According to Foresight News, Finance Magnates reported that Nasdaq-listed Bitcoin mining company Iris Energy (IREN) is facing a class action lawsuit for allegedly exaggerating its data center's ability to transform to high-performance computing (HPC) and artificial intelligence applications. The lawsuit claims that the company's facilities in Childress, Texas, lack key features such as adequate power redundancy, cooling systems, and fiber optic connections. The plaintiff cited a statement by Iris Energy co-CEO Daniel Roberts that the company "has built a data center foundation that can perform any high-performance computing." The lawsuit believes that these statements are misleading and exaggerate the capabilities and overall prospects of the company's data center business.
Iris Energy shares fell about 15% following a critical report from Culper Research that questioned the company’s HPC claims and the suitability of its facilities. The lawsuit seeks damages on behalf of investors who purchased Iris Energy securities between June 20, 2023 and July 11, 2024.