As a researcher with experience in the tech and finance industries, I find Culper Research’s report on Iris Energy raising red flags that cannot be ignored. The concern over Iris Energy’s ability to provide high-performance computing (HPC) services for artificial intelligence (AI) is not new, but the evidence presented by Culper adds a level of urgency to this issue.
As a researcher examining the Australian Bitcoin mining company, Iris Energy, I came across a report from Culper Research that raised concerns about the firm’s capacity to supply the advanced computers required for artificial intelligence applications. This revelation led to a 14% decrease in the value of Iris Energy’s shares on Friday.
Iris Energy (IREN), an Australian Bitcoin mining firm, experienced a 14% decrease in share value on July 12 following the release of a report by short seller Culper Research. The report raised doubts about Iris’ ability to deliver top-tier computing services for artificial intelligence (AI) at its Childress, Texas facility.
In a report published on July 11, Culper noted that Iris’ flagship Childress project is missing essential features for high performance computing applications. Moreover, Iris’ co-CEO Daniel Roberts and his brother Will have initiated share sales since February, marking the first such occasion since Iris became a publicly traded company.
“It’s our opinion that IREN’s stock appears overly transparent, and once investors come to terms with the fact that the company’s High Performance Computing (HPC) statements may be misleading and IREN continues to burn through cash, the value of their investment could be at risk.”
Culper Research
Analysts at Bernstein have contradicted Culper’s assertions, pointing out that Iris Energy has never declared its intention to upgrade its Childress bitcoin mining facility with artificial intelligence (AI) technology. As reported by Bloomberg, Bernstein maintains a favorable view of Iris Energy, assigning it an “Outperform” rating and setting a $26 price target.
Upon the publication of the report, I observed a significant 14% drop in IREN’s price, which fell to $10.8. However, it managed to recover slightly and reached $11.2 later on. According to Google Finance, this is where things stood as of press time. Notably, there were no official communications from Iris Energy regarding the current market situation. Established in 2018, Iris Energy had reportedly secured over $410 million by selling approximately 40 million shares, which they utilized for their expansion plans.
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2024-07-12 15:00