|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Wall Street Bitcoin Miner Faces Lawsuit over Alleged Misrepresentation of Data Center Capabilities
Oct 10, 2024 at 05:07 pm
Iris Energy Limited, the publicly-listed Wall Street Bitcoin (BTC) mining company (NASDAQ: IREN) that recently pivoted to promoting itself as a high-performance computing (HPC) data center operator, is facing a class action lawsuit alleging it misrepresented its capabilities and prospects to investors.
Publicly-traded Wall Street Bitcoin (BTC) mining company Iris Energy Limited (NASDAQ: IREN), which recently began promoting itself as a high-performance computing (HPC) data center operator, is facing a class action lawsuit that alleges it misrepresented its capabilities and prospects to investors.
The lawsuit, filed in the United States District Court for the Eastern District of New York, claims that Iris Energy and its executives made false and misleading statements about the company's ability to transition its facilities from bitcoin mining to HPC and artificial intelligence applications.
Specifically, the complaint alleges that Iris Energy's Childress, Texas facility, which the company has touted as a key asset for its HPC strategy, lacks critical features necessary for such operations. The lawsuit claims that the site has inadequate power redundancy, cooling systems, and fiber connectivity.
The lawsuit also cites statements made by Iris Energy's co-CEO, Daniel Roberts, who claimed the company had "built this base layer, this bedrock of high-performance data centers that can do any high-performance compute." The plaintiffs argue that these statements were materially false and misleading, “because the Company overstated the capabilities of its data center business, and its overall prospects.”
Iris Energy's stock price fell approximately 15% following the publication of a critical report by Culper Research, which raised concerns about the company's HPC claims and the suitability of its facilities for such applications.
“Culper further stated that it was ‘short IREN because we believe the Company has dramatically misrepresented the strength and potential of its assets for HPC/AI Applications’,” the lawsuit noted.
The class action seeks to recover damages on behalf of investors who purchased Iris Energy securities between June 20, 2023, and July 11, 2024, alleging violations of federal securities laws.
Bitcoin Miners from Wall Street Pivot to AI
IREN's shift towards AI is part of a broader trend among bitcoin miners, driven by the increasingly challenging conditions in the cryptocurrency mining market. As reported by Finance Magnates, in 2023, following a difficult 2022, cryptocurrency miners began pivoting towards AI and HPC, both of which are highly energy-intensive industries.
An August report from VanEck this year also highlighted this trend, with Matthew Sigel, VanEck's head of digital assets research, stating that the shift from BTC to HPC/AI could unlock $38 billion in value for mining companies by 2027.
“AI companies need energy, and bitcoin miners have it," Sigel said. "As the market values the growing AI/HPC data center market, access to power—especially in the near term—is commanding a premium."
Several examples of such pivots have been evident over the past year. For instance, HIVE Blockchain changed its name to HIVE Digital to better reflect the evolving nature of its business, which now includes not only BTC mining but also support for the HPC and AI industries. The company is pursuing this new venture to double its revenue and has announced the construction of a new hydroelectric data center to support this goal.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Rexas Finance (RXS), Solana (SOL), and Ripple (XRP) Capture Whales’ Attention After a Billionaire Investor Entered the Cryptocurrency Space
- Oct 10, 2024 at 08:10 pm
- After Rexas Finance sold out of its Stage 3 presale earlier than predicted, major investors noticed this innovative platform that emphasizes tokenizing real-world assets (RWAs).
-
- DTX Exchange (DTX) Ready For Mutibagger Rally, SUI Blockchain (SUI) Faces Rejection From March High, and Ripple (XRP) Weakest Coin In The Market?
- Oct 10, 2024 at 08:10 pm
- One of the best ways to track potential cryptos is to find where the smart money guys are investing. Smart money is usually fund houses
-
- Rexas Finance (RXS): A Promising Utility Token Poised to Challenge Solana (SOL) and Ethereum (ETH)
- Oct 10, 2024 at 08:10 pm
- As the cryptocurrency market gears up for the next rally, Rexas Finance (RXS) stands out as a formidable contender poised to challenge the dominance of Solana (SOL) and Ethereum (ETH).