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>>Kerrisdale Capital, a short seller, is criticizing Tom Lee’s BitMine, asserting its underlying model is outdated.

Kerrisdale Capital, a short seller, is criticizing Tom Lee’s BitMine, asserting its underlying model is outdated.

crypthub

4 days ago

BitMine Faces Short Seller Criticism

Shares of BitMine Immersion Technologies (BMNR) experienced volatility after Kerrisdale Capital initiated a short position, deeming the company's strategy obsolete. Kerrisdale criticized BitMine’s model of issuing shares to acquire Ether, suggesting the premium valuation is no longer justified. The firm believes BitMine's market value is converging with its crypto holdings, reducing its investment appeal.

BitMine's Ethereum Holdings and Strategy

BitMine, previously a Bitcoin miner, is now the world’s largest public holder of Ethereum, possessing billions worth of ETH. The company's strategy has involved selling stock to increase its token-per-share metric. Despite the short seller's report, BitMine’s stock price saw a slight increase, although concerns remain about potential stock dilution.

Institutional Ethereum Demand Grows

Institutional demand for Ethereum is rising, with treasury firms and ETFs now holding over 12.48 million ETH. These holdings represent a significant portion of the network’s total supply and reflect a growing trend towards Ethereum as a productive asset. Spot Ether ETFs have seen substantial net inflows, indicating strong investor interest.