Kerrisdale Capital has taken a short position in BitMine Immersion (BMNR), the ether-focused digital asset treasury firm led by Fundstrat's Thomas Lee, calling its business model a relic of a bygone crypto era.

In a detailed report published Wednesday, the well-known short-seller said BitMine’s strategy mirrors that of Strategy (MSTR) — issuing shares at a premium to buy crypto and grow token-per-share metrics — but argued that market conditions no longer support that model.

“BMNR is chasing a model that is on its way to extinction,” Kerrisdale wrote. “Scarcity and meme-like enthusiasm once kept premiums high despite constant dilution, but those conditions have vanished.”

Kerrisdale months ago shorted Strategy against a long in bitcoin, noting that company's premium to net asset value w

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