May. 15 at 12:20 PM
$BRUN
$DELL equipment financing facility of
$1.5bn gives them significant capacity. If they deploy capex that at similar revenue conversion rates.
$1.5bn of capex turns into revenue with 70% conversion. So
$1.05bn of revenues. They have been running this for FCF since day 1. They depreciate their GPU's at 3 years which is ~half the industry rate. Even if they just hit the exit rate (
$375MN of revenues) they just gave out it implies roughly ~5x EBITDA.
They are one of the few companies with a fluidstack partnership. The others are
$WULF $HUT $CIFR
Those all trade for 22-35x 2027 EBITDA.
$BRUN will be growing significantly faster than all of them. This could be a
$200 stock in the making on that math (
$1BN of revenue,
$700MN of EBITDA at a 25x multiple gets you to
$200)
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