If you had $1M USD to setup mining op & sell first contract before 12/31?

[JSWISS]

TRUE STORY from California, USA.

I have a $1M+ short term capital gain (not from crypto) and I would like to (quickly!) put it all into crypto mining business.

I have extensive IT / unix / server experience and I've dabbled a little bit in crypto (very small... coinbase account, bought $1k worth of various, very small).

What would you do if you needed to spend 1 million (primarily on equipment) before christmas?? 

I can't imagine buying and deploying (300) RTX 3090's before 12/31 with cooling and power for that massivity solved.

I can't use my garage becase theirs no way I can have enough power setup before 12/31? (only 100A to home).

I used to use colo facilties for dedicated server hosting, but I wouldn't imagine server colo datacenters are are friendly to power/cooling requirements?

How many amps are we talking? Maybe I could quickly rent a warehouse with enough power?.

What would you guys do??

[philipma1957]

TRUE STORY from California, USA.

I have a $1M+ short term capital gain (not from crypto) and I would like to (quickly!) put it all into crypto mining business.

I have extensive IT / unix / server experience and I've dabbled a little bit in crypto (very small... coinbase account, bought $1k worth of various, very small).

What would you do if you needed to spend 1 million (primarily on equipment) before christmas?? 

I can't imagine buying and deploying (300) RTX 3090's before 12/31 with cooling and power for that massivity solved.

I can't use my garage becase theirs no way I can have enough power setup before 12/31? (only 100A to home).

I used to use colo facilties for dedicated server hosting, but I wouldn't imagine server colo datacenters are are friendly to power/cooling requirements?

How many amps are we talking? Maybe I could quickly rent a warehouse with enough power?.

What would you guys do??

California power costs too much to mine.

You need a different location .

[deadsix]

TRUE STORY from California, USA.

I have a $1M+ short term capital gain (not from crypto) and I would like to (quickly!) put it all into crypto mining business.

I have extensive IT / unix / server experience and I've dabbled a little bit in crypto (very small... coinbase account, bought $1k worth of various, very small).

What would you do if you needed to spend 1 million (primarily on equipment) before christmas?? 

I can't imagine buying and deploying (300) RTX 3090's before 12/31 with cooling and power for that massivity solved.

I can't use my garage becase theirs no way I can have enough power setup before 12/31? (only 100A to home).

I used to use colo facilties for dedicated server hosting, but I wouldn't imagine server colo datacenters are are friendly to power/cooling requirements?

How many amps are we talking? Maybe I could quickly rent a warehouse with enough power?.

What would you guys do??

You'll need a warehouse with 150KW atleast, cant get a new connection on this tight a timeline. You will then need to buy 300 3090's.
These would be spread out in about 50 systems of 6 GPUs each, and I would recommend getting a beefy CPU per system as well, to mine with.
Considering the power draw, aside from the regular PSUs to run the system, you will need to get about a 100 HP1200w Server PSU's, breakout boards, pcie cables, risers, the works.

Now setting up 50 systems in a facility that is ready for them is at max a 4 day job with how easy setup is these days, so once you have everything this is very doable.
3090's arent nearly the most cost effective option though, but considering the tight timeline this is your best option.
If you have some help, you could go with about 450 3080ti's and a warehouse with 200KW and that would be a lot more bang for your buck.

[mochaaa]

bulk order everything from china could probably pull it off
mobos
psus
cables
rtx a5000

assuming you have the power/space

[FP91G]

Why does no one tell a millionaire that it is too late to invest in mining?
Some of my acquaintances have already started selling video cards, while they are still very expensive, because they do not want to take risks.
The hashrate of the Ethereum network is growing very quickly.
In six months, he will buy equipment 100% cheaper.

[philipma1957]

Why does no one tell a millionaire that it is too late to invest in mining?
Some of my acquaintances have already started selling video cards, while they are still very expensive, because they do not want to take risks.
The hashrate of the Ethereum network is growing very quickly.
In six months, he will buy equipment 100% cheaper.

Because it is not too late to invest 1 million into mining.

But I know that California power prices are stupid high.  Over 30 cents in most areas of the states .

If he could get 6 cent power I would give him a plan to work with gpus and asics.

I would set him up with a mix of nvidia a2000 cards and 8 slot mother boards.

Along with s17 pros from a refurbisher.

If his taxes are to be served better by spending the money this year he can.

But he needs to realize the industry cycles and we may go down over the next year.

This means if he has to spend 1 million this year as a tax move he needs to be able to spend 1 million again if gear falls off a cliff next year.  Ie buy low and DCA


In the summer of 2020 a L3+ with a psu was under 75 dollars on ebay

Right now a L3+ with a psu is over  1275 dollars

https://www.ebay.com/itm/203701179462?


Now buying high now is okay if

1) there is a tax advantage
2) if you have cheap power 6 cents or less
3) if you can buy a second time if price of gear drops next year.


good luck to op.

[mochaaa]

if he is tax harvesting for FY 2021, it doesnt matter if you could get the hardware for half the price in 6 months

[laineux]

Hello

Try at first with 50k$ GPU at home to learn.

Put the rest on DeFi.
If you have good experience on linux, then buy collateral coins and create and manage masternodes.
You could expect beetween 20% (with stable coins) and 300% (with new coins) APR depends on risk level you choose.

[FP91G]

Why does no one tell a millionaire that it is too late to invest in mining?
Some of my acquaintances have already started selling video cards, while they are still very expensive, because they do not want to take risks.
The hashrate of the Ethereum network is growing very quickly.
In six months, he will buy equipment 100% cheaper.

Because it is not too late to invest 1 million into mining.

But I know that California power prices are stupid high.  Over 30 cents in most areas of the states .

If he could get 6 cent power I would give him a plan to work with gpus and asics.

I would set him up with a mix of nvidia a2000 cards and 8 slot mother boards.

Along with s17 pros from a refurbisher.

If his taxes are to be served better by spending the money this year he can.

But he needs to realize the industry cycles and we may go down over the next year.

This means if he has to spend 1 million this year as a tax move he needs to be able to spend 1 million again if gear falls off a cliff next year.  Ie buy low and DCA


In the summer of 2020 a L3+ with a psu was under 75 dollars on ebay

Right now a L3+ with a psu is over  1275 dollars

https://www.ebay.com/itm/203701179462?


Now buying high now is okay if

1) there is a tax advantage
2) if you have cheap power 6 cents or less
3) if you can buy a second time if price of gear drops next year.


good luck to op.

I have electricity in Russia 0.045 dollars, I have a place for mining farms. There are no mining taxes in Russia.
But I don't buy graphics cards because it's getting late.
I would buy ASICs at a cost of electricity of 2-3 cents.
The hashrate of ethereum is increasing very quickly, if I had a million, I would buy ethereum and bitcoin now and would not sell coins for 5 years.

[badbart]

Everything is very expensive right now.  I would dollar cost average into crypto or mining, this way your not making a huge make or break bet all at once.

[philipma1957]

if he is tax harvesting for FY 2021, it doesnt matter if you could get the hardware for half the price in 6 months

Well maybe maybe not.

Depending on

Country USA
State California
City Los Angeles

he could get a 40% tax break

so 1million stays mill and does not drop to 600k


but gear could drop 50% by June 1

So doing nothing could net him same amount of gear and 100k in his pocket.

If i was in his postion I would not move on the 1 million if I can not back it up in six months if we crash.

I more likely would do 600k or 700k and hold off on rest incase we crash.

But thats my style of play.

It is what I do to lower risk it lowers profits but it lowers losses so you middle a lot.

[mochaaa]

or maybe buy future order of asics, write it off as capital expense then flip for cash?

[fmz89]

With 1M form hard money, i would love to buy 250k for gpus with overpriced, or buying sha256 asic for btc mining, 250k buying btc/eth, 250k in cash for safety, another 250k for alt, please dont yoloing all that money to one bucket on crypto, be logical dont get to emotional

[FP91G]

Traders say December - January is the time for the last wave of price increases.
Now it is wrong to buy well-known coins and also buy mining equipment.
You can drink CHIA or coins of new projects that are now being launched. You can spend 10% of your capital on this.