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Wall Street legend backed crypto stock slumps after short-seller attack

Core Viewpoint - BitMine Immersion Technologies (NYSE: BMNR) experienced a stock decline of over 5% on October 9 due to a short-selling decision by Kerrisdale Capital, which criticized the company's business model as being outdated [1][3]. Company Overview - BitMine is recognized as the world's largest Ethereum-focused digital asset treasury (DAT) firm, holding 2.83 million ETH tokens valued at over $12 billion and 192 Bitcoin valued at more than $23 million [1][2]. Market Position - Despite a nearly 30% increase in stock value over the past month, the recent short-selling announcement led to a 4.7% drop in stock price [3]. - BitMine is positioned as the second-largest Bitcoin treasury firm, following Michael Saylor's Strategy [2]. Industry Dynamics - The investment firm Kerrisdale Capital highlighted that the proliferation of crypto investment vehicles, including similar DATs and exchange-traded funds (ETFs), has overwhelmed investors [4]. - Kerrisdale Capital suggested that the DAT model has become basic and unoriginal, recommending that investors directly purchase Ethereum or utilize the growing number of ETFs instead of paying a market premium for BitMine [5]. Leadership Commentary - Tom Lee, the chairman of BitMine, lacks the strong following that Michael Saylor commands, which may impact investor confidence [7]. - The DAT model was once effective when there were fewer public companies, but the current market saturation has diminished its appeal [8].