๐Bitcoin mining company IREN, formerly Iris Energy, saw its shares plunge by 24% on the Nasdaq! ๐ฒ This drop follows a report from short-seller firm Culper Research, which labeled IREN as "wildly overvalued."
๐ผCulper Research accused IREN of making grand claims about its high-performance computing (HPC) plans while underinvesting in the necessary infrastructure. They even compared IREN's claims to showing up at the Monaco Grand Prix in a Toyota Prius. ๐๐จ
๐Further allegations pointed to discrepancies in IREN's valuation of undeveloped land and power agreements. Culper accused IREN of misquoting a Morgan Stanley research note, which referred to the value of fully built infrastructure, not undeveloped assets.
๐Culper's report also highlighted discrepancies in IREN's valuation compared to its peers. If IREN's valuation aligned with these figures, its shares could drop by as much as 55%.
๐ฅCulper also scrutinized IREN's crypto mining operations, ascribing $0 to $100 million in value to the company's crypto mining operations. They also pointed out IREN's failure to meet its hashrate targets and insider selling by IREN's co-CEOs, which may have fueled investor concerns.
๐ขIt's a rollercoaster ride in the world of Bitcoin mining! Stay tuned for more updates! ๐ข