Kerrisdale Shorts BitMine as ETH mNAV Premium Slumps
Kerrisdale Capital has opened a short position on BitMine Technologies (BMNR), targeting the ETH treasury firm after its market NAV (mNAV) premium plunged from over 2× in August to around 1.2× in September. Despite BitMine’s 17,000% YTD rally, aggressive equity issuance exceeding $10 billion and accumulation of 2.83 million ETH since June have failed to sustain per-share ETH growth or investor enthusiasm. The short selling report highlights reduced transparency—weekly NAV and share counts no longer disclosed—and warns that ongoing dilution may fatigue shareholders. BitMine stock dipped 3% to $58 in pre-market trading, trading in a volatile range between $56.05 (0.618 Fib support) and potential upside targets at $71.74 and $110 if consolidation holds. Crypto traders should prepare for heightened volatility as BitMine’s equity-for-ETH treasury strategy comes under scrutiny, potentially affecting demand dynamics in the ETH treasury sector.
Bearish
In the short term, Kerrisdale’s report and the ensuing sell-off in BitMine shares may dampen demand for ETH as investors reassess equity-backed token accumulation, pressuring ETH price. The halt in NAV disclosures and heavy dilution reduce institutional appetite for similar treasury products, increasing ETH supply. Over the longer term, broader adoption of ETH treasury strategies could support baseline demand, but sustained scrutiny and slower large-scale ETH purchases by BitMine are likely to weigh on upward momentum, resulting in a bearish outlook for ETH.