May 28, 2023

Mike Alfred: Mining companies are among the least risky investments

Article reading time:
2 minutes.

Mike Alfred: Mining companies are among the least risky investments

A major investor shared his views on companies involved in the production of the first cryptocurrency. In the conditions of the modern market, they are an attractive investment object.

Mike Alfred believes thatmining companies have, due to the rise 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. Often there are 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, especially those that are trading well below intrinsic value:

"Many conservative investors are willing to settle for little, making small returns instead of looking for exceptional risk-adjusted assets."

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

Earlier, published an article on how the green trend can make the Bitcoin network more resilient.