Serenity Optimistic About Neocloud, Financing and Approval Restrictions May Raise Barriers

On November 8, Serenity stated that new cloud service providers like NBIS and Neocloud are attractive after a significant drop in valuation. Vendors that maintain close relationships with suppliers like NVIDIA, have signed production capacity and necessary licenses, possess well-funded partners, and can finance equipment procurement at reasonable costs may still perform well. Serenity cited IREN's financial report, indicating that advance payments in a five-year agreement could cover 90% of GPU capital expenditures, showing that listed Neocloud can adapt to a tight financing environment. The re-signing price for its older H100 GPUs has reached twice the previous amount, indicating that market concerns over equipment depreciation have eased. Regarding approvals, Serenity referenced a Rosenblatt research report stating that the major construction project risks for NBIS in Missouri, Pennsylvania, and South Carolina are relatively low. Serenity is concerned about the difficulties new entrants may face in financing or obtaining permits, believing that tightened financing and potential approval restrictions could expand the competitive advantages of existing Neocloud, establishing a stronger moat.

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