IREN Stock Is Sliding Thursday: What's Sparking The Weakness?

IREN Limited (NASDAQ:IREN) shares are trading lower Thursday amid a drop in Bitcoin (CRYPTO: BTC) prices and broader crypto weakness. IREN shares are retreating from recent levels. Check the market position here. What Happened: Crypto-related equities like IREN are under pressure as Bitcoin continues its recent decline. Bitcoin was down about 2.36% over a 24-hour period, trading around $108,500 at the time of publication, according to Benzinga Pro.Current Bitcoin prices represent a significant pullback from the cryptocurrency’s record peak of over $126,000 reached on Oct. 6. Reuters reported that heightened U.S.-China trade tensions likely triggered the sell-off, with both nations implementing new port fees on shipping companies this week.The downturn comes after historic liquidations in the crypto space, where over $19 billion in leveraged positions were eliminated following Trump’s announcement of 100% tariffs on Chinese goods. Digital assets have remained under pressure in recent days, which has weighed on crypto-linked stocks like IREN. When crypto prices fall, the value of underlying crypto holdings also moves lower. IREN uses its Bitcoin gains to fund its AI infrastructure pivot.IREN stock also may be experiencing weakness after prominent short-seller Jim Chanos challenged the company’s bullish outlook on Tuesday, arguing that a recent Cantor Fitzgerald research report relies on implausible assumptions.Chanos took particular issue with forecasts suggesting IREN’s AI data center operations could generate 80% EBITDA margins. “Yet no one is doing much over 50% EBITDA margins…right now,” Chanos stated. “Lots of Hopium at work in this space right now.”He also questioned the report’s depreciation assumptions for $2.9 billion in planned equipment purchases, noting the analysis implies a nearly nine-year lifespan for what are presumably GPUs, which are known for rapid obsolescence.IREN Price Action: IREN shares are trading down 7.49% at $62.89 at the time of publication on Thursday, according to Benzinga Pro. The stock has hit a high of $68.85 and a low of $61.23 on Thursday. Volume is high with 40 million shares changing hands. The stock is currently 16.8% below its 52-week high, but is still trading 73.4% above its 50-day moving average. OPEN, IREN And Now HUT: Eric Jackson Takes Long Position In Hut 8, Citing Pivot To AI Infrastructure Image: Shutterstock