🚀 Kerrisdale Capital Short-Sells Bitmine Amid Declining DAT Model
#KerrisdaleCapital #Bitmine #BMNR #DAT #DigitalAssetTreasury #Ethereum #MSTR #Premium #NAV #MNav #CryptoAssetTreasuryStrategy #StockIssuance #PremiumToNAV #ETH
According to BlockBeats, Kerrisdale Capital, a well-known short-selling firm, has announced its decision to short-sell the stocks of Bitmine, a company involved in Ethereum treasury reserves. Kerrisdale Capital criticizes the Digital Asset Treasury (DAT) model, describing it as mundane and lacking innovation. The firm highlights that the market is saturated with similar projects, leading to a collapse in premiums and diminishing the ability to enhance per-share Ethereum content through stock issuance above net asset value (NAV).
Companies pursuing the 'crypto asset treasury strategy' have collectively aimed to raise over $100 billion, undermining the scarcity that initially supported high premiums. Currently, many of these companies' stocks are trading at or below their net value, with self-reinforcing mechanisms stalling and models beginning to crumble.
MicroStrategy (MSTR), one of the earliest DAT companies, has seen its premium drop from 2–2.5 times its net value to approximately 1.4 times. This decline is attributed to unpopular financing and policy fluctuations, which have eroded market confidence. Bitmine (BMNR) is experiencing a continuous decrease in its premium, with expectations of further decline to match or fall below its net value. As premiums decrease, the rate of per-share Ethereum appreciation slows, potentially dropping below 1. Currently, its market value to net value ratio (MNav) stands at about 1.4 times, indicating over 40% potential downside.#KerrisdaleCapital #Bitmine #BMNR #DAT #DigitalAssetTreasury #Ethereum #MSTR #Premium #NAV #MNav #CryptoAssetTreasuryStrategy #StockIssuance #PremiumToNAV #ETH
🚀 BMNR Stock Declines Amid Criticism of Digital Asset Treasury Model
#BMNR #BlockBeats #KerrisdaleCapital #Bitmine #Ethereum #DigitalAssetTreasury #DAT #CryptoAssetTreasuryStrategy #NAV #ETH
According to BlockBeats, BMNR shares fell by 3.55% during trading, reducing its market capitalization to $16.5 billion. Kerrisdale Capital, a notable short-selling firm, has announced its short position on Bitmine, a company involved in Ethereum treasury reserves. Kerrisdale Capital criticized the Digital Asset Treasury (DAT) model, describing it as unoriginal and losing its appeal. The firm highlighted that the market is saturated with similar projects, leading to a collapse in premium valuations. The ability to enhance the per-share Ethereum content by issuing stocks above net asset value (NAV) is diminishing.
Companies pursuing the 'crypto asset treasury strategy' have collectively aimed to raise over $100 billion, undermining the scarcity that initially supported high premiums. Currently, many of these companies' stocks are trading near or below their net asset value, indicating a stagnation in their self-sustaining mechanisms and a breakdown of their models.#BMNR #BlockBeats #KerrisdaleCapital #Bitmine #Ethereum #DigitalAssetTreasury #DAT #CryptoAssetTreasuryStrategy #NAV #ETH
🚀 Du Jun Criticizes Shorting Ethereum Amid Market Trends
#DuJun #Ethereum #KerrisdaleCapital #Bitmine #DigitalAssetTreasury #DAT #CryptoAssetTreasuryStrategy #Premiums #NAV #Shorting #MarketTrends #BlockBeats #ETH
According to BlockBeats, ABCDE co-founder Du Jun expressed on social media that while shorting premium treasury companies like BMNR is feasible, shorting Ethereum would be unwise.
Previously, BlockBeats reported that the well-known short-selling firm Kerrisdale Capital announced it had shorted the stock of Ethereum treasury reserve company Bitmine. Kerrisdale Capital argued that the Digital Asset Treasury (DAT) model has become mundane and lacks innovation. As nearly identical projects flood the market, premiums are collapsing, and the ability to increase the per-share Ethereum content by issuing stock above net asset value (NAV) is diminishing.
Companies pursuing the "crypto asset treasury strategy" have collectively aimed to raise over $100 billion, undermining the scarcity that once supported high premiums. Currently, many of these companies' stocks are trading at or below their net value, with their self-sustaining mechanisms stalling and models beginning to collapse.#DuJun #Ethereum #KerrisdaleCapital #Bitmine #DigitalAssetTreasury #DAT #CryptoAssetTreasuryStrategy #Premiums #NAV #Shorting #MarketTrends #BlockBeats #ETH