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▲ IREN, Bitcoin (BTC), Bear Market/AI Generated Image
IREN Limited (IREN) plummeted more than 12% in a single day, facing both corporate governance controversy and a sharp decline in the Nasdaq 100 index. While expectations for AI infrastructure and Bitcoin (BTC) mining growth remain, the controversy surrounding an $800 million executive compensation package is directly shaking the stock's premium.
According to financial media outlet Benzinga on July 2 (local time), IREN's stock price fell 12.23% to $38.02 that afternoon. At the same time, the Nasdaq 100 index also dropped nearly 2%, increasing selling pressure across technology stocks. Benzinga diagnosed that the overall market's risk aversion trend could amplify individual corporate woes.
The direct background for the stock's sharp decline is the executive compensation controversy. IREN's board approved a plan to grant over 18 million restricted stock units (RSUs) to co-CEOs William Roberts and Daniel Roberts. This compensation was described as an $800 million package announced on July 1. Jim Chanos, a prominent short seller, criticized that this payment scale represents 17% of the projected cumulative adjusted net income of $4.7 billion from fiscal year 2027 to fiscal year 2030.
Technical trends have also weakened sharply. Although IREN is still up 142.78% over the past 12 months, its current stock price is 28.9% lower than the 20-day simple moving average of $53.27 and 30.4% lower than the 50-day simple moving average of $54.46. It is also trading below both the 100-day simple moving average of $47.81 and the 200-day simple moving average of $49.11, indicating that even the medium-term trend has been shaken.
The short-term resistance level is set at $45.50. This zone, coinciding with the 100-day simple moving average, is considered a price level where selling pressure could intensify again after a sharp decline. Conversely, the key support level is $36. If the stock breaks this line, the current decline could escalate from a simple correction to a broader trend of premium reduction for AI infrastructure growth stocks.
The business structure itself continues to attract market attention. IREN operates renewable energy-based data centers in Canada and the United States, combining Bitcoin mining with AI cloud infrastructure businesses. It is also pursuing a strategy to convert existing Bitcoin mining capabilities for AI use and expand data center scale by securing power and land. However, the recent sharp decline demonstrates that even with demand for AI infrastructure, how its economic performance and governance benefit shareholders has emerged as a new key issue for the stock price.
[Article Summary]
-IREN's stock price fell 12.23% to $38.02 on the afternoon of July 2.
-After the board approved over 18 million restricted stock units for two co-CEOs, Jim Chanos strongly criticized it as an $800 million compensation package.
-The stock price is below the 20-day, 50-day, 100-day, and 200-day moving averages, and the defense of the $36 support level is a key variable for further declines.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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