Kerrisdale contrasted BitMine's strategy with MicroStrategy's Bitcoin reserves, criticizing CEO Thomas Lee for lacking the charisma and investor enthusiasm that Saylor's leadership has garnered, which they believe impacts the sustainability of BitMine's large equity raises.

Following broader crypto market declines, BitMine's stock price fell over 7%, with recent offerings criticized as dilutive and damaging to the company's long-term credibility.

Kerrisdale has criticized BitMine's strategy, highlighting that its Ethereum holdings growth has slowed due to waning NAV premiums and increased share issuance, which they view as short-term cash grabs that undermine investor confidence.

BitMine shifted its focus from Bitcoin mining to becoming the largest corporate holder of ETH, acquiring billions of dollars worth of the cryptocurrency, including 2.83 million ETH valued at approximately $4,535 per ETH as of early October 2025.

Despite a recent rally where BitMine's shares increased over 16,500% in six months, the company faced a more than 3% pre-market decline following criticism from Kerrisdale, which questioned its strategy.

BitMine has raised over $10 billion through stock offerings in recent months to fund ETH purchases, but Kerrisdale argues that this dilution erodes investor value and makes the stock's high premium unjustified.

Technical analysis suggests that if Ethereum falls below the 100-day SMA, it could decline further toward $3,500, with resistance levels near the 50-day SMA and a descending trendline.

Institutional demand for ETH remains strong, with treasury firms and ETFs holding over 12.48 million ETH, about 10.31% of the total supply, supported by inflows into US spot ETH ETFs like BlackRock’s ETHA fund, which saw nearly $149 million in inflows.

Recently, Ethereum's price dropped to around $4,100, testing support at the 100-day simple moving average, with over $237.9 million in liquidations in 24 hours, signaling increased market volatility.

Kerrisdale also criticized the surge in corporate crypto treasuries and ETFs, arguing that increased supply has reduced market scarcity, leading to falling NAV premiums and rendering the treasury model less effective.