Key facts
- Trading in 2CRSi shares was suspended after a short seller report triggered a 43.05% stock collapse.
- Grizzly Research alleged that 2CRSi misrepresented significant contracts, revenue, and relationships concerning its US operations.
- The company's market value fell by more than €400 million.
- 2CRSi's board has referred the allegations to its Audit and Risk Committee.
- The company stated it will provide a detailed response as soon as possible.
Trading in the shares of French AI server manufacturer 2CRSi S.A. has been suspended following a significant stock price collapse. The company's shares plummeted 43.05%, erasing over €400 million from its market value after short-seller Grizzly Research published a report containing allegations of misrepresented contracts and revenue, particularly concerning its United States operations.
Grizzly Research specifically questioned the reliability of major contract counterparties and revenue claims, alleging they were connected to undisclosed related parties. The report focused on entities like NewYork GreenCloud, casting doubt on their financial capacity, operational infrastructure, and the timeline for equipment delivery related to significant contracts announced by 2CRSi.
The severe market reaction was attributed to the short seller's challenge to the core growth narrative that had driven 2CRSi's stock price significantly higher. Investors had viewed the company as a key European beneficiary of the surging demand for AI infrastructure. The allegations strike at fundamental valuation metrics for a fast-growing hardware company, making traditional earnings multiples temporarily less useful.
The stock had also experienced an extraordinary rise prior to the session, indicating high optimism around the AI opportunity. This, combined with concentrated retail interest in a relatively small company with a limited public float, created conditions for a rapid and disorderly decline. Trading interruptions, including initial halts due to volatility and subsequent suspensions, amplified investor uncertainty and hindered immediate price discovery.