Svrn shares drop after short-seller report

Svrn, Inc. shares fell 15.7% in morning trading on Tuesday, reaching a session low of $39.75. The decline followed the release of a report by short-seller Fugazi Research, which called the micro-cap digital asset treasury company uninvestable.

Fugazi Research claimed that investors have misunderstood SVRN's business model. The firm stated that the company is not a legitimate AI infrastructure name or a genuine crypto treasury vehicle, but rather a distressed shipping company that changed its business direction.

The report raised three main concerns. First, Fugazi pointed to a missing fiscal 2025 annual audit. Second, the firm noted that SVRN faces a Nasdaq filing deadline of October 27, 2026, and could receive a delisting determination if the deadline is not met. Third, Fugazi alleged that SVRN sold its remaining vessels to a buyer affiliated with a former chairwoman for a price well below their unaudited carrying value of approximately $40.8 million, without disclosing an independent fairness opinion.

The short-seller also claimed that some of the approximately 55.5 million NEAR tokens held by the company are sitting as collateral with counterparties, raising questions about the accessibility of its treasury.

On October 7, Co-CEO Robert Perri resigned from his position. Chairman Salvatore Ternullo now serves as sole CEO.

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