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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">
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 Iris Energy (IREN) Stock Chart | Image Source: <a href="https://finance.yahoo.com/quote/IREN/" target="_blank" rel="noreferrer noopener nofollow">Yahoo</a>
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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

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