Kerrisdale Capital, a US investment firm, has launched a full-scale attack on Bitcoin mining, criticizing the business model of the country’s leading Bitcoin miner. In response, the Bitcoin community has come to the defense of the mining industry, emphasizing its financial opportunities and environmental advantages.
Kerrisdale Capital, known for its investment management services, has made headlines by declaring war on Bitcoin mining, particularly targeting RIOT Blockchain, a prominent player in the industry. Through a series of posts on the X platform, the firm condemned the mining sector as being filled with deceitful individuals and highlighted its financial struggles and negative impact on the environment.
Describing Bitcoin miners as “snake oil salesmen”, Kerrisdale Capital called for their expulsion from the US, similar to the Chinese RTO frauds that were ousted a decade ago. The firm specifically criticized RIOT Blockchain, a publicly traded Bitcoin mining company, for its unsustainable business model and continuous need to raise capital through ATM issuance.
Despite the increasing scrutiny from regulators, Kerrisdale Capital continued to question the profitability and sustainability of Bitcoin mining operations, particularly focusing on RIOT Blockchain’s declining production and shareholder value. The firm argued that investing in Bitcoin through mining companies like RIOT was not an efficient strategy, especially with the availability of low-fee ETFs.
While Kerrisdale Capital expressed its negative views on RIOT, it remained optimistic about Bitcoin itself, praising the introduction of Bitcoin ETFs and the growing interest from investors. The firm’s stance sparked a debate within the crypto community, with industry figures defending Bitcoin mining and highlighting its potential for renewable energy integration and job creation.
Despite facing criticism for its environmental impact, research has shown that Bitcoin mining can have positive economic effects and contribute to the development of green energy solutions. As of the latest update, BTC is trading at $70,700, showing a 3.5% increase in value over the past 24 hours. The cryptocurrency continues to attract attention from investors and remains a topic of interest in the financial world.