[Proposal] Mining Co-Op

[armedmilitia]

Armed, any update from spondoolie ?

I've sent a follow-up email asking for details and expressing again our interest in buying their units. I mentioned this thread too, maybe they'll do it for the PR--supporting our community effort looks good. I'm hoping for a non-form letter response this time.

I haven't hear back yet, but my fingers are crossed.

[Dr Charles]

Would be nice to get a couple SP50's running in a beast like this:

http://www.grcooling.com/containerized-carnotjet-data-center/

[torepia]

Would be nice to get a couple SP50's running in a beast like this:

http://www.grcooling.com/containerized-carnotjet-data-center/

It would be nice, but we'll never ROI that investment!

[notlist3d]

Would be nice to get a couple SP50's running in a beast like this:

http://www.grcooling.com/containerized-carnotjet-data-center/

It would be nice, but we'll never ROI that investment!

There are at least two copanies on here that sell pre-done containers.  They seem very high to me and I don't think they will make sense for most.  If you are dragging the entire thing from place to place..... i guess so but chances are once you sit it you will not be moving it again.

GND seems to be watching which is actually nice to know a data center is looking at thread.   GND I know you have talked about prices likely to go down again sometime in future (I believe).   If there was a big group buy of hardware sent to you could you do as far as lowest price that is your next drop?  And when would you expect it to happen?

[GreatNorthData]

If there was a big group buy of hardware sent to you could you do as far as lowest price that is your next drop?  And when would you expect it to happen?

There are so many factors. I don't want to over promise and under deliver. Rates are going to continue to drop for the foreseeable future, but what I've posted in this thread is the best we can do right now. The answer could very well be different in a few months.

[armedmilitia]

Armed, any update from spondoolie ?

I've sent a follow-up email asking for details and expressing again our interest in buying their units. I mentioned this thread too, maybe they'll do it for the PR--supporting our community effort looks good. I'm hoping for a non-form letter response this time.

I haven't hear back yet, but my fingers are crossed.

Got a reply from SP!

Thank you for your reply. We do understand and appreciate your need for more information.

Due to the nature of our limited initial product offering we are not able to publish pricing at this time. Since the order size is one of several factors in the decision the number is not set.

When we are able to make the machines available to a wider group of customers we will publish pricing, shipping information and other relevant details. There is not a time frame established just yet. Please check back with us for periodic updates.

Looks like we're going to have to play the waiting game, guys.

[Biffa]

I got a funny feeling the MOQ will not be 1 unit

[klondike_bar]

I'll be legitimately surprised if the SP50 comes in under $50K each. Buying 22x S7 to get the same hashrate would cost you over $40K, plus PSUs, plus the premium of having about 40% lower power consumption and, if it's like everything else SP has ever released, undervoltability (but this is very questionable given the released specs). $50-60k seems about right, which puts the 1MW cost around $3M.

don't forget that you are also paying for 22xcontrollers ($~40/ea?), about 38 extra fans (44 vs 6 IIRC)(~$10/ea), and other costs related to the case, pcie sockets, more heatsink weight, larger individual shipping boxes (probably costs $500 more to ship those S7 units then to ship a single SP50).

The Sp50 shaves around $2000 in costs by being a singular device with only one controller. Enough to make up for the 10x power supplies almost. Add in the "bulk" aspect, and i would assume $40-45k

also: i would put at least 10BTC towards a well-orchestrated GB with colocation at GND. I would risk more, but I believe holding BTC>$400 might be a better investment

[notlist3d]

I'll be legitimately surprised if the SP50 comes in under $50K each. Buying 22x S7 to get the same hashrate would cost you over $40K, plus PSUs, plus the premium of having about 40% lower power consumption and, if it's like everything else SP has ever released, undervoltability (but this is very questionable given the released specs). $50-60k seems about right, which puts the 1MW cost around $3M.

don't forget that you are also paying for 22xcontrollers ($~40/ea?), about 38 extra fans (44 vs 6 IIRC)(~$10/ea), and other costs related to the case, pcie sockets, more heatsink weight, larger individual shipping boxes (probably costs $500 more to ship those S7 units then to ship a single SP50).

The Sp50 shaves around $2000 in costs by being a singular device with only one controller. Enough to make up for the 10x power supplies almost. Add in the "bulk" aspect, and i would assume $40-45k

also: i would put at least 10BTC towards a well-orchestrated GB with colocation at GND. I would risk more, but I believe holding BTC>$400 might be a better investment

Were kinda guessing there is no way to know really what they want.  If just buying one it no doubt will be higher side as not bulk customer. 

I see this as kinda a hard sell on getting the money if it is 40-50k.   If the co-op uses a data center and get's same electricity price as I could go get myself from them there is not a huge upside.    I think with co-op you really need to be focused on finding low priced electrical data center if you are sure on pre-done one.   

I really wish we could find a way to use combined skills to truly make a low budget mining center.  If your talking about buying a few SP50's getting a center for probley around half the price of electricity really makes sense to me.

[armedmilitia]

I used to host some hardware with allinvain a while back, but I didn't consider him as an option for this group buy because he recently was undercut by the competition.

However, I checked his page out last night, and it looks like he's dropped his rates considerably--and they are very competitive!
https://bitcointalk.org/index.php?topic=500121.0
Converting that 6mo CAD figure to USD I get $49/KW, or $0.068/KW. I've contacted him for a bulk quote, I'll report back when I hear from him.

I think it might be wise to actually have a member visit these hosting locations if we get enough interest and if we're down to a few options. After all, price shouldn't be the only thing we're looking for in our hoster--and posting pics will help make this whole operation look more legitimate. As a canadian, it wouldn't be too expensive for me to go.

I'm fairly certain both GND and CryptoBoreas are both based out of the same town in labrador.

Thoughts?

[HerbPean]

I used to host some hardware with allinvain a while back, but I didn't consider him as an option for this group buy because he recently was undercut by the competition.

However, I checked his page out last night, and it looks like he's dropped his rates considerably--and they are very competitive!
https://bitcointalk.org/index.php?topic=500121.0
Converting that 6mo CAD figure to USD I get $49/KW, or $0.068/KW. I've contacted him for a bulk quote, I'll report back when I hear from him.

I think it might be wise to actually have a member visit these hosting locations if we get enough interest and if we're down to a few options. After all, price shouldn't be the only thing we're looking for in our hoster--and posting pics will help make this whole operation look more legitimate. As a canadian, it wouldn't be too expensive for me to go.

I'm fairly certain both GND and CryptoBoreas are both based out of the same town in labrador.

My S7 are going to be host by him ;-) He already host my S4.

[armedmilitia]

You quoted an old version of my post! I tried to do a ninja edit, but apparently was a few seconds too late.

[HerbPean]

You quoted an old version of my post! I tried to do a ninja edit, but apparently was a few seconds too late.

/fixed

[Dr Charles]

I would be willing to visit any datacenters on the east coast US and provide pictures if they allow it. NC currently has decent electric rates because theyre trying to attract large industrial companies. They are providing larger electric rate discounts for the more power used. By simply using a meer 700kwh or more per month the rate can be around $.08-.09/kwh depending on your area. I am sure large datacenters can get even more aggressive.

I am paying between $.096-.11/kwh for residential service and my industrial power is even less for the BFTB mining project.

[notlist3d]

I would be willing to visit any datacenters on the east coast US and provide pictures if they allow it. NC currently has decent electric rates because theyre trying to attract large industrial companies. They are providing larger electric rate discounts for the more power used. By simply using a meer 700kwh or more per month the rate can be around $.08-.09/kwh depending on your area. I am sure large datacenters can get even more aggressive.

I am paying between $.096-.11/kwh for residential service and my industrial power is even less for the BFTB mining project.

I think we would want to get a rate of around .05 or less.  That is my personal thoughts on a co-op is to go somewhere that is able to provide cheap electricity (I prefer US but not stuck on it).  I only problem I have outside of US is that I know much more about us LLC and small corp's and like the assets kept in country company is in.  But it seems there has been a decent amount of focus twords canada, I could be wrong but seems that way. 

The hard part seems to be the data centers do have overhead and they do  not go down to this rate yet at least.   But for me to want to spend a lot electricity would have to be right priced as I want machines to be able to run after having.   

We could get one that works perfectly fine now with  existing data centers.  But at having still a lot of unknowns.  So I would want to ROI before then if spending lots. 

[allinvain]

Sorry for the late reply, I just got back from a brief (well relatively brief for some) vacation. We can easily host 100kw worth of gear. Armedmilitia I replied to your PM. I'm going to discuss your offer with my partner and PM you a rate for 100 kw worth of consumption.

Did you guys decide yet on what miners you will purchase? (SP50 or S7s?)

[armedmilitia]

Sorry for the late reply, I just got back from a brief (well relatively brief for some) vacation. We can easily host 100kw worth of gear. Armedmilitia I replied to your PM. I'm going to discuss your offer with my partner and PM you a rate for 100 kw worth of consumption.

Did you guys decide yet on what miners you will purchase? (SP50 or S7s?)

Right now it seems like we are leaning towards the SP50. That being said it really boils down to price and availability--SP50s are not available at the moment, and we don't know what Spondoolies is charging for them, so I think it is wise for us to wait and see.

[mavericklm]

or go for s7 and don't waste the time!

[armedmilitia]

or go for s7 and don't waste the time!

It might not be wise. Bitmain is the only game in town right now selling to the public. Their prices are jacked up because there is no competition.

[notlist3d]

or go for s7 and don't waste the time!

It might not be wise. Bitmain is the only game in town right now selling to the public. Their prices are jacked up because there is no competition.

To get SP50 pricing this group would have to be pretty much set in stone with a lot of funding.  I have a feeling it might take a purchase of a few specifically at the first.

The hard part is at first I think it would take a NDA to a lot of the info with SP50.  But then you run into problem of how do you share info under NDA with co-op members who don't have one.   Unless you are really set on SP and got initial funding and got entire group to do NDA's.

For what it's worth I still think electricity is just as important as miner.   This group just needs a lot more set in stone I think before it will move to next stage.