Prominent short-selling firm Kerrisdale Capital has initiated a short position on BMNR.

October 9th. The well-known short-selling institution Kerrisdale Capital announced that it has taken a short position in the stock of Bitmine, a prominent Ethereum treasury reserve company. Kerrisdale Capital holds the view that the so-called DAT (Digital Asset Treasury) model has become ordinary and lacking in innovation. As nearly identical clone projects have flooded the market, the premium is collapsing, and the ability to increase the ETH per share content by issuing stock above the Net Asset Value (NAV) is disappearing. More than $100 billion has been raised by companies following the "crypto asset treasury strategy", breaking the scarcity that originally supported high premiums. Today, the trading prices of many such company stocks are approaching or falling below the net asset value, causing their self-reinforcing mechanisms to stagnate and their models to start to collapse. As the earliest DAT company, MSTR's premium has dropped sharply from 2-2.5 times the NAV to around 1.4 times the NAV. Due to unpopular financing and policy reversals, market confidence has been shattered. BMNR's premium continues to decline, and it is expected to keep sliding until it reaches parity with or even falls below the net asset value. The lower the premium, the slower the appreciation of ETH per share until it falls below 1. Currently, its MNav (Market Value to Net Asset Value ratio) is around 1.4 times, with a potential downside of more than 40%.