$IREN Under Pressure: Is the Warriors Sponsorship a Strategic Mistake?

I have had a chance to think, and in my opinion, $IREN Ltd(IREN)$ spending $50M on Golden State Warriors sponsorship is moronic.

IREN is a B2B infrastructure provider that largely focuses on serving the multi-hundred-billion-dollar hyperscaler AI demand.

This is a waste of money that doesn't help them one bit with this objective.

For an unprofitable company that had $234M in operating losses last quarter and that needs billions of dollars of capital to waste $50M a year on a B2C sponsorship is absolutely moronic.

This is truly stupid, and the market justifiedly sold the stock.

This is a very bad judgement call from the Roberts brothers.

However, the company has strong AI assets, and on the grand scheme of things, $50M a year is not that much.

Nevertheless, this is a clear L for the management and makes me rethink their competence.

If they waste money on such silly endeavours, there is a probability of more wasteful spending under the hood or in the future.

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IREN is a B2B infrastructure provider that largely focuses on serving the multi-hundred-billion-dollar hyperscaler AI demand. This is a waste of money that doesn't help them one bit with this objective. For an unprofitable company that had $234M in operating losses last quarter and that needs billions of dollars of capital to waste $50M a year on a B2C sponsorship is absolutely moronic. This is truly stupid, and the market justifiedly sold the stock. This is a very bad judgement call from the Roberts brothers. However, the company has strong AI assets, and on the grand scheme of things, $50M a year is not that much. Nevertheless, this is a clear L for the management and makes me rethink their competence. If they waste money on such silly endeavours, there is a probability of more wasteful spending under the hood or in the future.","highlighted":1,"essential":1,"paper":2,"likeSize":1,"commentSize":0,"repostSize":1,"favoriteSize":0,"link":"https://ttm.financial/post/581300471619704","repostId":0,"isVote":1,"tweetType":1,"viewCount":680,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["IREN"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":805,"optionInvolvedFlag":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/581300471619704"}