Iris Energy’s stock plunged nearly 20% in midday trading Thursday after activist short seller Culper Research published a short report on the bitcoin miner’s stock. The short-seller analogized the company as looking “to win the Monaco Grand Prix, but just arrived to the track in a Toyota Prius.”
According to data from YCharts, the company's market cap was $2.2 billion just a week ago. Culper estimates that number should be a fraction of that. “As shown below, each deal implied a valuation of $2.5 million per MW, on average. At the same multiple, IREN would trade to $5.75 per share, or 59% less than today’s price. Investors wishing for a buyout offer like those received by Core or Griid should be careful what they wish for.”