Digital Assets
Our digital strategy focuses on acquiring direct access to power where we are able to build out our own BTC mining facility utilizing some of the most inexpensive power in the world. We now have operations in Paraguay and Bolivia.
The firm's digital asset business is Bitcoin mining, held through NeuraHash. Production is held as a long-term position rather than sold into strength, and the position is sized so that a long drawdown in the Bitcoin price is an inconvenience, not a crisis.
Why MiningCost below market, by construction
Production, not speculation
A miner acquires Bitcoin by producing it. When the fleet is efficient and the power is cheap, the cost of that Bitcoin sits below the market price in most conditions.
Hard limits
Capacity, power and capital committed are fixed in advance. Expansion waits for the numbers, not the headlines.
Why BitcoinWhy bitcoin
A supply that cannot be increased, against currencies that are being increased, and a market that has already started pricing the difference.
21 million, and no committee can change it
Issuance halves every four years until it stops.
188x over twelve years, 54.7 percent a year
No other asset class came close.
It has stopped trading like a tech stock
It now moves with gold, and against the dollar and yields.
The quietest bitcoin market on record
Realized volatility is a third of its long run average.
Energy is truly the ONLY universal currency and nothing can take place without its transformation
Vaclav Smil
The RecordBitcoin versus the major asset classes
Growth of the same money in Bitcoin since September 2014.
Compound annual return over the twelve years.
The annual gap between Bitcoin and the S&P 500.
| Asset class | 12 years | Annualized |
|---|---|---|
| Bitcoin | 188.5x | +54.7% |
| Nasdaq 100 | 7.8x | +18.6% |
| S&P 500 | 4.2x | +12.6% |
| Gold | 3.4x | +10.7% |
| US small caps | +8.6% | |
| Developed ex-US | +7.3% | |
| Emerging markets | +4.9% | |
| US dollar | +3.1% | |
| Investment grade credit | +2.6% | |
| High yield | +1.1% | |
| Long Treasuries | 0.9x | -1.0% |
| Oil | -5.4% |
Source: MarketXLS adjusted daily closes, Sep 17, 2014 to Sep 22, 2026. ETF proxies for each asset class; growth and annualized figures from adjusted closes. Income Cascade / Lobato Advisory Group.
Bitcoin compounded at 54.7 percent a year. The Nasdaq 100 managed 18.6 percent over the same twelve years, the S&P 500 12.6 percent and gold 10.7 percent. Long Treasuries lost money. The path was volatile, which is exactly why a machine that keeps producing bitcoin through the whole cycle is a different proposition from buying the spot price on one day.
The EvidenceBitcoin has had three identities
01 · 2015 to 2019
It traded with nothing
Every correlation near zero. A retail asset moving on its own news, with no relationship to the macro world.
02 · 2020 to early 2026
A technology proxy
It tracked the Nasdaq 100 at 0.5 to 0.65. When growth stocks rose it rose, and when they fell it fell harder.
03 · Today
A store of value
The link to technology stocks has faded. Bitcoin now moves with gold, and against the dollar and against rising yields. For the first time in its life it trades like a store of value rather than like a growth stock.
Bitcoin is positively correlated to gold, and negatively correlated to both yields and the dollar.
And It Is Getting CalmerThe steadiest bitcoin market there has been
Volatility matters more to a machine owner than to a trader. A miner earns a quantity of bitcoin, not a price. Calmer bitcoin means a narrower band around your payback. It can return without notice, but today’s market is the quietest on record.
August 2026, against a long run average near 80 percent.
Second quarter 2026, close to a multi year low.
Bitcoin has been quieter than this only 1.5 percent of its life.
WhyCompute is the new oil. Bitcoin is the new gold.
Compute and bitcoin are two ways to sell the same thing. Power.
The Input
Power
$0.065 per kWh, under contract, on a dedicated utility line.
The Machine
Compute
Industrial hashrate running every hour of the day, at 90 percent uptime.
The Output
Bitcoin
Globally priced, instantly liquid, paid to your wallet.
ResearchOur Bitcoin and digital asset pieces
Bitcoin: From Experiment to Asset
How Bitcoin went from a 2008 whitepaper and a mailing list experiment to an asset held by institutions and corporate treasuries.
Read the pieceDigital Assets and the Digital Dollar
A field guide to Bitcoin, digital asset networks, USDC, stablecoins and the companies building the new dollar rails.
Read the piece