Company Locations and Facilities
We have three locations:
1) A residential office, with 3,000 MH/s of capacity. Upgradable and expandable.
2) 2,000 SF class A office space with 3,000 MH/s of capacity. Nearly maxed out on capacity.
3) 3.500 SF class A office space with 4,500 MH/s of capacity. Large additional capacity.
Sorry if this was answered and I assume its included in your 'expenses by BTC' but can we get a breakdown of your electricity cost per KWH at each of these locations and a total average of what that is and what it will be at the start of the next month for all facilities combined? Do you forsee this cost going up or down with any change of contract for the electricty at any or all of the facilities? Cheers We are not giving out a breakdown of the cost per location, but electricity rates are .08 per kw at residential, and .06 at the offices. |
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Are you sure your production numbers are correct? I'm producing half of what you are producing and I only invested $2000 in hardware. I thought the point of a corporation is to take advantage of the economies of scale.
Great observation. We did not hit our current 10,000 MH/s until early this month. I expect that our September production will be close to 175 BTC. |
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Yes, it totally goes against everything this community stands for.
1. Create a post about my 'business'
2. Collect coins
3. ?
Looks like we have another addition to the bitcoin 'business' dead pool. My money is on one week until they disappear with investor's money. I will take that bet. How much? |
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I have recieved a great response about BitCO. We have lined up several investors, and are really looking forward to being a part of a legitimate Bitcoin business.
If anyone is still interested, and has not contacted us yet, we are still looking for a couple more investors for this first round of share sales.
Thanks to all those who have provided feedback and given us suggestions.
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I like the proposal.
Can you estimate how much capacity space you have at all three locations.
Do you have any photos of your rigs / datacenter?
What is the company cost to rent/occupy the three locations?
We are fairly confident we can expand to 15 GH/s before we run into issues. We do have photos, and will share them with serious potential investors who show interest. On the cost of occupancy....we have co-located our miners in space already in use for our other ventures (read: we have other business'). Thus we are not charging BitCO for physical space, as we would be charging ourselves. Going forward, we do not plan on charging for occupancy. |
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BitCO currently has 1,000 shares outstanding, and no more will be issued. We would like to sell 100 shares initially, Huh  It it has 1000 shares already outstanding and no more will be issued then how are you selling 100 shares? Is the company selling shares (to raise capital for the company) or is an existing shareholder selling their shares (no capital to company, merely ownership change). Maybe it is just the wording but I read it a couple times and kept coming back to Sorry about the confusion. Current shareholders are selling, this is not a capital raise. Shares outstanding will stay at 1,000, but ownership will now be split 90% to me and my CTO, 10% to outside investors. |
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For those of you interested in making an investment, please get in touch with me through a PM. We can discuss details as well as determine an appropriate initial stake.
I will probably re-post my business plan on a new thread to facilitate further interest.
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What's the long term capital asset? The amount of cash you have on reserve? Hardware/equipment cost?
The long term capital assets consist entirely of BitCO's hardware. Cash (on reserve) is held entirely in BTC and is listed in short term assets. 7.5k of hardware is hashing out 10 gh? That is impressive considering the hardware is well protected. I had 8 workstations with 2 open PCIx slots each. I did not count the sunk cost of the workstations in the capital assets. Hope that makes a little more sense. |
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What's the long term capital asset? The amount of cash you have on reserve? Hardware/equipment cost?
The long term capital assets consist entirely of BitCO's hardware. Cash (on reserve) is held entirely in BTC and is listed in short term assets. |
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I'm wondering how many total shares there will be (yours included) and how much each share will cost for the initial investment? Just got a work bonus so I'm in a position to invest.
We currently have 1,000 shares outstanding (and will issue no more). I own the majority of those shares, my CTO owns the remainder. We are willing to sell 100 of these shares to angel investors at a annual yield of 15%. This would translate into a per share price of 8 BTC. Each share would initially pay monthly dividends of .1 BTC, with room for increases as seen fit. |
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So how would you handle dividends and share ownership? Would you keep a record of all shareholders + their bitcoin addresses, and each time a trade is made they register it with you?
I was thinking about this. At first I would do exactly as you suggest. I would keep the record of the 5-10 original shareholders as well as their information if they choose to share more than their address. When more shares are issued, I will probably have to explore listing on an exchange. If I feel I can handle the record keeping for 50-75 shares, I might continue handling it "in house". I am thinking something like daily clearing would be adequate....just process any daily trades once nightly and update my records accordingly. I would like to restrict trading for the first few months, ie, a lock-up period in order to prove the company is viable before creating a market for the shares. |
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will this be offered on glbse.com?
I really don't think I want to go that route. I am considering offering shares on the forum. Originally I would like to find 5 "angel" investors that are interested. After several months of successful operations, they will be able to give an assessment to the forum. If they are thrilled with their investment and the ROI is has had, then I believe more people will want in. My end goal is to create a market for the shares that can be freely traded amongst the BTC community. |
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If you produce a professional quality business plan for this, such as I would expect from a "real world" investment opportunity, which demonstrates to me you are serious and competent, I pledge to match whatever Peter L initially invests in you up to the BTC equivalent of £250.
If you deliver ~10% annual return over the first 6 months of operation, I'll double my investment. If you deliver ~10% annual return over the next 6 months, I'll double my investment again.
I want Bitcoin to succeed and I will put my hard earned money where my mouth is.
If you can offer me three verifiable examples of your solid reputation via sites such as Ebay etc ... I will double the investment pledges made above.
Feel free to PM me.
Ben, here is the business plan. Executive SummaryThrough superior management, effective leveraging of technology and a focus on results, BitCorp Mining Company (BitCO) will become the pre-eminent commercial Bitcoin Miner. Objectives1. Increase mining capacity when cost effective, up to 15 GH/s. 2. Generate sufficient excess BTC to pay a stable and generous dividend. 3. Develop a well informed, financially savvy investor base. MissionBitCorp is built on the assumption that there is a distinct lack of trustworthy and responsible Bitcoin mining businesses. We aim to change that perception by being unquestionably trustworthy and responsible, while also displaying the utmost professional ability. Our number one priority is our shareholders. To that end, we strive to create value through honest dealing and solid dividend payments. Keys to Success1. Differentiate from fly-by-night operators. 2. Build solid reputation that makes investors want to get involved. 3. Increase share price through consistent and unfailing monthly dividends. ________________________________________ Company SummaryBitCo is a mature organization with stable operations. Through our network of 26 miners, we are able to maintain a stable mining capacity of 10 GH/s. Our technical know-how allows us to achieve fantastic up-time with few unplanned outages. Our cost structure is very low due to favorable cooling methods as well as very cheap electricity. Company OwnershipBitCO is currently majority owned by its founder, with a minority stake being held by our CTO. No other individuals currently have an ownership stake. Company HistoryBitCO has been successful in BTC mining from its very first day of operation. Started in February of 2011, BitCO has grown organically to its current size. Past Performance June July Aug Production (in BTC) 63.7 85.9 121.35 Operating Expenses (in BTC) 31.5 45.2 55.6 Free BTC flow 32.2 40.7 65.75 Balance Sheet: AugustShort-term Assets Cash: BTC 127.55 Accounts receivable: BTC 80 Total Short-term Assets: BTC 207.55 Long-term Assets Capital Assets: $7,502 Total Long-term Assets: $7,502 Total Assets: $7,502 Company Locations and FacilitiesWe have three locations: 1) A residential office, with 3,000 MH/s of capacity. Upgradable and expandable. 2) 2,000 SF class A office space with 3,000 MH/s of capacity. Nearly maxed out on capacity. 3) 3.500 SF class A office space with 4,500 MH/s of capacity. Large additional capacity. Products and ServicesBitCO engages in 2 lines of business. The primary business activity is the mining of Bitcoin. The secondary business is the occasional selling of a mining contract to 3rd parties. When management finds it advantageous, they engage in mining contracts that are short-term in nature and encompass a portion of BitCO’s capacity. Competitive ComparisonBitCO has built a cutting edge, highly reliable network of miners. Our operations are not what you would find in a garage of a teenager stealing their parents electricity. All of our machines are state of the art, properly cooled, and adequately protected from the elements (read: no naked motherboards lying on boxes). Main CompetitorsThere are currently several mining companies already is existence, but we do not view them as competitors. Namely, since we are not competing for customers of a product, but merely mining a commodity, we do not compete. That being said, we aim to be the pre-eminent investment opportunity in the Bitcoin mining community for the reasons stated above. Strategy and Implementation SummaryOur strategy is to continue to operate professionally, and provide great returns to our shareholders. We would like to broaden ownership of BitCO in order to both unlock value, as well as broaden the investment opportunities available for BTC. We plan to implement our strategy with a private placement of a small number of shares to interested parties that meet our criteria. |
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If you produce a professional quality business plan for this, such as I would expect from a "real world" investment opportunity, which demonstrates to me you are serious and competent, I pledge to match whatever Peter L initially invests in you up to the BTC equivalent of £250.
Umm, why are you basing your investment on my investment? (I didn't actually say I would invest yet ...) It is nice to see people trust my judgement though  jjimm: The 1 Ghs calculation I did was just something I pulled off the top of my head. :/ yochdog: Knowing you are already mining does make it a much more attractive investment than what I first pictured when I read the OP, that you wanted to raise the money and then start the mining. You say you want 10-20 investors (are you still looking for about 500 btc?), would you want everybody to contribute the same, or still have 100 shares to distribute? That means you are looking for each investor to contribute 25-50 bitcoins? Am I getting the math right here? Peter, I am trying to apply a rough Dividend Discount Model approach to pricing the shares. If the gross earnings are 150 BTC per month (it is), they should probably be priced higher than 500 BTC in total. I think the best way to approach the IPO would be to do a Dutch Auction on 50 shares, and retain 50 shares for myself. I would set the dividend at 1 BTC per share, per month with the retained earnings earmarked for maintenence and modest expansion. make sense? |
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If you produce a professional quality business plan for this, such as I would expect from a "real world" investment opportunity, which demonstrates to me you are serious and competent, I pledge to match whatever Peter L initially invests in you up to the BTC equivalent of £250.
If you deliver ~10% annual return over the first 6 months of operation, I'll double my investment. If you deliver ~10% annual return over the next 6 months, I'll double my investment again.
I want Bitcoin to succeed and I will put my hard earned money where my mouth is.
If you can offer me three verifiable examples of your solid reputation via sites such as Ebay etc ... I will double the investment pledges made above.
Feel free to PM me.
Ben, I really appreciate the feedback. I will be looking into writing a business plan.....if and when it is completed, I will be reaching out to you. As for examples of my reputation, I can offer 2 for now: My Ebay profile can be found under Yochdog, and my Bitcoin rep can be verified on this thread: https://bitcointalk.org/index.php?topic=41888.0Thanks! |
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How will you differentiate yourself from the other publicly traded mining operations, Skepsidyne (SIN), Smokey Mountain Mining (SMM), BlockMiners (BMMO), Shades Minoco (SDM), Dishwara (DISHWARA), etc?
I am unfamiliar with the companies you listed (I will go take a look). Do they currently pay dividends? SIN gives weekly dividends that come about every two weeks. SMM has been giving daily dividends. BMMO gives monthly dividends, but they started in the past couple weeks so the first payment has not gone out yet. SDM initially said dividends every 6 months, but they are considering moving to monthly paymetns, they also just started. Dishwara gave dividends a couple times before crashing. Interesting.... I think I need a private placement. Just find 10-20 investors who want in without dealing with a 3rd party. |
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Indeed, this is how all of them were supposed to start, not rise capital from $0. Though i still think its not a good idea, although the idea itself is far superior to the existing GLBSE scams.
Good luck anyway.
Could you elaborate on why you still think it is a bad idea? Simply trust and verification issues? Or is the business plan flawed in your mind? thanks! |
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Let's assume for a moment the following entity exists: BitCorp Mining CompanyBitcorp Mining Company (BitCO) owns and operates an extensive network of Bitcoin miners. The main priority of BitCO is to ensure seemless operation of its current capacity, while strategically growing capacity when cost effective. BitCO generates revenue through the production of BTC, as well as signing an occasional mining contract. BitCO incures expenses from electricity usage, expansion of operations, and maintenence. Currently, BitCO generates more BTC per month than are need for expansion, thus has significant free BTC flow. I thought putting this in my original post would get the point across......my apologies on being vaugue. I already have 10,000 MH/s, and I can probably take that to 15,000 MH/s before I run into problems. I already sell mining contracts, and am a very reliable and trustworthy business partner. see here: https://bitcointalk.org/index.php?topic=41888.0I think it might actually be more efficient to sell shares in my operation rather than sell mining contracts continually. |
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How will you differentiate yourself from the other publicly traded mining operations, Skepsidyne (SIN), Smokey Mountain Mining (SMM), BlockMiners (BMMO), Shades Minoco (SDM), Dishwara (DISHWARA), etc? Can you give details of how you would do a dutch auction on the stock? You say you would start with 100 shares x 5 btc = 500 btc, at current market rate = 2500 USD. That would get you what, 1 Ghs mining power? I think a company dedicated to mining would have to start bigger. You say you already have a company, what type of company is it? Would running a mining operation interfere - could you do both successfully? (I'm just getting you warmed up, bitcoin investors have learned to be pretty brutal trying to get down to who runs each company, we don't want to get scammed ) Hey there Peter. Thanks for the response....this is what I appreciate. Concise comments without the snarky comments and condescending undertone. I am unfamiliar with the companies you listed (I will go take a look). Do they currently pay dividends? Interestingly enough, I already own a 10 GH/s farm. I would not be looking for start-up capital. I think of it more akin to an existing, private company that is looking to go public. Mining does not interfere with my career at all. I don't want to go into detail about what I do....but mining is fairly complimentary as a bolt-on. |
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