the next 10x AI stock! [IREN Stock SURGE]

Iris Energy. Is this the next big 10x

stock that everybody's talking about?

Because already it's a boomer as in like

the stock is booming to the moon. It's

gone from $5 in April around Liberation

to being liberated to a 5x at $26 per

share. Now a $7 billion market cap

company. Is this the company to keep

investing in? take chips off the table.

What even is it? Well, we dove into it

this morning because somebody on the

live stream donated a buck.99. And this

is not personalized financial advice for

them. But this video was inspired by

your commentary in our live stream. So,

thanks for always being there uh and

talking about this company, which so

much sounds like I want to read this off

as Iran, but it's actually INE, which is

Iris Energy. And at first, I'm like, all

right, you know, what is this? Is this

just going to be like another meme play

or something? Something that's getting

an increase in volume here. Uh and it's

going to, you know, crash and burn the

likes of which, you know, uh you only

see at like, I don't know, an open door,

which should be renamed closed door. Uh

obviously, we already know the old news

at this point that they secured

basically a big lease contract for

Nvidia chips. They came up with this new

phrase. I haven't heard of this before.

We're pleased to have secured Nvidia

partner a preferred partner status. I

think this is really just a way of

saying, "Hey, Nvidia will sell us big

chips because we can flash the cash and

pay for it." So, I don't really think

that status means anything. Like, Nvidia

wants to sell these chips, right? I

mean, it's kind of like going to your

Costco and being like, "I got a big

grocery store order." And they're like,

"Oh, do you have the money to pay?" "Oh,

you do? All right. Yeah, we'll sell you.

We'll say we we'll ship it to your back

door for you." Great. That's like

preferential treatment. We'll take it.

But anyway, basically, here's a company

that's kind of trying to be like

Corewave. That's the way I think of

them. But they've got some really big

differences to core. Uh, and that's

actually where I want to start with my

analysis on them because I think it's

most interesting that this company has

significantly less debt than Core Weef.

That's what I want you to pay attention

to with this company. And then I'll tell

you why. So, watch this. Coreweave has

$13.9

billion of debt. That's about $6.5

short-term. Then they've got a bunch of

other debt as well. Like, I'm not even

including everything in here. This is

the sheet on right here. What I'm really

doing is I'm taking uh their their uh

current liabilities uh of about $6.5

billion, not including deferred

revenues. I'm taking their non-current

debt of about another 7.4. It's roughly

13.9 billion dollars in debt at

Corewave, right? Well, they have

equipment of 16.6 million a billion

dollars. So, think about that. It's kind

of like real estate, right? I got real

estate of $16 billion and 13.9 in debt.

Well, that's an 83%

debt to asset ratio at Corewee. That's a

lot of freaking debt. And it's one of

the reasons I actually made a video on

the channel two or three weeks ago like

you know why the core weave crash should

scare you and we talked about how you

know it it got mega hyped up and

momentum up from 40 but eventually it's

going to be a bag holder and and you

know in the near term it has downside

risks and and you know the stock is

plummeted on coreweave. I you look at

core right here look at this

deceleration of momentum right here.

It's basically following your fib

retracement straight down the lines.

Remember,

>> bullish catalyst

>> coupon code is bullish catalyst for the

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over at me Kevin.com. But look at this.

Debt to PPE. So, it's kind of like debt

to real estate, right? Debt to equity,

debt to plant property and equipment at

Ian or Iris Energy is only 7 and a

half%.

So at Coreweave you have 83.7%

debt 13.9 billion to 16.6 in plant

property equipment. Iris Energy has debt

of about

150 million bucks. Look at this. Current

liabilities 150 million bucks. They do

have convertibles, but I'm not including

those because that's going to convert to

equity of about a billion bucks here.

And you could rerun the math if you want

and put this in. But honestly, even if

you did, even if you took $1.1 billion

and you slapped that onto their PPE or

as a ratio of their um plant, property,

and equipment of two, uh you'd be

sitting at about 55% if you included

their convertible, but this is going to

convert to equity, so it's going to be

gone.

So, it's still way less debt than what

they have at Coreweave. If you compare

their debt to market cap, debt to market

cap, so 16, you know, 6ish or sorry, uh,

13.9 billion divided by the market cap

at Core Weave, you're at 30.2%. At Iris,

you're only at 2.1%.

So way less debt, which is fan

freakingastic at Iris. I like that. I

like starting at the balance sheet. And

so then I'm like, all right, why is

their balance sheet so good? Like, where

is all the money coming from? And here

it is. Bitcoin, baby. Oh, I didn't mean

to do that. As I hit the keyboard, the

page slipped. Uh, Bitcoin,

they have actually seen a six like a a

of their Bitcoin revenue increase, which

has exploded. They made almost half a

billion dollars in Bitcoin mining

revenue compared to $184 million last

year. Now almost half a billion. 61% of

the increase came because Bitcoin price

went up. Now, that's both a good and a

bad. It's good because it means they got

a lot of money that they could spend on

capital expenditures from crypto revenue

and not have to finance it. In fact, if

you look at their cash flow statement,

you could see that yes, they issued

convertibles $700 million. Yes, they did

issue stock of $600 million. So, they

raised money to go invest in AI chips

now, data center chips, right? They

started this transition in 2024. They

were a Bitcoin mining company. that's

like, "Wow, we could go make money with

AI data centers." Yes, they're following

the trend. It is fashionable to get into

AI data centers right now over AS6 for

mining, you know, Bitcoin or Ethereum or

whatever. And so what you end up finding

is they ended up blowing 573

million on plant property and equipment

in the last year. They are plowing money

into these AI data centers. But

understand that they generated $245

million in net cash from their

operations. A lot of that driven by

mining revenues. So I think that's why

they have lower debt is they're able to

take their mining revenues and plow it

into servers in a profitable manner.

They're making money. Uh they didn't

always make money because the Bitcoin

mining revenue has exploded. And so

they're making money even when you

include depreciation of $181 million on

probably at least some of this

accelerated depreciation. They are still

making money which then enables this

sort of flywheel of throwing more money

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when Bitcoin's price goes up, but I, you

know, I don't want to sound redundant or

like, you know, this should be obvious,

but if Bitcoin's price trends down, then

obviously you're going to have less

money that you can use from Bitcoin

mining to go invest into chips and then

you're going to have to borrow more. So,

the good thing though with this company

is they have the capacity to borrow more

because in my opinion, their debt

position is substantially lower than

that of Corwe. So, like if somebody's

like, "Kevin, you need to pick one to

invest in." Even though this is a much

smaller company, I'd much rather invest

in Iris Energy than Chloroise. Now, I'm

personally not the biggest fan of

investing in data centers in general

because I think that eventually they're

going to be the bag holders of the

industry. Like, Nvidia is going to make

their profits. They're going to make

their high revenues, their their high

margin uh revenues because they don't

even manufacture the chips. They just

design them. Nvidia is going to make

their money. They're going to cash out.

the server rack manufacturers or you

know the collators basically like Dell

or Super Micro they'll make their money

albeit at a low margin and the bag

holders are going to be these companies

like Coreweave or Iris Energy that

eventually hold all these chips and then

we're looking around going man do we

really need this much AI compute I don't

know that's the big risk here so you

could have a combined risk right you

could have a recession where capex

spending goes down on data centers LLMs

become a commodity and Bitcoin prices

fall all at the same time, then you're

going to be left holding the bag of all

these AS6 and GPUs that aren't being

fully utilized and you're screwed. So,

that's like your bare scenario. The good

news is Iris Energy again has less debt

than uh the other, you know, than their

competitor Corweave. The downside is

what happens if they don't end up being

able to convert the convertibles. So you

really want like if you really want to

get into this, you should look at the

details of their convertible because it

is possible that their convertible debt

doesn't end up converting if their stock

price plummets in the event of some kind

of recession and then you do have that

billion dollars of convertible debt.

Right? That's going to be something to

pay attention to. Uh the convertibles,

I'm trying to see if I could find it

really quickly if they have any uh

outlined on here, but I don't want to

spend too much. Let's see here. uh

embedded convertible nodes.

Convertibles. Convertibles.

Convertibles. Okay. So, we have $550

million of three and a half%

convertibles due in 2029. Okay. So, they

converted 2029. But at what price? What

do they convert at? 2029.

Uh in conjunction prepaid uh purchase uh

aggregate shares blah blah blah blah.

Might be a h. So, they're due in 2029.

So, you've honestly you've got some time

here. uh you've got four years, right?

So, it's probably not that big of a

deal, but that that sets up a little bit

of a bare case scenario for you if

you're in like an extended downturn in

2029, right? So, just something to keep

in mind if you're thinking about this

company. They've also got quite a bit of

mining hardware worth paying attention

to as well. Uh and they're expanding

quite a bit. I mean, their their

facilities, you could see they've got

facilities. I'll pull it up for you

here. Uh, you can actually see this as

well in the Meet Kevin app. If you

download the Meet Kevin app, I put these

screenshots in there. Uh, which is

really convenient. Uh, in my opinion,

this is just where I throw my data.

We're actually going to change it from

calling it a news tab to just calling it

a data tab, which I think is really

valuable because, you know, that's

really what we want as investors, right?

We want data. I mean in addition

obviously the data and the insight that

we provide in the alpha report uh to

course members every single day which

you get lifetime access to if you join

using the coupon code. Uh but you can

actually see you know an example here.

Here's the Meet Kevin app up on screen.

I like the green. I know some people

don't like the green but you can see

I've I've got you know some of the the

core components uh of this in the Me

Kevin app under the news tab which you

know we we personally find very

convenient for consolidating this

information. But uh here on screen you

could see that uh you've got multiple

British Columbia sites. It's very common

to have British Columbia sites because

you have really good hydro power over

there. Hydroelectric. It's inexpensive.

Uh it's efficient. Uh you know it's this

company brands themselves as a green

energy company. The like you know

renewable resources only for their data

centers. Let's be real. They just buy

renewable credits to offset when they're

using natural gas in like Texas or

whatever for their, you know, Childress

Horizon 1 facility or the Sweetwater

facilities. A lot of these under

construction. They've got more. They've

got like a total of 3.9 gawatts of

electricity expected. This is big. Like

this company is rightfully so. They

survived the early crypto winter of 20,

you know, or whatever. They survived the

crypto winter. Now they're pivoting to

AI using revenues that they're getting

from Bitcoin uh and and plowing it into

AI data centers. And honestly, they're

they're doing a great job here. I mean,

they've got 5.5,000

Blackwell 200s. They've got 2.3,000

uh 300s, B300s. Uh they've got 1.2K

GB300s. And this is in addition to the

lease that they just signed. They just

signed a lease for I want to say it was

$1,900 of them worth about $168 million

with Nvidia. Two-year lease contract,

which is basically the full payment of

them. Uh, and they are financing it at

$96 million. Yeah, there it is. 168

million total cost financing of 96. So,

they are increasing some of their

financing, but I think they have the

capacity to do that because they're in

relatively low debt position trading for

about 22 times earnings. We have no idea

how the earnings are going to move in

terms of volatility. I do think there is

serious risk that if you do see a

deterioration in Bitcoin pricing that

you're just going to end up with a big

old poopy dupy uh for longer term uh

EPS. So, it's going to make it really

hard to forecast a PEG ratio here

because you're just going to be watching

Bitcoin prices. But this gives you an

idea of this company that not a lot of

people know about, but I uh again Iris

Energy ticker I I don't I don't really

like the ticker, but you know, who

cares? So, uh you know, again, to me,

much more desirable than than what I'm

seeing at Corwave. And now, these types

of analyses don't tend to get a lot of

views. So, if you like this kind of

analysis, make sure to leave a comment

and just let me know like, no, this is

this is like what I want to come for.

Uh, and uh, that's my goal to make sure

you come back over and over again. Uh,

by the way, in the alpha report this

morning, I I mentioned don't go bullish

on a firm. And look at this. Couldn't

even hold the line that we were that we

were bouncing on in pre-market. Couldn't

even hold it. Just bled out on the day.

It's exactly what we called in the alpha

report tomorrow along with the price

action that's going on on the cues,

what's going on in Tesla. freaking

nailed it again in the alpha report. So,

if you're not getting that report every

single day before the market opens up, I

think you're missing out. Now, remember,

you can get that over at meekke.com. I

mean, you've heard the pitch before, but

if you go have actually go to meet

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And a lot of people suggest that joining

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out. You pay once you get lifetime

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>> Bullish catalyst.

>> Why not advertise these things that you

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>> We'll we'll try a little advertising and

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>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Praath there, financial analyst

and YouTuber. Meet Kevin. Always great

to get your take.