Iren Stock Plummets Nearly 10% Following J.P. Morgan Downgrade

Iren, a crypto mining company, saw its shares tumble by nearly 10% on Friday despite a broadly positive market day. The decline followed a downgrade by J.P. Morgan analyst Reginald Smith, who shifted his recommendation from neutral to underweight and slashed the price target from $24 to $16.

Smith's bearish stance stems from concerns over inflated expectations for Iren's expansion plans. The stock had priced in a large colocation deal that may not materialize as anticipated. The downgrade was part of a broader analysis of mining stocks, where Smith highlighted other names with stronger growth potential.

The market reaction underscores the outsized influence analyst opinions can have on crypto-related equities, even when fundamentals remain unchanged. Iren's sharp drop occurred as the broader market edged up 0.6%, isolating the sell-off to company-specific factors.