Based

Bitcoin

Drops

Bitcoin mining company Iris Energy saw its stock drop nearly 21% on Thursday after activist short seller Culper Research released a critical report doubting the company’s ability to transition into high-performance computing (HPC) and questioned its valuation. 
<a href="https://img1.wsimg.com/blobby/go/cc91fda7-4669-4d1b-81ce-a0b8d77f25ab/downloads/Culper_IREN_7-11-24.pdf?ver=1720711055685" target="_blank" data-type="link" data-id="https://img1.wsimg.com/blobby/go/cc91fda7-4669-4d1b-81ce-a0b8d77f25ab/downloads/Culper_IREN_7-11-24.pdf?ver=1720711055685" rel="noreferrer noopener nofollow">Culper Research</a> compared Iris Energy’s ambitions to “trying to win the Monaco Grand Prix in a Toyota Prius,” arguing that the company’s infrastructure is not suitable for HPC and AI applications.&nbsp; 
The short seller claimed Iris Energy has spent less than $1 million per megawatt on its current facilities, much lower than the $10-20 million industry standard for HPC-ready data centers. 
The report also expressed concerns about Iris Energy’s valuation, suggesting that the company’s shares could be worth 52% to 79% less than their current price. Culper categorized the valuation into three parts: existing facilities, undeveloped power, and crypto-mining operations, assigning a value of $0 to $100 million to the latter. 
Based on <a href="https://www.bnnbloomberg.ca/business/technology/2024/07/11/iris-energy-tumbles-after-short-seller-culper-questions-ai-aspirations/" target="_blank" rel="noreferrer noopener nofollow">Bloomberg’s report</a>, recent insider selling by co-CEOs Daniel and Will Roberts since February has added to investor worries. Culper noted that Iris Energy has burned through $716 million in cash since 2020, mainly funded by issuing more shares. 
At the time of publication, Iris Energy’s stock, IREN was down 13.18% to $11.20 per share, after hitting a session low of $10.36. Despite the day’s losses, shares remain up 65% year-to-date. 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXcler0Uw7Ec0hEW_lc3WFDVDv3TtoQuPAOIjxiiC1109J5MwJCxWObwKUIQc8d5CqJwYc-FGXuWx7n1E_eAy7zJGjKmRSz_cfWxdEE5yERL6jpNoDHTp_N3quOqPj0i8NXz-LQVCLqilBoqnQpFrtV0x90a?key=vs_G06mjAsLSqfrzE4QvEw" alt="Iris Energy (IREN) Stock Chart">
 <figcaption class="wp-element-caption">
 Iris Energy (IREN) Stock Chart | Image Source: <a href="https://finance.yahoo.com/quote/IREN/" target="_blank" rel="noreferrer noopener nofollow">Yahoo</a>
 </figcaption>
</figure> 
The company is yet to respond to requests for comment on the Culper Research report. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/07/11/malaysia-loses-723m-to-electricity-theft-linked-to-crypto-mining/">Malaysia Lost $723m to Electricity Theft Linked to Crypto Mining</a> 
</blockquote>

Bitcoin Miner Iris Energy Drops 21% After Culper Report

The Crypto Times

在 2024年7月12日發表的其他文章

Samson Mow Shares Epic Take as Bitcoin Holds $57,000, 'Everything is Accelerating'

Major Developments in Cryptocurrency Over the Last 24 Hours

Bitcoin Investors Monitor German Government’s BTC Sales

Bipartisan US senators renew push to ban stock trading for Congress

U.S. Senators Introduce New Bipartisan Bill to Combat AI Deepfake Misuse with Mandatory Watermarking

The Crypto Market is About To Flip?! Which Crypto To Keep Eye On?!

訂閱免費電子報，每天收取加密貨幣最新動態！