As gold and silver soar, setting record prices and record demand…
Those who already own gold and silver are probably pretty happy. But they should also be worried.
Because what’s driving the price of these metals higher isn’t merely today’s inflation…
It’s the growing, global recognition that the U.S. dollar is no longer a suitable reserve currency.
Foreign creditors are backing away from U.S. debt for the first time in decades… While at the same time, the U.S. is adding billions to its debt load every day.
This is how we lose the dollar’s world reserve currency status.
Foreign central banks, for the first time in decades, now hold more gold in reserves than they do U.S. Treasuries, for the first time in 30 years.
While the consequences of these changes are far-reaching, the most important immediate impact will be higher borrowing costs for the U.S. Treasury.
The other concern is political.
Massive government debt and huge increases to annual deficits, along with looming unfunded pension obligations is spiraling toward insolvency.
It’s a catastrophe in the making.
The U.S. government is going to print whatever it takes… buy their own bonds… and continue to stiff regular, hard-working Americans by devaluing the dollar.
It’s the only trick they know. And the more they debase the dollar, the less investable bonds become.
So where does that capital go? Historically, every time real yields collapse, capital floods to one place…
Gold.
What we’re seeing right now is a global flight away from dollars, and into hard assets like gold.
And it shows this is just the beginning of gold’s run…
So if you think the gold story is old news or that we’re nearing the end of this cycle and you’ve missed your chance to get in…
I want to stress: Nothing could be further from reality.
What we’re witnessing today, between the U.S. Government’s reckless spending, the global flight away from dollars, and the price explosion of hard assets?
I’m warning you – this is the beginning of the largest monetary shift we’ve ever seen.
I’m urging everyone to take steps to protect their wealth, starting today.
And while you could buy gold or silver at these prices…
There’s one other asset that has outperformed gold, gold mining stocks, and the broader market over the last 18 years…
And could be at the forefront of a new wave of real wealth as this monetary shift plays out.
Click here to discover this little-known gold investment now.
IREN Earnings Were Ugly—Is a Beautiful Future Already Funded?
Authored by Jeffrey Neal Johnson. Publication Date: 2/6/2026.
What You Need to Know
- The company successfully secured a massive credit facility to fully fund its transition to becoming a high-performance computing infrastructure provider.
- IREN has established a competitive moat by securing vast amounts of power capacity and developing new data center campuses across North America.
- Management reaffirmed ambitious annualized recurring revenue targets, driven by the aggressive deployment of new graphics processing units.
Shares of IREN Limited (NASDAQ: IREN) fell sharply on Feb. 5, 2026, closing down more than 11% after the company released its second-quarter financial results. The sell-off extended into after-hours trading after a revenue miss and a wider-than-expected net loss. At face value, the results reflected the current weakness in the cryptocurrency market, where lower Bitcoin prices and rising mining difficulty pressured the company's top line.
But viewing the company through the quarter alone misses a material development that changes the trajectory. Alongside the mixed results, IREN announced a $3.6 billion credit facility intended to fund the company's transition from a pure-play Bitcoin miner to a high-performance computing (HPC) infrastructure provider.
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Get matched with vetted fiduciary financial advisors todayThat creates a disconnect for investors. Market sentiment is fixated on near-term headwinds in the crypto sector and accounting volatility, while management has secured funding to pursue a fully financed growth strategy in the artificial intelligence sector. The key question for investors is whether to trade the last three months' earnings miss or the multi-billion-dollar build-out the company plans over the next several years.
The $3.6 Billion Game Changer
The most important takeaway is the $3.6 billion delayed-draw term loan facility that IREN has secured. That capital is earmarked to purchase the graphics processing units (GPUs) required to fulfill the company's large contracts.
The financing is notable for several reasons:
- Low cost of capital: The facility carries an interest rate below 6%. In today's environment, securing billions at this rate signals institutional confidence in IREN's credit profile and plan.
- Tied to Microsoft: Management confirmed the financing is directly linked to the previously announced $9.7 billion AI Cloud contract with Microsoft (NASDAQ: MSFT).
- Limits dilution: Combined with a $1.9 billion prepayment from Microsoft, the new debt facility covers roughly 95% of the capital expenditures needed for the hardware expansion, reducing the need to raise equity and dilute existing shareholders.
With this funding in place, IREN has converted a theoretical growth plan into a funded project. The primary risk has shifted from whether the company can finance the build to whether it can execute the build on time.
Scale and Scarcity: The Infrastructure Advantage
In AI infrastructure, high-end chips are widely available to parties with capital. The scarce resource is reliable power and grid access. Data centers require enormous amounts of electricity to run and cool processors, and securing grid capacity is increasingly difficult. This is where IREN claims an advantage.
The company says it has secured over 4.5 gigawatts (GW) of power capacity. To put that in perspective, one gigawatt is roughly enough energy to power 750,000 homes. That scale of power gives IREN a meaningful moat that smaller competitors will struggle to match.
Recent infrastructure updates include:
- New Oklahoma campus: IREN announced a 1.6 GW data center campus in Oklahoma, located within the Southwest Power Pool (SPP). This diversifies operations beyond the Texas grid (ERCOT) and helps mitigate regulatory or policy risk concentrated in a single region.
- Sweetwater milestone: The Sweetwater 1 substation in Texas, capable of supporting 1.4 GW, remains on track to be energized in April 2026.
The timing is important. While many competitors face multi-year waits for power access, IREN is months away from activating gigawatt-scale capacity, enabling faster deployment of hardware than peers without ready infrastructure.
Bitcoin Headwinds and Accounting Noise
Despite the strategic progress, the second-quarter results created immediate headwinds. IREN reported total revenue of $184.7 million, missing analyst expectations of roughly $229.6 million. The shortfall was driven primarily by the Bitcoin mining segment: lower average Bitcoin prices during the quarter and higher mining difficulty reduced production revenue.
The company recorded a net loss of $155.4 million. Much of that headline loss was driven by non-cash items—specifically $219.4 million in charges related to:
- Derivative revaluations: Accounting adjustments for financial instruments used to hedge risk, which can swing with market prices but do not represent immediate cash outflows.
- Impairments: Write-downs on older mining hardware as the company retires legacy rigs to make room for modern AI processors.
Importantly, IREN's balance sheet remains sturdy, with about $2.8 billion in cash as of Jan. 31, 2026. That liquidity suggests the company is not burning through cash in a way that threatens operations. Instead, the earnings volatility underscores the rationale for the pivot: moving power capacity into fixed-rate AI contracts reduces exposure to the kind of crypto-market swings that pressured this quarter's results.
The Path to Re-Rating
Management reiterated ambitious targets, aiming for $3.4 billion in Annualized Recurring Revenue (ARR) by the end of 2026. Hitting that goal depends on successfully deploying roughly 140,000 GPUs across IREN's expanding data center footprint.
At a market capitalization near $11 billion today, IREN would trade at roughly 3.2 times forward revenue if it reaches $3.4 billion. By comparison, pure-play AI infrastructure companies often trade at double-digit revenue multiples. The market currently prices IREN more like a volatile Bitcoin miner than an AI cloud provider. If IREN executes on construction and brings the Microsoft contract fully online, the company's revenue mix should shift toward stable, higher-margin AI services—and the stock could re-rate accordingly.
Navigating the Transition
IREN is in the most challenging phase of a major corporate transformation. The volatility reflected in the recent earnings report is a short-term cost of shifting a large industrial operation from one business model to another. While the earnings miss prompted selling, the simultaneous securing of $3.6 billion in low-cost financing removes a major obstacle to execution. With funding in place, substantial power commitments, and a marquee customer, the investment thesis now hinges on operational execution. For investors who can look past quarterly Bitcoin fluctuations, the growth story for 2026 remains intact.
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