Project Idea Involving 300 KVA Transformer

[4Cordelia]

I own a 4,000 sq. ft building with a 300 KVA transformer.  I'm retired and need to supplement my income due to medical issues.  I was approached by a mining company to lease the building and the electricity.  (Too long of a story to explain how I ended up with the building and the transformer)

Company Proposal:
Lease 4,000 sq. ft building, 1,000 amps, and cement pad space for  (2)  80' containers outside.    Their offer is $2,000/month.  


1- Would you accept their offer?
2- Would you counter their offer?  Why?

I've done the math, but I interested in hearing from those of you who have been in the mining business a lot longer than me.



 Thank You for taking time to share your expertise and insight.  





 
 

[qzl9899]

I think it's acceptable. Of course, I don't know your local policies, whether your building is allowed to be converted into a mine, and whether the surrounding residents will object to environmental protection requirements. After all, mines are quite noisy.

[examplens]

if you don't have a better offer, you should accept this one. I am not sure why you asking here for advice, it's your properties and your potential monthly income. If cryptocurrency mining is legal in your state, I see no reason to be in doubt.
how mining hardware requires a higher degree of cleanliness, It is to be expected that the owners will keep the whole area tidy. otherwise, it is like any other business.

[NeuroticFish]

The previous post got it pretty good:
* it depends on the prices in your area
* it depends on what other offers you get or you can get (COVID is over, businesses may slowly start expanding, but it may be slow)
* it depends on the legal status of bitcoin mining in your place
* it depends on the electricity contracts/status in relation with mining in your area (I'm not so much technical, but I'd guess that electricity still has to be bought)
* I don't know whether the noise is or not a problem

There are plenty of things you know / you have to think about. Ah, and it also depends on how badly and fast you need the money too.
Really, it's not so much of advice we could give - whether the offer is good or bad - since it depends greatly on local things.


And although the answer is imho completely irrelevant (I don't live in America), I'll still give it:
I would probably accept the offer, since it would mean I'd almost double my monthly income.

[DaveF]

Who pays for the power?
The cooling?
Insurance?
Building maintenance?
Taxes?
Other fixed expenses?

I'm sure I could go on but you get the idea.
It looks good at a glance, but depending on all the costs involved you could wind up way behind.

-Dave

[NotATether]

Who pays for the power?
The cooling?
Insurance?
Building maintenance?
Taxes?
Other fixed expenses?

I'm sure I could go on but you get the idea.
It looks good at a glance, but depending on all the costs involved you could wind up way behind.

-Dave

I'd just hand over all those expenses to the mining company. After all they are the ones running a mining operation in his building, so it's only fair if they pay for stuff like electricity and taxes. OP only pays for building maintenance (and building insuranse but that's strictly it).

[AliKhan189]

I own a 4,000 sq. ft building with a 300 KVA transformer.  I'm retired and need to supplement my income due to medical issues.  I was approached by a mining company to lease the building and the electricity.  (Too long of a story to explain how I ended up with the building and the transformer)

Company Proposal:
Lease 4,000 sq. ft building, 1,000 amps, and cement pad space for  (2)  80' containers outside.    Their offer is $2,000/month.  


1- Would you accept their offer?
2- Would you counter their offer?  Why?

I've done the math, but I interested in hearing from those of you who have been in the mining business a lot longer than me.



 Thank You for taking time to share your expertise and insight.  





 
 

Keep the transfer of 300 KV in your interest. Rent can never be in your interest

[DaveF]

Who pays for the power?
The cooling?
Insurance?
Building maintenance?
Taxes?
Other fixed expenses?

I'm sure I could go on but you get the idea.
It looks good at a glance, but depending on all the costs involved you could wind up way behind.

-Dave

I'd just hand over all those expenses to the mining company. After all they are the ones running a mining operation in his building, so it's only fair if they pay for stuff like electricity and taxes. OP only pays for building maintenance (and building insuranse but that's strictly it).

But that is where it gets tricky.
Mining is a lot more abusive on equipment then being a warehouse.
I don't know what this building has for cooling but most units that were not setup for data center use are not rated for 24/7/365 use that will shorten their life.
Same for transformers. It's usually 75% (IIRC might be a bit lower) of rated for 24/7 above that their lifespan drops.
In most places the building owner is responsible for the bills if the tenant leaves without paying. They bail on 60 days of unpaid power you have to pay it.

And so on. As with everything YMMV and the local rules will vary on location but having people in the family and friends that own commercial property it's not always that simple.
Hell in the building down the block from where I work there was a business leasing space that managed to skip out on close to $150000 of gas and electric. They were using about $40000 a month so it was only a little over 100 days but still a staggering number since the landlord was only collecting $30000+CAM+taxes for rent.

-Dave