$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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