04:50 AM EDT, 10/09/2025 (MT Newswires) -- (Updates with the latest stock price movement in the headline and the first paragraph.)

BitMine Immersion ( BMNR ) shares were down 2.8% in recent premarket activity Thursday following a report from short-seller Kerrisdale Capital criticizing the company's business model.

The firm said it is short shares of BitMine, an $18 billion Ethereum-focused digital asset treasury, or DAT, "chasing a model that is on its way to extinction."

The report said that BitMine is following a strategy used previously by many copycats, where a company sells stock at a premium relative to its token holdings, then reinvests the proceeds into crypto, aiming to grow the amount of tokens per share in a self-reinforcing loop.

That approach worked in an earlier era when enthusiasm and scarcity kept premiums high despite dilution. But those conditions no longer exist, the short seller added.

"BitMine's pitch rests on the idea that it can deliver more than the token alone, yet the strategy is generic, the competition is mushrooming, disclosures have grown opaque, ETH-per-share has slowed, and capital raises promoted as 'premium' are in reality dilutive," Kerrisdale said, adding that under these conditions, the company's premium is very likely to compress further.

BitMine didn't immediately reply to MT Newswires' request for comment.