Bitmine Immersion Technologie (AMEX:BMNR) stock slipped 2% on Wednesday after Kerrisdale Capital released a short report targeting the company’s $18 billion Ethereum-focused digital asset treasury (DAT).
In its report, the short-seller sharply criticized Bitmine’s business model, arguing that the firm is “chasing a model that is on its way to extinction.” Kerrisdale claimed that Bitmine’s strategy of selling shares at a premium to the value of its crypto holdings and reinvesting proceeds into more tokens is no longer sustainable given current market dynamics.
According to Kerrisdale, Bitmine has issued over $10 billion in new stock within just three months — roughly $170 million per day — a pace that has reportedly led to investor fatigue. While the company’s total Ethereum holdings have grown, the firm said the ETH-per-share growth has slowed as the net asset value premium narrows and the share count continues to rise.
The report took aim at Bitmine’s recent $365 million direct offering, which the company had described as “materially accretive.” Kerrisdale countered that the transaction was instead “a discounted giveaway” once the attached warrants were taken into account.
Kerrisdale clarified that its bearish position was not an indictment of Ethereum itself, but rather of Bitmine’s valuation model, saying investors would be better off buying ETH directly, staking it, or investing through ETFs than holding it via Bitmine’s structure.
The report also highlighted intensifying competition in the digital asset treasury sector, noting that U.S.-listed companies have announced more than $100 billion in planned capital raises this year for similar crypto-treasury initiatives, according to data from The Block.
BitMine Immersion Technologies stock price
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