Hut 8 is following a dangerous precedent of self-leveraging data-center buildouts by packaging tenant leases into asset-backed securities, as Blackstone's QTS began doing. Construction debt builds a data center, its 15-year lease backs debt issuance, and the proceeds fund distributions and equity for more projects, so $10B of equity can snowball into $180B of projects. The same cycle in late-1990s manufactured homes contributed to the mortgage crisis. x.com 

Hut 8 has signed away nearly 1GW of power and land in colocation deals for pennies on the dollar, making it a stock worth shorting for anyone willing to short at all. Colocation plays are off-limits until rates improve. x.com 

Hut 8 remains a great stock because of its 10GW pipeline, even after the run that followed its Anthropic partnership. x.com 

Heavily indebted data-center and compute names, including CoreWeave, IREN, Cipher, TeraWulf, Core Scientific, Riot, MARA, Hut 8, Bitdeer and Bit Digital, are vulnerable if credit tightens next year. High-debt firms get punished in tightening, especially if a credit freeze stalls projects, and panicked markets sell everything. TeraWulf shows the risk, with a $427.6 million Q1 net loss, $713 million of quarterly cash burn and $7.09 billion of liabilities. This is a macro basket trade. x.com  x.com  … Show more

Applied Optoelectronics' future earnings are not guaranteed, so its elevated price is highly susceptible to a drawdown that could create a far better buying opportunity by the end of next year. Capex can be cut, public and political pushback can delay data centers, and new data centers may fail to secure financing, any of which would cut projections. @RatWasteCapital counters that at $90 the stock trades at about 6x fiscal 2028 EPS if a $5.6B run rate holds. x.com  x.com 

IREN and Hut 8 look like buying opportunities because they just locked in multi-billion-dollar contracts while the market keeps pushing them lower. That selloff is a gift, not a red flag. The AI infrastructure trade rests on a power shortage that has persisted for over a year, and more energy is needed. x.com 

Riot Platforms could be breaking out of a 13-year downtrend, extremely compressed on all timeframes and seeing its largest buy volumes ever. Shares rose 27% on the biggest buy volume since early this year and are attempting to break through the major $21.50-$22.20 zone; the thick volume levels it is entering now will be key. x.com  x.com 

BlockchAIn looks highly risky because of shady governance and an AI pivot it cannot fund. The roughly $43M bitcoin hosting company has a 40MW South Carolina site, about $1.25M of cash and a related-party main customer, and its AI plans rest on non-binding LOIs needing $200-400M of capex, implying heavy dilution. CEO Jerry Tang controls 69.9% through entities that also collect fees; Tiger Cloud's Q1 fees rose 4x to $325K. It also disclosed two material weaknesses in internal controls. x.com  x.com  … Show more

Hut 8's thesis as an owner of energy infrastructure for modern technologies is as strong today as ever. The company has executed very well against that thesis since it was laid out in October 2024. x.com 

Data-center stocks are the most asymmetric bet in the market, with Bitdeer and IREN the top picks, because access to power is becoming the AI boom's next bottleneck. Berkshire Hathaway CEO Greg Abel said the firm sees a significant opportunity in powering AI data centers. After roughly 50% drawdowns and Jim Cramer urging an exit, pessimism looks near a peak. The risks are real, but a potential 5x in five years, with little chance of going to zero, makes it asymmetric. x.com