BMNR Stock Declines Amid Criticism of Digital Asset Treasury Model

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.