Kerrisdale Capital Targets BitMine with Short Position

On October 9, Kerrisdale Capital announced a short position against Bitmine, citing a breakdown of its Digital Asset Treasury model due to oversaturation and diminishing premiums.

This could challenge the viability of Ethereum-centric treasury strategies, as Bitmine’s position as a leading ETH holder faces scrutiny, influencing investor sentiment and market dynamics.

Kerrisdale Challenges BitMine’s DAT Model Amid ETH Market Changes

Kerrisdale Capital, an activist short-selling firm, announced on October 9, 2025, that it has taken a short position against BitMine Immersion Technologies (BMNR), questioning the viability of its Digital Asset Treasury (DAT) model.

Kerrisdale’s actions cast doubt on BitMine’s strategy of massive share issuance to acquire Ethereum, as excessive competition erodes its premium advantage.

“We’re not short ETH. If you want ETH, just go buy ETH. It has never been easier. $BMNR’s whole pitch is to get investors to overpay for copying a playbook that no longer works. No Strategy, no scarcity, no reason this company deserves a premium.” — Kerrisdale Capital

Ethereum Price and Market Activity in Focus

Did you know? The perceived scarcity driving DAT premiums eroded rapidly, mirroring the collapse of closed-end fund premiums in traditional finance.

As of October 9, 2025, Ethereum (ETH) is priced at $4,352.46, with a market cap of $525.36 billion and a market dominance of 12.66%, based on data from CoinMarketCap. Despite a 3% drop in the past 24 hours, Ethereum still shows a notable 45.20% increase over the last 90 days. Its 24-hour trading volume was $44.80 billion, marking a 14.54% decrease in activity.

Coincu researchers note that the criticisms of the DAT model, primarily by short-sellers like Kerrisdale, highlight a potential shift in regulatory focus on these crypto-financial strategies. The impact on investor sentiment and market dynamics might lead to revised financial offerings, influencing broader industry practices.