The Kerrisdale Capital took a brief position in Bitmine Immersion (BMNR), the ether dedicated to the digital asset firm led by Fundstrat’s Thomas Lee, who called the business model a relic of a bygone crypto era.
In a detailed report published on Wednesday, the well-known short-seller said Bitmine’s strategy strategy (MSTR)-MST) -Hou had shares in a premium to buy crypto and grow token-per-share token metrics-but argued that market conditions no longer support that model.
“BMNR is pursuing a model going on extinction,” Kerrisdale wrote. “Lack and preference like meme has once kept the premiums high despite the ongoing dilution, but those conditions have disappeared.”
The Kerrisdale month ago was a shortened approach against a long in Bitcoin, noting that the company’s premium on net asset value was not preserved. Today’s trade has proven to be very profitable.
Las Vegas-based bitmine has undergone a dramatic pivot last year, changing from a Niche Bitcoin Miner to an ether-heavy corporate treasury. Through fundstrat co-founder Thomas Lee as Executive Chairman, Bitmine has raised more than $ 10 billion since July 2025, especially through AT-the-Market (ATM) stock sales, and gained more than 2.8 million ETHs.
The Stock – after a bocket from about $ 5 to more than $ 100 launching the Ether Treasury strategy – returned to around $ 58 in the latest trade.
Kerrisdale said the speed of that stock release, approximately $ 170 million per day, “has been an early stress.” The report criticized the latest $ 365 million equity height of Bitmine, which was sold as a premium deal, as a “discount giveaway” once warrant terms were -factored.
The firm is aimed at Lee himself, saying that his presence lacks the gravitational pull that is needed to maintain the investor’s confidence. “Tom Lee is bringing recognition of the name as a strategist and television commentator, but he does not order the kind of cult that follows Michael Saylor’s icon,” the report said.
While Kerrisdale said it remains bullish with Ether, not seeing justification for paying a premium through mediators such as Bitmine. “If you want ETH, just buy it directly,” the firm wrote.
Adding to pressure is a flood of new competition. More than 150 listed companies listed in the US have been reported planning $ 100 billion in crypto treasury offerings, and an upcoming Ethereum ETF wave is expected to offer lower cost and clearer exposure.
Kerrisdale said Bitmine’s revelations were getting stronger. ET-per-share growth has slowed down in recent months, even when the tokens have increased. “The reflexive loop that each DAT relies on the start of the stall,” the firm wrote, noting that the Bitmine market premium fell from 2.0X in August to around 1.2x in October.
“The approach is common, the competition is mushroom, the disclosure has grown blurred, the ET-per-share slows down,” Kerrisdale concluded. “BMNR premium is reserved to sink.”
A representative for Bitmine did not respond to a request for comment. Company shares are less than 2% Wednesday.
