Main Points:
- Australian Bitcoin miner Iris Energy’s shares dropped 14% after concerns about its ability to provide high-performance computing for AI.
- Culper Research questioned Iris Energy’s HPC capabilities in Childress, Texas.
- Analysts at Bernstein defended Iris Energy, stating it did not claim to retrofit its bitcoin mining site for AI.
- Iris Energy’s market capitalization is $2.09 billion, and the company raised over $410 million for expansion.
Australian Bitcoin Miner Shares Plummet
Shares of Australian Bitcoin mining company Iris Energy saw a 14% drop on Jul. 12 due to concerns raised by Culper Research regarding the company’s ability to provide high-performance computing for artificial intelligence (AI) in Childress, Texas.
Culper Research Challenges Iris Energy’s HPC Capabilities
Culper Research’s report on Iris Energy’s flagship Childress buildout raised doubts about its suitability for HPC applications, leading to a 14% decrease in the company’s share price. The management’s selling of shares since February also raised concerns among investors.
Bernstein Analysts Defend Iris Energy
Contrary to Culper Research’s claims, analysts at Bernstein clarified that Iris Energy has not stated any plans to adapt its bitcoin mining site for AI purposes. Despite the initial drop in share price, Bernstein rates Iris Energy as “Outperform” with a target price of $26.
