Kerrisdale Capital has taken a brief place in BitMine Immersion (BMNR), the ether-focused digital asset treasury agency led by Fundstrat's Thomas Lee, calling its enterprise mannequin a relic of a bygone crypto period.
In an in depth report printed Wednesday, the well-known short-seller stated BitMine’s technique mirrors that of Technique (MSTR) — issuing shares at a premium to purchase crypto and develop token-per-share metrics — however argued that market situations not assist that mannequin.
“BMNR is chasing a mannequin that’s on its approach to extinction,” Kerrisdale wrote. “Shortage and meme-like enthusiasm as soon as stored premiums excessive regardless of fixed dilution, however these situations have vanished.”
Kerrisdale months in the past shorted Technique towards an extended in bitcoin, noting that firm's premium to web asset worth was not sustainable. The commerce to this point has confirmed fairly worthwhile.
Las Vegas-based Bitmine has undergone a dramatic pivot over the previous yr, reworking from a distinct segment bitcoin miner into an ether-heavy company treasury. With Fundstrat co-founder Thomas Lee as government chairman, BitMine has raised over $10 billion since July 2025, primarily by at-the-market (ATM) inventory gross sales, and purchased greater than 2.8 million ETH.
The inventory — after rocketing from about $5 to greater than $100 on the launch of its ether treasury technique — has pulled again to round $58 in its newest trades.
Kerrisdale stated the tempo of that inventory issuance, roughly $170 million per day, has “turned early enthusiasm into fatigue.” The report criticized BitMine’s newest $365 million fairness elevate, marketed as a premium deal, as a “discounted giveaway” as soon as warrant phrases are factored in.
The agency additionally took goal at Lee himself, saying his presence lacks the gravitational pull wanted to take care of investor confidence. “Tom Lee brings title recognition as a strategist and tv commentator, however he doesn’t command the sort of cult-like following that turned Michael Saylor right into a meme-stock icon,” the report stated.
Whereas Kerrisdale stated it stays bullish on ether, it sees no justification for paying a premium by intermediaries like BitMine. “If you need ETH, simply purchase it immediately,” the agency wrote.
Including to the stress is a flood of recent competitors. Over 150 U.S.-listed companies are reportedly planning $100 billion in crypto treasury choices, and a coming wave of Ethereum ETFs is predicted to supply lower-cost and extra clear publicity.
Kerrisdale stated BitMine’s disclosures have grown more and more opaque. ETH-per-share development has slowed sharply in latest months, whilst token holdings rose. “The reflexive loop that each DAT depends on had begun to stall,” the agency wrote, noting that BitMine’s market premium fell from 2.0x in August to round 1.2x in October.
“The technique is generic, the competitors is mushrooming, disclosures have grown opaque, ETH-per-share has slowed,” Kerrisdale concluded. “BMNR’s premium is destined to sink.”
A consultant for Bitmine didn’t reply to a request for remark. Shares of the corporate are decrease by 2% Wednesday.
