Key Notes
- Kerrisdale argued that BitMineโs aggressive BMNR equity issuance, of over $10 billion, is losing effectiveness.
- It pointed out issues such as slower ETH-per-share growth and fading investor enthusiasm that once mirrored MicroStrategyโs model.
- Analyst Donald Dean observed short-term weakness and a possible retest near $56 support.
BitMine Technologies (NASDAQ: BMNR) stock has once again come onto short-sellersโ radar after a staggering 17,000% year-to-date rally. Short-selling firm Kerrisdale Capital has recently published a report declaring its short position on the BMNR stock, noting that the ETH
ETH
$4 372
24h volatility:
2.5%
Market cap:
$527.60 B
Vol. 24h:
$39.89 B
treasury firm is โovervaluedโ and that the companyโs NAVG premium is collapsing.
BMNR Stock in Pressure after Short-Sellerโs Report
In the pre-trading session on Oct. 9, the BMNR stock cracked by 3% slipping to $58, after Kerrisdale Capital opened a short position on the stock while questioning the companyโs fundraising strategy.
In a very short time period since June 2025, the company has acquired a massive 2.83 million ETH coins. Recently, it also became the second-largest crypto treasury firm by AUM, after Michael Saylorโs Strategy (MSTR).
Drawing a leaf from Strategy, BitMine Technologies has been increasing its ETH per share. The Tom Lee firm issued more than $10 billion in new stock over the past three months, averaging roughly $170 million per day. Back in August, the BMNR stock also surpassed giants like Tesla and Apple in daily trading volume.
Although BitMine total ETH holdings have continued to rise, the ETH-per-share growth rate has slowed considerably. The BMNR Stockโs mNAV premium dropped sharply, falling from over 2.0x in August to approximately 1.2x a month later.
However, Kerrisdale analysts noted that this model of fundraising is losing effectiveness. They added that the scarcity and โmemeโ enthusiasm that previously fueled MSTRโs premium have diminished.
Weโre not short ETH. If you want ETH, just go buy ETH. It has never been easier. $BMNRโs whole pitch is to get investors to overpay for copying a playbook that no longer works. No Strategy, no scarcity, no reason this company deserves a premium. 9/9
โ Kerrisdale Capital (@KerrisdaleCap) October 8, 2025
The firm also criticized BMNR for reduced transparency, noting that since Aug. 25, the fund has omitted updated share count and NAV-per-share figures from its weekly press releases as its growth momentum slowed.
What BitMine Stock Technical Chart Tells
Crypto analyst Donald Dean noted that BitMine Immersion (BMNR) share is showing minor weakness on the 4-hour chart. Thus, he believes that the BMNR stock will see a potential retest of the 0.618 Fibonacci support level at $56.05. Dean highlighted that there is strong buying support in the mid-$50 range, presenting a favorable risk/reward setup for traders.
$BMNR BitMine Immersion โ Retest of the Breakout
Price Target: $71.74
Price is showing minor weakness on the 4 hour chart, potential to retest the 618 level of support at $56.05. There is strong support in the mid $50’s and risk/reward would be good there.
Target remains atโฆ pic.twitter.com/JKTb5BBECI
โ Donald Dean (@donaldjdean) October 8, 2025
Despite the short-term pullback, Dean maintained a price target of $71.74. He expects BMNR to eventually retest its August highs once the consolidation phase completes.
On the other hand, market analyst Mike Investing stated that BitMine (BMNR) stock could be the next stock to experience a strong upside move. He noted that BMNR has been consolidating within a tight wedge pattern for over three months, suggesting that a major breakout is imminent.
$BMNR is the next stock to see a euphoric squeeze similar to what $OPEN & $AMD both hadโฆ
Consolidating tightly within a wedge for over 3+ months now itโs clear $BMNR is about to rally.
Anything under $60 is literally free money.
$110+ incoming in November.
Mark my wordsโฆ pic.twitter.com/a64gySsvdu
โ Mike Investing (@MrMikeInvesting) October 9, 2025
According to his analysis, any price below $60 presents a strong buying opportunity, with a potential target of $110 or higher by November.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
