Du Jun: Shorting premium treasury companies like BMNR is acceptable, but shorting ETH would be very foolish

BlockBeats News, October 9th, ABCDE co-founder Du Jun stated on social media that "Shorting premium treasury companies like BMNR is fine, but shorting ETH would be very foolish."

BlockBeats previously reported that the well-known short-selling institution Kerrisdale Capital announced that it has shorted the stock of Bitmine, an Ethereum treasury reserve company. They believe that the so-called DAT (Digital Asset Treasury) model has become mundane and unoriginal: as nearly identical copycat projects flood the market, the premium is collapsing, and the ability to enhance the per-ETH content of each share through issuing stock above Net Asset Value (NAV) is also disappearing. The total amount of funds planned to be raised by companies pursuing the "cryptocurrency treasury strategy" has exceeded 100 billion U.S. dollars, breaking the scarcity that originally supported the high premium. Now, the trading prices of many such company stocks are approaching or below Net Asset Value, their self-reinforcing mechanism is stagnating, and their models are beginning to collapse.