Kerrisdale Capital Publishes Short-Seller Report on BitMine Immersion Technologies

A new short-seller report by Kerrisdale Capital argues that investors no longer pay a premium for indirect crypto investment vehicles like BitMine Immersion Technologies (BMNR). The report claims that BMNR's strategy of issuing new shares at a premium and using funds to purchase Ethereum is no longer working, as the premium has fallen from 2.0x to 1.2x. BMNR has issued over $10 billion in new shares in three months, but its growth rate has slowed significantly. The report predicts that the NAV premium for many DAT companies, including BMNR, will continue to collapse.

BitMine Immersion Technologies (BMNR) stock experienced a significant pullback following a new short-seller report by Kerrisdale Capital. The report argues that investors no longer pay a premium for indirect crypto investment vehicles like BMNR. Kerrisdale Capital has taken issue with BMNR's strategy of issuing new shares at a premium and using funds to purchase Ethereum, claiming that this model is no longer effective.

According to the report, BMNR has issued over $10 billion in new shares in just three months, averaging approximately $170 million per day. However, the growth rate of Ethereum (ETH) per share has slowed considerably, with the net asset value (NAV) premium falling from over 2.0x to approximately 1.2x. Kerrisdale Capital contends that this model is losing effectiveness, and the scarcity and "meme" enthusiasm that previously fueled similar premiums have diminished BitMine (BMNR) Stock on Short-Sellers Radar as ETH Treasury Firm Loses Premium^[1].

The report also highlighted a lack of transparency from BMNR, noting that the company has omitted updated share count and NAV-per-share figures from its weekly press releases since August 25. Additionally, Kerrisdale Capital criticized BMNR's recent $365 million direct offering, labeling it a "discounted giveaway" once the attached warrants were taken into account Bitmine Immersion shares dip after Kerrisdale Capital issues short report^[2].

Analysts have reacted to the report with varying opinions. Crypto analyst Donald Dean noted that BMNR stock is showing minor weakness on the 4-hour chart and predicted a potential retest of the 0.618 Fibonacci support level at $56.05. He maintained a price target of $71.74, expecting BMNR to eventually retest its August highs once the consolidation phase completes BitMine (BMNR) Stock on Short-Sellers Radar as ETH Treasury Firm Loses Premium^[1].

On the other hand, market analyst Mike Investing stated that BMNR could be the next stock to experience a strong upside move, noting that the stock has been consolidating within a tight wedge pattern for over three months. He noted that any price below $60 presents a strong buying opportunity, with a potential target of $110 or higher by November BitMine (BMNR) Stock on Short-Sellers Radar as ETH Treasury Firm Loses Premium^[1].

Despite the short-term pullback, the report and analyst opinions highlight the challenges faced by BMNR in maintaining investor enthusiasm and premium valuations. As the digital asset treasury sector becomes increasingly competitive, companies like BMNR will need to adapt their strategies to remain attractive to investors.