A major investor shared his views on companies engaged in the mining of the first cryptocurrency. In the conditions of the modern market, they are an attractive investment object.
Mike Alfred believes that mining companies have, due to the rise in the price of bitcoin, “operational leverage”. While many other investors may consider such investments very risky, he is confident that such investments are among the most risk-free on the market, on the contrary.
Alfred clarifies: there are no specific rules for determining value. There are often many factors to consider, including price. In his opinion, in 2021, many mining companies were overvalued, while now, in 2023, some of them are undervalued, given the cyclical nature of market.
Alfred believes that now is the time to invest in high-quality infrastructure operators, especially those that are trading much lower than the intrinsic value.:
“Many conservative investors are willing to settle for little, making small profits instead of looking for exceptional risk-adjusted assets.”
Michael Alfred advises investors to buy quality companies if they think their profits are insufficient. The expert suggests taking a look at the profit in 2025, when the economic cycle is fully completed. Alfred believes that the best bitcoin miners are those who have the skill of infrastructure development, who manage various aspects of the mining process, such as: obtaining energy, building data centers, creating computer capacities for the Bitcoin network. The simplicity of the business model in combination with the operational leverage from the rise in BTC prices makes such firms an interesting investment opportunity.