Kerrisdales Snake Oil Accusations Met with Silence from US Bitcoin Miners

Investment company Kerrisdale Capital has declared a battle against Bitcoin miners, labeling them as deceptive salesmen. Mining companies have chosen not to respond to these accusations.
Kerrisdale’s argument aligns with their latest investment report, which predicts a bleak future for Riot Platforms. Sahm Adrangi, the CEO of Kerrisdale Capital, explained their position in an interview with Cointelegraph.
Adrangi highlighted the issue of companies diluting their shares to invest in unprofitable businesses, criticizing Riot for issuing $41 million in shares in just four months, resulting in an 18% stock dilution. He emphasized that these practices are unsustainable and that the mining industry in the United States is facing significant challenges.
Kerrisdale has taken a short position on Riot, but the company has refuted the claims made against them. Despite Kerrisdale’s report, industry insiders like William Foxley from The Mining Pod believe that Bitcoin mining in the U.S. has a promising future, especially under a potential Trump administration.
Kerrisdale’s criticism of U.S. Bitcoin miners in Texas has sparked debate about energy consumption and regulatory issues. The company has even reached out to state legislators to oppose any future tax reductions for Riot.
The impact of Kerrisdale’s report on Riot’s stock was initially negative, but the company has since recovered. While Kerrisdale’s concerns may have raised questions about the industry, Riot is actively seeking support from influential figures like former President Trump, who recently voiced his support for Bitcoin mining in the U.S.
Overall, Kerrisdale’s stance on Bitcoin mining has stirred controversy, but the industry continues to navigate through these challenges with various perspectives and strategies.