Kerrisdale Capital has announced a short position against Bitmine (BMNR), an Ethereum treasury reserve company. The firm criticized Bitmine's Digital Asset Trust (DAT) model, stating it has become highly commoditized, leading to increased market competition and a rapid decline in premiums. Kerrisdale noted that Bitmine's premium has fallen to approximately 1.4 times its net asset value (NAV), with potential for a further 40% decline. The firm also criticized Bitmine for halting the disclosure of per-share NAV and share count amid slowing growth. Kerrisdale emphasized that their short position is not against Ethereum itself, but rather against Bitmine's lack of scarcity and sustainability in its business model, which they believe no longer justifies its premium trading logic.
Kerrisdale Capital Shorts Bitmine, Citing Unsustainable Business Model
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