- •Kerrisdale Capital targets Bitmine, highlighting Digital Asset Treasury model flaws.
- •Du Jun warns against shorting Ethereum, sees potential amid treasury collapse.
- •Falling premiums pressure DAT stocks like BMNR and MSTR despite ETH backing.
ABCDE co‑founder Du Jun, on October 9, warned on social media about shorting ETH, amidst Kerrisdale Capital's short position against Ethereum treasury company Bitmine (BMNR).
The authority's stance underscores market tension and highlights the fragile state of Digital Asset Treasury models, risking broader market impact.
Kerrisdale's Bitmine Short Sparks Market Repercussions
Kerrisdale's move to short Bitmine targets the decline in Digital Asset Treasury (DAT) models. The model has faced criticism for lacking innovation amid a flood of similar copycat projects. Du Jun, ABCDE co‑founder, noted that shorting premium treasury companies like Bitmine is advisable, but urged caution against shorting Ethereum itself, citing ongoing support from institutional entities.
Market shifts due to Kerrisdale's intervention, led to significant impacts on DAT stocks' valuations. These stocks, such as Bitmine and MicroStrategy, saw a decline in premiums, now nearing or below their Net Asset Value (NAV). The model's erosion stems from a saturation of projects and diluted scarcity, resulting in price rationalization and strategic reconsideration within the market.
Du Jun, Co‑founder, ABCDE, said, “Shorting premium treasury companies like BMNR is fine, but shorting ETH would be very foolish.”
Historical Context, Price Data, and Expert Insights
Did you know? The precipitous decline in premium valuations among Digital Asset Treasury stocks resembles earlier cycles seen in Bitcoin‑related equities when similar saturation effects eroded speculative value.
CoinMarketCap data notes Ethereum (ETH) trading at $4,338.94 with a market cap of $523.72 billion as of October 9, 2025. ETH experienced a 3.78 % drop over the past 24 hours, following an unexpected shorting by Kerrisdale. Its 90‑day price, however, remains up by 45.49 %.
Insights from the Coincu research team highlight potential adjustments in both regulatory perspectives and financial strategies, as DAT companies falter. This situation may stimulate increased institutional activity around Ethereum itself, anticipating shifts in asset allocations and potential innovation in crypto‑focused financial products.