Billionaire corporate activist Carl Icahn suffered a significant loss of over 81 thousand crores in a single day due to a report released by American short seller firm Hindenburg Research. The report accused Icahn Enterprises LP, Carl’s company, of operating like a Ponzi scheme. As a result, Carl Icahn’s net worth fell by more than $10 billion on Tuesday.
The Hindenburg report caused Icahn’s shares to drop by up to 20%, pushing him off the list of the world’s 100 richest people. Before the report, Carl Icahn’s net worth was valued at $25 billion. However, the report led to a decline in his wealth by 41%, leaving him with $14.6 billion.
This is not the first time that Hindenburg Research has targeted a well-known figure. The firm also released a controversial report against India’s Adani Group in January, leading to a huge fall in the shares of Adani group companies. Following this, the short seller firm targeted Twitter co-founder Jack Dorsey’s company, Block.
After the Hindenburg report against Carl Icahn, there was a massive sell-off in Icahn Enterprises LP’s shares, which plunged 20%. This company serves as a holding company for Carl Icahn, and his wealth declined by $3.1 billion due to the sharp fall in the stock price. The report also discussed Icahn’s stake in Icahn Enterprises, which was secured by collateralized loans. Previously, these loans were not considered in determining his net worth, but Bloomberg Billionaires Index has now started to include them, leading to an additional loss of $7.3 billion in the calculation of Carl Icahn’s net worth.