IREN fell 4% on Nov. 2 after Cipher Digital missed revenue estimates, then rose 10% the next morning as AI data center stocks rebounded. Cipher said change orders and higher construction costs at its Barber Lake campus would have cut its yield on cost to about 13% from roughly 15%, but it agreed to pay $359 million of the roughly $409 million in change orders in exchange for a 10-year lease extension. IREN, which builds its own cloud, plans $25 billion to $30 billion of capex this fiscal year and has said costs for new deployments will run 15% to 20% higher. Its five-year, $9.7 billion Microsoft contract relies on about $5.8 billion of GPUs and equipment agreed to be bought from Dell. The article says the funding gap and share count matter most in IREN's Thursday report, with the stock trading at 3.1x forward sales versus a three-year average of 5.2x.
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