The reason we are not basing the investment on Bitcoin is because all the construction and permits and build are in USD.  Also most investors outside of the Bitcoin arena only deal in USD.

Although we did state that investor could receive their earning in Bitcoin.


Can you clarification please, as I think there might be a slight misunderstanding.

Yes we are looking into 16nm ASIC.  We are currently under 3 different NDA in our discussions regarding the 16nm. 

Our desire is to use 16nm even for the prototype, but might have to go with 28nm for the Proof of Concept.
Needless to say the faster we are up the better, because of the halving.

Everyone has the same issue with difficulty unless they add more mining equipment.  Also we have a strategic advantage because of our low power cost.

Additionally, we are looking to explore other locations in the area with 1+ megawatt of power to grow our operations.


We are not basing return on bitcoin, but USD at this time.  The 6000 BTC is just an estimate for $2.1M as stated in our original posting.

We have been talking with investors to do the full 20 megawatts of mining, but are requesting a Proof of Concept first.

How long the return takes will depend on several factors.

How soon we can find an investor(s) to complete our overall project.  Our plans include the reimbursement of initial investors, as our business plan includes payback to initial investors for the prototype investment.

How much mining percentage we actually achieve.  As you know, the hash-rate has been climbing, which in turn lowers our chances of mining a block.

Our goal is to have an investor before the end of the year. Otherwise, with the halving coming soon, our estimate is 24 months.

(To fully understand the return on your investment you would need to sign an NDA with CBM).


Our capital contribution is bringing the land rights and power for the mining operation at no further cost to CBM.  A 21% ownership for 1/20th for a Proof of Concept seems very fair, as we are overseeing all construction and permitting, as well as ongoing maintenance of the mining equipment.

Also, your investment will be returned upon finding investor(s) for the overall project. Your capital contribution should be returned in a relativity short period of time.


Our goal is to raise $2.1M for this stage of our project. Should the bitcoin price change, the number of bitcoin required will also change proportionately.

We have a set price of $100,000 per 1%, and are willing to adjust the percentage of ownership upon actual use of funds. This would be based on the Coinbase price at the time of exchange.

Percentage calculation is easy, as it would be 0.00001% per $1USD.

There was no special negotiated price.  The price is based on corporate rates and power usage from the PUD.  All power expenses have been calculated from a spreadsheet provide to us from the PUD.

The amount you stated is closer to the residential rate for the area.

Please read our posting in the Securities

Columbia Basin Mining, LLC (“CBM”) is a Washington State Limited Liability Corporation, located in Moses Lake, WA.

Our co-founder owns two different parcels of land having access to 10 megawatts of power each. He is giving CBM the land rights so we can have nearly 20 megawatts of power for our mining project.

We also have the possibility to lease property with 13 megawatts.

At this time we are seeking accredited investors to assist in a 1 megawatt prototype build to show a Proof of Concept to potential larger investors.

This initial cost of the prototype will include financing the permits and running power to the property from the substations. This cost alone is estimated at $250K from the Public Utility District (PUD).

With one megawatt of power we should have minimum of 6.0 PH/s (0.6%) of the current hashing rate (1 EH/s).

Our electricity cost with all taxes and fees is $0.0256 kW/h.

The overall build is estimated to cost $2.1M (roughly 6000 BTC based on $350 USD).

We are offering 21% of CBM (or 0.0035% per 1 BTC) investment. All investment funds will be held in a cold wallet (1CBMwaCqYWQriKP73hxD8HeCY9mMGGtfbZ).

Once the investment funds reach 30% of target $630,000 (appox. 1800 BTC) we will start construction on the first 0.20 megawatts of mining.  We estimate this build to be 60 days, after which we’ll add additional mining for every $70,000 (appox. 200 BTC) collected.

Should CBM fail to reach the necessary 30% of target on or before April 15, 2016 all funds will be returned to the investors minus a miner’s fee of 0.0002 BTC.

We will be continuously seeking private placement to complete the full 20 megawatt project, and the return of your initial investment. Your ownership percentage will not be diluted because of the private placement.

CBM revenue is the accumulation of all bitcoin mining between Monday – Sunday in a calendar week (“Mining Week”). The earnings will be based on the gross mining revenue from the “Mining Week”, and the valuation will be determined by the spot price of Bitcoin in USD from CoinBase.com the day following the “Mining Week” at 12:00 PST.

CBM is estimating expenses at 35% of gross mining revenue, and will pay earnings based on net proceeds after mining expenses. All earnings are paid within 10 days following the “Mining Week”, by Company cheque (“check”). The investor may elect to receive bitcoin in lieu of check, but all reimbursement calculations are based in USD as if receiving a check.

The earnings amount is dependent on the percentage of investor’s overall ownership, but anticipating 325% ROI over 4 years.

Multiple investors are also welcome.

If you have questions, please email, private message or Skype us. Some information may require signing a Mutual Non-Disclosure Agreement. We will post all relative questions in this thread along with the answer, as long as it does not violate any vendor’s NDA. If any question needs additional research, please allow us ample time to respond.

Any investor desiring a refund before April 15, 2016 we will be charged 2% fee based on the returned amount.

---

This posting is not a scam, and any such statements and/or unwanted spam posting will be removed.

We were just informed that the farmland has been sold.

We are still seeking accredited investors to implement our business plan.
Please PM if you are interested in knowing more.

Locking this topic since it is no longer needed.

We never intended any confusion, so we need to work on our wording and clarity in the future.


Updated the original posting highlighted in blue.

We are willing to add provisions to investors document (term sheet) to secure a partnership. 

The original posting stated we have an opportunity to secure 80 acres of farmland, that we could use the majority of its available power for bitcoin mining.  Never did we state we owned the land, as we are seeking accredited investors to help procure the land.

Also we never stated we had bids on leasing the land.  We were hypothesizing on how we could benefit from land ownership, and giving examples.  The focus on sharecropping was from your end, and as stated numerous times this practice is not done in our area.

UPDATE:


No it is not two different stories, as we were giving examples what we can do.

We do have a managing partner that farms, and he stated he might be willing to farm the land.

We just want to have multiple solutions should we procure the farmland, as our focus is on the bitcoin mining.

IMHO, having the managing partner farm the land is not a good idea because as you stated it might be a conflict of interest.  We have to make sure the company does what in the best interest of its investors, and not its managing partners.

We hope this clears things up.

If you are talking about the purchase price for the land, the landowner came up with the terms.

The leasing amount was designed by the co-founder whom is a farmer.  

Is the renter family relation to someone in CBM? No, and it would be to the highest bidder.

notlist3d:  Was not trying to avoid any question, just misunderstood what was being asked.  Please accept our apology.

We have managing partners that are already doing small bitcoin mining operation.

We also sent you a PM.

Farmland is not tax exempted.

Columbia Basin Mining is not a farming company, but has a great opportunity to purchase a parcel of land that benefits the company.   Bitcoin mining requires low cost power which we have in the area, and even better is the amount of power available.  

Farmland in this area is highly sought after, and the farming community interacts closely with each other.  The personal relationship between our co-founder and the landowner gives us the opportunity to purchase this farmland before it goes onto the market.  The leasing of the land will be done with all the standard farm leasing documents, and will be leased to the highest bidder to a farmer known by us.

In regards to sharecropping, it may be a good system in your location, however it is not the business model used in our area.  

Renting the ground gives us a positive cash flow, and does not take away from our priority of bitcoin mining.  If we were to farm the land, we take on a higher risk, with huge unwanted expenses that come with farming.  Also the statement “They get all benefits of landownership without buying it.”  is untrue because the lessor takes on all the expenses for farmland management and the health of the soil for the next farming year.

We are creating a company that has added value beyond bitcoin mining.  This farmland gives the company a great asset, as whereas mining equipment has virtual zero asset value in the end.  This also gives the company multiple exit strategies in the future.

We are seeking investors into the bitcoin mining operation, and all this discussion about farming is taking away from our goal.  If you truly value this opportunity, we be more than pleased to provide our business plan upon signing our Mutual Non-Disclosure Agreement.

Columbia Basin Mining (“CBM”) co-founder is from an well established third generation of farmers, so understanding how agronomics work is nothing new.  The following is his position as an active farmer and businessman of 28 years.

Sharecropping is not heard of in our area (Pacific Northwest). 

We have many established farmers that will submit bids on rental rates.  CBM is promoting rental rate as $500/acre conservatively in our pro forma as an amount to count on.  Currently the industry is not on the top or even climbing in profitability margin.  This was a lean year and next year doesn’t show much signs of improving.  Farmers do not win consistently every year.

Sharecroping with a potato grower who has $4000/acre into his crop and then loses $1000/acre due to extreme weather conditions does not create a stable environment for our investors. 

A long term lease (4 years) has two benefits, by:

•   Allowing the farmer to run their rotation and be invested in the health of the soil for the next year.
•   Allows CBM to receive its cash rent at the beginning of each year as it is not in the business to “farm” but produce lucrative returns for its investors.

There are pros and cons to every lease scenario.

We are focused on the bigger picture of Bitcoin Mining.

Farmer is not leaving any equipment.

Equipment is not an issue as Columbia Basin Mining will be executing a long term lease at $500 an acre ($40,000 annually) with an existing farmer in the area.  We could sign an annual lease and choose to “shop” for a different farmer yearly, and perhaps secure a higher rates.  For instance, an annual potato farm lease goes for $800 an acre but can only fall into proper crop rotation once every four years.

In the execution of a long term lease, the leasing farmer will be responsible for his crops and maintain crop conditions standard to common practices to the area.

Executing a leasing agreement with a farmer lets Columbia Basin Mining focus only on the Bitcoin mining aspect of the company while taking advantage of attributes of this property.

MODIFIED

We where debating rather or not to post our project, as we are only seeking accredited investors.

We have an issue with a moderator moving our thread from Mining Speculation, and seeking a reversal.

Our primary propose of this thread is seeking investors to help purchase land and start our Bitcoin Mining operation.  We make it clear this is Bitcoin Mining, and as the section is called “Mining Speculation” and we definitely full under that category based on the dictionary definition.

Dictionary.com states speculation:

engagement in business transactions involving considerable risk but offering the chance of large gains, especially trading in commodities, stocks, etc., in the hope of profit from changes in the market price.

Also of the Mining section child boards (Mining support, Pools, Mining software (miners), Hardware, Mining speculation) there is no other choice but to offer our business model in “Mining Speculation”. 

If you look throughout the "Mining Speculation" board, you will find other such posting selling cloud mining, and asking to start a bitcoin mining farm.

All we ask is to please have our thread place back.

Thank you for your time.

The owner of this farm is retiring and wants the land to go to someone they know (this is not a public sale).  

Currently finding 1MW of power available in Washington State has become extremely difficult of late, and taking advantage of the power available and low energy cost, this is ideal for a small data center.

It may not seem like a fit, but we have managing partners with experience in both farming, and bitcoin mining.  This gives us two revenue streams to handle the payments, and have a substantial asset, unlike mining equipment.

Investor Suitability "Accredited Investor" (PDF)

Please view our posting on Service Announcements board.

Questions have been asked, and answered on this thread.

Thank you for your interest.

Columbia Basin Mining, LLC (“CBM”) has a great opportunity to secure 80 acres of farmland, which has access to 1MW of power. We could build-out about 750,000 kW for bitcoin mining (estimated to be 3.75 PH/s).

The sale of this 80-acre property was offered exclusively to CBM from the owner for $1,500,000 and the owner will finance for 12 years with a $250,000 down payment. This property includes a farm home, and heated shop, and two cold water wells capable of producing over 1,000 gallons/min. Farming alone would cover half the annual payment of $90,000, and seller will defer any interest and un-covered annual payment into one balloon payment at the end.

*Edit
Also, one of the managing partners already farms 1,200 irrigated acres, and is willing to farm this parcel of land as well.

Farming operation will not be done by CBM, but by outside third party.  This provision is in place because a managing partner is a local farmer and we desire no conflict of interest.

Since CBM requires only a small portion of the property for bitcoin mining operation, and will therefore have the opportunity of a secondary income source.

Real estate has continued to thrive here despite the bust, and the farm is located ¼ mile from current development of residential homes. Our managing partner has an engineering company and subcontractors that are already committed on developing when we are ready.

CBM is seeking only accredited investors at this time, and investment has two stages.

• 7.50% ownership into CBM, and
• from gross mining revenue as follows:
  
  CBM revenue is the accumulation of all bitcoin mining between Monday – Sunday in a calendar week (“Mining Week”). The earnings will be based on the gross mining revenue from the “Mining Week”, and the valuation will be determined by the spot price of Bitcoin in USD from CoinBase.com the day following the “Mining Week” at 12:00 PST.
  
  The Company will pay earnings within 10 days following the “Mining Week”, by Company cheque (“check”). The investor may elect to receive bitcoin in lieu of check, but all reimbursement calculations are based in USD as if receiving a check.
  
  The earnings amount is dependent on the percentage of investor’s overall mining power (Investor TH/s divided by Company TH/s), and the following pay schedule.
  
  

  REIMBURSEMENT SCHEDULE

  Return on Investment	Earnings Pct	Notes
  < 0%	75%	If total ROI is Less than investment
  < 300%	65%	If total ROI is Less than four (4) times investment
  > 300%	25%	If total ROI is Greater than four (4) times investment

Multiple investors are also welcome.

Funds will be used for the down payment on the farm, and the remainder for bitcoin mining build-out and equipment.

If you are an accredited investor and have questions, please PM or email us. Some information may require signing an Mutual Non-Disclosure Agreement.  We will post all relative questions in this thread along with the answer, as long as it does not violate any vendor’s NDA. If any question needs additional research, please allow us ample time to respond.

This posting is not a scam, and any such statements and/or unwanted spam posting will be removed.