Hosting costs, questions, problems

[brent217]

Background - I live in Alberta, Canada.  I bought 8 Spondoolies with RoadStress's groupbuy almost a year ago now.  The machines arrived in September, and I ran a few of them in my house and at friends houses for a few weeks while I spent another 4.5k to rent a space for a year, 11k Canadian to set up electrical, and 2k to set up some very big fans, and another $100 a month for internet.  I ran my servers for October through January with no problems, other than the vaunted Alberta low cost of power being something of a lie.  (We are charged a base rate of 0.07 to 0.08c/kw, BUT with transmission fees and riders extra based on total power used, total bill comes out to approximately 0.16c/kw).

In January, the "Smart" meter that the local power company installed started reading double.  Instead of using 12 to 13kw hours per month, it is now reading 24, so my power bills went from $1500ish a month to over $3200.  I didn't find out about it until the first bill was due.  I complained, but the power company's policy is "5 business days to respond"  After several 5 day periods of responding to my emails, they have agreed that I will pay them $400 to test the meter, and they will reimburse the money if they find the meter is broken.  They have yet to set a date for the testing, and at the current double rate I am barely making positive cash flow (my head is above water ONLY because bitcoin is back up to almost $300, otherwise I would be losing money per day).

I am unimpressed, to put it mildly.  So, I have been looking at alternatives.  If I sell my equipment now (I have 40Th) I figure I can get between 10 to 15k for the servers on ebay, and I will have lost a lot of money.  If I maintain my current place, I need to put in another couple hundred to optimize airflow for the hotter summer months, and then I still have to deal with a power company that is screwing me, so I will not be making money.  The third option is hosting.  Hosting in Alberta is very expensive (like everything here), which is why I built my own place to begin with.

In another thread, a new Newfie based hosting company is offering hosting in Canada for 0.06kw (US dollar amount).  That is cheaper to host than my current monthly rate by a good bit, however, they are a new company with no reviews, and I am effectively sending tens of thousands of dollars to a random person on the internet with a website.

So, what questions do I need to ask, and what can I do to try and ensure that I do not get ripped off?  I asked for a copy of the CEO's driver's licence, and he gave me that (with the serial numbers whited out), and he does appear to be a lawyer in good standing in the Nefie & Lab bar association.  They do appear to be insured for 2 million (the standard nowadays).  The address they gave me in Goose bay is next to a hyro electrical plant, but google maps doesn't appear to have a street view for such a small town.

I sent the Director the following questions:

1.  I will need a copy of your insurance certificate, and something from your corporation that has your name on it, along with an address.  I need proof of you who are of some type, other than a webpage.  Scan your driver's licence in low quality and block the number so it can't be used for identity theft?  Again, I need to know I am sending my machines to a business that will run them for me, as opposed to a random person on the internet.  if you can think up a good way for me to verify you are who you claim you are (other than meeting in person, unless you are visiting Alberta soonish) that would be acceptable.

*Note - both of these documents were sent to me yesterday*

2.  Do you already have contracts drawn up for hosting?  If so I would need to peruse one.
*Note - the contract they use was sent, I am reading it over*

3.  Do you supply 240V power (that is what all my machines are currently running on, as they run cooler than on 120V)?
*Response - they supply 208V*

4.  Are you willing to turn machines off and let them sit for X months when the BTC price is low?
*Yes, up to 3 months, but they are not a long term storage facility*

5.  More of a comment, but 27,000 cfm is enough to run 88 Spondoolies (barely).  I have 2800cfm (10% of yours) and that is NOT enough to cool my 10 machines unless the temperature outside is -30C.  If you are going to run hundreds or thousands of machines you will need a LOT more airflow.
*Response - their contract says they will maintain a positive air intake temperature of between 1 and 30 degrees C*

6.  Do you individually meter everyone's sets of machines, or do you use a "kill o watt" device to measure draw at the wall when they are running (and if so where did you find them for 240V)?  If you meter, what kind of meters are you running?  I ask because I am looking to move as the "smart" meter installed in my business has been reading double the past month.  I am paying the electrical company to look at it, but they are pretty slow to schedule, and I am getting annoyed with them fast.
*Response - they use a PDU to constantly meter draw, and will set the contract based on initial readings*


So, to everyone on the forums that has set up or used hosting, especially if you have used hosting in a place far away from you, what can you do to ensure your own financial safety, other than what I have already done?

And what other questions do I need to ask, or what else do I need to know to make a good decision? (Yes, I need to get a shipping cost, and Canada is a stupidly expensive place to ship parcels).

Thanks for any help!

[MCHouston]

Looks like you covered most of what I can think of.

The fact that they have 208V is another good thing.  This means that they are at a business location with 3 phase power and not in someones garage.

Also.

There are 120V-240V kill o watt type device available but most DC's or business use metered PDUs, as you can tie the SNMP queries into your accounting systems.

[bitkings]

I think you are doing GOOD, no worries.

[picolo]

Looks like you covered most of what I can think of.

The fact that they have 208V is another good thing.  This means that they are at a business location with 3 phase power and not in someones garage.

Also.

There are 120V-240V kill o watt type device available but most DC's or business use metered PDUs, as you can tie the SNMP queries into your accounting systems.

208V is safer and better for big electrical loads.

[cyberpinoy]

I would ahve to say they have certainly gone out of thier way to get your business. They seemed to have supplied everything you asked for, and so far like others have mentioned, they seem to be running a very legitimate business using the best possible ways they need to give thier customers what they need. So I think you have done well in all you asked and the response you have been given.

Have you ever thought of buying your own Lone meter and  having it installed to double check your current meter that is giving you almost double the readout you had?

Did you think about adding some other source of energy to lower your costs, some solar power that can feed electric into the system and maybe even save you a lot more than they have overcharged you.

[jkerrick]

I'm starting to look for hosting, too.

I am impressed that the CEO would send his driver's license, and all that other stuff.

It's a little odd that you have not heard about the company, though, in this forum.  6 cents a kwh is just $43 a KW/month (check my math, please), which would make that hosting fee much lower than what anyone is else offering.  (But that's in the US, and maybe that's not really an option.)  Maybe they are brand new and just trying to get someone in the door?

One thing you could ask is how long they can guarantee that rate.

As far as financial safety, things can go wrong even with an honest company.

[tntnfree]

what other questions do I need to ask, or what else do I need to know to make a good decision? (Yes, I need to get a shipping cost, and Canada is a stupidly expensive place to ship parcels)?
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[RoadStress]

In my signature you can find a dedicated thread for hosting companies with good prices. I recommend you to take a look there too.

[namstec]

Hi brent217 and miners,

My name is Andres Carrero president of NAMS TV. Inc dba NAMSTEC. Brent i want to offer a 50% partnership to host your equipment in our office. Our company is registered in USA and in South America for more than 10 years in LED business and Electronics.. now mining. I believe in doing good work and professionalism is the first thing for me. I have a clean record in my business and also hold a active real estate license in the State of Florida.


Contract: Contract agreement for all our customers.


Our electricity cost is $ 0.005 KWh.  (zero electricity cost to miner partners)


Need your miners back: No problem just pay the shipping cost. If bitcoin hits $ 10,000 a coin and you need your equipment we understand is business.


Our program 50%: Miner 2.0
-Send us equipment in pairs of two. One for you and the other unit for NAMSTEC.
-Zero electricity cost.
-Starting with few unis is ok.... pay your equipment and keep growing together.
-Rent your rig - increase ROI


Two examples: 1.6Th's average
Benefits: Suppose you send two Spondoolies SP20. 1.7Th's
Spondoolies SP20 - One miner to your bitcoin address,pool and the other miner to NAMSTEC.
Bitcoin price and difficulty: $ 261
$ 3.82 daily - monthly: $ $ 114.60
if bitcoin stay in same ballpark price you are looking $ 1,375.20 year


Other option: Rent your rig - Idea
In ebay seller usually charge $ 6.50 er 1 Th's 24 hours.
Spondoolies SP20 24 hours 1.7Th's: $ 14.95 per day
Let's say you rent your rig in ebay or other website: 
100% rented per month: $ 448.50
50% rented per month: $ 224.25
Not renting your rig: $ 114.60

Send us a raspberry pi and have access to your miner if you are thinking of renting your miners.

Protect your investment from Bitcoin price: (IMPORTANT)
Competitors hosting services in the market charge between $ 0.10- $ 0.12 KWh for hosting your equipment in Washington.
Example with Washington hosting program: Flat fee


Example for you and for other miners:  Bitcoin price hits $ 100 you have 1Th's and your power supply is 700 watts at $ 0.10 cents per KWh.
Negative income:   - $ 0.73 per day, and you must stop hosting immediately because equipment can't pay rent.

Same scenario with NAMSTEC: Miner 2.0
Example:  Bitcoin price hits $ 100 you have 1Th's and your power supply is 700 watts.
Positive income:  + $ 0.83 per day.
You still make money on a daily basis, rent your rig to double profits and the possibility to wait for the increase


Shipping cost: Miners pay shipping cost to Miami address we pay freight to South America.


add me in skype for any question guys: namstec


Thank you,

Andres Carrero
President
Skype: namstec
USA: 305-726-1761 Whatsapp
Email: sales@namstec.com
Email: andresacarrero@gmail.com
Website: www.namstec.com
License real estate: https://www.myfloridalicense.com/LicenseDetail.asp?SID=&id=7408202D91C3FE1F7DBD71944607DFE2
Company Florida: Federal tax id: 20-1562098
Personal - Facebook: https://www.facebook.com/arma.fuel

[Dalkore]

Glad to see new hosting companies stepping up and doing more than asked to give miners confidence in them.  We need more good actors.  Cheers.

[namstec]

Hi Dalkore,
 

Thank you Dalkore for you comment!


Look forward working with small miners and and actually try to fight big Mining corporation not offering nothing in the market only collect payment and forgetting who started the bitcoin mining.


Delkore I want to post new equipment send from new miner partner from TULSA, OK US.
Name: Larry Pinney
Email: ldpinney@gmail.com


Fedex: 781119762457
https://www.fedex.com/apps/fedextrack/?action=track&tracknumbers=781119762457&cntry_code=us&clienttype=ivother


Larry send us two Antminer with server power supply. Here is a Picture with FedEx number.
http://namstec.com/mining-partners/


Shipping is schedule to South America Next week.


Thank you,

Andres Carrero
NAMSTEC
Skype: namstec
Email: sales@namstec.com
Email: andresacarrero@gmail.com
Web: www.namstec.com