Iren Shares Tumble 10.39% After $700M CEO Stock Award
IREN•Iren shares fell 10.39% after the company granted 18.2 million restricted shares valued at $700 million to its two co-CEOs. The award will create significant dilution and raised investor concerns over corporate governance and future earnings per share.
1. CEO Stock Grant Details
Iren granted its two co-CEOs a total of 18.2 million restricted shares valued at about $700 million based on the last closing price. The award includes multi-year vesting schedules and may be tied to performance targets to align management incentives with long-term company objectives.
2. Market Reaction
Following the announcement, Iren’s share price declined 10.39% on high trading volume, signaling investor unease over the massive compensation package. The pullback outpaced modest gains in peer bitcoin-mining stocks on the same trading day.
3. Dilution and Governance Concerns
The new share award will significantly expand Iren’s share count, diluting existing investors and potentially reducing future earnings per share. Stakeholders have raised questions about governance practices, the timing of the grant and its impact on cash flow and shareholder value.
