Key Takeaways:
2CRSi, the French server maker for data centers, lost 43% of its market value Thursday after Grizzly Research accused it of fabricating revenue from a 2024 contract. The collapse erased more than €400 million from the company's market capitalization, dropping it from about €1 billion ($1.15 billion) to below €600 million.
"2CRSi strongly refutes the serious allegations made by Grizzly Research," the Strasbourg-based company said in a statement late Thursday. The company requested Euronext suspend trading in its shares "in the interests of transparency, rigor and equal access to information," pending a detailed response.
Euronext suspended trading of 2CRSi's ordinary shares at 9 a.m. Paris time Friday "until further notice," the exchange confirmed. The stock, listed under ticker AL2SI, had already lost 43% in the prior session after Grizzly Research — a New York-based short seller — published a report alleging the company fabricated revenue tied to a contract announced in 2024.
The allegations strike at the heart of 2CRSi's credibility as a supplier of high-performance computing servers to data center operators. The company had built a roughly €1 billion market capitalization on the strength of its custom server designs, competing in a market where trust in delivery and revenue recognition is critical for securing large-scale contracts. If the revenue fabrication claims prove accurate, existing and potential customers may reassess their procurement relationships, potentially threatening future order flow.
Grizzly Research has previously targeted review website Trustpilot and household appliance company SharkNinja with similar short reports. The firm's track record includes stocks that recovered after initial selloffs and others that continued to decline as regulatory scrutiny followed.
2CRSi said it requested the trading halt to prepare a detailed rebuttal. The company has not disclosed when it expects to publish its response or resume trading. Investors holding the stock face an uncertain timeline for when — or at what valuation — trading may restart.
This article is for informational purposes only and does not constitute investment advice.
