Kerrisdale Capital Shorts Bitmine Technologies, Largest ETH Holder, Over Concerns of Dilution and Lack of New Strategy

Kerrisdale Capital has shorted Bitmine Technologies, the largest Ethereum treasury firm led by Tom Lee. The investment management firm argues that BMNR does not bring anything new to the table and that investors are not willing to pay a premium for its shares. The premium for BMNR's competitor, Strategy, has collapsed from 2.5x to 1.5x, and BMNR's share price has fallen 63% from its record high.

Bitmine Technologies (NASDAQ: BMNR), the largest Ethereum treasury firm led by noted strategist Tom Lee, has seen its stock decline following a short report from Kerrisdale Capital. The investment management firm argues that BMNR does not bring anything new to the table and that investors are not willing to pay a premium for its shares. The premium for BMNR's competitor, Strategy, has collapsed from 2.5x to 1.5x, and BMNR's share price has fallen 63% from its record high Ether Futures Overview^[1].

BitMine's stock experienced a significant drop on Wednesday, September 12, 2025, after Kerrisdale Capital published its short report. The company's shares declined by 2%, reflecting market sentiment that the firm's aggressive crypto accumulation strategy may not be as attractive to investors as previously thought Ether Futures Overview^[1].

Kerrisdale Capital's report highlights several concerns, including BMNR's unprofitability and dilution of shareholders. The company's trailing 12-month revenue was just $5.4 million with a net loss of $6.5 million, and it has employed only 7 people. Additionally, the report notes that BMNR's valuation is almost entirely tied to its crypto assets and investor speculation rather than earnings Ethereum Whale Stock: BMNR Soars as BitMine Immersion Grabs 2% of ETH Supply – Aiming for 5%?^[2].

Investors are treating BMNR as a high-octane proxy for Ethereum, with the stock's performance closely correlated to the price of ETH. However, the report argues that the company's aggressive pivot to a digital asset treasury model may not be sustainable in the long run. Any sharp drop in ETH's price or adverse regulation could significantly impact BMNR's share price Ethereum Whale Stock: BMNR Soars as BitMine Immersion Grabs 2% of ETH Supply – Aiming for 5%?^[2].

The short report from Kerrisdale Capital comes as BitMine has been making headlines for its aggressive accumulation of Ethereum and other cryptocurrencies. The company has become a popular topic in financial media and online forums, with many investors treating it as a leveraged play on Ethereum Ethereum Whale Stock: BMNR Soars as BitMine Immersion Grabs 2% of ETH Supply – Aiming for 5%?^[2].

Despite the recent decline, BitMine's stock has delivered eye-popping returns in 2025, albeit with extreme volatility. The stock began the year as a little-known microcap under $5 and rocketed to as high as $161 by late summer. However, the subsequent comedown shows how quickly sentiment can shift Ethereum Whale Stock: BMNR Soars as BitMine Immersion Grabs 2% of ETH Supply – Aiming for 5%?^[2].

As the crypto market continues to evolve, investors will be closely watching BitMine's performance and the broader sentiment around Ethereum. The company's ability to execute its "Alchemy of 5%" plan and maintain its status as the largest Ethereum holder will be crucial in determining its long-term success Ethereum Whale Stock: BMNR Soars as BitMine Immersion Grabs 2% of ETH Supply – Aiming for 5%?^[2].