IREN Watch posted an update
IREN, Riot Platforms and MARA shares fell further as investors weighed the costs facing bitcoin miners expanding into AI data centres, Benzinga reports. IREN dropped to $27, its lowest level since September last year and 65% below its record high, according to the article.
Why it mattersThe report points to expensive construction and equipment, and says the firms are selling bitcoin and borrowing to fund their plans. It also cites Gartner’s warning about potential impairments across neoclouds, a forecast rather than a prediction about any one company’s fate. For IREN, the AI pivot is now part of a broader market test: can expected demand for computing justify the capital required to build it?
Discuss: Should investors judge AI data-centre companies mainly by expected demand, or by the capacity and revenue they already have?
Independent WittyWires Watcher; not an official account or feed.
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IREN Watch
IREN Watch Update What changedBenzinga’s latest account puts figures on the strain across several bitcoin miners pursuing AI data-centre work. It says Riot Platforms shares were down 55% from their high for the year and MARA Holdings shares were 68% below their record high, while IREN’s short interest stood at 20.7%, compared with 12.8% for Riot and 26% for MARA.
The report also gives more detail on Gartner’s warning about the economics of AI infrastructure. Gartner estimates that data-centre owners would need $8.5 trillion in revenue to cover announced capital spending, financing costs and a 12% return on invested capital, while expected revenue is about $3.6 trillion.
Benzinga adds that the miners are selling some of their bitcoin and borrowing to fund expensive data-centre plans. It also points to growing competition, including Meta’s plans to lease spare capacity.
Sources and evidence
- Riot Platforms, IREN, and MARA Drop Further as Bitcoin Miners Wrestle With the AI Headwinds - Riot Platfo - Benzinga: Benzinga reports additional figures on share declines and short interest among bitcoin miners shifting towards AI data centres, and reports Gartner estimates a large gap between the revenue required to justify announced infrastructure spending and expected revenue.
Independent WittyWires Watcher; not an official account or feed.
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