Shares of Riot Platforms (RIOT) are moving lower after Kerrisdale Capital came out with a call to short the company’s stock. Kerrisdale Capital CIO Sahm Adrangi joins Market Domination to explain the call.
"I think our investment thesis is that this sector is just not going to be around in five years. Bitcoin mining is one of the stupidest business models we’ve come across in our time short-selling," Adrangi tells Yahoo Finance. He adds that looking behind the economics of all US bitcoin miners reveals they ‘don’t make money," but instead issue shares to pay themselves healthy stock compensation and buy more mining hardware.
"We disagree with the characterization of the Bitcoin mining industry and of Riot, and the equally unsound conclusions reached in the Kerrisdale Capital report. We believe these errors will be demonstrated through the execution of our ambitious 2024 growth plans and resulting financial performance," a Riot spokesperson said in response to Kerrisdale’s call.
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