Jim Chanos

And it went downhill from there…

Well done, Brew Crew!

If you are speculating in inherently worthless financial “assets” on a momentum/squeeze narrative, please understand that you are still taking this risk.

Another way to look at this is that even $NVDA would rather rent its own GPU’s needed for internal purposes, than keep them on its own balance sheet! The AI GPU’s themselves are technology “hot potatoes”.

3-5 years on AI hardware

A good post on AI GPU depreciation, among other things.

So almost 100% of the current US Savings Rate ($1.3T) is retail investors buying equities.

The $CRWV CEO was just interviewed by Cramer, and in response to a question about rapid asset obsolescence, he responded by claiming that his customers are willing to rent his GPU’s for “6 or 7 years”. (2) The Problem? Well in the 2Q $CRWV had avg capital employed of $19.1B in his business. 2Q EBITDA was $656M, or $2,624M annualized. But $19.1B amortized over 7 years is $2,729M of economic depreciation. Using the high end of the CEO’s useful life estimate, yields a 0% ROIC. (3) Also, if you’re going to make the claim that customers are willing to pay you for “7 years” on certain contracts…it helps to actually get paid. But given $CRWV’s alm…

The arrogance of today’s retail investor base when it comes to information they dismiss or opinions they disagree with, due primarily to stock price performance, is hitting ATH’s every day now.

@mikealfred @ericjackson (2) Which of course begs the question as to where $IREN is going to get $60-70B to buildout 2GW of AI data centers!

I was reliably informed that xAI was not trying to raise capital. https://t.co/dVDKBgOfvv

Huh…?! Jensen Huang is literally working overtime to shorten “the life of the system”! $NVDA $ORCL

@mikealfred @ericjackson (2) Furthermore, my $10M per MW cost for the facility includes what has already been spent on land, buildings, etc. as that is still capital employed. $IREN @mikealfred @ericjackson (3) And as of 6/30, $IREN already had roughly $2.4M per MW in P,P& E ($1,931M) for its Bitcoin mining data centers. @mikealfred @ericjackson (4) And there’s the $875M convert deal filing after the promotional press release this morning. $IREN https://t.co/OIuTlNIBZN

@HermesLux0 So wait, you’re saying that a retail investor can not only sell (short) $MSTR common to fund a Bitcoin purchase, but can also now sell (short) $STRC to do the same?! I was reliably informed that the inability to do this was the “secret sauce” at Strategy. So why an mNAV premium?

@AndyZ_Tech The funding of the “actual infrastructure” is the issue(depreciable lives, utilization, etc). And I didn’t compare this to Enron, to be clear.

If you are giving up tens of billions worth of equity warrants, shouldn’t this deal bring in more than “tens of billions of dollars in revenue for $AMD”? https://t.co/4XiWztsk6o

“Pay no attention to that man behind the robot with the controller!” https://t.co/FfQsG36cWg

Really…?!

I see that the sell-side is still pitching the delusional “cash generation” narrative at my favorite financial science project, Sunrun. $RUN https://t.co/XwydkwBv8A (2) So we are clear here, in the LTM $RUN had NEGATIVE OCF of $(811)M, Capex of $2,902M and NEGATIVE FCF of $(3,713)M! Negative FCF of $(3.7)B is not positive “cash generation” by any stretch of the imagination. And they only raised $2.2B net, of non-recourse ABS debt in the LTM. https://t.co/pVj33JgTP0

@Franchise9494 @ID_NOT_WETTE @DCryptDeezNutz @ChelApples @jimcramer (2) My point about all of these companies is that they are landlords/financing conduits, like REIT’s. They are NOT AI technology companies. Again, the “magic” (and hopefully the $) comes from what the chips produce, not from where they reside. $CRWV $GLXY $IREN $NBIS

See last paragraph for $GLXY’s data center cost estimates per MW for retrofit/greenfield sites. https://t.co/XHQp5FES0A

$TSLA China now 6% below 2024 unit sales, versus 4% below at the end of the 2Q. https://t.co/XWg0vkkm4Q

Well I guess $BYND is finally doing its equity offering.

@AlexfromBabyIon St. George is probably going to cost $1.75B ($1.25B for GPU’s + $500M DC cost) for 50 MW, and $500M in ARR. That’s $35M per MW, or over $100B to build out all 2,910 MW! This is consistent with Jensen Huang’s per MW cost projections. $IREN

The Ryder Cup on Long Island https://t.co/HZ7Zmsyxd3 via @YouTube

Some bad clock management decisions in college football today.

Question: Aren’t a disproportionate number of the new AI data centers being built in Texas? Where they are subject to ERCOT’s wholesale spot pricing, if on the Texas grid? (2) For example, here’s the language from the $IREN 10-K on electricity costs. https://t.co/FnhZYAQCU2

To give you an idea of how silly the sell-side research/targets are for the Bitcoin miners-now-DC companies are, take a look here. $IREN is going to buy billions of $ of GPU’s in the next two years, but annualized D&A expense is only going to increase $300M f/2H 2025 to 2H 2027?! https://t.co/em1aAgy2Z3

@CedarStResearch It’s insane, considering $ERIE used to consolidate the Erie Exchange (the “private” companies), which it undoubtedly controls.

@techstockpros @FransBakker9812 (2) And in $IREN’s specific case that legacy Bitcoin mining business burned about $(1)B in cash in FY 2025. So there’s that.