"The developers of audio chat room app Clubhouse plan to add additional encryption to prevent it from transmitting pings to servers in China," reports The Verge, "after Stanford researchers said they found vulnerabilities in its infrastructure." In a new report, the Stanford Internet Observatory (SIO) said it confirmed that Shanghai-based company Agora Inc., which makes real-time engagement software, "supplies back-end infrastructure to the Clubhouse App." The SIO further discovered that users' unique Clubhouse ID numbers — not usernames — and chatroom IDs are transmitted in plaintext, which would likely give Agora access to raw Clubhouse audio. So anyone observing internet traffic could match the IDs on shared chatrooms to see who's talking to each other, the SIO tweeted, noting "For mainland Chinese users, this is troubling."

The SIO researchers said they found metadata from a Clubhouse room "being relayed to servers we believe to be hosted in" the People's Republic of China, and found that audio was being sent to "to servers managed by Chinese entities and distributed around the world." Since Agora is a Chinese company, it would be legally required to assist the Chinese government locate and store audio messages if authorities there said the messages posed a national security threat, the researchers surmised...

The company told SIO that it was going to roll out changes "to add additional encryption and blocks to prevent Clubhouse clients from ever transmitting pings to Chinese servers" and said it would hire an external security firm to review and validate the updates.

Peter Daszak is part of the World Health Organization's 14-member team investigating the origins of the coronavirus. This weekend on Twitter he described "explaining key findings of our exhausting month-long work in China" to journalists — only to see team members "selectively misquoted to fit a narrative that was prescribed before the work began."

Daszak was responding to a New York Times article which painted China as uncooperative for failing to hand over some raw data. But ironically, the next day the Times published a longer interview they'd done with Daszak, which acknowledges that Daszak "said that the visit had provided some new clues..."

The Times had even specifically asked him if China's attitude made their work difficult, to which Daszak had explicitly answered: no. "You've got a task to do. You've volunteered. You know what it's going to be like. You get caught up in the historical importance. I don't know if we were the first foreigners to walk around the Huanan seafood market, which is blocked off even to Chinese citizens. The only people that have been in there have been the Chinese disease investigators. We met with the doctors that treated the first known Covid patients."
The Times also asked if they'd learned anything they didn't know before. Daszak's response: From Day 1, the data we were seeing were new that had never been seen outside China. Who were the vendors in the Huanan seafood market? Where did they get their supply chains? And what were the contacts of the first cases? How real were the first cases? What other clusters were there? When you asked for more, the Chinese scientists would go off, and a couple of days later, they've done the analysis, and we've got new information. It was extremely useful.
The team also learned how extensively China's disease-control center had investigated the Wuhan market: They'd actually done over 900 swabs in the end, a huge amount of work. They had been through the sewage system. They'd been into the air ventilation shaft to look for bats. They'd caught animals around the market. They'd caught cats, stray cats, rats, they even caught one weasel. They'd sampled snakes. People had live snakes at the market, live turtles, live frogs. Rabbits were there, rabbit carcasses... Animals were coming into that market that could have carried the coronavirus. They could have been infected by bats somewhere else in China and brought it in. So that's clue No. 1... Some of these are coming from places where we know the nearest relatives of the virus are found. So there's the real red flag...

There were other markets. And we do know that some of the patients had links to other markets. We need to do some further work, and then the Chinese colleagues need to do some further work...

What is the next step?

For the animals chain, it's straightforward. The suppliers are known. They know the farm name; they know the owner of the farm. You've got to go down to the farm and interview the farmer and the family. You've got to test them. You've got to test the community. You've got to go and look and see if there are any animals left at any farms nearby and see if they've got evidence of infection, and see if there is any cross-border movement.
The Times' interview begins by specifically acknowledging Daszak's statement about new information obtained on the visit, "which all of the scientists, Chinese and international, agreed most likely pointed to an animal origin within China or Southeast Asia.

"The scientists have largely discounted claims that the virus originated in a lab, saying that possibility was so unlikely that it was not worth further investigation."

Friday the New York Times (following up on reports from the Wall Street Journal) wrote that China had "refused to hand over" important raw data to a 14-member World Health Organization team investigating the origins of the coronavirus, reporting that "their Chinese counterparts were frustrated by the team's persistent questioning and demands for data."

But Saturday two of those 14 team members disputed that characterization, posting on Twitter that "This was NOT my experience" — even though the Times had quoted both of them to support its article.

First Peter Daszak, president of the U.S. national science academy's microbial threats forum, weighed in. "As lead of animal/environment working group I found trust and openness with my China counterparts. We DID get access to critical new data throughout. We DID increase our understanding of likely spillover pathways. New data included env. & animal carcass testing, names of suppliers to Huanan Market, analyses of excess mortality in Hubei, range of covid-like symptoms for months prior, sequence data linked to early cases & site visits w/ unvetted live Q&A etc. All in report coming soon!"

Then Thea Kølsen Fischer, a Danish epidemiologist on the team, tweeted that the Times hadn't accurately described her experience either. "We DID build up a good relationship in the Chinese/Int Epi-team! Allowing for heated arguments reflects a deep level of engagement in the room. Our quotes are intendedly twisted casting shadows over important scientific work."

Daszak reappeared to respond to her tweet, writing "Hear! Hear! It's disappointing to spend time with journalists explaining key findings of our exhausting month-long work in China, to see our colleagues selectively misquoted to fit a narrative that was prescribed before the work began. Shame on you @nytimes!"

Ironically, the next day the Times published a longer interview they'd done with Daszak, which acknowledges that Daszak "said that the visit had provided some new clues..."

The Times had even specifically asked him if China's attitude made their work difficult, to which Daszak explicitly had answered: no.

"Investigators from the World Health Organization (WHO) looking into the origins of coronavirus in China have discovered signs the outbreak was much wider in Wuhan in December 2019 than previously thought," reports CNN, "and are urgently seeking access to hundreds of thousands of blood samples from the city that China has not so far let them examine." The lead investigator for the WHO mission, Peter Ben Embarek, told CNN in a wide-ranging interview that the mission had found several signs of the more wide-ranging 2019 spread, including establishing for the first time there were over a dozen strains of the virus in Wuhan already in December. The team also had a chance to speak to the first patient Chinese officials said had been infected, an office worker in his 40s, with no travel history of note, reported infected on December 8.

The slow emergence of more detailed data gathered on the WHO's long-awaited trip into China may add to concerns voiced by other scientists studying the origins of the disease that it may have been spreading in China long before its first official emergence in mid-December.

Embarek, who has just returned to Switzerland from Wuhan, told CNN: "The virus was circulating widely in Wuhan in December, which is a new finding."

The WHO food safety specialist added the team had been presented by Chinese scientists with 174 cases of coronavirus in and around Wuhan in December 2019. Of these 100 had been confirmed by laboratory tests, he said, and another 74 through the clinical diagnosis of the patient's symptoms. Embarek said it was possible this larger number — of likely severe cases that had been noticed by Chinese doctors early on — meant the disease could have hit an estimated 1,000-plus people in Wuhan that December. "We haven't done any modeling of that since," he said. "But we know ...in big ballpark figures... out of the infected population, about 15% end up severe cases, and the vast majority are mild cases."

Slashdot reader b-dayyy quotes the Linux Security blog: What if you could block connections to your network in real-time from countries around the world such as Russia, China and Brazil where the majority of cyberattacks originate? What if you could redirect connections to a single network based on their origin? As you can imagine, being able to control these things would reduce the number of attack vectors on your network, improving its security. You may be surprised that this is not only possible, but straightforward and easy, by implementing GeoIP filtering on your nftables firewall with GeoIP for nftables.

GeoIp for nftables is a simple and flexible Bash script released in December of 2020 designed to perform automated real-time filtering using nftables firewalls based on the IP addresses for a particular region. In a recent interview with LinuxSecurity researchers, the project's lead developer Mike Baxter explained the mission of GeoIP for nftables, "I hope this project is beneficial to those who may not have the IT budget or resources to implement a commercial solution. The code runs well on servers, workstations and low-power systems like Raspberry Pi. The script has the built-in ability to flush and refill GeoIP sets after a database update without restarting the firewall, allowing servers to run uninterrupted without dropping established connections."

This article will examine the concept of GeoIP filtering and how it could add a valuable layer of security to your firewall, and will then explore how the GeoIP for nftables project is leveraging Open Source to provide intuitive, customizable GeoIP filtering on Linux.

Thelasko shared this report from the BBC: A steady decline in the levels of ozone-harming CFC chemicals in the atmosphere has resumed, scientists say. This follows a recent, dangerous pause in that downward trajectory, which could have slowed the healing of Earth's protective ozone layer.

Atmospheric measurements published in 2018 pointed to illegal CFC production that was occurring in Eastern China. Stopping that production appears to have set the ozone layer's healing process back on track... The conclusions of a chemistry-based detective story, based on work carried out over several years by an international team of researchers, are published in two papers in the journal Nature... Further detective work in China by the Environmental Investigation Agency (EIA) — and by environmental journalists — found that the chemical was being used in the majority of polyurethane insulation foam that was being produced by firms in the region.

The scientists stressed that the scale of this illegal production may never be revealed in full. But this combination — of chemistry, investigative journalism and enforcement of the Montreal Protocol, the researchers say, has avoided significant delays to the healing of the ozone layer.
Dr. Luke Western, an atmospheric scientist at the University of Bristol, tells the BBC that now "later this century we should see recovery of the ozone layer back to levels that we saw in 1980."

When Tim Cook told an interviewer that Apple wouldn't get in a Facebook-style data-collection controversy, "Mr. Zuckerberg shot back that Mr. Cook's comments were 'extremely glib' and 'not at all aligned with the truth,'" reports the Wall Street Journal.

But "In private, Mr. Zuckerberg was even harsher. 'We need to inflict pain,' he told his team, for treating the company so poorly, according to people familiar with the exchange." It wasn't the first time — or the last — that Mr. Cook's comments and actions would leave Mr. Zuckerberg seething and, at times, plotting to get back at Apple...

Apple has positioned itself as the protector of digital privacy, upholding a greater good, while often leveling criticisms at Facebook's business model — without naming the company. All of that grates on Facebook, which sees Apple as overreaching in a way that threatens Facebook's existence, and hypocritical, including by doing extensive business is China where privacy is scarce. A 2017 attempt to address tensions through a face-to-face meeting between the two CEOs resulted in a tense standoff.

The trigger last month was a new privacy tool the iPhone maker plans to roll out that will further restrict Facebook's ability to collect data. Mr. Zuckerberg accused Apple on an earnings call of using its platform to interfere with how Facebook apps work. Mr. Cook, without naming Facebook, delivered an online speech condemning "conspiracy theories juiced by algorithms" — a jab that came just days after the Capitol riot.

At stake is how the internet will evolve and which companies will dominate it. Facebook and Apple's visions are diverging and increasingly incompatible. Facebook wants to capture and monetize eyeballs on every possible device and platform. Apple wants to draw users to its own hardware-centric universe, partly by marketing itself as a privacy-focused company. The outcome of the battle could affect what kinds of information users see when they browse the internet.

The war of words and ideas will ultimately play out in court, regulatory agencies and user decisions as both companies defend themselves against antitrust investigations. The potential regulatory settlements and legal decisions are likely to affect hundreds of millions of consumers' phones in coming years.
The Journal describes Zuckerberg as "a hacker-turned-Harvard-dropout who once touted the end of privacy as a social norm," and notes that Facebook assisted Epic in its lawsuit against Apple with supporting materials and documents, and "placed full-page ads on the matter in several newspapers, including the Journal. 'We're standing up to Apple for small businesses everywhere,' the ads said...."

"Some people familiar with Mr. Zuckerberg's thinking said he has taken Apple's broadsides personally, running the risk of distracting him at a time when Facebook is fighting many other battles in the U.S. and abroad over antitrust and content moderation..."

"Privately, he and other Facebook employees have been waging a campaign against Apple, asserting in meetings and communications with government officials, antitrust regulators and advertisers that the company is abusing its power and deserves more regulatory scrutiny, according to people familiar with the matter."

Scientific researchers worry that the capacity for spreading misinformation "goes far beyond the big-name social media sites," warns the Washington Post. Citing pre-print servers and unvetted "research repositories," they note that "Any online platform without robust and potentially expensive safeguards is equally vulnerable." "This is similar to the debate we're having with Facebook and Twitter. To what degree are we creating an instrument that speeds disinformation, and to what extent are you contributing to that?" said Stefano M. Bertozzi, editor in chief of the MIT Press online journal "Rapid Reviews: COVID-19...." Bertozzi added, "Most scientists have no interest in getting in a pissing match in cyberspace..."

Nonscientists also scan preprint servers for data that might appear to bolster their pet conspiracy theories. A research team led by computer scientist Jeremy Blackburn has tracked the appearance of links to preprints from social media sites, such as 4chan, popular with conspiracy theorists. Blackburn and a graduate student, Satrio Yudhoatmojo, found more than 4,000 references on 4chan to papers on major preprint servers between 2016 and 2020, with the leading subjects being biology, infectious diseases and epidemiology. He said the uneven review process has "lent an air of credibility" to preprints that experts might quickly spot as flawed but ordinary people wouldn't.

"That's where the risk is," said Blackburn, an assistant professor at Binghamton University. "Papers from the preprint servers show up in a variety of conspiracy theories...and are misinterpreted wildly because these people aren't scientists..."

[The executive director of ASAPbio, a nonprofit group that pushes for more transparency and wider use of preprint servers], added, in general, "Preprint servers do not have the resources to be arbiters of whether something is true or not."
MIT Press's new "Rapid Reviews: COVID-19" journal recently appended a scathing editor's note to its critique of articles that had been published on pre-print servers.

"While pre-print servers offer a mechanism to disseminate world-changing scientific research at unprecedented speed, they are also a forum through which misleading information can instantaneously undermine the international scientific community's credibility, destabilize diplomatic relationships, and compromise global safety."

Some of the world's largest technology companies are complaining to U.S. antitrust regulators about Nvidia's acquisition of Arm because the deal will harm competition in an area of the industry that is vital to their businesses. Alphabet's Google, Microsoft and Qualcomm are among companies worried about the $40 billion deal and are asking antitrust officials to intervene, Bloomberg News reported Friday, following up on CNBC's report from earlier today that talked only about Qualcomm's efforts. At least one of the companies wants the deal killed, Bloomberg added. From the report: The acquisition would give Nvidia control over a critical supplier that licenses essential chip technology to the likes of Apple, Intel, Samsung Electronics, Amazon.com and China's Huawei Technologies. U.K.-based Arm is known as the Switzerland of the industry because it licenses chip designs and related software code to all comers, rather than competing against semiconductor companies. The concern is that if Nvidia owns Arm, it could limit rivals' access to the technology or raise the cost of access.

Chinese authorities refused to provide World Health Organization investigators with raw, personalized data on early Covid-19 cases that could help them determine how and when the coronavirus first began to spread in China, according to WHO investigators who described heated exchanges over the lack of detail. The Wall Street Journal: The Chinese authorities turned down requests to provide such data on 174 cases of Covid-19 that they have identified from the early phase of the outbreak in the Chinese city of Wuhan in December 2019. The investigators are part of a WHO team that this week completed a monthlong mission in China aimed at determining the origins of the pandemic. Chinese officials and scientists provided their own extensive summaries and analysis of data on the cases, said the WHO team members. They also supplied aggregated data and analysis on retrospective searches through medical records in the months before the Wuhan outbreak was identified, saying that they had found no evidence of the virus. But the WHO team wasn't allowed to view the raw underlying data on those retrospective studies, which could allow them to conduct their own analysis on how early and how extensively the virus began to spread in China, the team members said. Member states typically provide such data as part of WHO investigations, said team members.

U.S. chipmaker Qualcomm has told regulators around the world that it is against Nvidia's $40 billion acquisition of British chip designer Arm, CNBC reported Friday, citing sources familiar with the matter. From the report: The company has told the Federal Trade Commission, the European Commission, the U.K.'s Competition and Markets Authority and China's State Administration for Market Regulation that it has concerns about Nvidia buying Arm, which is currently owned by Japanese tech giant SoftBank. The FTC's investigation has moved to a "second phase" and the U.S. regulator has asked SoftBank, Nvidia and Arm to provide it with more information, according to two sources who are familiar with the deal but wished to remain anonymous due to the private nature of the discussions. Complying with the information request is likely to take many months as several large documents will need to be produced, the sources said. During the second phase, the FTC will also engage with other companies who may have relevant information that could help it to make a decision, they added.

The Chinese cable channel CGTN may no longer broadcast in Germany, a press spokesperson for the state media authority of Northrhine-Westphalia confirmed to DW on Friday. From a report: The news came after the UK broadcasting regulator Ofcom revoked the channel's license on February 4. According to an agreement among several European countries, CGTN's license in Germany had been approved by Ofcom as part of a license sharing initiative. With the Ofcom license revoked, CGTN has been left without permission to broadcast in Germany. Vodafone Germany also reported on Friday that it had "paused" distribution of the channel over its cable network in Nordrhine-Westphalia, Hesse und Baden-Wurttemberg, according to Reuters. "We are currently in discussions regarding the withdrawal of the license both with regional media authorities and the broadcaster's representatives in order to clarify the legal situation," the company said.

Supermicro chips and software were tampered with by Chinese operatives in the past decade, Bloomberg reported Friday, doubling down on its 2018 report that was widely disputed by several tech giants and government agencies. Today's report says that U.S. security and defense officials knew of the hack but kept it secret in an effort to learn more about China's hacking capabilities. From the report: Bloomberg Businessweek first reported on China's meddling with Supermicro products in October 2018, in an article that focused on accounts of added malicious chips found on server motherboards in 2015. That story said Apple and Amazon.com had discovered the chips on equipment they'd purchased. Supermicro, Apple and Amazon publicly called for a retraction. U.S. government officials also disputed the article.

With additional reporting, it's now clear that the Businessweek report captured only part of a larger chain of events in which U.S. officials first suspected, then investigated, monitored and tried to manage China's repeated manipulation of Supermicro's products. Throughout, government officials kept their findings from the general public. Supermicro itself wasn't told about the FBI's counterintelligence investigation, according to three former U.S. officials. The secrecy lifted occasionally, as the bureau and other government agencies warned a select group of companies and sought help from outside experts. Some stories from 2018 that capture the reaction of the industry to Bloomberg's earlier piece:

Amazon Has Pulled Ads From Bloomberg Over Controversial 'Big Hack' Chinese Spy Story; Apple Has Not Invited Outlet's Reporters To a Product Event;
In an Unprecedented Move, Apple CEO Tim Cook Calls For Bloomberg To Retract Its Chinese Spy Chip Story;
Bloomberg is Still Reporting on Challenged Story Regarding China Hardware Hack.

The U.S. Postal Service on Thursday unveiled a new postage stamp honoring Chien-Shiung Wu, a trailblazing Chinese American nuclear physicist whose myriad accomplishments earned her the nickname "the First Lady of Physics." From a report: The stamp's release was timed to coincide with the International Day of Women and Girls in Science, an annual event that was established by the United Nations General Assembly in 2015 to celebrate female scientists and promote equal access for women and girls in science and technology. Kristin Seaver, executive vice president of the Postal Service, called Wu "one of the most influential nuclear physicists of the 20th century." Wu "made enormous contributions to our understanding of radioactivity and the structure of the universe," Seaver said Thursday in a taped virtual ceremony to mark the stamp's first day of issue.

Wu was born in China in 1912 and moved to the United States at the age of 24. She received a doctorate from the University of California, Berkeley. Wu is best known for her experiments in the 1950s on a quirky but fundamental property in physics known as parity symmetry. Physicists at the time thought that processes in the real world -- basic interactions such as electromagnetism, for instance -- should be indistinguishable when those same processes are viewed in a mirror. In other words, while a mirror may interchange left and right, it was thought that nature did not distinguish between the two.

British television channel BBC World News has been barred from airing in China, the National Radio and Television Administration said, a week after Britain's media regulator revoked Chinese state television's broadcast licence. From a report: In a statement issued on the stroke of the Lunar New Year, the administration said an investigation found BBC World News' China-related reports had "seriously violated" regulations, including that news should be "truthful and fair," had harmed China's national interests and undermined national unity.

A Chinese spacecraft went into orbit around Mars on Wednesday on an expedition to land a rover on the surface and scout for signs of ancient life, authorities announced in a landmark step in the country's most ambitious deep-space mission yet. From a report: The arrival of Tianwen-1 after a journey of seven months and nearly 300 million miles (475 million kilometers) is part of an unusual burst of activity at Mars: A spacecraft from the United Arab Emirates swung into orbit around the red planet on Tuesday, and a U.S. rover is set to arrive next week. China's space agency said the five-ton combination orbiter and rover fired its engine to reduce its speed, allowing it to be captured by Mars' gravity. "Entering orbit has been successful ... making it our country's first artificial Mars satellite," the agency announced. The mission is bold even for a space program that has racked up a steady stream of achievements and brought prestige to China's ruling Communist Party.

Microsoft Chief Executive Officer Satya Nadella said social-media services like Facebook, Twitter and YouTube need clearer laws and rules to govern whether controversial accounts, like former U.S. President Donald Trump's, have a place on their services, rather than being asked to make free-speech decisions themselves. From a report: "Unilateral action by individual companies in democracies like ours is just not long-term stable -- we do need to be able to have a framework of laws and norms," Nadella said in a wide-ranging interview with Bloomberg Television's Emily Chang. "Depending on any one individual CEO in any one of these companies to make calls that are going to really help us maintain something as sacred and as important as our democracy in the long run is just no way that at least I, as a citizen, would advocate for."

[...] In the past several years, antitrust regulators have ramped up investigations into the market power of large technology companies, just as Microsoft fell under government scrutiny and faced a U.S. antitrust lawsuit more than two decades ago, when Nadella was a rising manager. It's better for the younger technology companies to face robust competition and handle negative consequences of growing too big ahead of time, rather than waiting until their size leads to problems for consumers and rivals, the CEO said. "Big by itself is not bad, but competition is good," he said. "And more importantly, you need to have a business model that really is aligned with the world doing well. There are certain categories of products where the unintended consequences of the growth on that category or lack of competition creates issues." The need for competition includes rivalry from China, Nadella said, although national security concerns must be reckoned with by each government, Nadella said. "There is no God-given right for U.S. tech companies to take for granted that there cannot be other tech powers," he said. "All of us in the West Coast of the United States need to be more grounded, because sometimes I think we celebrate our own advances far too much." Instead, companies should look at what's happening in the world and how relevant their technology is, he said.

Researchers have discovered new "highly malleable, highly sophisticated" malware from a state-backed Chinese hacker group, according to Palo Alto Network's Unit 42 threat intelligence team. From a report: The malware "stands in a class of its own in terms of being one of the most sophisticated, well-engineered and difficult-to-detect samples of shellcode employed by an Advanced Persistent Threat (APT)," according to Unit 42. The malware, which Unit 42 has dubbed "BendyBear," bears some resemblance to the "WaterBear malware family" (hence the bear in the name), which has been associated with BlackTech, a state-linked Chinese cyber spy group, writes Unit 42. Background: BlackTech has been active since at least 2013, according to Symantec researchers. BlackTech has historically focused chiefly on intelligence targets in Taiwan, as well as some in Japan and Hong Kong. The group has targeted both foreign government and private-sector entities, including in "consumer electronics, computer, healthcare, and financial industries," said researchers with Trend Micro. Trend Micro also previously assessed that BlackTech's "campaigns are likely designed to steal their target's technology."

TikTok's forced sale to Walmart and Oracle has been shelved indefinitely as the Biden administration takes on a broad review of national security risks posed by Chinese technology companies initiated under his predecessor, according to the Wall Street Journal. From a report: Former U.S. President Donald Trump had ordered the popular video app, which is owned by China's ByteDance, be sold to an American company last year, citing national security concerns about users' data falling into the hands of Chinese authorities. But multiple legal challenges held up a deal. The most recent ruling on Dec. 7 said Trump's executive order likely overstepped his authority. Discussions have continued between ByteDance and U.S. security officials at the Committee on Foreign Investment in the U.S., the Journal reported citing people familiar with the talks. One of the people said possible solutions include use of a trusted third party to manage TikTok's data, which wouldn't require an outright sale. But no decision on how to resolve the issues is imminent as the Biden administration undertakes its own assessment of the risks of Chinese technology companies and data collection.

An anonymous reader quotes a report from TechCrunch: Tesla's $1.5 billion investment in Bitcoin may be good for Elon Musk, but it's definitely risky for the company that made him the world's richest man, according to investors, analysts and money managers at some of the country's largest banks. As a standard bearer for the consumer electric vehicle industry and the broader climate tech movement rallying around it, Tesla's bet to go all in on crypto could damage its climate bona fides and its reputation with customers even as other automakers pour in to the EV market. Given Bitcoin's current environmental footprint, the deal flies in the face of Tesla's purported interest in moving the world to cleaner sources of energy and commerce. Until the energy grid decarbonizes in places like Russia and China, mining bitcoin remains a pretty dirty business (from an energy perspective), according to some energy investors who declined to be identified because they were not authorized to speak about Musk's plans.

"We were talking about people doing this in Russia back in 2018 and how they were tapping coal power to run their mining operations," one investor said. "The cost per transaction from an energy intensity standpoint has only gotten more intense. I don't see how those things coalesce, climate and crypto." The stake makes Tesla one of the largest corporate holders of Bitcoin but represents a massive portion of the company's $19 billion in cash and cash equivalents on hand. "Given the size of their treasury it feels irresponsible, IMO," wrote one investor whose firm backed Tesla from its earliest days. The company's move could be seen as another example of the absurdity of U.S. capital markets in today's investment climate -- and the underlying cynicism of some of its biggest beneficiaries. "The announcement that Tesla has diversified its treasury through the addition of bitcoin is not surprising, nor is the assuredness implied by an 8% allocation of cash-on-hand. Equal to Tesla's R&D expenditure for 2020, this investment is significant to the Company and shows a commitment to maximizing shareholder returns," wrote Stillmark founding partner Alyse Killeen. "Elon Musk has a long history of operating at the precipice of what's possible technically and setting the trend of what's to later become common operationally. I suspect the same will be true here, and that Tesla is the first of a larger cohort of publicly-traded companies that will aim to optimize the returns of their cash via bitcoin."