Bitcoin mining company IREN is being sued by investors for allegedly exaggerating its data center capabilities during its transformation into AI

2024-10-10 19:10:51

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ChainCatcher news, according to Finance Magnates, Nasdaq-listed Bitcoin mining company Iris Energy (IREN) is facing a class-action lawsuit for allegedly exaggerating its data center's capabilities to transition to high-performance computing (HPC) and artificial intelligence applications. The lawsuit claims that the company's facility in Childress, Texas, lacks key features such as sufficient power redundancy, cooling systems, and fiber optic connections.

The plaintiffs cite a statement from Iris Energy co-CEO Daniel Roberts, who said the company "has built a data center foundation capable of any high-performance computing." The lawsuit argues that these statements are misleading and overstate the capabilities and overall prospects of the company's data center business.

Affected by a critical report released by Culper Research, Iris Energy's stock price fell by about 15%. The report questions the company's HPC claims and the suitability of its facilities. The lawsuit seeks to represent investors who purchased Iris Energy securities between June 20, 2023, and July 11, 2024.

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