Bitcoin Mining Stocks Plummet as Kerrisdale Capital Criticizes Industry

• Riot Platforms' stock falls after Kerrisdale Capital report on U.S. bitcoin mining industry.
• Kerrisdale criticizes Riot's business model, recommends bitcoin ETFs over mining stocks.
• Riot's stock down 7.7% to $8.91 per share, 42% YTD.
• Marathon Digital and Gryphon Digital stocks also drop.
• ASICs from Bitmain and MicroBT dominate bitcoin mining equipment market.
• Kerrisdale warns of regulatory risks and competition in the bitcoin mining industry.

Summary :
Riot Platforms' stock is plummeting after Kerrisdale Capital, a short seller, released a report criticizing the company and the entire U.S. bitcoin mining industry. Kerrisdale argues that bitcoin mining is a poor business model for public companies due to unpredictable revenue, high capital requirements, intense competition, regulatory scrutiny, and the fact that it is a pure commodity product. They suggest that investing in bitcoin exchange-traded funds (ETFs) and bitcoin itself is a better option. Riot's stock was down 7.7% to $8.91 per share and has fallen 42% year-to-date. Other bitcoin mining peers, such as Marathon Digital and Gryphon Digital, also experienced declines. Kerrisdale highlights the challenges faced by mining companies, including the halving of rewards every four years and the dominance of Chinese suppliers. They also express concerns about the impact of shifting state and local politics on Riot's operations in Texas. This is not the first time Kerrisdale has targeted bitcoin-related equities, as they previously released a critical report on MicroStrategy. While bitcoin's price has risen 60% this year, Kerrisdale believes Riot is not a good way for investors to benefit from the digital gold.

Sources :

- TheBlock