Kerrisdale Capital Launches Aggressive Campaign Against Bitcoin Miners, Targeting RIOT Blockchain

  • Kerrisdale Capital, a renowned US investment firm, sparked intense debate on Wednesday by openly criticizing Bitcoin mining companies.
  • The firm launched a public campaign on social media, labeling these companies as economic burdens and environmental threats.
  • They described Bitcoin miners as “snake oil salesmen,” arguing for their removal from the U.S. to protect financial and environmental interests.

Kerrisdale Capital targets Bitcoin mining companies, alleging financial inefficiencies and environmental harm. Explore the unfolding conflict and industry reactions.

Anchor Investors Take Aim at Bitcoin Mining Companies

Kerrisdale Capital, a US-based investment firm, made headlines this week with a bold campaign critiquing Bitcoin mining companies. The firm released a series of tweets condemning the industry for being financially unsustainable and environmentally damaging. They likened Bitcoin miners to “snake oil salesmen,” and called for their banishment from the United States, akin to the removal of fraudulent Chinese RTOs a decade ago.

Kerrisdale Capital’s Strategic Moves and Criticisms

The campaign was accompanied by letters sent to Texas officials, including the Navarro City Commission and state senators, urging for regulatory interventions against Bitcoin mining practices. Furthermore, Kerrisdale disclosed their financial stance, being “short RIOT (and long Bitcoin as a hedge).” They argue that RIOT Blockchain’s business model is inherently flawed, highlighting continuous capital burn and accusing the company of exploiting retail shareholders through excessive stock issuances.

Financial Analysis and Environmental Concerns

Through comprehensive financial analysis, Kerrisdale pointed out that RIOT has issued $2.3 billion in stock since 2020, resulting in a significant increase in shares but not a corresponding rise in Bitcoin production or holdings per share. The firm criticized Bitcoin mining for its immense energy consumption and dependence on incentives that may conflict with broader environmental objectives.

Industry Response and Defense

The industry was quick to respond. Daniel Batten of CH4 Capital suggested that Kerrisdale focus on enhancing returns for investors rather than attacking the Bitcoin mining industry. Adam O of Upstream Data defended the sector by highlighting its benefits in waste reduction and methane emission mitigation. Steven Lubka from Swan Bitcoin critiqued Kerrisdale’s approach and pointed to failures in their financial strategies as indicators of deeper issues within the firm.

Environmental Merits Revisited

Debates also centered around the environmental impact of Bitcoin mining, with voices like Simon Dixon offering insights into the positive roles it may play, such as aiding renewable energy integration and balancing the power grid. This perspective challenges Kerrisdale’s criticisms, highlighting that Bitcoin mining could indeed contribute to sustainable practices.


In conclusion, Kerrisdale Capital’s aggressive stance against Bitcoin mining has ignited substantial debate within the industry. While the firm stands by its claims of financial inefficiency and environmental harm, several industry experts have defended the sector, emphasizing its potential benefits and criticizing Kerrisdale’s motives. As the discourse continues, the implications for Bitcoin mining and its regulatory future remain closely watched by both investors and policymakers.

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Jocelyn Blake
Jocelyn Blake
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.

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