Iren shares fell 7.2% in morning trading on Tuesday to $25.75, reaching a new 52-week low of $25.59 during the session. The decline reversed Monday's sector gains as investors sold AI data center and neocloud stocks.

Rising oil prices drove concerns about inflation and potential interest rate increases. These worries directly affect capital-intensive operators like Iren that rely on large-scale debt financing for expansion.

The drop adds to challenges facing Iren throughout October. Earlier this month, research firm SemiAnalysis published a critical report on Iren's legacy data centers in Prince George and Mackenzie, British Columbia. The report cited user complaints of multi-day power outages, network disruptions, and storage failures. One site was described as the worst in the industry.

Morningstar reduced its fair value estimate for the stock, pointing to higher borrowing costs and increased competition for AI capital. The firm noted Iren's debt load has grown substantially over the past year as the company pursues aggressive expansion plans.