Shares to Bitmine Immersion Technologies have managed to end a choppy day of trading to a slight benefit after the Crypto Treasury company has become the latest target of short seller Kerrisdale Capital.
Kerrisdale Says In a report on Wednesday that Tom Lee’s bitmine would “pursue a model going into extinction,” as it was taken short position In the company, a stake that will fall its stock.
Kerisdale argued Bitmine’s approach to sell shares at a premium to buy ether (Eth) and growing token-per-share metrics are no longer effective, and the cost of the company compared to its crypto handling is narrow.
Bitmine is a bitcoin (Btc) The mining company that changed its approach earlier this year to get a huge amount of ETH and became the largest public holder of the token. Kerrisdale Pins’s tokens-per-share of 9 ether per 1,000 shares, with the company holding 2.83 million ETH worth more than $ 12.5 billion.
This is one of the dose -DOSENANG Crypto treasury companies That is to buy a huge amount of crypto in the hope of attracting the investor’s attention.
Bitmine did not respond immediately to a request for comment.
Bitmine’s sharing ends Tuesday with a gain
Investors broke the first while the stock opened up to $ 60 but fell more than 5% in early trading on a sun -low $ 57.41 after Kerrisdale’s report. However, shares with Bitmine (BMNR) graduated trading on Tuesday up to 1.35% to $ 60 and continued to get 0.4% after the bell.
Kerrisdale is targeted Other crypto companies, including Bitcoin Miner riot platforms and Bitcoin-Buy-purchase purchase strategy.
At this time Riot recovered Kerrisdale’s report, says cointelegraph This will make “not basic conclusions.” The approach does not respond directly to its short seller report, but the seat Michael Saylor has long been showing the company’s attractiveness to investors.
Stock issuing is exhausted by investors, Kerrisdale’s claim
According to his report, Kerrisdale also criticized the speed of Bitmine stock offerings, noting that the firm raised $ 10 billion in the last three months especially through sales to the and-market sharing.
“The thin speed of BMNR stock issuance has been an early enthusiasm for fatigue, with investors conditioned to believe that each rally will be met with more supply,” Kerrisdale said.
It says Bitmine $ 365 million sharing offers In late September was the “a discounted giveaway” and the deal was “a wise wrapped increase in the rise that sacrificed long -term credentials for short -term cash.”
Tom Lee has no Michael Saylor, Kerrisdale says
Kerrisdale also swiped Bitmine’s executive chair Lee, claiming that while she was “bringing recognition of the name” to the company, “she did not order the type of cult that Michael Saylor was in a meme-stock icon that could issue billions of billions in the equity without losing the enthusiasm of the investment.
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It added that Bitmine’s approach requires “shortage, charisma, and maybe something more innovative” than the market stock release, but claimed that the company “offers nothing of it.”
Kerrisdale also criticized other Bitmine business areas, claiming it stopped reporting on the net asset (NAV) value each as its growth slowed down and the premium on multiple net asset values (MNAV) fell from more than 2.0X in August to 1.2x of September.
“The BMNR pitch depends on the idea that it can deliver more than just to the token,” he wrote. “But the approach is common, the competition is mushrooms. Disclosure has grown blurred, ET-per-share slows down, and the increasing capital promoted as ‘premium’ is in the fact that it is absurd.”
The company said its targeting of Bitmine was “not a bet against the Ethereum itself, but rather one against the notion that investors should still pay a market premium for it.”
“If you want ETH, just buy it directly, promote it with little friction, or hold it in one of the rapid spreads of ETFs,” he argued.
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