Overview
- Culper disclosed short positions in ether and ETH-linked BitMine on March 5, publishing a report outlining its bearish thesis.
- The firm says December’s Fusaka upgrade expanded L1 gas limits to roughly 45–60 million, driving fees down about 90% and cutting validator tips 40–50%, which it argues threatens staking economics.
- It contends headline activity is distorted by spam, estimating 95% of new wallets are dusting, address poisoning has more than tripled, and such transactions now account for about 22.5% of activity.
- The report highlights Vitalik Buterin’s sales of more than 19,000 ETH this year, following a January plan to sell 16,384 ETH, presenting the moves as support for its view.
- Culper targets BitMine’s roughly 4.4 million ETH treasury as vulnerable, citing DropsTab estimates of a 45% unrealized loss near $7.4 billion, while community figures criticized the report and BitMine had not commented.