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We did this ROIC/IRR/MOIC analysis of the $IREN deal with $MSFT, being as generous to IREN as possible. We used 5-yr life for the GPU’s, with 20% residual value. And only considered the supercluster/acceleration costs for the DC buildout at Childress. https://t.co/EA69kqVuO2 (2)Yet despite these favorable assumptions for the deal, you can see that the ROIC (7.7%) and unlevered-IRR (10.2%) figures are both below $IREN’s cost-of-capital. The 20% IRR figures people are throwing around are ridiculous. This is a financing deal, w/IREN taking all the risk. (3) And as a further “sanity check”, the 77,000 GB 300 GPU’s in this deal are being rented-out at an implied $2.88 per hour ($1.94B annually), well below where other deals have happened. $IREN (4) Finally, it’s hard not to conclude that this deal will actually DECREASE EPS at $IREN going forward, with increased balance sheet risk and/or equity dilution.