- Solaris Energy Infrastructure Inc. (SEI) shares dropped over 16% to $20.58, with a peak intraday fall of 19% – the largest since January 27 – after Morpheus Research’s debut report accused the company of risky ties to a convicted felon and the world’s richest man.
- Morpheus Research, launched by ex-Hindenburg Research members and announced on March 14 via X, aims to expose corporate fraud, echoing Hindenburg’s legacy of targeting high-profile firms like Adani and Dorsey, though founder Nate Anderson is uninvolved.
- The report’s allegations spotlight Solaris’s shift from oilfield services to power solutions, triggering market concerns about its stability and customer reliance, with no immediate response from Solaris or Morpheus to Bloomberg News.
Shares of Solaris Energy Infrastructure Inc. (SEI) plummeted more than 16% to $20.58 on Monday, with intraday declines reaching as much as 19% – the steepest drop since January 27 – after Morpheus Research, a nascent short-selling firm, released a scathing report targeting the Houston-based power company. Titled “Solaris Energy Infrastructure: How A Crumbling Texas Oilfield Services Company Gambled It All On A Convicted Felon And The World’s Richest Man,” the report, posted on X, marks the debut effort of Morpheus Research, a group formed by alumni of the renowned Hindenburg Research. The sharp sell-off reflects market unease over the firm’s allegations, which cast a spotlight on Solaris Energy’s strategic pivots and its ties to high-profile yet controversial figures, amplifying scrutiny on a company already navigating a complex energy landscape.
Morpheus Research, positioning itself as a watchdog against corporate misconduct, declared its mission on March 14 via X, branding itself as a “new investigative research group dedicated to exposing corporate misconduct and fraud.” The firm’s lineage ties back to Hindenburg Research, a name synonymous with high-stakes short-selling campaigns that rattled Wall Street by targeting titans like Gautam Adani, Jack Dorsey, and Carl Icahn, before its dissolution earlier this year following reports on Carvana Co. (CVNA), Sezzle Inc. (SEZL), Super Micro Computers (SMCI), and PACS Group Inc. (PACS). Nate Anderson, Hindenburg’s famed founder, acknowledged on the same day via X that Morpheus includes some of his former colleagues, though he has no direct involvement. This connection lends credibility to Morpheus’s maiden report, leveraging Hindenburg’s legacy of unearthing financial vulnerabilities, yet it also raises the stakes for Solaris Energy as it faces a newly emboldened adversary.
The report’s focus on Solaris Energy Infrastructure Inc., as noted by Bloomberg, zeroes in on its evolution from a traditional Texas oilfield services provider to a player in distributed power solutions, a shift punctuated by its reliance on a single, unnamed customer linked to the “world’s richest man” and a business deal involving a convicted felon. Neither Solaris Energy nor Morpheus Research responded immediately to the publication’s inquiries, leaving the market to digest the claims amid a void of official rebuttals. The stock’s 19% intraday plunge – the worst in nearly two months – signals investor alarm, particularly given Solaris’s role in supplying mobile power generation to data centers and oilfield operations, sectors increasingly vital as energy demands surge alongside technological expansion. With the report’s provocative title and Hindenburg alumni at the helm, Morpheus has ignited a firestorm around Solaris, testing its resilience in a market sensitive to both operational risks and reputational blows.
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