Kerrisdale Capital has taken a short position in Bitmine Immersion (BMNR), the Ether-focused digital asset contact company led by Fundstrat’s Thomas Lee, who calls his business model a relic of a swunen Krypto era.
In a detailed report published on Wednesday, well-known card salesman Bitmin’s strategy reflects the strategy (MSTR)-there is issuing shares for a prize to buy crypto and grow token-per-share measurements-but argued that market conditions no longer support this model.
“BMNR is chasing a model that is on its way to extinction,” Kerrisdale wrote. “Scarcity and meme-like enthusiasm once kept prizes high despite constant dilution, but these conditions have disappeared.”
Kerrisdale months ago, a short -circuited strategy against a long in Bitcoin, noting that the company’s premium for the net value was not sustainable. So far, the trade has proved quite profitable.
Las Vegas-based Bitmine has undergone a dramatic turn in the past year and transformed from a niche-bitcoin miner to an ether-heavy corporate box. With Fundstrate Founder Thomas Lee as executive chairman, Bitmine has raised over $ 10 billion since July 2025, primarily through market sales (ATM) share area and acquired more than 2.8 million ETH.
The stock – after rocket from about $ 5 to more than $ 100 at the launch of its Ether Treasury strategy – has been withdrawn to about $ 58 in its latest trades.
Kerrisdale said that the pace of this share issue, approx. $ 170 million per Day, has “transformed early enthusiasm into fatigue.” The report criticized Bitmin’s latest stock development of $ 365 million, marketed as a premium agreement, as a “reduced gift” once they are eligible.
The company also aimed at Lee himself and said that his presence lacks the gravity needed to maintain investors’ confidence. “Tom Lee brings name recognition as a strategy and TV commentator, but he does not command the kind of cult-like that made Michael Saylor a meme-Stock icon,” the report says.
While Kerrisdale said it remains bullish on ether, it sees no reason for paying a prize through intermediaries like Bitmine. “If you want ETH, just buy it directly,” the company wrote.
Adding the pressure is a flood of new competition. Over 150 US listed companies are reportedly planning $ 100 billion in crypto-state-box supply, and an upcoming wave of Ethereum ETFs is expected to offer lower costs and more transparent exposure.
Kerrisdale said Bitmin’s revelations have become more and more opaque. Growth of ET-PR. Share has subsided sharply in recent months, even when token stocks increased. “The reflexive loop on which each dat is addicted had begun to stop,” the company wrote, noting that Bitmin’s market premium fell from 2.0x in August to about 1.2x in October.
“The strategy is generic, competition is fungi, revelations have become opaque, one-pr. Share has subsided,” concluded Kerrisdale. “BMNR’s prize is destined to sink.”
A representative of Bitmine did not respond to a request for comment. The company’s shares are lower by 2% Wednesday.
