Crypto Miner Riot Targeted by Short-Seller Kerrisdale on ‘Flawed’ Business Model
- Riot Platforms falls as much as 8.9% after Kerrisdale report
- Firm has a winning bet against MicroStrategy in similar trade
Cryptocurrency mining rigs.
Photographer: Akos Stiller/BloombergThis article is for subscribers only.
Bitcoin mining is a tough business. That means cryptocurrency enthusiasts should be buying tokens instead of miner stocks, according to Kerrisdale Capital Management LLC.
The strategy is part of bets the short-seller has been making across the industry with its latest short position targeting Riot Platforms Inc. The thesis is that investing in a business built to corral unpredictable revenue in a tremendously competitive environment is flawed when crypto believers can instead buy Bitcoin outright.