Cathie Wood Backed BitMine's 600% Stock Surge — But Kerrisdale Warns 'Premium Is Destined To Sink'

Core Viewpoint - BitMine Immersion Technologies Inc has experienced a significant increase in stock value, rising over 600% since its trading began in June 2025, primarily due to its shift from Bitcoin mining to focusing on Ethereum as a digital-asset treasury [1] Company Overview - BitMine is now recognized as the largest corporate holder of Ethereum (ETH) globally, attracting notable investors such as Ark Invest, Founders Fund, Tom Lee, and Bill Miller III [2] - The company's strategy involves selling stock at a premium to acquire more ETH, although this approach has faced criticism [3] Criticism and Concerns - Kerrisdale Capital has published a short report criticizing BitMine's strategy, suggesting that the company's model is unsustainable and that it has issued over $10 billion in new shares in three months, leading to dilution of existing shareholders [3][4] - The report warns that while headline ETH holdings may increase, the per-share growth is under pressure due to competition and market changes [4] Institutional Support - Despite criticisms, BitMine continues to receive strong institutional backing, with ARK Invest holding $417 million in ETFs and Founders Fund maintaining a 9% stake [5] - Supporters of BitMine view its aggressive ETH accumulation as part of a broader narrative involving Ethereum and AI supercycles [5] Investment Outlook - BitMine represents a high-volatility investment opportunity, balancing between crypto enthusiasm and institutional confidence, with potential risks highlighted by short sellers regarding dilution and growth [6]