BMNR Short Position Alert: Is the Crypto Investment Bubble About to Burst?
A recent report on BitMine Immersion Technologies, Inc. (BMNR) short sales has been published. According to the analysis, investors no longer have an incentive to pay more for indirect cryptocurrency investment vehicles such as BMNR. According to the report, which was released by the well-known activist short-selling company Kerrisdale Capital, it has a short position in BMNR shares.
Kerrisdale Claims Ethereum Strategy Is Losing Steam
According to the Kerrisdale assessment, BMNR is copying a tactic that Strategy has applied successfully. Increasing ETH per share by the issuance of new shares at a premium to the company’s Net Asset Value (NAV) is the main goal of this method. The company then raises capital and buys more Ethereum with that money. However, Kerrisdale contends that this approach is no longer effective because MSTR’s premium is no longer driven by the same “meme” enthusiasm and scarcity. Indeed, Strategy’s premium (mNAV) is now less than 1.5x, down from 2.0x to 2.5x.
Within three months, BMNR has issued more than $10 billion in new shares in this context. Although its overall ETH holdings have kept rising, the growth rate of ETH per share has considerably reduced. From more than 2.0x in August to about 1.2x a month later, BMNR’s mNAV premium fell precipitously.
Short Report Sparks Controversy: Is BMNR Hiding Its True Growth?
Additionally, Kerrisdale charged that as BMNR’s flywheel slowed, it became less open in its disclosures. BMNR has been quietly omitting its revised share count and NAV-per-share numbers from its weekly press announcements since August 25. According to Kerrisdale, this means that as its growth per share slows, BMNR is concealing the measures it originally used to demonstrate its expansion. They contend that this is unrelated to Ethereum‘s inherent worth.
According to the business, the NAV premium for BMNR and many other DAT companies will keep falling. This is a result of the relaxation of crypto laws and the ease of direct investment. There is a compelling counterargument that BMNR has a promising future in spite of this pessimistic outlook. Prominent investors think its aggressive ETH acquisition and crypto-centric approach are novel.
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