Have Bitcoin Miners Peaked?

Jun 7, 2024
Have Bitcoin Miners Peaked?

On Monday, June 17th, please keep an eye on your inbox. We will be sending a special announcement to all Outer Limits readers.

As we’ve been sharing in the past few weeks, a lot of work has happened behind the scenes on readers’ behalf.

We may remember in the months following Jeff’s abrupt departure from publishing at Brownstone Research in June 2023, and since launching Brownridge in October 2023, we’ve been going to great lengths to try to reconnect with our loyal readers. Our mission has been to deliver the continuation of service promised to you, and then some. No one has been working harder at this in the background than Jeff.

As Jeff has said often in the past, it was never his intention to leave Brownstone. Or to stop publishing his research and working on readers’ behalf.

Many readers have wondered what happens next.

Soon, you will find out.


Investment Opportunities While Scaling Electricity Consumption

So Jeff, if you were looking to invest in a utility company as a result of this article (Outer Limits — Electricity Consumption is About to Quadruple), where would it be? I know you don’t give specific investment advice yet, but l’m hopeful that will change soon. I still consider one of the best investments I ever made was the day I began investing with you at Brownstone. Always grateful. — Paul K.

Hi Paul,

I like how you’re thinking. There are a few different aspects that we’d be looking at for generating potential investment ideas in this space.

Potential utilities that could be of interest would be ones that are serving an area that is experiencing growth in data center-related electricity demand. If we’re able to learn about hyperscale data center players and specifically where they’re going to be building new data centers, or expanding the size of their data centers and which utility will service that demand, that’s a great place to start.

We’d also want to understand if the utility is well-run and throwing off strong free cash flows, and whether or not they have a power purchase agreement with a hyperscale data center operator that allows them to generate profit.

Another angle would be to look at utilities that have a clean energy angle to them and whether or not they are attracting attention from electricity buyers.

A great example of this is the deal that Microsoft signed with Helion Energy last May. Helion Energy is a company that my Outer Limits subscribers will recognize. It’s one of the promising nuclear fusion companies that we’ve been tracking.

Microsoft agreed to a power purchase agreement for a minimum of 50 megawatts beginning in 2028. This is a great, forward-looking move by Microsoft, and a big win for Helion that will help it raise additional capital to commercialize its technology with a big guarantee to serve one of the largest companies in the world.

Helion is still private, but it’s just an example. Nuclear fission companies, geothermal companies, solar power companies, etc. could all be potential candidates.

And we shouldn’t forget about dynamics related to any kind of government subsidies with regards to utilities. Given the profligate U.S. government spending right now, there can be incentives or grants to clean energy production (for example) that can make a bad financial model into a good one. If the grants are large enough and long enough to enable a utility to get to generating free cash flow, there can be an investment angle.

Other areas of interest are also inputs to utilities like commodities (copper, rare earths, etc.), power equipment, semiconductors, etc.

Thank you for your comments, I have some great news coming for you right around the corner.

Deepening Our Dependence on Coal?

Hi Jeff. I read a recent article about the issues that companies involved in the production of SMR's (small modular reactors) are having. Time and costs seem to be the biggest problems with regards to getting these reactors going. The article mentioned different projects being scrapped due to some of these issues. My concern is that with the demand for electricity to operate the large data centers, and really everything associated with AI, will our dependence on coal become even greater? I don't see AI slowing down at this point, so something has to give. On a separate point. I was two years into your Day One Investor and everything has come to a complete stop. No updates, recommendations, or anything for the 6 months now. I have reached out to them at Brownstone but no one will call me back. I feel like I got taken by them and have considered legal action since they are the ones who have failed to keep their end of the bargain. Any thoughts on what is going on with them? Thanks. — Daniel

Hi Daniel,

You’ve raised such an important point. It’s not the SMR technology that’s a problem at all. Both third and fourth generation modular nuclear power technology is widely available, and there are some fantastic companies working on this form of clean energy production.

But in many countries, antagonistic regulatory environments and heavy bureaucracy can add billions in cost — literally — and projects fail.

What do “they” fall back on when these projects fail? To your point — fossil fuels.

Let’s take a simple example. Most don’t know this. But U.S. production of electricity from coal has increased significantly since 2019. The reason is an antagonistic energy policy that reduced the production of natural gas in the U.S. In the U.S., coal was used to fill in part of the gap. Not very smart.

A similar thing happened in Germany, as well, when it turned off its nuclear power plants. Blowing up Nordstream 1 and 2 only made the reliance on coal worse.

Coal is a backstop that countries can use in the absence of, or shortage of, cleaner burning fuels. Natural gas is strongly preferable to coal. And of course nuclear power should be even more preferable to natural gas, but it takes so long to permit, build, and commission nuclear power plants.

There needs to be a radical shift in energy policy if we want to reduce the use of coal for electricity production.

As for your other question on Day One Investor, that has been a huge disappointment for me, as well. But I want you to know that I have been actively working on addressing your concern, and that of others, for several months now.

As you know, I’m very passionate about providing access to high growth private investment opportunities to my subscribers, so this is a very important issue to me. If I could ask for your patience for just a few more weeks, I’ll have an update for you that I believe you’re going to be excited about.


Jeff: I get confused between two terms: LLM (Large Language Models) and AGI (Artificial Generative Intelligence). Could you kindly clarify? Thanks. — Ken D.

Hi Ken,

Thanks for this question, as I’m sure many others have thought about this, as well.

LLMs are built on a form or artificial intelligence known as deep learning. These models use neural networks that can ingest information and understand the relationship that words have with each other. Language and information are broken down into small blocks — these are usually referred to as tokens — and the AI is trained on massive amounts of information (hence the “large” language model).

Once trained, these models have incredible capabilities because they have been trained on so much information. Because the models understand language so well, our prompts can be understood, processed, and responded to in contextually relevant ways.

Artificial general intelligence (AGI) doesn’t exist yet, but it will soon. AGI is a natural progression from LLMs. It’s also much more complex. The current direction is incorporating multi-modal technology in cooperation with LLMs. Multi-modal is adding video, images, audio, information from real world sensors, and computer vision as inputs to an AI.

Incorporating these new modes of input will vastly improve the performance of the LLMs, getting us closer to AGI.

We can think of an AGI as being “smart” enough to be self-autonomous in the sense that it will have the ability to teach itself and learn unstructured tasks that it has never been confronted with, or taught, before.

It will also be “smarter” than humans in an extremely wide range of fields and skills, to the degree that would be impossible for any human to achieve.

An AGI will also be capable of manifesting itself in the real world through physical computing systems like a humanoid robot. This was a topic that I discussed more in depth in Outer Limits — Manifested AI.

I hope that explanation helps.

Have Bitcoin Miners Peaked?

Hi Jeff, so happy to see you writing again and looking forward to what the future has in store for you and your subscribers. Bitcoin miners are struggling. CIFR was one of the companies you were high on with your previous employer. Share prices skyrocketed four years ago for all miners and none are anywhere near those highs anymore. Would love your thoughts on the future of bitcoin miners and if they hit their peak four years ago or are better times are ahead? Keep up the good work! — Norm B.

Hi Norm,

Glad to hear you are still tracking the digital asset industry. It’s an exciting time again in the industry with so much innovation taking place.

With all of the new blockchain applications and solutions hitting the market, it’s easy to get distracted and forget about some of the more “traditional” investment opportunities in digital assets.

This is what we’re seeing with regards to publicly traded bitcoin mining companies.

These companies are proving to be less and less of a long-term hold investment opportunity than what they started off as. The reason being is share issuance. We often see mining companies diluting their stock by issuing new shares into the market. This gives the mining companies cash to fund continued operations.

This can be disadvantageous for a long-term investment, and more advantageous for a trader. This was the point that you made about the share price skyrocketing, and then pulling back.

It’s therefore important to understand any catalysts that will impact these miners one way or the other.

To help us determine what is that catalyst, we can plot CIFR on top of the price of BTC. What I went ahead and did was drop a red vertical line whenever Bitcoin's price action moved higher, quickly. I did this using an indicator called "Rate of Change.”

CIFR Rate of Change

What we need to focus in on is that whenever this rate of change was high, the price of CIFR — and other mining stocks — responded quickly. This understanding can help us get in, and out, of mining stocks without shares diluting us.

This was an unfortunate outcome of the 2022 bear market as miners wanted to hold BTC instead of selling it to fund operations. But now we see those same miners selling BTC on the heels of major price swings, and in turn, pushing its stock higher.

And for now, it does look like we might be nearing another high rate of change period for Bitcoin as it looks to set a new all-time high.

Assuming this correlation continues, and bitcoin runs higher, and we enter another high rate of change period, it would suggest that bitcoin miners will benefit, as will their share prices. 

Reversing the Effects of the Shot

Thanks for this (Outer Limits — How to “Buy” Influence at the NIH). As an ER doc the last 25 years , many of us “knew” what we were seeing. Many COVID deaths were due to poor health/obesity/or during one phase, the elderly. We saw as many deaths with those vaccinated as those unvaccinated. Hospital systems forcing all employees to get vaccinations was bad enough, not allowing family members to be bedside to loved ones as they laid dying , was unconscionable. It’s not a left/right issue — it’s a honesty/corruption issue. Not knowing data at the outset of the pandemic was understandable — and I wish the government had just committed to “we will learn more as we go along — and adjust accordingly. Instead it was ham-fisted efforts cloaked in threats of job loss/ostracizing/you’re not a real physician if you questioned the prevailing “plan.” Regards. — Paul
Hey Jeff, I reluctantly got the COVID vaccine (2 shots) against my better judgement. I don't feel I've been the same since getting it. I developed tinnitus and have had fatigue like never before. I'm sure you're not able to give medical advice, but since you're so well versed... I wanted to ask if you know of anything that can be done to reverse some of the effects of the vaccine. Is there anything that can be done to extricate it from your system? Thank you for always searching for the truth and sharing it with us. You are greatly appreciated! — David

Hello David and Paul,

I’m grateful to you for writing in and sharing what you experienced. The value of our Outer Limits community is incredible, and we all benefit from these shared experiences.

You might think I’m a bit crazy, but throughout the pandemic I actually spent a lot of time with physicians and surgeons. I took advantage of the empty clinics, focused on my health and did research at the same time.

I spoke with nurses, physicians, surgeons, and even a couple hospital administrators so that I could better understand what was going on. My discussions were always off the record and sincere. And I can tell you, it was extraordinary.

Most of the time we took of our masks and had open discussions about what was going on, how irrational the policies were, not backed by scientific research, and how that they had no choice but to follow orders.

Paul — I really feel for you. Whether it was a mandate, coercion, bullying, or fear of losing a job, it is and was completely wrong, and yes corrupt and unethical. 

No one should have ever felt forced to take these experimental mRNA “vaccines.” The mandates were ridiculous and not at all based on peer-reviewed scientific research. Not to mention the complete lack of safety studies. At best, it should have been a matter of personal choice based on informed consent.

I remember receiving a piece of feedback from a subscriber who disagreed with me over the “vaccines.” She told me that “it was an act of compassion to take the COVID-19 vaccine.” In other words, she felt that by doing so, we would “protect others.”

It’s a useful example because it demonstrated the sheer brainwashing that took place by the NIH, CDC, FDA, White House, and mainstream media.

As we discussed earlier this week, taking the mRNA “vaccines” did not “protect others” because:

  • The “vaccines” didn’t stop infection
  • The “vaccines” didn’t stop replication of the virus once infected
  • The “vaccines” didn’t stop transmission of the virus once infected.

And there is quite a bit of research that has now shown that those that took the “vaccines” were/are more likely to get infected again than those “unvaccinated.” This is because the mRNA “vaccines” weaken our immune system and even make us more susceptible to the virus and what some call “long COVID.”

David — I’m very sorry to hear about your experience. The stories are everywhere. Even my own functional medicine doctor has told me that his clinic is full of patients now dealing with long-term side effects of the “vaccine.”

There is quite a bit of talk recently that “long COVID” isn’t from the virus itself, but from the spike protein that is produced by our bodies when we take the mRNA “vaccines.”

If we remember, we were told in the beginning that the mRNA shots would stay local to the injection, our bodies would be immunized, and the drugs would leave our bodies within a matter of days.

None of that was true, and it was known very early on. The spike protein produced by the mRNA vaccines traveled to our organs, causing a wide range of long-lasting side effects and adverse events.

The fact is that the COVID-19 mRNA “vaccines” aren’t vaccines at all. I watched in real time as the CDC changed the definition of both vaccine and immunization twice during the pandemic. It was so dishonest and corrupt.

So David, back to your question, can something be done about reversing the effects of the “vaccine?”

Fortunately, a large group of courageous physicians and critical care specialists established the Front Line COVID-19 Critical Care Alliance (FLCCC) back in March 2020, in an effort to proactively treat COVID-19. 

And once the COVID-19 “vaccines” were approved for Emergency Use Authorization (EUA), they noticed large spikes of severe adverse events caused by the mRNA “vaccines” and then developed protocols for treating patients who had been “vaccine” injured, as well as providing guidance for how to get the mRNA “vaccine” induced spike protein out of the body.

Here is a link to the FLCCC’s post COVID-19 “vaccines” treatment protocols.

And here is a more detailed document from the FLCCC concerning post COVID-19 “vaccine” injury care and treatment.

Hopefully it goes without saying that this is not meant in any way to be medical advice. I am only sharing this information from the FLCCC for informational purposes only.

David and Paul — thanks again for writing in. My heart goes out to everyone who felt they were forced into taking the shots, and to those that have suffered injuries from these experimental drugs.

If we stay well informed, I believe that we can avoid something like this ever happening again.

We always welcome your feedback. We read every email and address the most common comments and questions in the Friday AMA. Please write to us here.

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