Bitcoin mining project, entry level investment

[ColumbiaBasinMining]

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.

[QuintLeo]

I'm guessing you had to negotiate a special rate with Grant County PUC, since their POSTED electric rates are close to 5c/KWH?

[ColumbiaBasinMining]

I'm guessing you had to negotiate a special rate with Grant County PUC, since their POSTED electric rates are close to 5c/KWH?

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.

[Phildo]

What are your plans to keep up with difficulty increases?

How long do you think it will take to get back the original 6,000 BTC?

What are you bringing to the table to get 79% of the company even though the investors are providing all this capital?

What happens to my .0035% if there is a drastic change in BTC price between when I give it to you and you reach a funding goal?

[ColumbiaBasinMining]

What are your plans to keep up with difficulty increases?

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.

How long do you think it will take to get back the original 6,000 BTC?

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).

What are you bringing to the table to get 79% of the company even though the investors are providing all this capital?

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.

What happens to my .0035% if there is a drastic change in BTC price between when I give it to you and you reach a funding goal?

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.

[mwizard]

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

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

The 6 PH/s for 1 megawatt to the site implies a miner efficiency of around 0.1J/Gigahash (assuming an 80% loaded mains supply). So I assume you are looking at 16nm miners.

If this is the case how far along are you along with gaining access to 16nm miners and when do you expect them to be available to you?

[ColumbiaBasinMining]

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

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

The 6 PH/s for 1 megawatt to the site implies a miner efficiency of around 0.1J/Gigahash so I assume you are looking at 16nm miners.

How far along are you along with gaining access to 16nm miners and when do you expect them to be available to you?

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.

[quietbearcoin]

I really like what you're doing/planning... Especially the answers you're giving to the questions asked. They're pretty much the questions I had at first...
I am no where near able to invest big monies into your project, but will you take small investments of a bitcoin or two? It would be nice if us little investors
can get in on this size of a project from the start.
Either way, good luck on your plans!

[Phildo]

Not basing the return on bitcoin is stupid.

Why should I give you 1 BTC if you can't turn it into more than 1 BTC?

No matter the price of bitcoin, I am better of with 1 BTC than less than 1 BTC. If you can't turn my 1 BTC into more than 1 BTC, your project is no better than literally doing nothing, what is the benefit to me if the only way to profit from the venture is the price going up? I can get the same benefit by putting 1 BTC on a thumb drive and staring at it without all the additional risks associated with trusting you and dealing with mining.

[ColumbiaBasinMining]

Not basing the return on bitcoin is stupid.

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.

Why should I give you 1 BTC if you can't turn it into more than 1 BTC?

No matter the price of bitcoin, I am better of with 1 BTC than less than 1 BTC. If you can't turn my 1 BTC into more than 1 BTC, your project is no better than literally doing nothing, what is the benefit to me if the only way to profit from the venture is the price going up? I can get the same benefit by putting 1 BTC on a thumb drive and staring at it without all the additional risks associated with trusting you and dealing with mining.

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

[QuintLeo]

I'm guessing you had to negotiate a special rate with Grant County PUC, since their POSTED electric rates are close to 5c/KWH?

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.

 I missed the "Large General Service" rate sheet, which works as long as you don't exceed 5MW.

 MOST of their other rates are in the 4-5 cent range, after you factor in the load charges.

[ColumbiaBasinMining]

I'm guessing you had to negotiate a special rate with Grant County PUC, since their POSTED electric rates are close to 5c/KWH?

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.

 I missed the "Large General Service" rate sheet, which works as long as you don't exceed 5MW.

 MOST of their other rates are in the 4-5 cent range, after you factor in the load charges.

Their are several rate sheets, at this time we are being classified as rate 14.  Using these ratings you also have to consider minimum, energy, and demand charges which residential do not have.  As stated, we have spreadsheets provided to us from the PUD to have an accurate energy expenses.

[Phildo]

Not basing the return on bitcoin is stupid.

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.

Why should I give you 1 BTC if you can't turn it into more than 1 BTC?

No matter the price of bitcoin, I am better of with 1 BTC than less than 1 BTC. If you can't turn my 1 BTC into more than 1 BTC, your project is no better than literally doing nothing, what is the benefit to me if the only way to profit from the venture is the price going up? I can get the same benefit by putting 1 BTC on a thumb drive and staring at it without all the additional risks associated with trusting you and dealing with mining.

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

It does not make sense to give you $x to mine bitcoins if you cannot generate more BTC than I can buy with $x. You are looking to raise 2.1 million or 6k bitcoins. Let's say you get that 2.1 million. It does not make sense to spend all the time, effort, and resources to mine bitcoins unless the result will be more than 6k bitcoins, because it will be a lot easier to buy 6k bitcoins than to mine.

On a smaller level, if YOU cannot make those 6k bitcoins, it doesn't make sense for me to give any money to you, because besides all the time, effort, and resources and risks inherent in the mining industry, I also am taking on the additional risk of trusting you.

This doesn't make sense for anyone, unless you can explain to them how you are going to make more than 6k bitcoins.

[ColumbiaBasinMining]

It does not make sense to give you $x to mine bitcoins if you cannot generate more BTC than I can buy with $x. You are looking to raise 2.1 million or 6k bitcoins. Let's say you get that 2.1 million. It does not make sense to spend all the time, effort, and resources to mine bitcoins unless the result will be more than 6k bitcoins, because it will be a lot easier to buy 6k bitcoins than to mine.

On a smaller level, if YOU cannot make those 6k bitcoins, it doesn't make sense for me to give any money to you, because besides all the time, effort, and resources and risks inherent in the mining industry, I also am taking on the additional risk of trusting you.

This doesn't make sense for anyone, unless you can explain to them how you are going to make more than 6k bitcoins.

My apologies for any misunderstanding, but never did we state you would only get your investment back.  In our business plan we are estimating about a 325% return on investment in 4 years, and believe mining profits should last through the next halving in 2020.

To fully understand the return on your investment we require NDA.

[Phildo]

4 years??

How many generations of mining gear will that require? What is the detailed plan to replace the original purchases miners, because they will not last 4 years.

And you still need to explain in detail how you are going to turn the 2.1 million into more than 6000 btc. We don't need your help to turn 2.1 million into 6000 btc, so you need to explain how you are going to turn it into more than 6000 btc to give anyone a reason to give you any money.

[ColumbiaBasinMining]

4 years??

How many generations of mining gear will that require? What is the detailed plan to replace the original purchases miners, because they will not last 4 years.

And you still need to explain in detail how you are going to turn the 2.1 million into more than 6000 btc. We don't need your help to turn 2.1 million into 6000 btc, so you need to explain how you are going to turn it into more than 6000 btc to give anyone a reason to give you any money.

You are getting into NDA territory.  If you are a serious investor we are more then happy to discuss this further offline, after an NDA has been completed.

We are not willing to disclose your business model in an open forum.

[tmfp]

You guys regularly float self modded threads based on this proposal and then either delete or lock them.
Whenever you are questioned about logic or detail you become vague, then defensive, or invoke a NDA.
You ran up a draft contract which specified a non returnable 4 yearly payment upfront with a Company termination option after 7 days of non profitability.
Steve Swanson claims on Linkedin, in your name, that "We currently have 20 megawatts of power on our land, and with the latest technology available we could achieve 15+% of all mining."
Columbia Basin Mining LLC, Washington State, is extremely difficult to find any information about.

You do not inspire confidence.

[ColumbiaBasinMining]

You guys regularly float self modded threads based on this proposal and then either delete or lock them.
Whenever you are questioned about logic or detail you become vague, then defensive, or invoke a NDA.
You ran up a draft contract which specified a non returnable 4 yearly payment upfront with a Company termination option after 7 days of non profitability.
Steve Swanson claims on Linkedin, in your name, that "We currently have 20 megawatts of power on our land, and with the latest technology available we could achieve 15+% of all mining."
Columbia Basin Mining LLC, Washington State, is extremely difficult to find any information about.

You do not inspire confidence.

Delete this if you want, but that would probably inspire a Scam Accusation thread.

Yes we had a previous posting that was deleted and locked.  That posting was for the opportunity to acquire more land, however once that opportunity expired the thread was no longer needed or valid.

We are a new business and as such there is no other way to protect ourselves except with an NDA.  We are trying to provide as much detail as we can without giving our business model away, and yes that could be considered vague, although we are very happy to discuss our business plan in detail with interested qualified investors.  As far as being defensive, we have expressed our opinion, but never criticized, or used vulgar language in doing such (not saying you have, just in general), and respect that everyone has their own opinion.

The only reason it is difficult to find information about Columbia Basin Mining, LLC is because we created this company in Sept 2015, and no other filings were required, also we are privately held.  As you stated we are on LinkedIn and not hiding our identities, and our business location is also public information.

On a defensive note, this is the second time you have made a threat about post us on a Scam Accusation thread.  We are seeking accredited investors and as such they are very aware about due diligence, and we are more the willing to provide such data.

[Phildo]

Need an nda to explain how a mining farm will make money, seems legit.

Being unable to provide basic facts in an open forum says more than any answer could.

[crazyivan]

My usual questions, verifiable NAMES of people behind it, social network profiles, registration data, anything which add to the transparency of this operation? You have to understand, with so many scams around, people do not tend to trust online mining investments.