US-based investment firm Kerrisdale has launched a full-scale attack on Bitcoin, delivering a scathing critique of the leading Bitcoin mining company in the nation.
In response, the Bitcoin community has come to the defense of the mining industry, emphasizing the financial opportunities it presents and the positive environmental impacts it can have.
Kerrisdale Capital, a US investment management firm, has initiated a fierce campaign against Bitcoin mining, causing a stir within the crypto community. Through a series of posts on the X platform, the firm harshly criticized the industry as a whole, singling out RIOT Blockchain, the top Bitcoin miner.
Describing the mining sector as filled with “snake oil salesmen,” Kerrisdale Capital highlighted the financial difficulties and environmental harm associated with the industry. The firm declared, “Today, we declare war on Bitcoin miners, an industry of deceitful individuals who are wasting investor funds and harming the environment. They should be expelled from America, just like the Chinese RTO scams we helped eliminate a decade ago.”
Focusing on the unsustainable business model of Bitcoin mining, Kerrisdale Capital specifically targeted RIOT Blockchain, a publicly traded Bitcoin mining company. The firm criticized companies like RIOT for continually issuing new shares to fund operations, even with Bitcoin prices near all-time highs. Kerrisdale Capital pointed out that post-halving, RIOT’s mining operations were not profitable due to the capital-intensive nature of the industry and increasing regulatory scrutiny.
Despite the firm’s short position on RIOT, it expressed optimism about Bitcoin itself. Kerrisdale Capital praised the introduction of Bitcoin ETFs, which have garnered significant attention and attracted over $50 billion in investments in less than six months.
In response to Kerrisdale Capital’s criticisms, the Bitcoin mining industry fought back. Industry leaders such as Daniel Batten of Marathon and Adam O of Upstream Data dismissed concerns about environmental impact, while Steven Lubka of Swan Bitcoin highlighted Kerrisdale’s own financial struggles. Investor Simon Dixon emphasized the potential for renewable energy integration and methane emission reduction in Bitcoin mining, while Bitcoin educator Mark Harvey advocated for simply buying and holding Bitcoin as a solution.
Despite facing backlash for its environmental impact, research has shown that Bitcoin mining can stimulate economies, create job opportunities, and promote the adoption of green energy.
At the time of writing, Bitcoin is trading at $70,700, following a slight decline in the past 24 hours. The leading cryptocurrency has experienced a 3.5% increase, surpassing the $70,000 mark.