FutureProof Insight #58

Investing in Bitcoin mining companies is effectively a levered Bitcoin bet (miners went up 2.5% for every 1% move in BTC)

Pros:

• Easy access through public markets
• Simpler to value using traditional valuation methodologies
• Physical asset base?makes more sense to traditional investors

Cons:

• Capital intensive with front-loaded CAPEX
• More volatile than BTC
• Operationally complex
• Equipment rapidly becomes obsolete

There are simpler ways to get levered Bitcoin exposure through derivatives/margin trading which does not include the operational risk of running a mining operation

Disclaimers: https://bit.ly/p21disclaimers

Not any type of advice. Conflicts of interest may exist. For informational purposes only. Not an offering or solicitation. Always perform independent research and due diligence.

Sources:

• https://www.cnbc.com/2021/03/21/a-risky-bitcoin-buy-in-bigger-bull-market-than-the-cryptocurrency-.html