Tom Lee Under Fire As Short-Seller Slams BitMine’s “Relic” ETH Strategy
Tom Lee and BitMine Immersion Technologies are under fire from short-seller Kerrisdale Capital, which says the company’s ETH treasury strategy is a “relic on the verge of extinction.” The firm criticized BitMine for issuing billions in new shares to fund Ethereum purchases, arguing the approach erodes investor value and no longer justifies a premium stock price. BitMine’s market value is converging with the underlying value of its ETH holdings, chipping away at the company’s appeal to investors, it added. “If you want ETH, just buy it directly, stake it, or invest through one of the new ETFs,” it said. “BitMine’s middleman pitch has run its course.” BitMine’s Stock Sales To Fund ETH Purchases No Longer Justified The criticism comes after BitMine transitioned from a company mainly focused on Bitcoin mining to an Ethereum treasury firm earlier this year. Since performing that pivot, BitMine has become the largest corp...