Binance founder Changpeng Zhao (CZ) says this bear market has no shortage of money. Plenty of it is hunting for somewhere to go.
Elsewhere, Social Capital founder Chamath Palihapitiya said where he thinks it should land. Not in artificial intelligence (AI) chips.
CZ did not say where the money should go, but acknowledged that there was a lot of liquidity floating despite the bear market.
The numbers show why it is not going into crypto. Bitcoin (BTC) trades near $63,037. It is down 45% in a year. That is almost exactly half its October 6 record.
Meanwhile, the Social Capital founder Chamath Palihapitiya, a venture capitalist, entrepreneur, and investor, buys three things at once. Land, a power connection, and an empty building to hold the computers.
“LPS (Land Power Shell) is still the most obvious and fastest path to cash on cash returns,” Palihapitiya wrote.
Palihapitiya is a former senior executive at Facebook (now Meta), a renowned SPAC sponsor, and former minority owner of the Golden State Warriors.
His reason is simple. Towns keep blocking data centers. Every site that already has power gets rarer.
The numbers back him. Data Center Watch counted at least 75 US projects blocked or delayed in early 2026, worth about $130 billion.It was the worst quarter on record. Opposition groups doubled and now operate in 49 states.
Politicians joined in. More than 300 state data center bills were filed in six weeks. Maine missed becoming the first state to ban them outright by one House vote.
He says he helped start Groq in 2016. Nvidia licensed Groq’s technology last December. The deal was not exclusive. Groq founder Jonathan Ross moved to Nvidia.
Neither company gave a price, but Palihapitiya says $20 billion. Still, he would not do it again as chips have to run too fast, factories have to be too exact, and a startup cannot get enough memory.
Palihapitiya says he and his partner Anita Vlallian have acquired almost six gigawatts (GW). It arrives in stages through 2029.
One deal shows the going rate. Nasdaq-listed TeraWulf used to mine Bitcoin. In July it leased a 401-megawatt site in Hawesville, Kentucky, to Anthropic. The lease runs 20 years and should bring in about $19 billion.
Here is the part that proves his point. That site is not built yet. Power starts flowing in late 2027 and reaches full load in early 2028.
The money is committed anyway. Palihapitiya holds roughly 15 times that much capacity. His is not leased out yet, so the figure shows the size of his bet, not its value.
However, miners got there first, and already own cheap power, land with grid hookups, and empty sheds. Coinbase chief executive Brian Armstrong disputed the mining warning in July.
Jordi Visser of 22V Research says easy money is over in AI. He expects about 30% a year now.
The land bet also needs the protests to keep coming. If towns start approving data centers again, the scarcity goes away.
TeraWulf’s $19 billion is a forecast too. Its own filing calls it expected revenue.
CZ is right. The money is out there. The question is whether it buys power lines or comes back to Bitcoin and crypto markets.
The post CZ Says Bear Market Money is Hunting, Social Capital Founder Says Skip AI Chips appeared first on BeInCrypto.
Infantino’s failed equity venture highlights governance challenges in sports, risking leadership credibility and unity among global football bodies. The post FIFA president Gianni Infantino’s future
The CLARITY Act could redefine stablecoin regulations, boosting compliant platforms like Circle and Hyperliquid, but faces legislative hurdles. The post Circle and Hyperliquid identified as
A standard six-sided die produces about 2.6 bits of unpredictable information with every roll. That may not sound like much, but repeated enough times, those
Starting Aug. 1, Louisiana users may cancel a virtual-currency-kiosk transaction made on or after that date and demand a full refund at any time if
Blockchain Bodega is here and you know the vibes. We’re at the intersection of hip-hop culture and web3, exploring this new digital frontier. Who better to guide you through these uncharted lanes than Ock Chain – The Bitcoin Boss and the Consensus Corner Boys?
Ock Chain doesn’t just cook up random details about cryptocurrency; he lives it. Ock’s been deep in the game since Bitcoin was just a baby.
And let’s not forget about the Consensus Corner Boys. They’re our skilled crew of blockchain enthusiasts. They’re here to educate, entertain, and enlighten.
Welcome to Blockchain Bodega!
Copyright © 2023 Blockchain Bodega. All rights reserved.