Bitcoin mining company IREN sued by investors for transitioning to AI

Iris Energy (IREN), a bitcoin mining company listed on Nasdaq, is facing a class action lawsuit for allegedly exaggerating its ability to transform its data centers into high-performance computing (HPC) and artificial intelligence applications. The lawsuit claims that the facility in Childress, Texas lacks key features such as sufficient power redundancy, cooling systems, and fiber optic connections. Influenced by a critical report released by Culper Research, Iris Energy's stock price fell by about 15%. The report questions the company's HPC statement and the applicability of its facilities. The lawsuit seeks compensation for investors who purchased Iris Energy securities between June 20, 2023 and July 11, 2024.