of compute per day co-location deal 500 megawatts is going to get you you know the best part of 750

million of now operating income on that there so you know 6 billion of cost delivering 750 million

of revenues coming through year on year and some of these contracts could be you know 20 25

years long so once you've done the payback of that period you're into some really good profits

now remember for the in their current capital strategy they've obviously they've issued those

2.3 billion of conversable notes they also secure 3.6 billion of GPU financing and you know that

gives the total of 9.2 billion funding secure financial year to date across customer repayments

conversable notes GPU lease and GPU financing now also highlighted in their earnings was 2.8 billion

dollars in cash as at the 31st of January 2026 that 2.8 billion in cash would include any cash they

received for the 2.3 conversable note so for my maths and you know for you know a number of other

commentators out there I'm not sure actually at the moment they've got enough to cover the 9.2

billion so maybe they have to use some of the 6 billion to cover the cost of of those machines as

well so be interesting to hear what the company come out and highlight there's a bit more detail

because the numbers are the numbers I mean you know you issued that conversable note last year

the 3.6 additional financing that is secured and they'll start to to utilize that as the machines

start arriving they'll pay interest on that there but that doesn't get you to 9.2 billion in total

you know so actively they might have to use some of this some of this ATM for that there but

I'm not sure what your thoughts on the process bros yeah it's interesting to see the different

angles here in different strategies obviously the capital requirements are drastically different as

you talked about but at the end of the day I think the statement you made it really depends how

these funds are used and how creatively they grow that share price market cap of iron now the other

component I wanted to touch on quickly then we'll get into some reactions here is an update or an

SEC filing in relation to their partnership with Dell Canada so this again to me a strong indicator

that this company is moving in the right direction yeah they came out on the 4th of March and announced

that you know that they answered into a purchase documentation with Dell Canada

pursuant to which Dell can supply iron with leasing GPUs and silvery products and services scheduled

to be delivered in phases joined the second half of 2026 for an aggregate purchase price of 2.3

billion payable installments within 30 days of each tranche shipping and so you know this is

some of these GPUs that we've already talked about you know going into McKenzie and other

sites in that British Columbia there so yeah it's just laying out you know that the timelines

now so this is happening you know fairly quickly now second half of 2026 these machines that they

just really going into a purchase been the 50,000 some of the machines are going straight into

into the sites this year and they'll be paid as and when they deliver effectively yeah it's

interesting to see how this strategy is all coming together now we obviously wanted to get

Twitter's reaction to this a lot of people weighing in with their thoughts now that we've gone

through the news the numbers themselves I wanted to ask you a few questions here Anthony so the first

in relation to um by Sam's post talking about the ATM there was some confusion last night whether

this was an upsize of the existing or not we've clarified obviously this is a fresh 6 billion what

are your thoughts on ATM as opposed to a convertible and this strategy that Dan's talked about in

terms of balancing debt and equity yeah I mean you know he's using the levers available to him

with debt you obviously have an interest payment and we've just seen from the likes of core

scientific you know that 6.2 percent they'll have to pay if you're borrowing a billion dollars

that's 62 million dollars of interest a year that you have to find 62 millions of significant

amounts you know it's five six you know the five five six million dollars per month just in

interest payments you know if you're using an ATM there's no interest associated but then again

the shareholders you know they're their percentage of shares you know they're holding the

companies obviously gets reduced you know significantly especially when you see a you know a fresh

6 billion ATM the key thing for me though is really what do you do with the money if you're building

out sites to grow the company and we saw what happened in 2025 you know they achieved 50x a

hash on target and they announced a client for their facility at Childress and so you know they

did everything that they said they would do and now they're going out and borrowing more money

are they going to or sorry now they're going out and raising more money are they now going to

utilize that money into areas which will just give them a creative growth throughout and I think

you know hopefully there's a couple of things like infrastructure to grow out the likes of

remaining likes of Childress or Sweetwater because Sweetwater comes online next month there and we've

seen other miners like right platforms starting to utilize their capital to build their sites in

readiness for a deal to be signed so they're not waiting for the deal to be signed they're doing

everything now about it and maybe Iron are looking to sort of like be ahead of the game here start

utilizing that money to to to provide more for Sweetwater complete works required at Childress

and use it for capital growth that way I think if they do that and the more clients come in I think

you'll see the share price rally as it did last year if they're using it to you know for non-growth

reasons and you know they might be wanting to repay some of the rest of the convertible note that

they didn't achieve last time you know is that going to have the same the same impact and I don't

know so but I hopefully I hopefully that this is going to be used to grow value in the company

and if the grow value in the company the market should react to that and and and give them a fresh

fresh price I think so as well now the other interesting one we saw Bitcoin butcher here he did a

similar calculation on the GPU purchase price so again coming out at $70,000 per GPU for the B300 now

I know you mentioned earlier that revenue or ARR per GPU rate we did some numbers there Anthony

coming in in that $26,000 range in terms of the annual revenue on a per GPU basis based on that

new $3.7 billion overall ARR what are your thoughts there in terms of a risk reward standpoint

and well you can see with GPUs and one of the reasons I'm sort of never been the biggest

of the CSP deals and I'm happy to be proven wrong is that you know you're looking at a minimum

three years of payback so if they pay $70,000 which we identified earlier in the podcast and Bitcoin

butchers now sort of like you know he's calling the same number there because $3.5 billion purchase

and $50,000 machines it doesn't take the the rocket scientist to calculate what the cost per

machine is we've gone one stage further and looked at the average revenue and it was around about

the 20 24 and a half to 25,000 per machine range with the new machines included that's going to

take three years to pay back that machine bear in mind during that three year period those machines

have been you know utilizing power costs utilizing cost of running them in terms of you know

the staff as infrastructure costs so all those costs around the GPU itself you know that's not

been paid back until maybe years four and five and then you sort of like well how long do the GPUs

last four they last in for five years six years seven years I think you know you you need to have

a minimum of at least five years and just to really recover what you what you've paid out what you

what you've covered in power and give yourself a bit of a margin as well if you can let them if

you can last like some of these h100s are now which are going past the five year point into the

six year point that to me is like an additional profit for the company but we don't know that yet

but we're just buying these machines now we won't know that until maybe five or six years time

if they're still using them so for me that's that that's the challenge but that's the risk and reward

you take you take a bigger risk because you're going to get a bigger return potentially I don't

he doesn't always work out that way but I think so far iron have pretty much steered the ship in

in a good direction and so I expect that I've done a lot of research and there'll be people in

iron who are far more knowledgeable about GPUs than I am I'm just you know just in mere mortal

accounts and who looks at the numbers but as I say I am qualified as a risk practitioner I do

understand risk and hence I can put my points of view across there because I'm qualified in that

particular space as well as being a chart accountant and so you know and for me that's six billion

I'd like to see more about delivering collocation deals and and using you know sweet water to deliver

that and you brought up an interesting metric earlier in the conversation the rates the hourly rates

on even h100s those have taken off exponentially over the last few months so we are seeing a large

demand for compute and we've heard at this point it doesn't matter what model the GPUs are as long

as it's plugged in people will take that capacity now Matt Siegel also weighed in obviously on the

discussion here talking about that 9.3 or 9.2 cumulative billion dollars of financing we talked

about that on the capital structure slide also talking about that 2.8 billion dollars so a lot of

different components a lot of different levers being used here but I wanted to get your thoughts on

the cash position especially as they start to embark on some of these bigger projects

yeah they're going to have to obviously I mean you can see from the the updates for those

machines moving into into Canada you know they're going to be paying you know close to you know

a billion dollars at the end of every every period when those machines getting get delivered

so you're going to need significant amounts 2.8 billion is great to have them there and they've

got this ATM now which will probably start utilizing over these next few months to start building

that war chest ready to start paying out and Matt Siegel you know he's very astute you know he's

a friend of the channel and you know we we we we obviously you know like some of the views that

Matt comes out with I mean he's questioning the same as me he said like you know while

Iron claims 9.3 billion in in cumulative funding secured their actual cash sits at 2.8 billion

which is something our highlights are already this new ATM looks like the missing piece to cover the

3.5 billion H2 CapEx bill which you've already talked about yeah it certainly does look like the

ATMs the missing piece we just discussed that one now moving into friends backer he came out with

a post essentially talking 10 key highlights or reasons we wanted to again focus in on the fourth

here talking about the speed at which the ATM will be used and the use case for the money now he's

stating he actually doesn't think this will go towards GPUs rather be drawn slowly over the next 18

months maybe to pay for some of those leases like you talked about or to build out in McKenzie

children's canal flats some of these existing sites then going on to say all those sweet water

may be energizing in next quarter next month he doesn't expect an immediate deal there so I wanted

to get your take on that one as well yeah I'm not on friends saying wavelength here I think the

the six billies definitely going to be used to pay that 3.5 billion dollars of GPUs arriving the

second half of the year that's quite clear and maybe the use some of the rest of it to develop

sweet water more at children's than they're doing at the moment but yeah 2.8 billion in the bank

as it sits at the end of January that was the end of January now into March so the use of that

money to cover costs over the last sort of five or six weeks you know you need money to pay

is quite clear from the del deal you've got to make payments within the month of them arriving on

sites so and their significant amounts it goes on to say I think it's like 1.2 billion

each period they're delivered so that will take you know maybe three payments and so

this is this is this is this is an ATM that's going to be used to cover that cost and maybe some

other costs in growing infrastructure at some of the sites we've already talked about but not

and I believe you may 18 months you know the ATM will be will be utilized in probably in the

first half of this year and I think it'll majority will will be utilized then their track record

for ATMs and they don't tend to spend you know a year or two years mulling over it once the ATMs

in place they go out there and they they they utilize it and if you look at the number of banks

that are supporting them through this period there's probably about 12 13 banks on that list on

the update there you know usually is one or two but you shit the sheer sizes I don't think I've

seen one and higher than two billion before this is six billion this is enormous but again they

got through 1.6 billion in the latter stages of last year in very very short space of time

to cover the cost of the repaying the convert of the original convertible note back there which

which was again 1.6 billion so they used that they used the company an ATM to do that and with

iron unlike most of the other public miners in North America they don't need to go for shareholder

approval on this they have significant control and for these type of votes held within the management

of the company so they believe they need six billion they can go out and and do that without

shareholders if you look at the likes of maybe riots and mara and so the other big miners out there

they have to go out to the shareholders and get approval the vote has to go through so therefore

you need to put all your cases to why you're borrowing the money iron don't have that issue they

can go out there and use an ATM and they use an ATM twice last year and they're using the third one

in very you know quick time now and as I say these costs are going to mount up very very quickly

and they need that money to help pay for some of them yeah I think you're right there they need

the flexibility cash is king obviously and we've seen as you mentioned the effective use of ATM

growing their Bitcoin mining fleet growing their hash rate and now taking that same strategy

in combination with debt on the HPC or AI side of things as well now you talked about the number of

banks that we're underwriting this deal speaking of banks we got a number of brand new price targets

out from the Wall Street analysts notably Cantor and HC Wainwright which just commented or upgraded

after the news here in March yeah and so I think Mike Cohen is one of the analysts that HC Wainwright

I think he's he's reversed his opinion of of I run I think we have them as a as a cell in last

year and this was as the share price was rocks in towards $80 and he thought it was over over price

but he's also done some more research now looked at the the deal with the 50,000 GPUs coming in

and seeing what else they're producing you know with this massive amount of power in place and

dams you know commented on the power at sweet water that will come online as in when you know

they need it that's you know it's not going to be you know held up with all this this

batch process that Erkott has been talking about he fully believes it's coming online from the

dates that he said and so you can see Mike's you know changed his track now he's going to target

the $80 so on today's price that's 100% increased count of its Gerald Brett Nobleck his he's

come out with 82 dollars these are in the last couple of days and then we go back to February

and we've got can accord genuity and at $70 and Bernstein has the largest price target at the moment

$125 and that's a reiterated price target as at the 9th of February so all very very recent targets

they're all showing a position of buy an all by five star unless according to tit rank so

and you know use that as part of your due diligence when you're looking at potential stocks there

you know cover a multitude of things there that's certainly one for a little tick in the box but

not the only metric you should be looking at guys you should be looking at a number of other

metrics there there's plenty of information available on these companies far more

than than than other companies because there's so much information to public space the retail

shareholders like to know everything about these companies and we'll constantly send in

request information and those get shared on very social media platforms so good to see four

by targets there for iron as I say if they use that six billion to grow then it's going to be a

big tick in the box and and and I'm sure that Dan and Will have got their finger on

on the on the button so to grow this company into a far bigger company out of the

bone so there you go guys we discussed the news we broke down some of the numbers looked at the

response or reaction from the retail community and what the Wall Street analysts were doing we'd

be curious to hear your thoughts in relation to today's news out from iron obviously we think

this is a big step in the right direction some great production reports as well Anthony I'll

throw it back to you for closing thought but a nice episode and a great headline heading into the

weekend here yeah big big news big purchases from the biggest company and so you know let's

let's seem to live and and and believe you me you know we saw the last 18 months of their growth

in Bitcoin mining they not only achieve their targets they increase their targets and achieve

every one of them so you know if they're saying they're going to do something then then they'll do

it and you know you can see the looking at children we were there in November and looking at where

it is today it's like a different site again because those horizon buildings are far more advanced

than when we were there and we were there only you know what two or three months ago

but that just shows you when you have you know a workforce of probably over a thousand people

now at that site what can be done in a very short space a time and remember they are accelerating

the program to get it done quickly and as potential you know once a rise and one to four have been

completed to build another six horizon buildings at the site with the 750 megawatts so you know

positive year in 2025 2026 is going to be another positive year for iron i think they're going to take

a bit of catching here from some of the miners they've had sort of like first mover benefit in terms

of really growing in this space and growing capital to grow hash rate and now they're using that

strategy to now grow their their megawatts towards HPC yeah well said and we expect a big year out

from iron the number that sticks with me three point seven billion dollars of ARR by year and

just incredible let us know your thoughts in the comment section below you guys we just posted an AMA

with Saluna CEO John Bell is there as well make sure you check that out over the weekend we'll see

you back here tomorrow