[CLOSED] Hosted-Mining (revenue shares) / BTCT.co

[zif33rs]

I think a 5% sell threshold is quite reasonable. I know the machines are ready to start working in a time frame nobody else can meet. I know there is genuine interest this from many people. I think the long term goals and strategy are solid.

No...not mad at all. Vision I would hope most would call it.

[TheSwede75]

$650.000 investment
$14.000.000 to be raised.
10% go to founders

What?

Please tell me I am doing some kind of horrible mathematical error, and you are not really trying to give a $650.000 investment at 30% revenue share a $15.000.000 valuation in the IPO...

Cause if you raise anything at this valuation I'm calling Alydian ASAP and outbidding you for the equipment and starting a miming operation myself at guaranteed 25% of the valuation of this one at IPO.

[zif33rs]

? investment
$14.000.000 to be raised.
10% go to founders - Which has to cover all operational costs



Please tell me I am doing some kind of horrible mathematical error

You are doing some type of mathematical error...

[TheSwede75]

? investment
$14.000.000 to be raised.
10% go to founders - Which has to cover all operational costs



Please tell me I am doing some kind of horrible mathematical error

You are doing some type of mathematical error...

What operating costs? It's plain as day that the 10 TH contract for August from Alydian includes all running costs!!! You are raising $14 million, to purchase a $650.000 mining contract, with $1.4 million for yourself to sign a contract and send weekly dividends?

Not trying to be harsh but this makes absolutely no sense..

[zif33rs]

? investment
$14.000.000 to be raised.
10% go to founders - Which has to cover all operational costs



Please tell me I am doing some kind of horrible mathematical error

You are doing some type of mathematical error...

What operating costs? It's plain as day that the 10 TH contract for August from Alydian includes all running costs!!!

And even IF this was not the case. What kind of salaries were you expecting? $1.4 million to run a mining farm?

Do you know the sales tax in WA state? 8.9%

Do you understand that the contract is only for 12 months..I would hope the machines can run a bit longer than that. I have a long term plan for hosting. And for investing into alternative energy  such as solar or wind to make the revenue even higher. The location I have in mind has all of this available for the people bold enough to make it happen.

How many 100+ chassis data servers have you put together and how much a month do you think these things cost?  I can tell you.

Pay for additional hosting or provide your own? What makes more sense long term? If we achieve the expectations of phase 2 and 3 there will be a quick need for a 20,000+ sf facility. Perhaps the fund will find a cheaper source of asics during the ramp up phase..and that company does not offer hosting?

I am trying to present what I can do...right now. Not what if maybe months down the road.

[TheSwede75]

? investment
$14.000.000 to be raised.
10% go to founders - Which has to cover all operational costs



Please tell me I am doing some kind of horrible mathematical error

You are doing some type of mathematical error...

What operating costs? It's plain as day that the 10 TH contract for August from Alydian includes all running costs!!!

And even IF this was not the case. What kind of salaries were you expecting? $1.4 million to run a mining farm?

Do you know the sales tax in WA state? 8.9%

Do you understand that the contract is only for 12 months..I would hope the machines can run a bit longer than that. I have a long term plan for hosting. And for investing into alternative energy  such as solar or wind to make the revenue even higher. The location I have in mind has all of this available for the people bold enough to make it happen.

How many 100+ chassis data servers have you put together and how much a month do you think these things cost?  I can tell you.

Pay for additional hosting or provide your own? What makes more sense long term? If we achieve the expectations of phase 2 and 3 there will be a quick need for a 20,000+ sf facility. Perhaps the fund will find a cheaper source of asics during the ramp up phase..and that company does not offer hosting?

I am trying to present what I can do...right now. Not what if maybe months down the road.

So you are buying hardware, not contract mining?
Why does the prospect on BTCT.co state 5.000 BTC as IPO threshold?
Why raise 20x the money needed for purchase AND have a 70% reinvestment fund?

I don't think I am quite understanding so I'll wait for more info before posting any more questions.

[zif33rs]

? investment
$14.000.000 to be raised.
10% go to founders - Which has to cover all operational costs



Please tell me I am doing some kind of horrible mathematical error

You are doing some type of mathematical error...

What operating costs? It's plain as day that the 10 TH contract for August from Alydian includes all running costs!!!

And even IF this was not the case. What kind of salaries were you expecting? $1.4 million to run a mining farm?

Do you know the sales tax in WA state? 8.9%

Do you understand that the contract is only for 12 months..I would hope the machines can run a bit longer than that. I have a long term plan for hosting. And for investing into alternative energy  such as solar or wind to make the revenue even higher. The location I have in mind has all of this available for the people bold enough to make it happen.

How many 100+ chassis data servers have you put together and how much a month do you think these things cost?  I can tell you.

Pay for additional hosting or provide your own? What makes more sense long term? If we achieve the expectations of phase 2 and 3 there will be a quick need for a 20,000+ sf facility. Perhaps the fund will find a cheaper source of asics during the ramp up phase..and that company does not offer hosting?

I am trying to present what I can do...right now. Not what if maybe months down the road.

So you are buying hardware, not contract mining?  The contract is for both the hardware and a 12 month hosting program
Why does the prospect on BTCT.co state 5.000 BTC as IPO threshold? That is close to the amount needed to fulfill the contract in hand
Why raise 20x the money needed for purchase AND have a 70% reinvestment fund? If the fund is fully realized the reinvestment percentages would of course be modified to meet the needs of the fund

I don't think I am quite understanding so I'll wait for more info before posting any more questions.

Please let me know what more I can do to help you understand.

[KCBitcoin]

I apologize for holding so close to the vest..but this is a very serious deal and there are alot of players..if I release to much info I feel as it can cause problems. I am trying to be as transparent as possible but please understand the limits I am under without having this contract signed.



This is what I can tell you.

There will be 500,000 shares available..as per what I have posted. The initial price is going to be .28 per share. We are targeting the 10 terahash threshold as the minimum required to meet the go/no-go clause.

The Tier 3 data center will NOT be disclosed...ever. For Obvious reason. I will provide detailed information on the coming upgrade that will be required.

0.28btc per share with only 30% mining revenue as divined for a 10TH company??
I'd just go buy either basic-mining or cognitive and get twice of your dividend return.
this is an insane price.

[redbeans2012]

I apologize for holding so close to the vest..but this is a very serious deal and there are alot of players..if I release to much info I feel as it can cause problems. I am trying to be as transparent as possible but please understand the limits I am under without having this contract signed.



This is what I can tell you.

There will be 500,000 shares available..as per what I have posted. The initial price is going to be .28 per share. We are targeting the 10 terahash threshold as the minimum required to meet the go/no-go clause.

The Tier 3 data center will NOT be disclosed...ever. For Obvious reason. I will provide detailed information on the coming upgrade that will be required.

0.28btc per share with only 30% mining revenue as divined for a 10TH company??
I'd just go buy either basic-mining or cognitive and get twice of your dividend return.
this is an insane price.

1.) PHASE I
30% of all revenue generated by HOSTED-MINING will be distributed to shareholders on a
weekly basis. To ensure that HOSTED-MINING can continue to grow and remain
competitive as the BTC network grows, the 70% of mining revenue will be held in
reserve to purchase new hardware and rollout for PHASE II and PHASE III

2.) PHASE II
The remaining 70% of revenue will be used to cover September 30th, 2013 expenses for an additional roll out of 8-80 terahash.

3.) PHASE III
The details will follow in the next few weeks. We estimate another 100-1000 terahash. We will once again leverage the 70% of revenue. The market is just moving to fast to say that a reinvestment of 30% of proceeds will suffice to position ourselves with the most HASH rate possible.
HOSTED-MINING will begin mining August 29th, 2013 with a minimum of 1-10 terahash if shares are sold to purchase the miniumum 1 terahash.

Not sure if it will be 70% forever.

[KCBitcoin]

I apologize for holding so close to the vest..but this is a very serious deal and there are alot of players..if I release to much info I feel as it can cause problems. I am trying to be as transparent as possible but please understand the limits I am under without having this contract signed.



This is what I can tell you.

There will be 500,000 shares available..as per what I have posted. The initial price is going to be .28 per share. We are targeting the 10 terahash threshold as the minimum required to meet the go/no-go clause.

The Tier 3 data center will NOT be disclosed...ever. For Obvious reason. I will provide detailed information on the coming upgrade that will be required.

0.28btc per share with only 30% mining revenue as divined for a 10TH company??
I'd just go buy either basic-mining or cognitive and get twice of your dividend return.
this is an insane price.

1.) PHASE I
30% of all revenue generated by HOSTED-MINING will be distributed to shareholders on a
weekly basis. To ensure that HOSTED-MINING can continue to grow and remain
competitive as the BTC network grows, the 70% of mining revenue will be held in
reserve to purchase new hardware and rollout for PHASE II and PHASE III

2.) PHASE II
The remaining 70% of revenue will be used to cover September 30th, 2013 expenses for an additional roll out of 8-80 terahash.

3.) PHASE III
The details will follow in the next few weeks. We estimate another 100-1000 terahash. We will once again leverage the 70% of revenue. The market is just moving to fast to say that a reinvestment of 30% of proceeds will suffice to position ourselves with the most HASH rate possible.
HOSTED-MINING will begin mining August 29th, 2013 with a minimum of 1-10 terahash if shares are sold to purchase the miniumum 1 terahash.

Not sure if it will be 70% forever.

so u raised 14 million dollars in IPO, and still need 70% of mining revenue to continue your expansion?
insane...
i'd say, if you retain 30%, this price is on par with the other two major revenue sharing stocks.
but, still, its just on par. why should a investor invest in a start-up company if the return is just on-par with a mature/stable company in market? where do you compensate the risk we are bearing to fund you?

[zif33rs]

"We estimate that the total network at the end of 2013 with be roughly 2000-3000 tera hash.

Our goal is to NEVER go above the 51% threshold and sustain a return on investment to all those who join us in this exciting endeavor.



Upon launch if we acquire 10 terahash, Hosted-Mining will have aproximitely 2.5% of the total hash of the network. With the long term deployment plans of Phase 2 and Phase 3, ect..., Hosted-Mining will operate a minimum of 1% of the total network hashrate to insure long term profits and market stability."


I think between 5-15% is a reasonable figure to shoot for. Once a minimum value is established all extra revenue would be diverted to dividends until such a time as more hash rate is required to meet and maintain that  number.

[kololo]

I have only one question is that you are going to rise 0.28*500,000 *0.9= BTC126,000?
Is that right? or $126,000?

[KCBitcoin]

The remaining 70% of revenue will be used to cover September 30th, 2013 expenses for an additional roll out of 8-80 terahash.

With 10TH u can only mine around BTC1,000, starting from end of Aug. to end of Sept. (assuming a 37% difficulty increase bi-weekly, with a starting difficulty of 70 mil)

So I'm still not convinced why you have raised BTC140,000, but still need 70% of these BTC1,000 (i.e. BTC700) to cover the expenses in September.

I really don't feel the revenue is being shared.

I do understand your plan is big, but here are some of my suggestions.

One way to pay back the initial investors is to fully give out all the mining revenue until a certain major point (e.g. your 80TH in September or even a later point of time), then you can start to retain a certain percentage of the revenue afterwards. Because i don't really think the BTC700 or a few more btc matters if you can get your IPO shares fully sold out.

This way, your IPO shares will be sold much faster, and your investors are also happy with their returns(which is the most important thing).

[oxideNL]

There will be 500,000 shares available..as per what I have posted. The initial price is going to be .28 per share.

http://www.youtube.com/watch?v=yqyixwqiCag

Second time you make me spit out my coffee in the morning  .

[VolanicEruptor]

I'll buy 1 share

[zif33rs]

The remaining 70% of revenue will be used to cover September 30th, 2013 expenses for an additional roll out of 8-80 terahash.

With 10TH u can only mine around BTC1,000, starting from end of Aug. to end of Sept. (assuming a 37% difficulty increase bi-weekly, with a starting difficulty of 70 mil)

So I'm still not convinced why you have raised BTC140,000, but still need 70% of these BTC1,000 (i.e. BTC700) to cover the expenses in September.

I really don't feel the revenue is being shared.

I do understand your plan is big, but here are some of my suggestions.

One way to pay back the initial investors is to fully give out all the mining revenue until a certain major point (e.g. your 80TH in September or even a later point of time), then you can start to retain a certain percentage of the revenue afterwards. Because i don't really think the BTC700 or a few more btc matters if you can get your IPO shares fully sold out.

This way, your IPO shares will be sold much faster, and your investors are also happy with their returns(which is the most important thing).

The first voice of reason I have heard...thank you. That is exactly what I have planned. Yes...the figures look very scary to some at first glance. But please take a step back and and view the whole picture. I would and WILL gladly give every bit of revenue back to investors as quickly as possible. There is also the point that acquiring as much hash as possible as quickly as possible will lock down a strategic position for a long long time.

IF the fund is fully realized..there would be less need for the massive reinvestment phase and the ratio on revenue would be adjusted accordingly.

[KCBitcoin]

IF the fund is fully realized..there would be less need for the massive reinvestment phase and the ratio on revenue would be adjusted accordingly.

This, definitely needs to be stated more clearly in the prospectus.
What is "the ratio on revenue would be adjusted accordingly"? Nothing as this vague should be in the prospectus anyway.
If BTC5,000 is raised, then xxx
If BTC10,000 is raised, then xxx
If BTC50,000 is raised, then xxx
If BTC100,000 is raised, then xxx
If BTC140,000 is raised, then xxx
etc...

Be specific, and include any many cases as you can. A neat prospectus draws investors.

[KCBitcoin]

Btw, your prospectus seems so rushed and looks like a draft to me.
Even your share price is not stated there.
It definitely needs huge rework.

[superduh]

is Alydian in Or or Wa?
you should prob figure this out since you may not even have to pay the sales tax you stated

i think all costs you will be factoring and other aspects should be included in your biz plan so people can make informed decision

[zif33rs]

Thanks...thats solid advice. I appreciate that.

Having a broader set of protocols for operation will enable a quicker reaction to market conditions.


What I feel is the best scenario is basically this. The fund will make a weekly decision on the reinvestment and revenue amount paid to dividends. There might not be hash available for purchase certain weeks.There might be specific buy and launch dates.

This is the main reason for the vague terminology in some points of the offering.

is Alydian in Or or Wa?
you should prob figure this out since you may not even have to pay the sales tax you stated

i think all costs you will be factoring and other aspects should be included in your biz plan so people can make informed decision

CoinLab is in WA state.