YouSaid · the spoken record

Harry Sudock

lines on the record: 68
first: 2023-03-01
most recent: 2023-03-01
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“I told him The easiest place to connect with me is on Twitter Harry underscore Sudok S-U-D-O-C-K. And always happy to talk about mining, talk about Bitcoin, talk about reverse year ribe.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Okay. Yeah. And look, I'm not the technical guest for you to have to kind of walk through all the history and the mechanics here. But as far as I'm concerned, this is stuff that is largely achievable already before any of this. This has been available on Bitcoin for a long, long time. I think that the compromise of Segwit increased bigger box. I think that, you know, if you're angry about ordinals, you should be angry about SegWit. And that was a compromise that had trade-offs. And so this is where we find ourselves and, you know, the witness data that's being utilized for this is probably a better place than on chain. And if you're upset about ordinals, there's lots of ways that you can express your displeasure in a self-sovereign way that doesn't impinge on somebody else's right to use Bitcoin the way they see fit.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Exactly. And the more that we can kind of think about it in those terms, the more useful Bitcoin will become because the lower friction ways to acquire Bitcoin becomes the higher margin activities. And higher margin activities means that you're producing value.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There's a couple other. Those are sort of Bitcoin native businesses, but there are enormous number of Bitcoin enabled businesses. And the ability to opt into Bitcoin, I thought a lot about this, just like what does it mean to get a Bitcoin job? To me, it means to start a business that's able to sell something for a profit and to leverage into Bitcoin via sale of goods or services.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“This is what is exciting for me around businesses for Bitcoin enabled. I think about this all the time about there's not that many Bitcoin native businesses.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Great Fiat is a fundamentally just like DDOS in your life all the time in different ways. And what Bitcoin does is it starts to put up spam filters across different fronts of the war. And this one's really, this one's really.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That's mind blowing, but this is like to me, this is like the theme that's so exciting is that like Bitcoin, it's like the you're able to like finally slide back against the fiat DDOS.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And it's obvious. It's like undeniable and obvious. Like, you look at it just the two, you sent the two tweaks at the same time. The follower differential, it massive. You have one outcome in one online social community, and you have a totally different online outcome on the other on that trade.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“UX is still buggy. I'm still like kind of stumbling through some navigation stuff, which is probably partially wetwear issues and partially probably software maturity issues. But it's like, it's smart. It's insightful. It just like the quality of thought is just high. And I got into Bitcoin because of Twitter, basically. That was where I kind of got introduced to some of these ideas for the first time. And I think that there's still a lot of high quality people spending a lot of time on Twitter. But like just seeing sort of the A-B test of your question today is crazy was really crazy.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“How many followers do you have on Twitter This contrast is critical. Okay. So you have like eight, no, eight times the followers.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But then, what are the knock ons? Now you've got a lab environment that's more productive. Now you've got entrepreneurs having new ideas and building businesses locally in ways that they wouldn't have otherwise. You know, the same way that I think that Bitcoin is really a skeleton key for positive sum and entrepreneurship. I think that low cost, high availability energy is another skeleton key for entrepreneurship. And at the end of the day, entrepreneurship is how we improve quality of life.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Because that power does not have emissions, does not have pollution, did not have negative externalities. And so this is a good example and not to be a fool on nuclear show, but let's run the risk. You want to know who the best marketing for nuclear is. All the people who live near nuclear pants, if you ask them, what is it like to live near nuclear plant? Aren't you scared all the time? They're like, no. Why? Because my power bill is low. It's quiet. I don't have to deal with any pollution. And they pay an absolute metric ton of property taxes because they require a lot of land to put that thing. And so they become an economic backbone for the community from a tax-based perspective. And they don't introduce any of the standard negative externalities or something like that. Do you want a huge chemical plant near you, or do you want a nuclear plant? Easy. You're able to bolster these communities in a really localized, positive some way that ripples across not only sort of the direct impact,”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“They're sort of the hard examples and the soft examples. The hard examples are hospital per capita, education per capita, food per capita, roads, transportation, access, right, to modern quality of life. That is a function of the number of megawatt hours available to you individually. Pick your rural emerging market environment and ask them if you are able to have cheap, reliable power. What would you build? Every one of them would say that the first things are food, hospital, school. And then you enter into manufacturing and the positive some economic choices that you're able to make once you have access to low cost, reliable. And to be clear, coal is bad. You do not want to live in this with coal plant. That is negative song. The radiation, mercury, poisoning, all bad. You don't want to nest that. So how do you do that? You build a nuclear plant instead.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We say all the time that our goal is to build the infrastructure company at the intersection of energy and Bitcoin. That's the goal.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You don't same thing. You want to keep your house at 50 degrees in the summer, 100 degrees in the winter. You couldn't think twice. And so we have an opportunity to generate energy where an incremental cost of those types of extreme choices are missing. It should be you're paying whatever $39.99 a month for your energy subscription, not for your 12 cent kilowatt hour. And the way that that kind of happens is with really differentiated buyers, with really differentiated manufacturing processes that adjoin that level of kind of more intense generation. I think that high-speed travel and access to really sort of new paradigm energy density opportunities. We shouldn't, that's not a real constraint. That's a constraint of will.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“What do I think will open or what do I hope will? What do I hope I'll have? And is I hope we're generating 10 or 20 times more electricity than we are today? I think that energy abundance is human flourishing. Those two ideas are welded together. I think that the use cases or electricity are just sort of emerging. And some of that's electrification and battery stuff. And some of that is just what type of manufacturing processes are we able to engage in and what kind of energy densities require to achieve them. But to me, there's no reason why we shouldn't be able to utilize vastly, vastly more electricity than we have today, productively for humanity. And the way that we do that, obviously we have going concern around pollution and environmental constraints. And so how do you generate that? I want an SMR in every town. We shouldn't sink twice about changing our thermostats. We shouldn't think twice. When was the last time you thought about the computer?”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's really tricky. I think by and large, Bitman and MicroBT produce good gear at this point. They know what they're doing. We've seen really good kind of test data from the M20 series through the M3031. All those units have ran really well through many years. And same deal with the S19 series. The S-17 is not the case for that. But honestly, sort of every generation of the S-19 versions have been really strong units. And so I think the sort of the existential lemon risk for new hardware is significantly lower than it was even two or three years ago.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“One day and sign a deal with 75, the next day, marker was going to reward you just for signing the deal. The incentive structure, certainly for the pub codes at the time, was just to pre-order as much hash as humanly possible and hope the Bitcoin jet going up. Then there became like you actually had to plug these things in somewhere. And so there was this very long development lag behind the pre-orders and Coin came way off at the time. So I think the big learning to me is to always be building infrastructure and to be buying ASICs sort of opportunistically throughout the cycle and buying efficiencies opportunistically throughout the cycle. Not every async is price kind of the same way and that's always a function of efficiency. So like easy example is like micro BT versus the main gear, micro BT might lag some units of efficiency, but might be price significantly lower in order to kind of compensate for that gap.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Some of that, right? Because what's so tricky is that let's just put ourselves back in sort of the, I don't know, the market in 2020. We had no idea what was going to happen. Energy was dirt cheap. That was the ultimate time to sign a power deal. Close, not quite the ultimate time to sign a machine deal. Then the machine opportunity kind of emerges more clearly. Everybody was competing for these five-figure, maybe six-figure future orders from Bitmade and MicroBT. end of 20, beginning of 21, into 21. Then we see Bitcoin rip and put pores a ton of fuel on the fire. Now there's sort of this putting ourselves back there like company announces purchase order. Bitcoin goes up, stock goes up. And so there were these sort of correlations between these purchases. Nobody cared what the price purchase was at. You could sign a deal at $50 a terahash and”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Actually, do it. Yeah, I think that the ASIC environment outside of Intel globally is one where we haven't figured out how to integrate. And you'll hear, to me, this is the theme of the whole episode, is that what is Bitcoin correlated and what is sort of Bitcoin sovereign to price? And I think what we've seen is that when Bitcoin runs up really aggressively, ASICs trade like a Nikolai derivative. When they come down, they also trade like a levered coin derivative. And so we've seen more volatility in ASIC markets than we have in Bitcoin markets. I think that digesting that dynamic over the last cycle has been the same, you know, to me is the single biggest learning.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“All I'm able to kind of publicly comment on is that the specs for the chips that they've released that were made public are competitive specs.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And whatnot. It's complicated. It's hard. It's a big dollar figure. It's very hard to get to the Goldilocks zone without an internal either home miner or serious bit winner.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So, how do you execute on it? You know, there may be requests for startup. Who's building sort of very, very plug and play containerized solutions, competitive price points to be able to give these businesses opportunity to eliminate a cost center and replace it with a mining profit center that amortizes on the business model is still tricky as well? You only get 40, 50% uptime. That may be prohibited. So, I think that, you know, the sort of business intelligence layer and the service provider layer needs to mature before these businesses are able to fully utilize their electric contracts.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Really hard. I love the question and I love the idea. I think actioning it and executing it is complicated and tricky than the competitive environment or large scale 24-7 mines versus kind of intermittent slower payback mines, like that competitive space is really tough. One possibility is that we're five years too early. Another possibility is that we're one manufacturer too early, where it's just too hard to get it. It's too much specialized labor, right? You can't just hire your electrician and it works. I got it.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I would say to them is that Bitcoin is the black hole for your cost structures. How can Bitcoin mining absorb as many cost centers for as many businesses as possible? How can Bitcoin mining eliminate liabilities on sort of a flaring and cost?”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Face has expanded because the tool set has expanded. Therefore, we have an urgent need to explore the business use cases for additional tooling.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think that it's of two minds. One is I think we may still be very early and it's not that useful. That's one possibility. The other is that we've been doing everything with pen and paper and Excel just got introduced to the business. You know, incline kind of for the latter that, you know, this is just going to the same way that I would open up an Excel spreadsheet and try to interact with a business. I'm going to use ChatGPT or whatever kind of the chat environment de jour is. And that's just going to be part of a kind of standardized workflow. That's sort of one version of like the individual contributors use case. The other is that we have a bunch of miners have a bunch of unique data and proprietary data that gets generated feeding that through AIML type of iterative learning structures. Like that may be its own whole other thing. And then that's a different question. But I think it's all on the table, right? Like the innovation.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And, you know, the same way that running a node has value within your Bitcoin sort of life cycle and knowledge, you know, I think running your own hash rate is a valuable and viable thing to do. Do I think it's going to replace your day job? Likely not”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think that running an ASIC is a good thing to do in your Bitcoin education. I think touching it and seeing how it works, I was having this conversation last week, but like I think on the other end of Somalin's investment, you're always a certain number of degrees of separation away from somebody in the heart. And I think that less degrees of separation between your personal wealth and that hard hat, the better off we end up relating to each other. Calling an electrician licensed electrician and having them rewire your garage to be able to handle the 240 volt, you need a PSU that's attached to the minor and sitting with them while they do that and understanding how your house is wired. That's like really worthwhile learning how hash rate gets produced from an ASIC and gets contributed to a pool and how you receive Bitcoin in exchange, you know, and touching each step of that process, that's valuable.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“On the power contract basis, so you need to be able to have a tomato farm that you want to heat a greenhouse in the back of your house. And this is the best way to do that, which it is. I think that we need to see these types of wetted use cases in order to unlock the home mining opportunity. But I expect that trend to continue. People want Bitcoin. People want to be able to get a coin and not pay an exchange of fee. And so this is a great way to do that.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I'm hesitant to say it's going to be sort of standard, broad, and best practice just because I don't know if the kind of the efficiency and component parts are kind of convertible fully. I think over time it very well could be. But what we've seen is that home mining, similar to the way that energy companies kind of need to have a differentiated use case to bring a Bitcoin miner, negative price, maybe plant maintenance, you know, those kinds of things. I think coal miners need to have a differentiated use case as well. If you fool heating the house, drawing beef, jerky, I've seen a bunch of different use cases for basic process heat kind of use case. But the reality is that retail power contracts are, you cannot compete with a big boy.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yes, if you look to, you know, there's a number of projects that are in kind of process and I don't want to kind of tread on. There are projects that are in progress both here and overseas in this sort of new kind of form factor environment.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Been a trend in new reactor development really sort of since the Bogel reactors have been coming online and they're subject to the same critique. The small module reactor piece, it's called modular, not because you're going to move it, but because you get to manufacture it in one place and ship it in. The existing reactors, they're all built on site. And so these other opportunities are to be able to bring sort of more standard manufacturing processes and more standardization to the designs so that budgets can start to come in line and that timelines can start to get pulled in. Still have political and regulatory headwinds, but let's at least solve the engineering pieces and the construction pieces to the best of our ability. And there are a number of companies that are quite far along the path that we're very excited about that have, you know, that have really kind of put a real stake in the ground this technology.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That you achieve everyone is it's all, you know, I forget the quote exactly, but they were like, it's every nuclear reactor is a multi-billion dollar Swiss watch. A piece breaks. You need a perfect person who only knows how to add that one gear back in and is this heavily specialized thing. I think that critique is limited and that sort of unbalance there's a better case for the existing nuclear fleet. I think the current nuclear fleet is one of the shining examples of American infrastructure. And it's part of why when we had successful carbon-3 based load, that's where it's been generated. It's been our hydro dams and it's been our nuclear fleet. That being said, it's hard to build more of these things. There are regulatory hurdles and there are manufacturing construction hurdles that face these. And so if you look at why there's been such a gap, I think it's partially political. It's partially regulatory and it's partially execution. These are coming in over budget and past schedule.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Of that. And so what current nuclear fleet does is it heats water and the steed from the water spins the turbine. And that's how the power gets generated fundamentally. These new generations of nuclear reactors take a similar process. Sometimes they use helium, not water, but that's not important. And they take the fission reaction that generates the heat, spins the react, spins the turbine, and generates the electricity or the process heat, depending on kind of the use case for the power plant. You can kind of group them together. So rather than the critique to that tweet actually was below, which I thought was a decent one is that the best critique for the existing nuclear fleet is that every single reactor is its unique snowflake, all the parts are purpose-built for that deployment. You know, there's no standardization, there's no manufacturing economies of scale.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Cool. First of all, I retweeted our head of market research, Rory Murray. And the situation in Georgia is interesting. So we need to sort of split nuclear reactors into two categories. One is basically what we've been building since the 50s. And those are light water reactors. They are 800 to 1,200 megawatts per cloa. And they're these, you know, if you think of like the Simpsons, that's the form factor. There's a whole other generation of nuclear reactors being built that are smaller and sort of less in different technology as to how you utilize the fission reaction to heat a substance and spin a turbine. In today's age, we have sort of one mechanism. Well, I guess two mechanisms by which we generate power. We spin a turbine or we have photovoltaic cell. And 99% of the power we consume is generated from the turbine version.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The craziest thing to me to hear in a vocal environmentalist coming out as anti nuclear. None of the data supports that perspective. At all. You know, if you look at the human life toll, if you look at the quality of the pellets, the price of the power, the costs that get passed back, either through externalities or directly, nuclear is singular. Doesn't mean it's the only type of electricity that should get generated, but it means that, you know, the rate at which we've expanded our nuclear fleet is laughably slow.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Is a positive incentive. And so the ability for us to be an economic curtailment load for more of the time is valuable for the overall system and ends up being positive for the overall system. And then the second piece is that we need to build more stable baseload generation. That looks like nuclear, that looks like hydroelectric. You know, right now, the TVA system is phenomenal along both of those kind of generation types. There are, I believe, they're 59%, 57% on nuclear at hydro. The most, don't quote me, but I believe that's the most across those two generation types of any grid in the US. And we want to see them double down. We think that, you know, rather than trying to bolt on other generation types, we believe that nuclear in particular is a particularly transformative technology, especially at the slow modular reactor level over the coming cycles. We would love to see additional nuclear”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And support the household community, the hospitals, the types of things where people are involved. Our servers don't need the power during those periods of intense stress. That's got a negative economic impact on our company. We lose whatever that amount of revenue is while we're shut down. But we take a long view in these types of situations. And it's really important to us that we are good stewards of the region and a good neighbor and a good member of our community because we believe we want to grow and expand over time and taking that kind of action even when it's not sort of economic that day is very economic over the long run. We kind of detailed what we did from a curtailment perspective, traded in that letter, and then his call to action was twofold. You know, the first is, you know, he believes and we believe that more money for demand response programs”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so this is putting my grid hat on. Trey Kelly is the founder and CEO of the company where I work. Grid infrastructure. We run some Bitcoin mining facilities in the TVA service territory. They cover seven states. And we submitted a letter to their most recent board meeting. And the nature of that is really around the idea of demand response and curtailment. What happened was sort of on December 23rd, there was significant system-wide disruption to the TVA power grid. There were outages both at the generation level and the transmission level. And what ended up happening was for the first time in its 90 year history, TVA instituted rolling blackouts as part of that plan, they called all of their callable”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Annual maintenance, preventative maintenance from a cycling perspective versus a flatline perspective can be quite different. Think about it from a useful life standpoint. What if you were able to add five years of useful life to a PowerPoint? This is where I think we're able to kind of find common ground for Bitcoin becomes a global mainstay commodity good.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Because of the niche of the business solution that you're offering. Same thing with a bunch of these sort of negative price ingestion on grid opportunities. Sity factor is low. It might only be 10 or 20% of the year that these are viable. But same deal. For those hours, you're not worried about Bitcoin price because it's going from negative $10 a megawatt hour back to zero. Maybe there's an opportunity from a plant risk perspective. So power plants don't like getting turned up and turned down. They like to run flat, you know, but put your engineering hat back on. Bitcoin miners, wet power plants run optimally. And so maybe you're looking at a maintenance cost of $10 million a year by cycling up and cycling down, it's worth eliminating that cost to give that flatline power to a flexible mining company”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think there's some of that. I also just think that there's sort of these native opportunities, right? If you look at Urkot, there's lots of negative hours. Who cares what the price or volatility of Bitcoin is if I'm reducing an existing cost structure? There's this market structure opportunities that Bitcoin mining is able to kind of insert itself in and inject itself into the business model where the volatility risk is not a concern. So if I were going to go build in Texas, I would say, you know, let's say if I were going to do a flared gas solution, I would say, look, you guys just have a liability. I'm going to eliminate your liability. You don't care what I'm paying you. All I'm doing is I'm taking something that is negative sum back to zero. And so the risk of Bitcoin's volatility is abstracted away.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And the opportunity costs. Let's say they're looking at a contract with Kroger and a contract with Preston's mining company. They would much rather, you know, they would much rather have Kroger's counterparty risk than yours, I hate to And so let's just say they sign with you and then you go shuttered for four months, like you said. Everybody who signed that contract is now under the microscope or losing their Are the incentive structures are all backward? Their job is to sell power to the lowest risk buyer, not the highest price buyer.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Exactly, you know, and what they're not doing is taking on, they're usually the ones who have to manage the commodity risk. Input costs. They're not used to their customer being subject to the commodity costs. And so there's complexity in who bears what market risk at what point in sort of the business flowchart. And I think that Bitcoin, you know, the coin mining industry also struggled with that as we looked at how they financed a lot of their caps. So this is just super early days.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I mean, I think they're used to signing. You got to keep in mind, they're used to signing 10, 20, 30 year electricity off tick agreements. And they're used to signing a contract with a hospital system or a school or some car manufacturer. Something that's”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I get it. Like, to be clear, they get what's going on. These are smart people who understand sort of the off-taker concept of Bitcoin within the construct of their energy systems. There's two reasons that it's hard, in my opinion. The first is the volatility, right? Looking at a megawatt hour, if I push one megawatt hour through S19s, you know, and at the peak, I'm going to generate $400. And at the total bottom, you're generating like between $90 and $110. They don't know how to deal with that type of vol. The other is that the forward firm on power went from like $30 to like $70 versus $400 is like wildly attractive and will get everybody to move. $70 versus $110, not that attractive. The volatility all of a sudden is like not really getting paid for the risk I'm taking.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I'd be hiring RFP vendors. I'd be looking at people. I'd be hiring people to do stuff. I'd be running tests internally. You don't need a huge budget to get a lot of information at this stage. You know, if you told me here's $20 million, how much can you learn, I'd be able to learn an enormous amount with a budget, that kind of stuff for Shell. That's a really kind of cheap education.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Think there's arguments for doing it both ways. You know, if you told me to be, you know, I woke up in the morning and I was the shell czar of Bitcoin mining.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Energy contract all over the place that could be heavily beneficial. I think they recognize the methane capture opportunity as well. And from a carbon perspective, based on kind of their public stance on that, it's an easy way for them to significantly improve their positioning from that point of view. So I think the great news is that Bitcoin represents a really interesting Swiss Army knife for their business. And for a pretty low cost, I bet, they're able to get a lot of exposure, a lot of education, and a lot of credibility in our community by taking a sponsorship role in the conference. That being said, who knows what this actually looks like?”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT