
<p>A big part of investment success requires being in the right place at the right time.&nbsp;</p>



<p>Today, the prospects for direct oil, gas and Bitcoin investing have never looked better. </p>



<p>Long-time followers will recall that we’ve been pounding the table on today’s opportunity for direct oil and gas investors. The basic story here hasn&#8217;t changed, it&#8217;s just grown more compelling. </p>



<p>In a normal commodity market, high prices provide a powerful signal for investors: allocate more capital. But in today’s market, that signaling mechanism is broken.&nbsp;For the first time ever, high energy prices have been met with capital scarcity, creating the best buyer’s market of our lifetime.&nbsp;</p>



<p>Despite oil trading at multi-year highs, capital remains stubbornly sidelined in today’s market. Consider the difference in rig counts between today versus the prior peak in prices, back in October of 2018 at $75 oil:</p>



<p class="has-text-align-center"><img decoding="async" loading="lazy" width="624" height="380" src="https://lh6.googleusercontent.com/i8FD7GSzF2JHDVJmqt4BZticFjWT6fwbJDLLYOXg65GiFjtAdA7A-YTZcSW3eq4Maq6He6PmrxkY7CtcdghfcLW8s-dq0Ga_q7Y7CVpPic4evToDeHwZRkHhXciOW_Dvve-YuHfL=s1600"></p>



<p>The unwillingness of operators to deploy rigs becomes even more bullish when you consider the depleting inventory of “drilled but uncompleted” wells (DUCs). As the name implies, DUCs are wells where the majority of capital has been spent drilling, but the well has not been hydraulically stimulated (“completed”) to maximize production yet. DUCs reflect oil supply that can quickly be brought online through completion, but without deploying new drilling rigs.</p>



<p>During the shale boom years, excess cheap capital flowing into the shale patch funded a record accumulation of DUC inventories. But in today’s capital starved market, drillers are now harvesting this inventory. The shale DUC count is now at the lowest level in years:</p>



<p class="has-text-align-center"><img decoding="async" loading="lazy" width="624" height="365" src="https://lh5.googleusercontent.com/4w1Q7rmftDWqVeX2eokQz30ij3E8QBsyQXZ7OlmDeMtnDnIVE8Um09BSybn6JtlEYxDuMWe9DWbk6qPHUelxuGRzzz8QYVuVRcRRA7gYdv9VDJVSnBS577-uUUU2ca-tmWeqF-Rg=s1600"></p>



<p>Today&#8217;s depleted DUC count means less future oil supply, without a major increase in drilling rigs.&nbsp;</p>



<p>So, even as the consensus calls for new record highs in crude oil consumption in 2022, all signs indicate U.S. production likely remains below the pre-COVID peak for the foreseeable future. Meanwhile, the major European oil companies are facing similar capital constraints, all while OPEC is maintaining discipline in keeping supply off the market.  </p>



<p>This is a recipe for one thing: higher prices. </p>



<p>At least that&#8217;s the bet Wall Street is making. The <a href="https://www.wsj.com/articles/crazy-bets-on-200-oil-invade-the-options-market-11634463002">Wall Street Journal recently reported</a> on the flood of options trades betting on $100 oil, captured in the graphic below: </p>



<p class="has-text-align-center"><img decoding="async" loading="lazy" src="https://lh5.googleusercontent.com/UAqNDL-W0J9z0QXVTVIwMLa_34nwbhBbm1lVL21tWf4salUuhpD4wJmrxXKuwRHTrSAPNEqXe9BBQHNLxp1Y3ZZ9VTPh8rD9fdNZbC4tzhLbywSnkz3tpT1fp0dp5StQPJD7wumP=s1600" width="418" height="523"></p>



<p>But $100 could be just the beginning, if traders in the options pit are right. The same Journal article noted a recent spike in bets calling for $200 oil by the end of 2022.</p>



<p>Does Wall Street know something we don’t?&nbsp;</p>



<p>But it’s not just oil prices going through the roof&#8230;&nbsp;</p>



<p><strong>Propane Apocalypse</strong></p>



<p>Similar supply/demand dynamics have driven a global shortage of natural gas and natural gas liquids (NGLs). NGLs include products like ethane, propane and butane &#8211; key feedstocks for chemical processing, and fuel sources for heat during the winter.&nbsp;</p>



<p>You may have seen the headlines about $6 natural gas and a potential winter supply crunch. Less fanfare has been made about an already-dire supply situation in the propane market. The chart below shows U.S. propane inventories falling to their lowest seasonal level of the last six years, ahead of the key winter heating season: </p>



<p class="has-text-align-center"><img decoding="async" loading="lazy" width="500" height="243" src="https://lh6.googleusercontent.com/CK-MhYuXpw3ZxxkVxX1KQQboZmGMnPqyN95ZNxezOGpONWCM_Wfv8TRz9a-k0g6AHGQHfgeAr69i_pnYnHFB-CySPb-C1bXez235Gf5x7ptMgmNqy6tPBc175nB2OhzU5zSOkVmp=s1600"></p>



<p>The combination of depleted inventories, stalled production growth, and the potential for a cold winter led one UBS analyst to warn of a potential <a href="https://www.zerohedge.com/commodities/ihs-market-warns-armageddon-us-propane-market">“Armageddon” scenario in the propane market</a>. While that may prove hyperbolic, Mr. Market is telegraphing a potential supply crunch by sending propane prices towards their highest levels in eight years.&nbsp;</p>



<p><strong>The Opportunity of a Lifetime</strong></p>



<p>Put it all together, and we believe today’s energy market offers the opportunity of a lifetime for investors. With large scale capital allocators refusing to put money to work, even at today’s prices, <strong><em>we’re seeing the best buyer’s market ever for deal-making.</em>&nbsp;</strong></p>



<p>This includes proven reserves projects with IRRs exceeding 20% for wells already on-production, and proven development projects with IRRs exceeding 30%.&nbsp;</p>



<p>Given today’s stretched stock market valuations, and near record low bond yields, this type of return/risk proposition is almost unheard of. The only asset offering greater returns than energy in today’s market is Bitcoin:&nbsp;</p>



<p class="has-text-align-center"><img decoding="async" loading="lazy" width="422" height="486" src="https://lh4.googleusercontent.com/-O8wWNP6XOnyGamTfGiZNseiCG21PjRPZGeZYKyjFQo4R69DlC3JLRceT7DP6SP3MTiqNmCz9z0XSSBxp_O4A3NcmjzE4gSmxZ7smxob601k3QEBTBvz5pudwosHOQ6aNc6kW1Fp=s1600"></p>



<p>Thanks to the new Bitcoin mining opportunities we’ve identified, Yield Fund I investors can now tap into each of these top performing asset classes.&nbsp;</p>



<p>Just like oil and gas, the prospects for Bitcoin investors have never looked brighter.&nbsp;</p>



<p><strong>Bitcoin Goes Mainstream&nbsp;</strong></p>



<p>Hardly a week goes by without a major new catalyst moving Bitcoin towards mainstream adoption. This week, history was made with the launch of the first-ever Bitcoin exchange traded fund (ETF). Now, both institutional and retail investors can buy Bitcoin through a regular brokerage account.&nbsp;</p>



<p>With millions of new investors able to invest in Bitcoin with the click of a button, it’s no surprise why Bitcoin reached new record highs above $67,000 per coin this week. At current prices, the economics of our proposed Bitcoin mines look even better than the lucrative oil and gas deals available in today’s market.&nbsp;</p>



<p><strong>Cut Your Tax Bill with Oil and Gas&#8230;AND Bitcoin Mines!</strong></p>



<p>Looking beyond the returns available, we know a big reason why many investors chose direct oil and gas investing is to reduce their taxable income. Specifically, the intangible drilling cost deductions, that allows for the opportunity to deduct up to 100% of your investment in year one &#8211; providing immediate, upfront tax benefits.</p>



<p>After consulting with tax professionals in recent weeks, we’ve learned that our Bitcoin mine will provide investors with a similar bonus depreciation tax benefit. Timing is everything here. That’s why we’re making an aggressive push to raise capital and put it to work before year-end. This will allow investors the maximum tax benefit for the 2021 tax year.&nbsp;</p>



<p>If you’d like to learn more, <a href="https://meetings.hubspot.com/elizabeth300/energyfunders-investor-meeting" target="_blank" rel="noreferrer noopener">click here</a> to schedule a time with someone on our team to learn how you can invest in our Yield Fund I.</p>
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The Golden Age of Oil, Gas and Bitcoin Investing 


<figure class="wp-block-image"><img decoding="async" src="https://i0.wp.com/hs-2935563.f.hubspotemail.net/hub/2935563/hubfs/Email%20Graphics%20-%20Bitcoin%20Basic.jpg?w=750&#038;ssl=1" alt="Email Graphics - Bitcoin Basic" data-recalc-dims="1"/></figure>



<figure class="wp-block-table"><table><tbody><tr><td>What if you could own the best performing asset class of the last decade, at a substantial discount to current prices? <br><br>I’m talking about Bitcoin. Specifically, mining Bitcoin with cost-advantaged, clean-burning natural gas. Over the last few months, I (Laura) have been hard at work putting together this opportunity for Yield Fund I investors. The goal: invest in a wellsite mining project that will produce Bitcoins for approximately $30,000 per coin.   <br><br>After months of planning, the project is now coming together. Just last week, we officially placed the first order for mining equipment, and started designing the onsite layout. Over the next several months, we hope to have all the pieces in place to begin churning out Bitcoins for $30,000 per coin.  <br><br>(Note: this $30,000 projected Bitcoin cost reflects the estimated all-in costs for the life of the project. This estimate is subject to change at any time. <a href="https://meetings.hubspot.com/elizabeth300/energyfunders-investor-meeting" target="_blank" rel="noreferrer noopener">Click here</a> to speak with someone on our team regarding the detailed economic projections.)   <br><br>So what does this mean for Yield Fund I investors? Our current estimates suggest that this Bitcoin mining project could achieve IRRs in the triple-digit range. <br><br>After speaking with many current and potential investors in recent weeks, we know many Bitcoin enthusiasts are excited about this project. But today, I&#8217;d like to provide some basic background information for those new to Bitcoin.  Let’s start from square one: why Bitcoin, and more importantly, why now?   <br><strong><br>An Unprecedented Economic Environment</strong><br>As you know, the COVID-19 outbreak delivered a crushing blow to the economy. But only 18 months later, we’re now living through a full blown economic boom. Record retail sales, record corporate earnings and record high asset prices across stocks, real estate and commodities. <br><br>What happened? The largest monetary and fiscal expansion of all time.  <br><br>Specifically, the Federal Reserve expanded the U.S. M2 money supply by over 30%, from $15.5 trillion in March of 2020 to $20.6 trillion today. That means roughly one-third of U.S. base money supply was created in the last 18 months alone.  <br><br>Meanwhile, the largest fiscal stimulus package of all time pushed the federal deficit to over $3 trillion last year. That’s more than twice the deficit spending deployed to fight the previous recession in 2009, which itself was unprecedented at the time.   <br><br>Clearly, these efforts helped jumpstart economic growth. But here’s where things get tricky… <br><br><strong>The Bill Comes Due</strong><br>We’ve all been taught that there’s no such thing as a free lunch in life, and economics is no different. After all, why should anyone work or pay taxes if the government can simply borrow and print our way to prosperity? One of the potential costs of record deficit spending and money creation is rising prices, and that bill is now coming due.   <br><br>U.S. consumer prices are currently increasing at over 5% per year &#8211; the fastest rate in over a decade. And current evidence suggests more pain for the consumer is in store. That&#8217;s because producer prices, the key cost input feeding into consumer prices, are increasing at over 10% per year &#8211; the fastest pace in over 40 years: </td></tr></tbody></table></figure>



<figure class="wp-block-image"><img decoding="async" src="https://i0.wp.com/hs-2935563.f.hubspotemail.net/hub/2935563/hubfs/FED%20PPI.png?w=750&#038;ssl=1" alt="FED PPI" data-recalc-dims="1"/></figure>



<figure class="wp-block-table"><table><tbody><tr><td></td></tr></tbody></table></figure>



<figure class="wp-block-table"><table><tbody><tr><td>Meanwhile, policymakers claim that today’s inflation is “transitory”. But the chart below shows that economist expectations for consumer prices have only moved higher with each passing month:</td></tr></tbody></table></figure>



<figure class="wp-block-image"><img decoding="async" src="https://i0.wp.com/hs-2935563.f.hubspotemail.net/hub/2935563/hubfs/bloomberg%20inflation.png?w=750&#038;ssl=1" alt="bloomberg inflation" data-recalc-dims="1"/></figure>



<figure class="wp-block-table"><table><tbody><tr><td></td></tr></tbody></table></figure>



<figure class="wp-block-table"><table><tbody><tr><td>Even if today’s inflation does turn out to be “transitory”, that&#8217;s little consolation for consumers. There&#8217;s a reason inflation is known as the “silent thief” &#8211; by making your money less valuable, it&#8217;s no different than a wealth confiscation in practice. If your bank confiscated 10% of the money in your account, would you not worry simply because it was a one-time event?&nbsp;&nbsp;<br><br><strong>Bitcoin Solves This</strong><br>Bitcoin is a decentralized, digital monetary network that offers a superior currency alternative. Unlike traditional currencies, Bitcoin is controlled by software &#8211; not central bankers and governments. The Bitcoin protocol ensures that only 21 million coins will ever be created, which means no more silent theft through endless inflation.&nbsp;&nbsp;&nbsp;<br><br>Each transaction is digitally encrypted onto a decentralized network, run by computers all around the world. Some have called it the “internet of money”, because you can seamlessly transact with anyone around the world at the click of a button. No intermediaries or central authorities getting in the way &#8211; it’s the people’s money.&nbsp;&nbsp;<br><br>Beyond offering inflation protection, the Bitcoin network was designed to be super secure and self-regulating. That&#8217;s where Bitcoin mining comes in. Here’s how it works…&nbsp;<br><br>The self-regulating Bitcoin network is maintained through a network of thousands of “nodes”. At each node, high-powered computers &#8211; known as miners &#8211; keep track of every Bitcoin transaction. These miners compile real-time Bitcoin transactions into data blocks. When a given data block fills up, the miner adds it to the pre-existing block series. These linked blocks form a chain, known as the “blockchain”. So, the blockchain is simply a continuously-updated public ledger, which contains every single Bitcoin transaction of all time.&nbsp;&nbsp;<br><br>The Bitcoin protocol uses several mechanisms to ensure security and integrity of the blockchain. This includes the fact that 50% of the network nodes must approve each data block before adding it onto the blockchain. This prevents a bad actor from creating false transactions in real-time. Meanwhile, rewriting blockchain history is even more difficult, as explained in the following graphic:</td></tr></tbody></table></figure>



<figure class="wp-block-image"><img decoding="async" src="https://i0.wp.com/hs-2935563.f.hubspotemail.net/hub/2935563/hubfs/bitcoin%20cheat.png?w=750&#038;ssl=1" alt="bitcoin cheat" data-recalc-dims="1"/></figure>



<figure class="wp-block-table"><table><tbody><tr><td></td></tr></tbody></table></figure>



<figure class="wp-block-table"><table><tbody><tr><td>In exchange for lending their computing power to the Bitcoin network, miners get rewarded with a certain amount of Bitcoin per each data block they create. The number falls over time, by design, as the total number of Bitcoins approaches 21 million. Currently, miners receive just over 6 Bitcoins for each data block.  <br><br>Now, here’s where we get back to why it all matters for Yield Fund I investors&#8230; <br><br><strong>How To Buy Bitcoin at $30,000 Today</strong><br>Sure, you could bet on the future of digital currencies by simply buying Bitcoin. But why pay $42,000 per coin, when you could instead pay $30,000? That’s the opportunity we see today, thanks to the rise of mobile Bitcoin mining units. Let me explain&#8230; <br><br>You see, Bitcoin mining can be thought of as simply converting electricity into digital currency. So electricity becomes one of the biggest variables driving the mining economics. Over the last few months, we’ve put together a plan for converting wellhead natural gas into electrical power, via gas-fired commercial generators located at the wellsite. The generators then power the mobile Bitcoin mining units, also located onsite near the wellhead.  <br><br>We believe the economics speak for themselves. For roughly $2 million in upfront capital cost, we believe we can produce roughly 6 Bitcoins per month initially for an operating cost of just over $60,000.  The end result &#8211; a payback period in less than one year, and a project IRR exceeding 100%.  <br><br>(Note: these project economics are estimates, and subject to change at any time. <a href="https://meetings.hubspot.com/elizabeth300/energyfunders-investor-meeting" target="_blank" rel="noreferrer noopener">Click here</a> to speak with someone on our team regarding the detailed economic projections.)   <br><br>We’re excited to be offering this opportunity to Yield Fund I investors today, and look forward to updating you on the progress as we start receiving equipment at the mining site. This is a truly unique opportunity, and I am pleased to be offering the chance to democratize Bitcoin mining.  </td></tr></tbody></table></figure>
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Crypto

The Golden Age of Oil, Gas and Bitcoin Investing

How to Buy Bitcoin for $30,000

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