Bitrabo Editorial
Kerrisdale Capital, an investment management company, has strongly criticized the Bitcoin mining industry in the United States, calling it a haven for misleading practices that waste investor funds and harm the environment.
Firm’s Criticism of Bitcoin Mining Model
Kerrisdale Capital has initiated a campaign against the industry by sending letters to Texas authorities, targeting Riot Blockchain in Navarro City, and urging action against Bitcoin mining operations in the state, likening them to past fraudulent Chinese schemes.
The firm’s focus on Texas is notable due to its low energy costs and significant role in US Bitcoin mining. Kerrisdale Capital has publicly disclosed its short position in Riot Blockchain, citing it as a prime example of an unsustainable Bitcoin mining business model marred by excessive spending.
They criticize the reliance of public mining companies on continuously issuing new shares to fund operations, especially during high Bitcoin price periods, and raise concerns about profitability and environmental impacts.
Response from Miners and Network Strength
The critique has been met with resistance from industry members like Bob Burnett of Barefoot Mining, who rejects the negative portrayal and highlights the industry’s contributions to network security and stability.
Despite the criticism, data from Mempool.Space shows that the total hash rate of the Bitcoin network remains robust, surpassing 500 EH/s, with Foundry USA standing out as the largest mining pool globally even after a recent Halving event.