Kerrisdale Capital: shorting BitMine stock, the DAT strategy has lacked creativity.

According to Jinse Finance, investment firm Kerrisdale Capital has chosen to short Ethereum digital treasury company BitMine Immersion (BMNR) stock. Kerrisdale Capital stated in the report that BitMine is pursuing a soon-to-be-extinct model. Its strategy is directly copied from Strategy (MSTR) and has been imitated by dozens of DAT imitators: selling stocks at a price higher than the token value on the balance sheet, then using the proceeds to buy more Crypto Assets, continuously increasing the value of each Token, forming a self-reinforcing cycle. This cycle was effective in the early days, when scarcity and meme-like enthusiasm kept the premium of the Strategy high, despite its equity being continuously diluted, but those conditions have disappeared. Policy reversals and unpopular financing have panicked investors, and the premium of the Strategy itself has declined from a long-term 2-2.5 times mNAV to below 1.5 times. In this environment, BMNR has injected over $10 billion (and still growing) in new shares into the market in just three months, approximately $170 million per day, trying to restart the flywheel that has stopped rotating. The speed of BMNR's stock issuance has transformed early enthusiasm into fatigue, with investors accustomed to believing that each increase will be met with more supply. Although the company continues to report an overall increase in the total amount of ETH Tokens, the appreciation rate per share of ETH has slowed down as the net asset value premium narrows and the number of shares surges—this trend has become even harder to track after BMNR quietly removed the latest stock numbers from its weekly press releases.