Binance founder Changpeng Zhao (CZ) acknowledges that this bear market is not lacking in investment capital. According to reports from CoinDesk, CZ did not specify where the money should be directed, but acknowledged that there is significant liquidity floating despite the current market conditions. The assessment comes as the cryptocurrency market continues to face challenges, with Bitcoin trading near $63,037, down 45% in a year - representing almost exactly half its October 6 record high.
Social Capital founder Chamath Palihapitiya advocates for a different investment approach, focusing on land, power connections, and empty buildings for computer operations. As reported by CoinDesk, Palihapitiya, a former Facebook executive and SPAC sponsor, believes the combination of land, power, and shell (LPS) represents the most obvious and fastest path to cash-on-cash returns. His strategy addresses the growing scarcity of data center sites, as at least 75 US projects were blocked or delayed in early 2026, worth approximately $130 billion - marking the worst quarter on record according to Data Center Watch.
Palihapitiya and partner Anita Vlallian have acquired almost six gigawatts (GW) of power capacity, arriving in stages through 2029. According to CoinDesk reports, this demonstrates the scale of their investment commitment. The comparison with existing deals shows the market rate, as Nasdaq-listed TeraWulf leased a 401-megawatt site in Hawesville, Kentucky, to Anthropic for $19 billion over 20 years. Palihapitiya's capacity represents roughly 15 times that amount, though it remains unleased and represents the size of his bet rather than its current value.
The investment strategy faces significant headwinds, with more than 300 state data center bills filed in six weeks and opposition groups now operating in 49 states. As reported by CoinDesk, Jordi Visser of 22V Research expects about 30% annual growth in AI investments going forward. The approach also depends on continued regulatory opposition to data centers, as towns blocking projects creates scarcity that drives up land and power prices. However, CZ's assessment that bear market money is actively seeking investment opportunities suggests potential for alternative asset classes beyond traditional cryptocurrency markets.
