Kerrisdale Clarifies: Not a Short on Ethereum
While the company has taken a short stance on Bitmine, Kerrisdale clarified that it is not shorting Ethereum (ETH) or the broader crypto market. Instead, it is questioning Bitmine’s specific approach and current valuation.
Kerrisdale believes that Bitmine’s token model lacks both scarcity and sustainability, which are key to maintaining long-term value in any digital asset. As the market grows more competitive, Bitmine’s edge has dulled, and its premium trading logic no longer holds.
Short-selling firm Kerrisdale Capital announced a short position in Bitmine (BMNR) stock, stating that the DAT model has become highly homogenized, with intensified market competition causing premiums to decline rapidly. Kerrisdale emphasized that it is not shorting ETH, but…
— Wu Blockchain (@WuBlockchain) October 9, 2025
What Investors Should Know
This short position by Kerrisdale could impact investor confidence in BMNR. The firm’s track record of identifying weak business models adds weight to its concerns. Bitmine will now face the challenge of proving its model can survive in a fast-changing and competitive market.
Investors are advised to re-evaluate Bitmine’s fundamentals and consider the long-term viability of its token strategy.