Here’s Why They're Putting $50,000 GPUs in Tents

*Disseminated for Uranium Royalty Corp.

In late August, Mark Zuckerberg posted a video that could have crashed the market.

He showed Manhattan being slowly consumed by a blue digital blob. Not Godzilla. Not aliens. It’s a data center footprint.

His company's next facility — codenamed Hyperion — is so large that it would cover 80% of Manhattan if you dropped it on top.

Wall Street yawned.

The media ran their thousandth "AI revolution" story.

Meanwhile, in rural Louisiana, something unprecedented is happening that will determine who gets rich and who gets left behind over the next decade.

Meta and OpenAI’s Nuclear Tell

Here's what Zuckerberg didn't mention in his Hyperion video:

Practically every tech CEO knows their AI dreams are physically impossible with today's power grid. They're signing contracts for electricity that DOESN'T EXIST YET.

Think about that.

OpenAI needs 10 gigawatts for Stargate alone. That’s the equivalent of about 10 nuclear reactors.

It's like ordering a fleet of rockets before inventing fuel.

This impossible math has created a big energy problem.

And there's currently only one solution that runs 24/7, requires minimal land, and could potentially scale fast enough: nuclear. 

That's why Meta just locked in a 20-year nuclear deal with Constellation Energy.

It’s not a pilot program or a research partnership. It’s a two-decade commitment to split atoms for Instagram reels.

The Violent Math Nobody Sees…

In 2025, the world needs 193 million pounds of uranium. The world produces 165 million. That's a 28 million-pound hole.

Before a single new data center powers up.

Now add Meta's proposed Manhattan-sized monster. Amazon's nuclear purchases. Microsoft's reactor plans. Google's atomic ambitions.

The supply deficit doesn't grow gradually.

Meta's nuclear deal with Constellation Energy includes something nobody's talking about:

They're literally bringing a dead reactor back to life.

Plants that were shuttered, written off, forgotten.

Suddenly valuable because a social media company needs to train language models.

The nuclear graveyard of America — dozens of "permanently" closed facilities — just became the most valuable real estate.

And every zombie reactor waking up needs one thing: uranium. Fresh fuel. Millions of pounds of it.

When supply can't meet demand, prices should rise.

Ask anyone who bought uranium at $17 in 2016 and watched it climb past $70 in 2024 — heading toward the $138 peak last seen in 2007. 

Things can always change just as quickly and there are many factors that can impact uranium prices and demand.

INVESTMENT PLAY: Follow The Toll Collectors

Every data center needs power. And when the world's richest companies start writing checks with more zeros than most nations' GDPs, they can create an upstream effect.

Uranium Royalty Corp (NASDAQ:UROY) are not miners.

They don't dig holes or manage crews.

They have "toll booths" to collect royalties.

When uranium moves from the ground on a project they hold a royalty on to the reactor — they can get paid.

Physical uranium bought when everyone thought nuclear was dead.

Uranium Royalty Corp (NASDAQ:UROY) holds royalties on the McArthur River and Cigar Lake uranium mines in Saskatchewan, Canada, which are among the world's largest and highest-grade mines.

The company acquired these interests in 2021, during a period when nuclear energy was perceived as less favorable, positioning it to benefit from a resurgence in nuclear fuel demand.

Royalties on McArthur River and Cigar Lake — where a lot of America's nuclear fuel currently originates. 

Note: Uranium Royalty Corp.'s NPI (net profit interest) model is a type of royalty that provides the company with a percentage of a project's net profits, but only after all initial costs have been paid off. This is different from a gross revenue model, where payments start immediately and are based on sales, not profit.

This is the same model that has successfully been implanted by others in gold and silver.

The Tent Stakes Are Already in the Ground

The servers are in tents. The nuclear deals are signed.

The zombie reactors are stirring. The 28 million pound gap is real today — and potentially widening tomorrow if current trends continue.

UROY on NASDAQ. URC on TSX.

The first and only pure-play uranium royalty company on Earth…

Uranium Royalty Corp (NASDAQ:UROY) already owns 2.4 million pounds of uranium.

👉And has 25 interests in 22 uranium projects at various stages including large producers such a McArthur River and Cigar Lake.

You should review UROY's most recent Annual Information Form and other filings under its profile at www.sedarplus.ca and www.sec.gov for important information on UROY's business, royalties and other assets.

Regards,

Marin Katusa and the KR Special Situations Team

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