February 22, 2024

Mike Alfred: Mining companies are among the least risky investments

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Mike Alfred: Mining companies are among the least risky investments

A major investor shared his views on companies mining the first cryptocurrency. In today's market conditions they are an attractive investment.

Mike Alfred believes thatmining companies have,  in connection with the increase in the price of Bitcoin, “operational leverage”. While many other investors may consider such investments to be very risky, he, on the contrary, is confident that such investments are among the most risk-free on the market.

Alfred clarifies: there are no specific rules for determining value. There are often many factors to consider, including price. By
In his opinion, in 2021, many mining companies were overvalued, while now, in 2023, some of them are undervalued, given the cyclical nature of the market.

Alfred believes now is the time to invest in high-quality infrastructure operators, particularly those trading well below intrinsic value: 

“Many conservative investors are willing to settle for little, earning small returns, rather than seeking exceptional risk-adjusted assets.”

Michael Alfred advises investors to buyquality companies if they feel their profits are insufficient. The expert suggests looking at profits in 2025, when the economic cycle is completely completed. Alfred believes that the best Bitcoin miners are those who have the skill to develop the infrastructure, who manage various aspects of the mining process, such as: obtaining energy, building data centers, creating computer power for the Bitcoin network. The simplicity of the business model, combined with the operational leverage from rising BTC prices, makes such firms an interesting investment opportunity.

Previously, Bits.media published material about how the green trend can make the Bitcoin network more sustainable.

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