Kerrisdale Capital Bets Against Crypto Reserve Companies

Kerrisdale Capital, known for its aggressive short-selling strategies, has taken a position against Bitmine (BMNR) shares, signaling skepticism toward companies using cryptocurrencies as reserves. The move highlights a growing narrative around artificial price inflation through crypto holdings.

No major global exchange—including those in the U.S., Japan, or Germany—has yet established a crypto reserve company. However, firms like Turkey's Martı have experimented with crypto-backed reserves to bolster stock valuations. Kerrisdale's bet suggests a belief that this trend may unravel.

Short-selling crypto-related equities has historically been perilous, as seen during past financial crises. Yet, while cryptocurrencies themselves continue to innovate, the speculative use of digital assets as corporate reserves may be the real bubble.