We came across a bullish thesis on IREN Limited (NASDAQ:IREN) on Twitter by FransBakker9812. In this article, we will summarize the bulls’ thesis on IREN. IREN Limited (NASDAQ:IREN)’s share was trading at $10.46 as of Jan 2nd. IREN’s trailing and forward P/E were 2.15 and 133.33 respectively according to Yahoo Finance.
An exterior view of a busy data centre, showing the scale and workflows of the company.
IREN Ltd recently registered a new large data center project in Texas, named the “Bull Data Center.” This project, located near the original 1.4GW Sweetwater site, marks a significant step forward for IREN as it continues to develop its data center capabilities. The site’s designation as a “qualified large data center project” by the Texas Comptroller opens up a range of benefits, including potential tax exemptions on essential equipment. The registration of the Bull Data Center further highlights IREN’s plans for the site, indicating advanced discussions with hyperscalers and possibly a strategic expansion of its operations.
This development suggests that IREN is preparing to expand the 1.4GW site by selling adjacent land parcels to future clients while maintaining control over the operation and tax benefits of the project. These adjacent lots, although not yet disclosed, are crucial for the future growth of the Bull Data Center. IREN has been acquiring land around the initial substation, stretching up to 1.2 miles from the original site, and these parcels could be sold or leased to clients who would benefit from IREN’s tax abatement and regulatory frameworks. This would allow IREN to maintain its position as the operator and taxpayer while enabling clients to build their own data centers on the adjacent land.
The structure of this project, with multiple parcels connected by shared boundaries, provides IREN with flexible monetization options. The company could sell or lease the land to customers, who would then be able to take advantage of the tax benefits associated with the Bull Data Center project. This approach would significantly increase the value of each lot, as the tax abatement and other regulatory benefits would be transferred alongside the land, offering an attractive incentive for potential buyers or affiliates.
In summary, the Bull Data Center represents a promising opportunity for IREN, with the company set to capitalize on its land holdings and tax advantages. The registration and expansion plans reflect a strategic approach to monetizing the site, allowing IREN to remain at the center of operations while offering clients the chance to build and benefit from the project’s associated perks. The future development of the Bull Data Center could unlock substantial value, positioning IREN for significant growth and operational success.
IREN Limited (NASDAQ:IREN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held IREN at the end of the third quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of IREN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IREN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.