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Public mining CEO breaks down investment strategies

May 9, 2024
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Public mining CEO breaks down investment strategies

In a recent discussion on mining stocks and investment strategies, Roundtable anchor, Rob Nelson, engaged with Rob Chang, the CEO, President, and Director of Gryphon Digital Mining, to explore the nuances of investing in the mining sector. The dialogue highlighted Chang's dual insights as both a mining executive and a financial strategist, shedding light on the decisions facing investors in this volatile market.

Nelson set the stage by reminding viewers that the forthcoming insights should not be taken as investment advice, given the panelists' vested interests in the mining industry. This caution framed the discussion that followed, where Nelson sought to unpack the investment strategies discussed by other industry experts like Jon Najarian and how they relate to current opportunities and risks in the mining sector.

Chang began by addressing the legality and transparency required in purchasing shares of one's own company, emphasizing the importance of disclosure. "We certainly can, and we just certainly need to disclose whenever we buy or sell," he stated, pointing out the scrutiny such actions attract.

As the conversation progressed, Chang presented the key decision for investors: Choosing between owning the commodity itself or investing in the companies that extract it. Using gold as an example, he explained that investors have the option to buy gold directly or invest in companies like Barrick Gold that mine it. This choice, according to Chang, hinges on whether one prefers direct exposure to commodity prices or the operational and executive performance of mining companies.

Highlighting the strategic advantages of investing in mining companies, Chang noted, "You're either investing in the commodity and seeing the specific upside of that, or you're investing on management execution, operational execution for companies that can produce said commodity for a much lower price." He specifically mentioned Gryphon Digital Mining's efficiency, mining bitcoin at a cost significantly below market price, offering investors a different form of leverage on the commodity's value.

On the topic of risk management, Chang discussed how investors can manage their exposure through diversification. "You can either own one or two and just pick the ones that you like or you diversify more, even by ETFs where you start spreading around that risk," he advised, highlighting the trade-off between risk dispersion and potential dilution of returns.

As the discussion wrapped up, Nelson acknowledged the depth of the discussion, expressing his own contemplations on the investment decisions before him. He reiterated to the audience that the perspectives shared were merely opinions, not directives. "This is just opinions, again, we're not telling anybody what to do, so you can't blame us if you make a choice and you're not happy—you’re all grownups out there."

Watch the full discussion here:

Interested in learning more?

Download a copy of our investor presentation to learn more about Gryphon Digital Mining and our plans for the future of sustainable Bitcoin mining.