According to TechFlow, on October 10, Finance Magnates reported that Nasdaq-listed Bitcoin mining company Iris Energy (IREN) is facing a class action lawsuit for allegedly exaggerating its data center's ability to transform to high-performance computing (HPC) and artificial intelligence applications. The lawsuit claims that the company's facilities in Childress, Texas lack sufficient power redundancy, cooling systems, and fiber optic connections, among other key features.
The plaintiffs cite statements by Iris Energy co-CEO Daniel Roberts that the company âbuilt the data center foundation for any high-performance computing.â The lawsuit argues that these statements were misleading and overstated the capabilities and overall prospects of the companyâs data center business.
Iris Energy shares fell about 15% following a critical report from Culper Research that questioned the companyâs HPC claims and the suitability of its facilities. The lawsuit seeks damages on behalf of investors who purchased Iris Energy securities between June 20, 2023 and July 11, 2024.