Hi guys!

I plan to start a cryptocurrency mining operation, and I am trying to seek backers.

My plan is to buy 1.334 GH/s of altcoin hashing power from Genesis Mining, and reinvest 80% of the monthly profits in buying more hashing power from them, which should be enough to overcome the ever-increasing difficulty and the exchange rate fluctuations.

Buying 1.334 GH/s of hashing power will cost about USD20,000 (BTC56.042). I am willing to put up BTC4.2297 of that.

To come up with the rest,  I plan to issue a BTC denominated zero-coupon bond with a face value of BTC54.403 for a price of BTC51.8123 which matures in 12 months which is exchangeable into a 92.5% ownership stake in the operation. If you choose to exchange the bond for ownership, you will be paid a monthly dividend of 18.5% of the monthly profits of the operation. At that point, for managing the operation I will take 1.5% per month as a management fee.

Any questions?

Thanks for reading!

Do you think my reinvestment strategy should help keep profitability up with the increase in difficulty?

Maybe I should make a market in LTC/USD exchange rate options, and make money from the bid-ask spread...or sell variance swaps, if I can find a finance expert to price them.

Hi guys, I'd like some advice on my business idea on mining LTC.

I plan to buy 1,344 MH/s from Genesis Mining at a cost of $20,146.56. Based on the calculator at Coinwarz, I should be mining around LTC37/day. I also plan on reinvesting 80% of the LTC mined into buying more MH/s from Genesis, to increase revenue and reduce the effect that the difficulty increase will have on my profits.

I'm also looking at buying 12x ZeusMiner Volcano, which will net me 3600 MH/s, which will give me revenue of LTC99/day, but also cost me around $14,000/year in electricity. And of course reinvest the LTCs.

All in all, I think buying the ZeusMiner Volcanos would result in a far higher ROI, but I'm worried about the non-monetary costs of setup and maintenance.

Also, perhaps I could also sell a forward contract on the LTC/USD exchange rate so I can lock in the exchange rate so I don't get burned by market forces. Or find someone who's willing to lease me LTC7,943.93 at 5% (paid in species) so I can buy my equipment and pay for the electricity. So at the end of the year, I pay back LTC8,341.12 to the lender, and I keep LTC28,148.26 as profit. Gold mining companies operate like this, so why shouldn't cryptocurrency miners?

Any advice would be greatly appreciated.

Thanks! Happy mining!

TSLexi