by Coinstrooper Crypto Articles
Quick Take
  • Binance founder Changpeng Zhao (CZ) says this bear market has no shortage of money.
  • Elsewhere, Social Capital founder Chamath Palihapitiya said where he thinks it should land.
  • CZ did not say where the money should go, but acknowledged that there was a lot of liquidity floating despite the bear market.
  • Meanwhile, the Social Capital founder Chamath Palihapitiya, a venture capitalist, entrepreneur, and investor, buys three things at once.

What Happened

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.

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.

Palihapitiya says he and his partner Anita Vlallian have acquired almost six gigawatts (GW). It arrives in stages through 2029.

Market Context

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.

The Bear Market Has Money. It Is Not Buying Crypto

CZ did not say where the money should go, but acknowledged that there was a lot of liquidity floating despite the bear market.

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.

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.

Why It Matters

What Could Go Wrong

Jordi Visser of 22V Research says easy money is over in AI. He expects about 30% a year now.

Details

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.

Chamath Is Buying Land, Not Chips

“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.

Why He Quit the Chip Business

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.

How Much Power He Has Bought

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.

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.

The land bet also needs the protests to keep coming. If towns start approving data centers again, the scarcity goes away.