Serenity is bullish on select Neocloud companies amid the market downturn, saying that financing and potential regulatory approval restrictions could raise entry barriers.

Serenity stated in a post that new cloud service providers (Neocloud) like NBIS have become attractive after their valuations dropped sharply. He believes that providers maintaining close ties with suppliers such as NVIDIA, holding contracted capacity and necessary permits, securing well-capitalized partners, and able to finance equipment purchases at reasonable costs can still deliver strong performance. Citing IREN’s financial report, he noted that an advance payment under a five-year agreement covers 90% of GPU capital expenditures, demonstrating that listed Neocloud players can adapt to tight financing environments. The re-signing price of its older-model H100 GPUs has reached twice the previous level, which he says runs counter to some market concerns about equipment depreciation. On the regulatory front, Serenity cited Rosenblatt’s research report, stating that NBIS’s major construction projects in Missouri, Pennsylvania, and South Carolina carry low risks. He is more concerned about new entrants that are just starting to secure financing or obtain permits, arguing that tighter financing and potential regulatory restrictions may instead expand the competitive advantages of existing Neocloud players, helping them build stronger moats.