Kerrisdale Capital Singles Out Bitmine Immersion, Tom Lee’s Crypto Venture, for Short Sell

Kerrisdale Capital has targeted BitMine Immersion (BMNR), the ether-focused digital asset treasury led by Fundstrat co-founder Thomas Lee, in a new short position, citing an outdated business model and diminishing investor appeal.

In a report released Wednesday, Kerrisdale said BitMine’s approach mirrors Strategy (MSTR) by issuing shares at a premium to buy crypto and boost token-per-share metrics. The firm argued that the current market no longer supports this model. “BMNR is pursuing a strategy on its way to extinction,” the report stated.

BitMine pivoted from bitcoin mining to an ether-heavy corporate treasury over the past year, raising more than $10 billion and acquiring over 2.8 million ETH. Shares surged from $5 to over $100 after the strategy’s launch but recently declined to around $58.

Kerrisdale criticized the rapid pace of share issuance, labeling a $365 million equity raise a “discounted giveaway,” and questioned Lee’s influence, noting he lacks the cult-like following seen with other crypto figures. Rising competition and slowing ETH-per-share growth add pressure on BitMine’s premium.

Shares dropped 2% Wednesday.