“There is a seismic, clean energy shift happening within the crypto mining industry.”
Crypto prices go up every time China makes a move. How do investors remain bullish?
Jeremy is a Canadian crypto industry expert with more than a decade of private investment and public policy experience.
IDENTIFYING CRYPTO-ADJACENT SMALL CAPS
It’s unclear if the SEC will get involved, but it is likely that some form of federal regulation will help drive the explosive growth of the crypto industry. And while it is difficult to predict when these regulations will happen, it is worth examining positions in companies that touch the crypto space, such as blockchain technology and mining operations, that typically have more regulatory protections.
SUSTAINABLE MINING IS KEY
Cryptocurrency mining is changing significantly every day because they simply can’t keep up with the power demand — it's just too much. There is a shift within the space to go cleaner as a means of mass adoption and legitimacy — not to mention to help mitigate the effects of climate change. It is possible that we will see new and legacy mining companies focus more heavily on sustainable mining, especially as we see investors putting their money where their mouth is when it comes to ESG.
GROWING EXISTING PROFITS, REINVESTING DIVIDENDS
Instead of focusing on crypto mining companies that grow facility over facility, investors should look into the trend of optimizing existing profit-generating operations. How are these companies reinvesting in themselves and in what works? Investors should be wary about mining operations that only focus on building the next operation — what’s the plan?