Equity Research · Current Holding
IREN
IREN · NASDAQ · AI & Data-Center Infrastructure
I paid a bitcoin-mining multiple for owned power and interconnect, watched it re-rate, and I am back for the next leg.
Quan Pham · M’Squared Capital Research · August 2026
What the market is missing
The market still files IREN under crypto. What it actually owns is the scarce input everyone in AI is short of: megawatts, land and interconnect that are worth far more hosting inference than mining hash. The mispricing is a filing-cabinet problem — it is valued as what it used to be, not what it is becoming.
Why I own it
This was a realized 35% on the miner-to-AI pivot and I have added it back to the book. The trade is the arbitrage between the two multiples: priced closer to a miner, worth more as an AI landlord, and every hosting commitment closes the gap. I own the power, not the promise.
What has to happen
AI-hosting agreements have to keep being signed, power-capacity and interconnect milestones have to be disclosed, and the market has to keep re-rating the asset toward its neocloud comparables rather than its mining ones.
What would prove me wrong
There is residual bitcoin-price sensitivity I cannot fully engineer away, and this is a capital-intensive business — if financing tightens or execution on the pivot slips, the re-rating stalls or reverses. If hosting demand for its specific sites does not materialize, I am holding a miner at a landlord's valuation.
Valuation & exit
I hold IREN without a published price target; the thesis is the re-rating from mining to infrastructure economics as capacity gets contracted, not a specific number. It is a book position I will judge on the pace of that re-rating.
Position
Long Equity
Initiated
Re-established · Aug 2026
Sector
AI & Data-Center Infrastructure
Status
Current holding
Last updated
August 2026
This note is the opinion of M’Squared Capital and is provided for informational purposes only. It is not investment advice, nor an offer or solicitation to buy or sell any security. Price targets and entry and exit levels reflect the firm’s proprietary views and realized transactions; they are not forecasts of future results. The firm may hold, add to, reduce, or close any position at any time without notice. Past performance is not indicative of future results.