tl;dr
Kerrisdale Capital, a top short-seller, targets BitMine Immersion (BMNR), calling its crypto treasury model 'extinct' as it faces criticism for unsustainable strategies, declining premiums, and rising competition in the Ethereum space.
**Kerrisdale Capital Shorts BitMine Immersion, Calls Its Model "Extinct"**
Kerrisdale Capital, a prominent short-seller known for its aggressive bets against overvalued crypto stocks, has taken a short position in BitMine Immersion (BMNR), a digital asset treasury firm led by Fundstrat’s Thomas Lee. The firm argues that BitMine’s business model is a relic of a bygone crypto era, unsustainable in today’s market conditions.
In a detailed report published Wednesday, Kerrisdale criticized BitMine’s strategy, which it likened to that of MicroStrategy (MSTR). Both companies issue shares at a premium to purchase cryptocurrencies, aiming to boost token-per-share metrics. However, Kerrisdale contends that the market dynamics that once supported this approach—such as scarcity and viral enthusiasm—have evaporated.
“BMNR is chasing a model that is on its way to extinction,” the report stated. “Scarcity and meme-like enthusiasm once kept premiums high despite constant dilution, but those conditions have vanished.” This sentiment echoes Kerrisdale’s earlier short bet against MicroStrategy, which has since proven profitable.
BitMine, based in Las Vegas, has undergone a dramatic transformation over the past year, pivoting from a niche Bitcoin miner to an ether (ETH)-focused corporate treasury. With Thomas Lee as executive chairman, the company raised over $10 billion since July 2025 through at-the-market (ATM) stock sales, acquiring more than 2.8 million ETH. Its stock surged from around $5 to over $100 following the launch of its ether treasury strategy but has since retreated to approximately $58.
Kerrisdale slammed BitMine’s rapid stock issuance, which it estimates at $170 million per day, arguing that it has turned initial investor enthusiasm into fatigue. The firm specifically criticized a recent $365 million equity raise, calling it a “discounted giveaway” when considering warrant terms. The report also questioned Lee’s influence, noting that while he is a well-known strategist and TV commentator, he lacks the “cult-like following” that propelled MicroStrategy’s Michael Saylor into meme-stock stardom.
Despite its bearish stance on BitMine, Kerrisdale remains bullish on Ethereum. However, it sees no reason to pay a premium through intermediaries like BMNR. “If you want ETH, just buy it directly,” the report advised.
The firm also highlighted growing competition, with over 150 U.S.-listed companies planning $100 billion in crypto treasury offerings. Additionally, the impending launch of Ethereum ETFs is expected to provide lower-cost, more transparent access to ETH, further undermining BitMine’s value proposition.
Kerrisdale pointed to declining transparency in BitMine’s disclosures and slowing ETH-per-share growth, despite rising token holdings. The company’s market premium has fallen from 2.0x in August to 1.2x in October, signaling waning investor confidence. “The strategy is generic, the competition is mushrooming, disclosures have grown opaque, ETH-per-share has slowed,” Kerrisdale concluded. “BMNR’s premium is destined to sink.”
A representative for BitMine did not respond to a request for comment. Shares of the company closed 2% lower on Wednesday, reflecting the market’s skepticism.
As the crypto landscape evolves, BitMine’s ability to adapt to heightened competition and shifting investor sentiment will be critical. For now, Kerrisdale’s aggressive short bet underscores the risks of clinging to outdated strategies in a rapidly changing market.