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IREN Joins MSCI USA Index, Elevating Visibility for Institutional Investors

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TLDR

  • IREN has been included in the MSCI USA Index, enhancing its visibility among institutional investors and index-tracking funds.
  • The inclusion is expected to trigger automatic buying by index-tracking entities, potentially boosting IREN’s stock in the short term.
  • IREN has shifted focus from BTC mining to AI-driven infrastructure, positioning itself as a leader in the tech sector.
  • CEO Daniel Roberts believes the MSCI inclusion will broaden institutional access as the company executes its AI Cloud strategy.
  • Since the announcement, IREN’s stock has increased by around 7%, reflecting investor optimism despite concerns over recent financial results.

IREN, a company transitioning from a BTC mining operation to a dual-focus entity, has announced its inclusion in the prestigious MSCI USA Index. This move is set to elevate the company’s profile, attracting more institutional investors and index-tracking funds. It is expected to create a short-term surge in the stock price as automatic buying from these entities takes effect.

The inclusion in the MSCI USA Index provides IREN with enhanced visibility. Investors and funds that track the index will now automatically consider IREN as part of their portfolios. This may trigger a short-term surge in its stock value, supporting the company’s broader business goals.

Why MSCI USA Index Inclusion Matters for IREN

Daniel Roberts, Co-Founder and Co-CEO of IREN, expressed that being added to the MSCI USA Index is a sign of the company’s growth. “We believe this milestone will broaden institutional access to IREN as we continue to execute on our AI Cloud strategy,” he said. This inclusion comes as IREN shifts its focus from BTC mining to AI-driven infrastructure, positioning itself as a leader in the tech space.

As IREN pivots towards AI, the company’s shift in priorities is evident in its investments. It is spending more on AI-centric assets, such as data centers, than on traditional Bitcoin mining operations. This strategic move aims to capitalize on the growing demand for AI infrastructure, with plans to expand its power portfolio and attract long-term partnerships.

IREN’s Stock Response and Future Plans

Since the MSCI inclusion announcement, IREN’s stock has seen an upward movement. The company’s share price rose by approximately 7%, demonstrating investor optimism. However, concerns about the company’s financial performance remain, as recent quarterly results showed lower-than-expected revenues and widening losses.

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Despite these concerns, IREN’s long-term outlook remains promising. The company is in talks for several major deals, including a multibillion-dollar contract that could further drive its growth. As the AI infrastructure market expands, IREN aims to leverage its secured power capacity to attract new contracts and raise its recurring revenue.

IREN continues to make progress with its energy initiatives, securing new data center campuses and large power agreements. These efforts position the company to meet the growing demand for energy from tech giants, ensuring a robust pipeline for future growth.

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Crypto World

Bitcoin Could Hit $1M if it Tracks Gold

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Bitcoin Could Hit $1M if it Tracks Gold

Bitcoin needs to make up just one-sixth of the global “store of value” market, currently dominated by gold, to reach $1 million per coin, argues Bitwise chief investment officer Matt Hougan.

In a blog post on Tuesday, Hougan said that most dismiss the lofty forecast for Bitcoin, as it would require Bitcoin to muscle into 50% of gold’s current market value.

However, Hougan said the “mistake” most people are making is ignoring the growth of gold and the broader “store of value” market.

Gold’s market cap has grown at around 13% annually since 2004, from $2.5 trillion to around $38 trillion, driven by “rising concerns about government debt, geopolitical uncertainty, easy monetary policy, and other factors.”

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“If this growth rate continues, the global ‘store of value’ market will be [around] $121 trillion in 10 years. At that level, Bitcoin only needs to take 17% of the market to be worth $1 million a coin.”

Gold market cap from 2004 to the present. Source: Bitwise Asset Management

Related: Bitcoin undervalued relative to gold signals potential rally: Analyst

Hougan cited the growth of institutional investment, such as exchange-traded funds, sovereign wealth funds, and increasing portfolio allocations as potential catalysts.

“There are still miles to go, but with these undercurrents, capturing one-sixth of the store-of-value market in 10 years doesn’t seem extreme,” he said, adding:

“As I see it, the base case — that the store-of-value market will continue to grow as it has, and Bitcoin will continue to gain market share as it has — leads you to much, much higher prices than we have today.”

Bitcoin and gold divergence deepens

Hougan’s million-dollar Bitcoin (BTC) thesis depends on the asset continuing to converge with gold; however, the last several months have shown that Bitcoin hasn’t been moving in lockstep with gold.

The price of gold hit an all-time high of $5,327 per ounce in late January, and it is just 2.2% away from that today, whereas Bitcoin is currently trading down 44% from its October peak.

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Billionaire investor Ray Dalio cautioned against Bitcoin as a long-term store-of-value and safe-haven asset in early March, stating that gold was much better.

He argued that central banks are not buying BTC, which he said behaves more like a tech stock.

Greg Cipolaro, global head of research at NYDIG, said on March 6 that it appears Bitcoin is “not currently being priced as a macro hedge, a sovereign risk hedge, or a real-rate or inflation trade.”

“That dynamic helps explain the ongoing frustration around Bitcoin’s failure to ‘act like gold’ despite the digital gold label.”

Bitcoin and gold markets have been diverging since the October crypto market crash. Source: Google Finance

Magazine: China’s ‘50x’ blockchain boost, Alibaba-linked AI mines Bitcoin: Asia Express