Kerrisdale Capital Shorts BitMine Immersion
Kerrisdale Capital, a U.S.-based investment firm, has taken a short position in BitMine Immersion (BMNR). The firm claims BitMine’s business model belongs to a “bygone crypto era.” Kerrisdale criticized BitMine’s digital asset treasury (DAT) strategy as outdated and losing appeal in a crowded market.
In a post on X, Kerrisdale said, “The DAT playbook has become basic and unoriginal.” The firm added that competition has removed the scarcity that once supported high premiums on crypto-related stocks.
BitMine’s Strategy Compared to MicroStrategy
Kerrisdale’s report states BitMine’s approach resembles MicroStrategy’s model. Both companies sell new shares at a premium to buy cryptocurrencies and increase tokens per share. Kerrisdale said this model is now “on its way to extinction.”
The report noted that “scarcity and meme-like enthusiasm” once kept premiums high despite dilution. However, these conditions have disappeared. The market is now flooded with new entrants and over $100 billion in planned crypto-treasury offerings, limiting premium valuations.
BitMine’s Shift and Leadership Under Thomas Lee
BitMine, based in Las Vegas, shifted in 2025 from Bitcoin mining to an ether-heavy corporate treasury. The company is led by Fundstrat co-founder Thomas Lee, known as Tom Lee, serving as executive chairman.
Since July 2025, BitMine raised $10 billion, mostly through at-the-market stock sales, and holds about 2.8 million ETH. Its stock price rose from $5 to over $100 after launching the ether treasury plan but has since fallen to around $58.
Kerrisdale criticized BitMine’s continuous stock issuance, about $170 million daily, saying it has fatigued investors. The firm also called BitMine’s $365 million equity raise a “discounted giveaway” when considering warrant terms.
The report commented on Thomas Lee’s leadership, stating he lacks the cult-like following of Michael Saylor. Kerrisdale described Lee as “too TradFi and boring” and said BitMine’s premium to net asset value dropped from 2.0x in August to about 1.2x in October. The firm expects this premium to decline further due to generic strategy, rising competition, and slower ETH-per-share growth.
Kerrisdale supports ether but advises buying it directly rather than through companies like BitMine. The firm concluded, “BMNR’s premium is destined to sink.”
