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"In recent months, we’ve seen crypto treasury companies of all kinds popping up out of nowhere, each snapping up crypto to add to their reserves. One of the biggest treasuries out there is Bitmine, an Ethereum treasury company.
But what if I told you that despite its size, Bitmine could in fact be struggling more than people think? And, what if these struggles could send shockwaves across other digital asset treasuries companies? What if this has a knock on effect that impacts ETH, and the broader crypto market?
A recent report examines exactly that, and the results are quite shocking. So today, we’ll break this report down for you in simple terms, and tell you what it could all mean - not only for the future of Bitmine, but for the entire crypto treasury landscape."
~ Coin Bureau
The video summarizes a critical report by the investment firm Kerryside Capital on Bitmine Immersion Technologies Inc. (BMNR), the world's largest Ethereum-focused digital asset treasury (DAT). The report asserts that Bitmine's strategy is unsustainable, and its stock is set for a crash. Bitmine pivoted from Bitcoin mining to rapidly accumulating 2.8 million ETH since July, but it funded this massive acquisition by issuing billions of dollars in new shares through an At-The-Market (ATM) program. This massive issuance has led to significant stock dilution, which the report argues makes the company a less attractive investment and could continuously pressure the stock price lower, regardless of Ethereum's performance.
Furthermore, the report highlights a lack of transparency as Bitmine quietly stopped disclosing key metrics like Net Asset Value (NAV) per share and fully diluted share count after its ETH per share growth slowed. The video explains that Bitmine is following a playbook pioneered by MicroStrategy, but this Digital Asset Treasury Company (DATCO) model is increasingly vulnerable due to the proliferation of competing, more efficient investment vehicles, particularly Spot Ethereum ETFs. The fear is that the declining premium (MNAV) for DATCO stocks, coupled with high dilution, creates a "death spiral" scenario where a large company like Bitmine or MicroStrategy could be forced to liquidate its crypto holdings, potentially triggering a chain reaction across the entire digital asset market and negatively impacting the price of ETH.
0:00 Intro
0:51 DAT Ain’t No Strategy
4:45 Copying MicroStrategy As The Original DAT Falters
9:08 Shifting Crypto Treasury Landscape
11:48 Stalled Flywheel And Opaque Disclosures
14:58 Capital-Markets Behaviour: “Premium” Raises That Weren’t
18:10 Conclusion: What This Means For Ethereum And The Crypto Market
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=b80SyZneZXk
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
