IREN Ltd's stock dropped sharply by 5.02% during Tuesday's intraday trading session, reflecting growing investor concerns about the sustainability of data center businesses.
The decline follows comments from prominent short seller Jim Chanos, who reiterated his bearish stance on data centers, particularly those hosting GPUs for AI companies. Chanos specifically mentioned IREN as a bitcoin miner-turned-data-center company, criticizing the sector as a low-margin, high-risk business with potential GPU obsolescence risks. His remarks have amplified doubts about the profitability of such ventures, leading to a sell-off in IREN shares.
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