IREN Ltd (Derivatives) (IREN)

$IREN: H1 Handover Iterations

I know $IREN investors are anxious on H1 handover to Microsoft. I suspect it may take a one to two iterations.

Iterations are not typically the full 5+15 days. Microsoft will report any problem upon finding, let’s hypothetically say Wednesday July 22.

These are typically small issues that are hard to find like networking cable replacement. This one is very very common since there are literally tens of thousand of these cables both AEC, AOC, DAC, pluggable opticals.

IREN internally testing only covers networking connectivity but is likely to miss partial signal degradation. When MSFT runs their test loads they are bound to find a weak cable. In fact, it’s common to be finding weak cables a few weeks after acceptance but those fix will be done on MSFT’s dime aka still billing.

IREN will typically fix these problems by Friday/Monday July 24/26 and if no additional problems are found then candidate acceptance date would be the following July 31 or August 3rd.

IREN will have tested all large items like UPS, cooling flow rate, networking racks. However they cannot catch every single cable for degradation.

This $IREN consolidation has been unbearable, especially since people are saying that a recession is just right around the corner. https://t.co/nOPhuNKYHr