The following is a report published by Ragnarok Research on the morning of 8/8/25. They were receiving threats, so we published again here just in case. If it’s still up, you can read the original report here: Short idea: A few weeks ago, a 350 million dollar company announced a major deal with a customer, sending shares up high double digits %. We think this customer may not exist.
Disclosure: We are not short this security.
Folks, what can drive a company’s stock to increase by this magnitude so quickly ?
Most of the time, it’s some sort of acquisition announcement, a signing of a huge contract deal, or some sort of bitcoin treasury announcement. This time, it was the announcement of a huge contract that would increase the revenues of this company by a huge amount!
Undoubtedly, the market loved the news, sending shares up about 80% on the first day alone. Sure, it has fallen off the highs a little bit, but it is still about 40-50% higher than the local lows before the announcement.
Now, this would be a buying opportunity due to the pullback, but we noticed something peculiar about the deal: the supposed ‘customer’ had their website registered a mere 2 weeks before the deal was announced … . Moreover, the company’s website’s images is filled with stock photos borrowed from other sites.
Next, weirdly, there is a small technical issue in the website of the purported customer that makes us wonder whether the customer invented time travel … or there’s some shady shit going down.
We think that this purported ‘customer’ supposedly offering a multi-million dollar deal does not exist, and somehow the company is getting scammed. Even then, we don’t recommend buying the co. since it trades at an ultra lofty Price to sales ratio of 300x.
To read on about what this company might be (and to add a nice addition to your short book), subscribed to a paid subscription of Ragnarok Research for just 10$ a month, or a 100$ a year.
Before we get into it, a huge thank you for being a subscriber, and I promise this piece will be worth it:)
The ticker in question is BZAI: Blaize AI:
Recently, BZAI put out the following press release:
As you can see, a 120M agreement for a company with a market cap of about 400M is very huge, prompting shares rising rapidly. Now, at the end of this PR, we have the following information about the purported ‘customer’:
Now, the entity Starshine computing Power Technology is extremely suspect, and we think that (just our opinion, we are just 17, what do we know) this entity in all actuality does not exist. First and foremost, the domain starshinecomputing.com was registered on July 5th 2025:
Just a month ago! (the PR was released on July 17th, meaning the domain was created just less than two weeks before the PR! How shocking!)
We question whether this really is the behaviour of a company who can afford a 120 million dollar deal to a shitco to BZAI. Moreover, BZAI did JUST a million dollars in revenue in Q1 2025. This thing has a market cap of almost 400 million. What the fuck ??!!
Now, right when you don’t think it could get worse, starshinecomputing.com’s website makes my eyes hurt. The products page is a plethora of stock images:
Now here is the laughable thing about Starshine. BZAI mentions that Starshine is a supporter of ‘manufacturing’ in their PR:
But the funny part is, most of the products shown in Star Shine’s Press release, in our personal opinion, are fake. For instance, take a look at this:
Our personal understanding is that the model’s name is ‘SCT HG3350’ according to Starshine. The screwed up part is that the image above is stolen, and the real name of the device is called ‘AC-SERV-3’:
Moreover, take a look at this section in the website:
‘Achieving breakthroughs in proprietary AI chip development’ eh? Well, the image right below that belongs to LAM Research:
What Starshine thinks is some AI chip innovation is actually a wafer cleaner by LAM Research.
Now… for the most weirdest part about the starshine website. Look at this:
I don’t know about you nor am I actually coming to any conclusions but … something published on the 11th of July 2025 (according to the dataprint from the website provider I assume) is talking about a Press release on July 17th 2025 … It means two things to me:
- Either starshine can time travel and somehow put this out
- Or, maybe some weird foul play happened here(like this is pure speculation and opinion … but maybe BZAI themselves set this up ?) … or they are genuinely stupid.
Conclusion
I do not know who is scamming who here. Is BZAI scamming the shareholders? Or is Starshine scamming BZAI ? No matter, if you are ballsy, I think that this is a good stock to dig into if you run a short book, because of how much of a scam(Starshine) it is. I recommend a small position size, since it is perfectly in the realm of possibility that BZAI makes another ‘transformative deal‘ that can wreck your account. So please size this in a smart way. Here is how I would do it (Im not short it because I have intended this to be a journalistic piece and I do not have the trading expertise to manage the risk of a ‘’squeezy’ short position like this but I will get there!)
- 7% of portfolio : SHORT BZAI
- 5% of portfolio: LONG basket of securities that may benefit from appreciation in whole sector(bunch of edge computing stocks like VEON, etc).
Thank you for reading my first paid article and this will be the first of many high-conviction articles to come.