• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Is The Approval Of Crypto ETFs At Risk? SEC Operations Frozen By Gov. Shutdown
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Is The Approval Of Crypto ETFs At Risk? SEC Operations Frozen By Gov. Shutdown
War on Bitcoin Mining

‘War Against Bitcoin Miners’: US Investment Firm Sparks Industry Backlash

Jake Simmons
by Jake Simmons
1 year ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Kerrisdale Capital, a US investment firm, set off a storm of reactions on Wednesday with a series of public communications aggressively targeting Bitcoin mining companies. In a multi-part thread on X, Kerrisdale announced its campaign against what it describes as “snake oil salesmen” in the BTC mining industry, accusing them of being both a financial sinkhole and an environmental hazard.

“Today, we launch a war against Bitcoin miners, an industry of snake oil salesmen that are incinerating both investor capital and the environment and should be banished from America much like the Chinese RTO frauds that we helped kick out a decade ago,” the firm declared.

Kerrisdale also revealed it had begun by sending letters to officials in Texas, including the Navarro City Commission and state senators, outlining their grievances and calling for regulatory action. Additionally, the firm disclosed its financial position, stating, “We’re short RIOT (and long Bitcoin as a hedge).”

Kerrisdale’s critique centers on the business model of RIOT Blockchain, which it argues is inherently flawed: “Like other US listed miners, RIOT’s biz model is a dysfunctional hamster wheel of cash burn, which is why it loots retail shareholders with non-stop ATM issuance to fund operations.” They pointed out that despite BTC’s high market prices, RIOT’s post-halving operations have not been profitable.

Related Reading: Spanish Court Grants Bail To ‘Bitcoin Jesus’ Roger Ver Amid Extradition Requests

Further financial analysis from Kerrisdale highlighted that RIOT has issued $2.3 billion in stock since 2020, which has led to a sixfold increase in shares outstanding to fund $1.6 billion in cash burn. According to Kerrisdale, this has not corresponded with an increase in Bitcoin production per share or BTC holdings per share, leading them to conclude that the only benefit to shareholders would come from rising Bitcoin prices—a strategy they deemed insufficient for investment.

On the environmental front, Kerrisdale criticized Bitcoin mining for its heavy energy use and reliance on incentives that may not align with broader environmental goals. “RIOT’s economics would look even worse without generous grid incentives and tax credits,” the firm argued, noting that such benefits are being questioned by regulators and might not persist.

The Bitcoin Mining Industry And Experts Responds

The industry response was quick, with several prominent figures defending the sector and attacking Kerrisdale’s motives and understanding of the space. Daniel Batten, founder of CH4 Capital and advisory board member at Bitcoin mining giant Marathon, suggested Kerrisdale should focus more on enhancing investor returns rather than attacking industry practices.

Respectfully, perhaps you should redeploy some of that enthusiasm (and focus) to increasing investor returns? pic.twitter.com/2HR3hVFztw

— Daniel Batten (@DSBatten) June 6, 2024

Adam O of Upstream Data defended Bitcoin mining’s environmental impact, stating, “Good luck vilifying that which improves all stakeholders, reduces waste, and reduces methane emissions. Dumbest mission of the decade.” Steven Lubka, Head of Private Clients & Family Offices at Swan Bitcoin, criticized Kerrisdale’s strategy and pointed to the failing MicroStrategy (MSTR) short position which they entered two months ago as well as their declining assets under management as a sign of deeper issues within the firm itself.

Related Reading: First Spot Bitcoin ETF Gets Green Light From Thailand SEC

“Let’s take a look at these absolute losers crying for the government to rescue their MSTR short by FUD’ing mining. […] Now let’s take a look at their AUM. $318m as of this quarter, let’s see where they were a few years ago? $1.3 billion. That’s a big drop in their total AUM/invested amount. In conclusion, they are trying to save their fund because they know MSTR is about to rip higher by appealing to the government.”

The debate also extended to the environmental merits of Bitcoin mining. Simon Dixon, an angel investor, presented facts debunking the myth that Bitcoin mining is predominantly harmful to the environment. He highlighted the role of Bitcoin mining in methane emission mitigation and its synergies with renewable energy sources such as solar and wind, as well as the ability to help balance the grid.

Dig Deeper pic.twitter.com/JQmdIw7SkD

— Simon Dixon (@SimonDixonTwitt) June 5, 2024

Mark Harvey, a Bitcoin educator, just stated, “You will make a higher ROI + more friends by just buying and holding Bitcoin.”

At press time, BTC traded at $70,820.

Bitcoin price
BTC price stalls at $71,000, 1-day chart | Source: BTCUSD on TradingView.com
Featured image created with DALL·E, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Jake Simmons

Jake Simmons

Follow

Jake Simmons has been a Bitcoin enthusiast since 2016. Ever since he heard about Bitcoin, he has been studying the topic every day and trying to share his knowledge with others. His goal is to contribute to Bitcoin's financial revolution, which will replace the fiat money system. Besides BTC and crypto, Jake studied Business Informatics at a university. After graduation in 2017, he has been working in the blockchain and crypto sector. You can follow Jake on Twitter at @realJakeSimmons.

Full Profile

Related Posts

Bitcoin Whales

Bitcoin Whales Still Selling, But Mid-Sized Holders Now Stepping In To Buy

3 hours ago
Bitcoin Futures Buyers Step Up: Taker Buy Volume Tops $1.8B

Bitcoin Futures Buyers Step Up: Taker Buy Volume Tops $1.8B

7 hours ago
Bitcoin

Bitcoin Holders Locking In Gains As Profit-Taking Surges Amid Market Recovery, Rally To Extend?

10 hours ago
Spot Bitcoin ETFs Record $1.08B In 4-Day Volume: Fueling Price Momentum

Spot Bitcoin ETFs Record $1.08B In 4-Day Volume: Fueling Price Momentum

14 hours ago
Bitcoin news

Bitcoin Prediction Upgraded: Citi, JPMorgan Drop Jaw-Dropping 12-Month Targets

16 hours ago
Bitcoin

Bitcoin HODLer Selling Cooling Off As ETF Inflows Return: Glassnode

23 hours ago

Premium Sponsors

Press Releases

  • The Quiet Market Shift Investors Might Be Missing: How Tapzi Is Challenging Institutional Favorites

    The Quiet Market Shift Investors Might Be Missing: How...

    14 hours ago
  • Investors Search for Long-Term Upside in This Under-$0.01 Crypto of 2025 Tapzi

    Investors Search for Long-Term Upside in This Under-$0.01...

    15 hours ago
  • MoonBull Presale Explodes with over 11,800% Projected ROI as Uptober Sends the Market Soaring

    MoonBull Presale Explodes with over 11,800% Projected ROI...

    17 hours ago
  • 狗狗幣引領『Uptober』Meme...

    22 hours ago
  • ตัวละคร Snorter ขนฟูโต้คลื่นบนเซิร์ฟบอร์ดสีชมพู

    จับตา Uptober!...

    2 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.