• Bitcoin mining is a counter-cyclical business that requires a lot of efficiency and professional management.
• Investing in bitcoin mining is different from buying the asset directly as it provides predictable cash flow and physical assets that can be liquidated in the event of market stress.
• Currently, bitcoin is down more than 65% from its November 2021 peak, presenting a great opportunity for bitcoin mining operations with structured cash.

Bitcoin mining is the process of allocating computing power and electricity to ensure that the bitcoin network functions, validating transactions and serving as the backbone of this decentralized system. As the world’s leading Bitcoin mining companies are listed companies, it is easy to find their financial statements and observe that this is a counter-cyclical business that requires a lot of efficiency and professional management.

Investing in bitcoin mining is different from buying the asset directly as it provides a range of benefits. For starters, miners have a constant and predictable cash flow and physical assets that can be liquidated in the event of market stress, making the investment more attractive to more cautious investors accustomed to investing in cash flow generating businesses. Moreover, miners also have to take into consideration the risk of the operation itself, which must be managed through efficient strategies and practices.

At the moment, bitcoin is down more than 65% from its November 2021 peak. This presents both a challenging and an exciting opportunity. On the one hand, it poses a risk to those who are invested in the asset; on the other, it is a great opportunity for bitcoin mining operations with structured cash, as Warren Buffet pointed out: “It’s only when the tide goes out do you learn who was swimming naked.”

The decision whether to increase one’s investments or not must be made carefully, taking into account the risk involved and the benefits that could come out of it. Bitcoin mining operations require a lot of efficiency, professional management and structure, which can help mitigate the risk and maximize the potential of the investment.