Analysis of IREN Miner Decline
Crypto miner IREN, formerly known as Iris Energy, saw a significant drop of 24% on the Nasdaq following a report from a short seller firm.
Short Seller Criticism
- Culper Research accused IREN of being “wildly overvalued.”
- The firm claims IREN is failing to invest enough to compete in the AI industry.
In its report, Culper Research highlighted that IREN’s enterprise value was exceptionally high compared to its hash rate.
Failed Promises
- IREN promised to reach a hashrate of 10 exahashes per second by April 2023 but only achieved 5.5 EH/s.
- Insider selling by the co-CEOs of IREN has also raised concerns.
Culper Research suggested that IREN’s market value is inflated and that it may continue to struggle following the recent halving event.
IREN’s stock fell 24.5% on July 11 before partially recovering, closing at $11.20.