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Kerrisdale Capital has taken a abbreviated presumption successful BitMine Immersion (BMNR), the ether-focused integer plus treasury steadfast led by Fundstrat's Thomas Lee, calling its concern exemplary a relic of a bygone crypto era.
In a elaborate study published Wednesday, the well-known short-seller said BitMine’s strategy mirrors that of Strategy (MSTR) — issuing shares astatine a premium to bargain crypto and turn token-per-share metrics — but argued that marketplace conditions nary longer enactment that model.
“BMNR is chasing a exemplary that is connected its mode to extinction,” Kerrisdale wrote. “Scarcity and meme-like enthusiasm erstwhile kept premiums precocious contempt changeless dilution, but those conditions person vanished.”
Kerrisdale months agone shorted Strategy against a agelong successful bitcoin, noting that company's premium to nett plus worth was not sustainable. The commercialized frankincense acold has proven rather profitable.
Las Vegas-based Bitmine has undergone a melodramatic pivot implicit the past year, transforming from a niche bitcoin miner into an ether-heavy firm treasury. With Fundstrat co-founder Thomas Lee arsenic enforcement chairman, BitMine has raised implicit $10 cardinal since July 2025, chiefly done at-the-market (ATM) banal sales, and acquired much than 2.8 cardinal ETH.
The banal — aft rocketing from astir $5 to much than $100 connected the motorboat of its ether treasury strategy — has pulled backmost to astir $58 successful its latest trades.
Kerrisdale said the gait of that banal issuance, astir $170 cardinal per day, has “turned aboriginal enthusiasm into fatigue.” The study criticized BitMine’s latest $365 cardinal equity raise, marketed arsenic a premium deal, arsenic a “discounted giveaway” erstwhile warrant presumption are factored in.
The steadfast besides took purpose astatine Lee himself, saying his beingness lacks the gravitational propulsion needed to support capitalist confidence. “Tom Lee brings sanction designation arsenic a strategist and tv commentator, but helium does not bid the benignant of cult-like pursuing that turned Michael Saylor into a meme-stock icon,” the study said.
While Kerrisdale said it remains bullish connected ether, it sees nary justification for paying a premium done intermediaries similar BitMine. “If you privation ETH, conscionable bargain it directly,” the steadfast wrote.
Adding to the unit is simply a flood of caller competition. Over 150 U.S.-listed firms are reportedly readying $100 cardinal successful crypto treasury offerings, and a coming question of Ethereum ETFs is expected to connection lower-cost and much transparent exposure.
Kerrisdale said BitMine’s disclosures person grown progressively opaque. ETH-per-share maturation has slowed sharply successful caller months, adjacent arsenic token holdings rose. “The reflexive loop that each DAT relies connected had begun to stall,” the steadfast wrote, noting that BitMine’s marketplace premium fell from 2.0x successful August to astir 1.2x successful October.
“The strategy is generic, the contention is mushrooming, disclosures person grown opaque, ETH-per-share has slowed,” Kerrisdale concluded. “BMNR’s premium is destined to sink.”
A typical for Bitmine did not respond to a petition for comment. Shares of the institution are little by 2% Wednesday.
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