Landlords of Compute
Same buildings, same power contracts but higher revenue per MW
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Announcement Board
Due to popular demand, the TBL Team is hosting another live TBL Pulse walkthrough on Tuesday, June 2nd at 2:00 PM EST.
Free for everyone to attend.
This session will focus on bitcoin’s section specifically, where Johan will walk us through his latest Valuation & Trend research, which is the underlying framework for his State Quadrant chart:
In this letter, we expand on Nik’s phenomenal letter from Monday about compute being the new digital commodity. Where the price of oil is currently ingrained as part of the price of physical products and services, the price of compute will become more and more important for digital products and services over time.
This is not meant to glorify our own research, but it is genuinely an important topic to wrap your head around for the future of the economy, pricing, and investing.
The first exchanges are starting to launch perpetual futures to get or hedge exposure to “compute.” These are monthly, quarterly, and yearly contracts on NVIDIA H100 and H200 prices.
We look at how this emerging commodity is impacting bitcoin and where the energy is coming from.
First, let’s revisit the price action of last week. The chart shows the setup we discussed in last week’s letter. Price ran towards $83,000 and got back to $79,500, which was the level of the low-time-frame double top of April.
For now, it looks like price is finding out if the bid is sustainable enough to keep the price at $80,000, or if demand is temporarily fading at these levels and supply is increasing.
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