Short-seller Kerrisdale Capital has taken a short position in BitMine Immersion (BMNR), the ether-focused digital asset treasury led by Fundstrat co-founder Thomas Lee, calling its business model outdated and unsustainable.
In a report released Wednesday, Kerrisdale said BitMine mirrors Strategy (MSTR) by issuing shares to buy crypto and boost token-per-share metrics, but noted that market conditions no longer support such a model. “BMNR is chasing a model on its way to extinction,” the firm wrote.
Over the past year, BitMine pivoted from bitcoin mining to an ether-heavy corporate treasury. Under Lee’s leadership, the company raised more than $10 billion since July 2025, mainly through at-the-market stock offerings, and acquired over 2.8 million ETH. Shares spiked from $5 to over $100 after the ether strategy launch but recently dropped to around $58.
Kerrisdale criticized the pace of stock issuance—roughly $170 million per day—and recent $365 million equity raise as a “discounted giveaway” once warrant terms are factored in. The report also questioned Lee’s market influence, saying he lacks the followership needed to sustain investor confidence.
With rising competition from over 150 U.S.-listed firms planning $100 billion in crypto treasury offerings and upcoming Ethereum ETFs offering lower-cost exposure, Kerrisdale sees limited justification for BitMine’s premium. ETH-per-share growth has slowed, and market premiums have dropped from 2.0x in August to 1.2x in October.
Shares fell 2% Wednesday.
