Large scale operation profitability threshold

[gopnik]

Does any of you guys have experience with medium & large scale data center / mining operations?
I'm a VC from Europe currently investigating the market and trying to connect with professionals involved in the mining industry.
Open to partnerships with investors and IT engineers
Trying to determine if that ship has already sailed of if there are still opportunities out there
I'd like to see some numbers, ROI, IRR, etc.. and hear what is the minimum investment to get started in a meaningful way

I understand that as the time goes by mining becomes increasingly competitive and requires more and more ressources; therefore, there must be a rising investment threshold under which it is useless to operate. I need to determine what is it

We still need to assess the risk to return ratio of this venture, but the idea would be to throw in a few hundred grands to engineer, develop and test a sustainable and competitive system, and then if the projects proves itself successful, i would raise some serious money among my investors and scale the operation

I have for now a vague understanding of the business, but what i understand is that we need:

- low electricity prices with reliable supply
- reliable optic fiber network connectivity
- cool climate
- continuous supply chain of GPUs, ASICs and other required hardware
- local pool of qualified technicians
- political stability in operation country
- First class engineers to design and setup the system
- office representation in a world class / global city

I can find cheap industrial electricity under $0,03/kwh, cheap and secure warehouses, IT technicians and business zones with low to no taxes

infos, advices & contacts welcome

[Sandal_Hat]

https://bitcointalk.org/index.php?topic=2767830.msg28282146#msg28282146

The answer can be found here. No one actually knows. Mining was good last year because bitcoin price rocket. If that happens again, then great. If that doesnt happen, then profitability will be impacted greatly.

U dont need optic internet. These things use like 2 mb per hour or something, go google. It is low.
The issue would be wat price u can get the miners, and the rest is up to bitcoin price and difficulty increases. In general, they dont have to give discounts because the demand is enough.

Also, u dont have that much time to assess since 80% of bitcoins have been mined and the next halving for ltc/btc is late 2019/2020 if i recall right. This things wont wait for u. If u gonna assess and then spend a few more months building, well time is money.

[DPoS2]

why do you need all these people for this??  if you can't run the show yourself, then the person that is running it will run away with your coins eventually

[Sandal_Hat]

Running and setting it up isnt that tough. The problem is will mining be good this year. Last year's mining was good only because btc skyrocketed. If it doesnt skyrocketed this year and difficulty continues to climb due to more machines being sold, how will mining be? The china ban may give us reprieve but it wont be permanent. The miners will be moved to another place even if it takes awhile. No one is gonna destroy machines right.

I could be and I hope to be wrong about my worries though.

[fanatic26]

why do you need all these people for this??  if you can't run the show yourself, then the person that is running it will run away with your coins eventually

I dont get why people post things like this. They guy is talking about running a legitimate business. Those require employees. I used to manage thousands of miners on my own and it is more than a single person can handle.

[Druiz287]

Does any of you guys have experience with medium & large scale data center / mining operations?
I'm a VC from Europe currently investigating the market and trying to connect with professionals involved in the mining industry.
Open to partnerships with investors and IT engineers
Trying to determine if that ship has already sailed of if there are still opportunities out there
I'd like to see some numbers, ROI, IRR, etc.. and hear what is the minimum investment to get started in a meaningful way

I understand that as the time goes by mining becomes increasingly competitive and requires more and more ressources; therefore, there must be a rising investment threshold under which it is useless to operate. I need to determine what is it

We still need to assess the risk to return ratio of this venture, but the idea would be to throw in a few hundred grands to engineer, develop and test a sustainable and competitive system, and then if the projects proves itself successful, i would raise some serious money among my investors and scale the operation

I have for now a vague understanding of the business, but what i understand is that we need:

- low electricity prices with reliable supply
- reliable optic fiber network connectivity
- cool climate
- continuous supply chain of GPUs, ASICs and other required hardware
- local pool of qualified technicians
- political stability in operation country
- First class engineers to design and setup the system
- office representation in a world class / global city

I can find cheap industrial electricity under $0,03/kwh, cheap and secure warehouses, IT technicians and business zones with low to no taxes

infos, advices & contacts welcome

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