Topic: A Bitcoin Mining Company - SkepsiDyne Integrated Node - page 5. (Read 11958 times)

Update: The vote to reissue and reprice the shares has passed.  A total of 3539 unsold shares were taken down and reissued for 1 BTC / share.  We have also made the purchases for the first five rigs, coming in under the expected costs/rig.  I would once again like to thank everyone who has invested in the company and put their trust in me.  You've shown more support than I could have ever dreamed, and this company will succeed because of you.

Today, enough shares have been bought to give me the confidence that there is sufficient interest in this venture and that operations can commence.  I will be withdrawing the funds raised from GLBSE and converting them to USD on MtGox.com.  The funds will be transferred to a dwolla.com account and then deposited into my bank account.  At this point, I will order the rigs, and assemble them upon arrival.  The central computer they will be pointed at is already available.

The amount of BTC raised at the time of withdrawal is 483, or 644 shares worth of funds.  At the exchange rate of $7.4USD/BTC, this will raise over $3500USD.  I have revised the build used for the rig such that each rig will cost $1160 and is capable of producing > 1400 Mhash/sec.  The funds raised will allow for the purchase of 3 of these rigs, for a total output of ~4200 Mhash/sec.  Using a difficulty of 250000, the first 50 BTC will be generated in about 3 days. 

I have initiated a vote for shareholders of the business concerning the reissuing and repricing of unsold shares.  The file attached to the vote contains the following content:

Vote Start:   Wednesday May 18, 2011 - 2:00 AM
Vote End:      Friday May 20, 2011 - 12:00 AM
Vote Num:   000001
Vote issue:   Reissuing and repricing unsold shares

This vote is being held to determine the shareholders' opinions
on the matter of reissuing and repricing current unsold shares
from .75 BTC/share to 1.0 BTC/share.  These shares would be
offered until May 25, 2011, at which point another vote would
be taken on reissuing and repricing.  The purpose of this is
to reward early investors for their greater risks as well as
raise funds quicker once the reputation and legitimacy of the
business is solidified.

A vote in favor (yes) will support a reissuing and repricing
of unsold shares to 1.0 BTC/share.

A vote against (no) will support a continuation of current
pricing of the shares until May 25, 2011, at which point
another vote will be taken.

I would like to thank those who have invested this early in this business, because without you it never would have left the drawing board.  Together we will break new ground and pave the way to the future.  Others will follow where you have led, but you are the pioneers who blazed the trail, and I can not thank you enough.

I would also like to thank Nefario: I would like to thank you for the opportunities you've provided not only me but the entire Bitcoin community.  This has been a huge success, far greater than what I anticipated, and I feel that it's just the beginning.  We will grow together, each of us benefiting the other as much as we individually benefit.  You have provided the solid ground for others to build upon, the ability to reach untold heights that could not be reached alone.  You have my gratitude.

I will continue posting updates on the status of the funds/rigs/etc. as things progress.  The hardest part is over, but there is still much work to do.

Voting is up and running, so the share issuer can put motions to the shareholders. This seems like something that could use the voting feature.

Meh.  Open the windows = problem solved. 

No, but seriously, I'd get going with mining, THEN worry about adding additional cooling as necessary when the geothermal isn't able to keep up.  It'd be a waste of money to worry about the cooling system first.  Sure, it might not keep up.  Worst case scenario?  Some of the miners are shut down for a few days while a better cooling system is put in place.  Worst case scenario by worrying about it right now?  Fewer rigs to mine with, since funds would be used towards getting professional opinions.  And a later startup date, since he would be delaying the purchase of equipment until said professionals came back to him with info.

As a shareholder, I vote for getting mining rigs up and running ASAP, then deal with any issues that crop up as they arise.

I have a feeling that inexperience is going to come around and bite you.

I'm going to bet that the geothermal climate control wasn't designed with that amount of internal heat generation in mind.  If it's like most then it's designed to keep the temperature constant vs outdoor temperatures if it was designed for storage.  It'll work for a bit but once the geothermal sink gets saturated with heat you'll loose most of your cooling capacity.  I'd have an engineer experienced with that system run the numbers you're looking at to see if it's even capable of handling that amount of heat on a constant basis.

That is correct, however I will also be experimenting with rigs with PSUs on 240V.  Like I said, this is going to be starting small, so upgrading the box will be something of a landmark point in the company's timeline.

Once the web interface comes into effect for GLBSE, I think there will be many more people involved who were turned off by the command line setup.  Nefario is very good about helping figure it out for those who are interested until that time though.

edit: Only 60 or so more shares are needed until the first rigs will be bought.  I am confident this will occur before the end of the week.

200A measured in 120v, right?  Well that's 24000w right there (technically, 19200w usable using the 80% rule).  Regardless, sounds like it'll be a fine setup.

I'll buy a couple of shares if I can figure out how to use the silly stock exchange system.

The people who owned it before went bankrupt, so I was able to pick it up really cheap at an auction.  They were using it for climate controlled storage I believe... but they took all of the fancy climate control equipment.  They left the geothermal well though.  It's been sitting empty since, property taxes on it are pretty cheap so I just considered it an investment.  I am happy that I am able to finally put it to good use.

Ok, now I have to bite. What WERE you doing in there previously?

I don't expect to be putting all 39 rigs in at once.  As it is, the 200A breaker box currently installed will provide sufficient power until the business grows enough to warrant upgrading it.  With the higher capacity box will come lower energy prices, but this is all well into the future and after the business is well established.


At first, no, mostly because there are only going to be around 5 rigs to start, but as the business grows, this will be something looked into.  That's not to say they won't be attended to when the business starts up, but there won't be a dedicated staff.
Yes.
Yes.
I'm not sure if you're asking for how I'm going to connect them within the LAN or the quality of my internet connection.  The former will be accomplished using switches and CAT5 cables, the second is a DSL connection.
Switches, CAT5 cables, and a wireless router.
Yes I do.  The existing infrastructure I spoke of is the open-loop geothermal cooling system in place, which can easily be upgraded as the business expands.

edit: 567 shares have been sold, less than 200 more needed to begin!

Yes, I too would like to know how you expect to be able to provide proper power and cooling to these machines.

You seem to have left both out of all of your equations. In () are my expected answers. Please surprise me. I don't think you've thought this out as well as you think you have.

Do you have dedicated staff that will be monitoring these? (No?)
Do you have anyone familiar with datacenter design laying out your space? (No?)
Do you have commitment from electricians to properly wire your space? (No?)
What kind of network connection are you planning on providing for these machines? (None/Home DSL?)
How are you planning on attaching them to said network connection? (No plans.)
Do you actually understand what is necessary to cool the amount of jules you're talking about here? (No.)

Seriously, you are not going to cool something like this with any infrastructure already in place unless you were previously using it to host a nuclear reactor or something equally ridiculous.

Do you have the capabilities to provide 21000 watts of power throughout said pole-barn.  If not, do you plan to have electricians bid on how much it would cost to upgrade the existing electrical infrastructure to support that many rigs?

The rigs will be housed in a pole-barn that I own, and will be cooled using geothermal technology (already existing infrastructure.)

where do you plan on putting 30 rigs and how do you plan on keeping them cool

That's a possibility, the main reasons that I think mining companies will make for a faster, more efficient system is because a company can get bulk discounts on capital and energy, can afford R&D, and can expand rapidly.

Stock update: 496 shares have been sold so far, which means that only ~250 more are needed before operations begin.  I project that this will be met by the end of the week, especially if the current rate of selling continues.

Personally I think at a point these type of companies will take over the hashing power of pools (call it the next step in mining evolution). If such company manages to get ~6 blocks an hour (or maybe all) it will become very unprofitable for "home"-miners and pools (who mostly depend on the "home"-miners) and they will drop out of mining (unless they do it for the bitcoins themselves, but I doubt that). The question is if such company can get enough leverage to pull such trick.

Thanks for your interest!  I messed around on Amazon EC2 for about a week and spent about $30 only to find out that the whole thing was a lost cause (Telsa GPUs, as mentioned earlier, are garbage for mining BTC.)


#1. If the exchange rate falls, the difficulty will probably fall, and make it easier to mine the coins.  But even if the difficulty stays the same, then mining at 1.5USD/1BTC with 39 rigs will be in the black almost $6000 at the end of each month, after electricity is paid for.  I think there would be a crisis mode at that point, and some serious discussion on the future of the business, but I don't think that that kind of drop in price is in the future, especially without a drop in difficulty to accompany it.

#2. The problem I see with this is that it takes a certain amount to beat the difficulty increases and make enough money before them to reinvest and grow.  I don't think that having only one or two rigs is enough to do that in the current climate, which is why I'm trying to get enough funds to make a lot of money and not only beat but lead the difficulty increases.  I will not be starting with $28k worth of rigs, I don't think anyone expects me to raise all the funds in a few short days.  As of this moment, 405 shares have sold, which is enough to buy 3 rigs, so I am going to be withdrawing those funds in the next few days and purchasing the first wave of rigs (which I'm hoping will help my legitimacy) and hopefully more people will buy into this once this occurs.


The number of rigs will not remain static, and portions of the profits of the company will be dedicated to growth in order to continue to produce a significant amount of BTC.  Investors are paying for the initial equipment, which will produce enough profit to expand and keep the business competitive.

Thanks again for your interest, I hope I answered your questions adequately.

it's not good nvidia, forget tesla and its 80 mh/Sec.

Which is a cross post of https://bitcointalksearch.org/topic/skepsidyne-integrated-node-the-bitcoin-mining-company-8167

This is a crosspost from https://bitcointalksearch.org/topic/skepsidyne-integrated-node-a-bitcoin-mining-company-8208 btw.