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▲ IREN, Bitcoin (BTC), Bear Market/AI Generated Image
IREN Limited (IREN) plummeted over 12% in a single day, facing both 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 recorded a 12.23% decline to $38.02 that afternoon. At the same time, the Nasdaq 100 index also fell by nearly 2%, increasing selling pressure across technology stocks. Benzinga diagnosed that the overall market's risk-aversion trend could amplify negative news for individual companies.
The direct background to the stock's sharp decline is the executive compensation controversy. IREN's board of directors 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 this payout as representing 17% of the projected cumulative adjusted net income of $4.7 billion from fiscal year 2027 to fiscal year 2030.
Technical trends also weakened sharply. While IREN has still risen 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 its medium-term trend has been shaken.
The short-term resistance level is set at $45.50. This range, coinciding with the 100-day simple moving average, is considered a price point where selling pressure could intensify again after a sharp drop. Conversely, the key support level is $36. If the stock breaks below this line, the current decline could expand from a simple correction to a broader trend of premium reduction for AI infrastructure growth stocks in general.
The business structure itself continues to attract market interest. 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, this recent sharp decline demonstrates that even with demand for AI infrastructure, the economic performance and governance structure and how they benefit shareholders have emerged as new key issues for the stock price.
[Article Key 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 the two co-CEOs, Jim Chanos strongly criticized it as an $800 million compensation package.
-The stock price is currently below its 20-day, 50-day, 100-day, and 200-day moving averages, and the defense of the $36 support level is a key variable for preventing further sharp 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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