Kerrisdale Capital Launches Attack on Bitcoin Miners Provoking Strong Response from Industry

Kerrisdale, a US investment firm, has initiated a fierce battle against Bitcoin mining, criticizing the business model of the top Bitcoin miner in the nation.
In response, the Bitcoin community has come to the defense of the mining industry, emphasizing the financial opportunities and positive environmental impacts it brings.
Kerrisdale Capital, a US-based investment management firm, has launched a full-scale attack on Bitcoin mining, garnering significant attention from the cryptocurrency community. The firm made its intentions clear on the X platform, delivering a harsh assessment of the industry and singling out RIOT Blockchain, the leading Bitcoin miner.
In a series of posts, Kerrisdale described the mining sector as being filled with “snake oil salesmen,” highlighting the financial challenges and detrimental environmental effects it presents.
“We are declaring war on Bitcoin miners, a group of individuals who are burning investor capital and harming the environment with their deceitful practices. They should be exiled from America just like the Chinese RTO scams we helped eliminate a decade ago,” the firm proclaimed.
Critiquing the flawed business model of Bitcoin mining, Kerrisdale specifically targeted RIOT Blockchain, a publicly traded Bitcoin mining company.
According to the firm, RIOT and other US-listed miners operate on a cash-burning treadmill, continuously issuing shares to fund operations and failing to turn a profit even with Bitcoin prices near all-time highs.
Kerrisdale noted that Bitcoin mining is capital-intensive, fiercely competitive, offers a standardized product, and faces increasing regulatory scrutiny.
Despite substantial investments in facilities and equipment, RIOT’s Bitcoin production and holdings per share have declined, with shareholders only benefiting if Bitcoin prices rise—an unreliable investment strategy compared to low-fee ETFs.
While Kerrisdale announced its short position on RIOT, it expressed bullish sentiment towards Bitcoin. The firm commended the emergence of Bitcoin ETFs, which have attracted over $50 billion in investments in under six months.
In response to Kerrisdale’s criticism, the Bitcoin mining industry rallied to defend itself. Figures like Daniel Batten of Marathon and Adam O of Upstream Data dismissed environmental concerns, while Steven Lubka of Swan Bitcoin highlighted Kerrisdale’s own financial woes.
Investor Simon Dixon highlighted the potential for renewable energy integration and methane emission reduction in Bitcoin mining, countering negative perceptions. Bitcoin educator Mark Harvey advocated for a straightforward approach: buying and holding Bitcoin.
Despite facing backlash for its environmental impact and energy consumption, research has shown that Bitcoin mining can stimulate economies, create jobs, and promote green energy initiatives.
As of the latest update, Bitcoin is trading at $70,700 after a slight decline in the past 24 hours, with a 3.5% increase propelling it above the $70,000 milestone. The leading cryptocurrency continues to attract interest and attention from investors worldwide.