Kerrisdale Capital has raised concerns over BitMine Immersion Technologies' aggressive stock issuance strategy, warning that it may be harming investor confidence. Experts in the publication emphasize that the report highlights the potential risks associated with the company's recent fundraising activities.
BitMine Raises $10 Billion in Three Months
According to Kerrisdale, BitMine has raised an astonishing $10 billion in just three months, primarily through at-market share sales. This influx of capital has created a pattern where investors now anticipate additional stock supply with each price rally, leading to a sense of fatigue among shareholders.
Concerns Over Long-Term Credibility
The report emphasizes that while raising funds is crucial for growth, BitMine's approach could undermine its long-term credibility in the market. By continuously increasing the supply of shares, the company risks alienating investors who may become wary of the stock's value and stability.
As concerns about BitMine's stock issuance strategy grow, the looming threat of a government shutdown is also raising investor anxiety. For more details, see the full article on the situation here.
