Iren stock falls as data center questions persist

Iren Ltd fell 4.3% in morning trading Thursday, continuing a decline that started after technology research firm SemiAnalysis questioned the company's legacy data center infrastructure in British Columbia.

SemiAnalysis published posts on social media citing customer reports of multi-day power outages, network disruptions, storage failures, and air-quality control failures at Iren's older facilities in Prince George and Mackenzie. The stock dropped more than 6% Wednesday following the reports.

A bearish analyst note published Thursday added to the selling pressure. The note said Iren faces dilution risk from a large at-the-market equity program, negative free cash flow, and contracts locked in at lower pricing rates. The analyst acknowledged a recent five-week rally and improved per-megawatt contract economics.

SemiAnalysis also raised disclosure concerns, pointing to a contradiction between Iren's claims of providing fully managed cloud clusters and statements from the company's Chief Commercial Officer that no live managed cloud services are currently operational. The firm called on Iren to revise its investor disclosures.

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