Hey Reader,
If you know me, you know I’m not a Bitcoin guy.
But there’s a new trade unfolding around everything on my radar right now…
Nvidia… Energy… AI … Takeovers …
You can get it in today’s video:
See, back when Bitcoin was all the rage, people set up companies with the sole intention of mining Bitcoin.
Now to mine Bitcoin on a professional scale, you need three things: good servers, fast processors like Nvidia chips, and energy.
But these days, mining Bitcoin isn’t worth what it used to be. The “halving” event made it a lot less profitable.
What happens in an industry when profits get cut in half?
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It would have to go to $204,000 to match the 300% gains we saw with Viking Therapeutics.
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It consolidates. Bigger companies buy smaller ones and stronger ones buy weaker ones.
And a funny thing is happening…
It turns out there’s another new industry that needs those very three things: Artificial Intelligence.
Sure, AI firms could buy new processors and servers from Nvidia.
But the one thing they can’t just go out and buy that easily – or that cheaply – is energy.
When Bitcoin miners set up their businesses, they wanted to be able to predict their future profits so they set up long-term, fixed-price energy contracts with power companies.
I mentioned recently, a single ChatGPT inquiry takes 10-times more energy than a Google search – and ChatGPT has added more users faster than any other platform in history.
And ChatGPT is really very early innings for what’s coming with AI.
AI companies are so desperate for energy you have big tech companies building nuclear power plants.
But recently, big tech has realized what they need most, Bitcoin miners already have.
And they’re starting to aggressively target these miners for takeovers.
One I just recommended to my Takeover Targets readers is already running up in price.
After rejecting an unsolicited takeover offer about a month ago, other firms started to value the stock at 2-to-3-times its current price.
This is the first of many takeover deals I see heating up in this AI-Bitcoin miner story.
I actually spent about a month putting together a deep dive on the whole AI-energy story…
It involves the Biden administration, Warren Buffett, Sam Altman, Elon Musk – this is really a HUGE story very few people are talking about.
Get it here and let me know what you think>>>
“The Buck Stops Here”
P.S. The Last time I felt this good about an industry was oil during the Covid crisis. Do you remember when oil was basically at negative dollars per barrel?
Oil collapsed and bigger oil companies started buying smaller ones and we did really, really well with that in Takeover Targets. You can see how the strategy works here.
