Bitcoin’s Real-World Utility

Bitcoin’s Power and Heat

For years, Finland was just a small Nordic country, burdened by high costs on energy imports. Yet all that changed dramatically in 2023 when the nation flipped the switch on Olkiluoto-3, a nuclear reactor decades in the making.

This powerhouse is capable of producing up to 1.6 gigawatts of electricity at any moment — a staggering capacity that makes it one of the largest nuclear plants in the world. To put it simply, this single facility elevates Finland into a whole new league in energy generation.

Courtesy: TVO

For a country once deeply reliant on expensive Russian energy, Olkiluoto-3 signifies true independence and, more importantly, a surplus of power. When combined with Finland’s rapidly growing wind sector — now providing about a quarter of the nation’s electricity — the result has been an embarrassment of riches: a grid producing far more energy than needed.

“In 2023 alone, Finland had more than 800 hours of negative electricity prices,” notes Paradigm editor Chris Campbell. “The grid literally paid people to take power off their hands.”

That’s where Bitcoin comes in: Crypto mining companies quickly moved in to harness Finland’s excess electricity.

Finland’s cities rely on vast district heating networks — pipes traditionally heated by coal, peat or imported wood. But now, instead of wasting heat by releasing it into the arctic air, Bitcoin miners are channeling 70°C water directly into these systems.

Already, one relatively modest 2-megawatt mining site is warming a community of 11,000 residents. “Selling heat to cities can reduce their energy costs by 20–30%,” Chris explains.

This isn’t just a feel-good story; it’s a clear example of how Bitcoin is evolving from a mere store of value into a powerful, practical utility.

Bitcoin rigs aren’t just minting coins — they stabilize the grid during low demand, extend equipment lifespan thanks to Finland’s cold climate and keep homes warm when global energy security feels shaky.

“Finland is a case study in what happens when the curve bends: Abundance forces you to invent new ways to capture, store or redirect value,” Chris adds.

Unlike neighboring Sweden and Norway — where mining faces restrictions and crackdowns — Finland has taken a different approach. This welcoming stance has positioned the country as an emerging hub for what many are calling the next financial and energy revolution.

Last week at the BTCHEL 2025 conference in Helsinki, the atmosphere was electric — both literally and figuratively. Chris was in the audience, witnessing firsthand the innovation and energy driving Finland’s future.

Courtesy: Xellox.io
A panel discussion at BTCHEL 2025

Attendees weren’t just there for panels and networking; they were witnessing something extraordinary: a country that once depended heavily on Russian energy now harnessing nuclear power and Bitcoin mining to reinvent its infrastructure and economy.

For investors, innovators and everyday people alike, Finland offers a striking glimpse of Bitcoin’s true potential. It’s about more than speculation — it’s about real-world utility, resilience and the reinvention of value. “And that makes all the difference,” says Chris, “in the new rules of money.”

Careful What You Wish For

“As far as the economy, cutting rates is not the sign of a good economy,” comments Paradigm’s macro expert Jim Rickards. This ahead of Jerome Powell’s speech tomorrow at 10 a.m. EST at the Fed’s annual economic symposium in Jackson Hole, Wyoming. (More on that Friday.)

“What does a strong economy look like?” Jim posits. “It’s when banks are lending and people want to borrow for their investment opportunities. I would expect interest rates to be around 5%. And at that level I’d say, ‘OK, I’ll borrow at 5% because I can invest at 15% and I can use 10:1 leverage and make 150% return.’

“That kind of risk-taking, lending, spending, investing — that is what a strong economy looks like, and it’s associated with rates of 4%, 5%, 6%. What that means is that there’s a demand for funds, banks are willing to lend and you have a healthy economy.

“When I see rates at the short-term end going down, then that tells me the economy is weak,” Jim adds. “Trump should be careful what he wishes for. Low interest rates are not stimulus and are not a sign of economic strength. They are associated with recession and even depression.

“Trump may get his lower rates,” he says, “but may be shocked by the kind of economy that comes with them.”

Walmart reported second-quarter earnings with revenue beating expectations and U.S. same-store sales rising 4.6%, prompting the company to raise its full-year sales forecast.

Before the market opened today, the company announced second-quarter earnings with adjusted earnings per share of $0.68, which missed the analyst expectation of $0.74. However, revenue exceeded forecasts at $177.4 billion, beating the estimate of $176.05 billion. But the company missed profit estimates due to rising costs from tariffs and more. At the time of writing? WMT shares are down about 3.85%.

Taking a look at the broader outlook on stocks, the three major U.S. stock indexes are all down about 0.35% to 44,780 (Dow), 6,370 (S&P 500) and 21,085 (Nasdaq).

Commodities, meanwhile, are in the green. The price of crude’s up 0.75% to $63.20 for a barrel of WTI. Gold’s taking a breather at $3,389 per ounce, and silver’s up 1% to $38.15.

But crypto’s down today: Bitcoin’s lost 1.15% to $112,750; Ethereum’s down 2.15% to $4,230.

Finally for market notes, we mention a few economic indicators…

• The Department of Labor reports the number of people filing for unemployment benefits rose by 11,000 last week, reaching a total of 235,000. This increase is meaningfully higher than the consensus estimate around 225,000 claims. Additionally, the number of people still receiving unemployment benefits increased by 30,000 — reaching nearly 2 million — which is the highest level since November 2021

• The Philadelphia Federal Reserve Manufacturing Index dropped off a cliff to -0.3 in August, down from a strong 15.9 in July, signaling that manufacturing activity in the region contracted unexpectedly, despite analysts expecting a smaller decline to a positive 6.8. New orders dropped into negative territory for the first time since April, while prices paid by manufacturers rose to their highest level since May 2022.

In contrast to manufacturing activity in the Mid-Atlantic region, the overall U.S. flash manufacturing PMI shows expansion at 55.4, slightly higher than July’s 55.1, signaling modest growth.

Buffett’s Playbook Classic

Despite UnitedHealth Group (UNH) being the Dow’s worst performer in 2025, Warren Buffett saw value others missed.

The company has faced serious challenges, including a massive earnings miss, CEO resignation, suspended forecast and Department of Justice investigation into Medicare fraud allegations. Panic ensued, sending the stock plummeting 50% — before Buffett’s entry.

But Buffett’s deep insurance knowledge, evidenced by his longtime ownership of GEICO, gives him confidence that negative headlines do not imply permanent damage. Crucially, UnitedHealth’s valuation appears very attractive at 13 times earnings, well below peers Humana and Cigna, making it a bargain.

As Paradigm editor Davis Wilson explains, Buffett’s strategy is rooted in buying when others flee.

Beneath the turmoil, UnitedHealth remains a health care powerhouse, generating $400 billion in revenue and $15 billion in profit last year. It dominates as the nation’s largest health insurer and manages Optum, a vast data and services business. Its Medicare Advantage segment serves nearly one-third of Americans on the program.

Berkshire Hathaway also took new positions in sectors like homebuilding, steel and advertising, sticking to Buffett’s playbook: buying durable businesses during downturns and holding long term.

As Davis notes, Buffett’s UnitedHealth bet is a textbook example of his timeless lesson: Be greedy when others are fearful — and right now, health care fear has created opportunity.

Black Hills’ New Gold Rush

South Dakota’s Black Hills region is seeing a resurgence in mining activity as modern companies eye rich mineral deposits that have been underused for decades.

The Black Hills have a strong mining history dating back to the 19th-century gold rush, but new projects signal a fresh wave of development.

Notably, Dakota Gold is planning an open-pit gold mine near the historic Homestake site, targeting production to begin around 2029. Existing operations, like the one owned by Coeur Mining, also continue to contribute to the region’s mineral output.

New mining initiatives are projected to create hundreds of jobs, providing a boost to local economies. Dakota Gold, for instance, anticipates around 250 jobs at its mine site, along with substantial tax revenues for the state — potentially reaching hundreds of millions of dollars over the mine’s lifespan.

While the economic benefits are clear, the mining revival does come with some concerns about environmental and cultural impacts. However, proponents argue that with responsible management, mining can coexist with preservation efforts.

Modern mining techniques enable companies to extract valuable metals more efficiently than in the past, unlocking resources that were once considered hard to access. This makes the Black Hills region competitive as demand for precious metals remains strong globally.

“People still want the old myths about gold towns,” says Martin O’Neill, who oversees operations at Wharf Resources, “but we’re showing it can be done smart and clean.”

Wharf Resources operates the largest active gold and silver mine in the Black Hills, located near Lead, South Dakota. Owned by Coeur Mining, the open-pit mine has been running since the early 1980s and employs about 260 local workers.

Courtesy: Coeur Mining, South Dakota

The mine includes several pits and significantly contributes to regional gold production, accounting for nearly a quarter of Coeur’s total gold output. Wharf Resources has expanded operations under a large-scale mining permit granted in 2012.

Overall, renewed mining activity in the Black Hills offers promising economic growth. But it’s a balancing act: acknowledging, at the same time, the need to protect the area’s unique environment and cultural heritage.

Your Takes: Buybacks & BigCharts

"Can't remember who or when I read that when it comes to buybacks, most management teams buy at the wrong time,” a contributor notes. “The stock price, due to good times, is on its way up. Kind of a vicious cycle.”

Another writes: “If we look at past peaks in equity values, say in early 2000 and 2008, I would bet we had an increase in share buybacks, similar to what we have today. Then look out a couple of years and see where the share prices were then. I would bet we will see that management bought peaks, not valleys. Is Berkshire Hathaway buying now? Nope, they don't buy peaks. They buy dips.

“Also interesting to note that insiders are big SELLERS now while their companies are buyers. Seems to be a dichotomy there.”

Emily: Unfortunately for ordinary investors, buybacks often happen when stocks are riding high and not when value is most compelling. As Dave says, buybacks can sometimes signal confidence, but just as often, they simply reflect that management teams have few better ideas for cash.

As for Berkshire, they tend to wait to buy back their own stock when shares are undervalued, a lesson many CEOs could do well to learn. And yes, the disconnect between insider selling and corporate buybacks is always worth watching closely.

“I’m sure you’re familiar with StockCharts.com. I don’t know how it compares to BigCharts, but I like it,” says a longtime reader.

“You can noodle around with settings and achieve the desired minimalism. Plus, you can choose different color schemes. Check out the Color Vision Impaired setting (even if you’re not). It’s friendly to aging eyes!

“Pages load quickly even with fuddy-duddy internet service.”

Emily: StockCharts.com is indeed a worthy alternative, and its customization settings make it surprisingly user-friendly — especially for eyes that have been squinting at screens! Thank you for sharing the tip for “Color Vision Impaired.” Very inclusive.

Take care, reader! Join us tomorrow for a fresh 5 Bullets…