BlockBeats News, October 9th. Well-known short-selling institution Kerrisdale Capital announced that it has shorted the stock of Bitmine, a prominent Ethereum treasury reserve company. Kerrisdale Capital believes that the so-called DAT (Digital Asset Treasury) model has become mediocre and lacking innovation: as nearly identical clone projects flood the market, the premium is collapsing, and the ability to enhance the ETH per share content by issuing stock above Net Asset Value (NAV) is disappearing.
Over $100 billion has been raised by companies pursuing the “crypto asset treasury strategy,” breaking the scarcity that originally supported high premiums. Today, the trading prices of many such company stocks are approaching or falling below net asset value, causing their self-reinforcing mechanisms to stagnate and their models to begin to collapse.
As the earliest DAT company, MSTR’s premium has plummeted from 2–2.5 times NAV to around 1.4 times NAV. Due to unpopular financing and policy reversals, market confidence has shattered. BMNR’s premium continues to decline, and it is expected to keep sliding until it reaches parity with or even falls below net asset value. The lower the premium, the slower the appreciation of ETH per share, until it falls below 1. Currently, its MNav (Market Value to Net Asset Value ratio) is around 1.4 times, with more than a 40% downside potential.
