Topic: [ANN] Megamine.com : New PAYG hosted contracts (Read 1032 times)

As you'll find on our website we can't comment, neither legally (because it is against the law for us to do so) but also because we have no real idea what is going to happen, about future performance. All we can show is past history and be totally transparent about what our charges are.

We have probably as much idea as you (i.e. none) that BTC will be $1 or $10,000 in a years time, but it's worth noting that the contracts run for up to three years and so it will be a certain type of person that views this as "rubbish" or "interesting".

As for the question if we will still be in business you'll see from our funding equity house (www.blackgreencapital.com) that it doesn't take a one year view with any of it's investments, and Megamine is a stakeholder customer for a much larger managed data centre hosting business and hence is part of a portfolio of investments that BGC does.

We've been through the .com boom-to-bust-to-boom so short term changes doesn't change our fundamental views.

It would appear from the people ordering our service (hence the recent expansion of our farm) suggests not everyone is taking a short term, "1 year" view about mining as you do - especially as the price you quote is for a 3 year contract and we have been transparent about the breakeven point (which is half of what it is on CEX.IO and almost third of the new CloudHashing.com maintenance charge) upfront so everyone can form their own view.

Remember cloud mining isn't for everyone, and that's just fine, just as a whole load of other financial investments aren't for some people.

Justin
CEO
www.megamine.com

You forgot to mention the fact that the 100Th/s contract cost $48,000. So even at a price of $281, which is highly unlikely to remain the same one year from now, I won't even mention the difficulty. Requires 369 days of mining to pay for the contract itself.

So unless you have a time machine and know that one year from now, you are still in business, the price is around $280, and the difficulty hasn't changed, then it sounds like a very risky investment.

Seems legit   

MegaMine launches new hosted Bitcoin mining packages to complement its existing fully inclusive cloud mining service
Flexibility and choice of PAYG or fully inclusive hosting available for purchase from today

London, UK, 28th January 2015

MegaMine, Europe’s leading Bitcoin cloud mining company, today announces the launch of its new Pay-As-You-Go (PAYG) hosted mining packages to complement its current fully inclusive mining packages.

This launch is possible due to the recent delivery of the fourth tranche of mining equipment, expanding the available capacity significantly. MegaMine always uses its own equipment to underpin its customers’ mining contracts, thereby guaranteeing their long-term viability, and hence has waited until the recent expansion of its mining operation before offering a wider choice of contracts.

MegaMine has had significant success selling fully inclusive contracts which are simply structured with miner hosting fees included as part of the fixed purchase price. The main advantage of these contracts is that there are no additional fees to pay, and customers earn exactly their share of BTCs for the term. However, this means taking a forward view of both the value of BTC and the difficulty rate and whether this is advantageous compared to calculating hosting fees per day.

Many of our customers have asked for a service where the hosting fee is “paid as you go” out of BTC earnings. This has the advantage that if the BTC:$ price rises more quickly than expected, then the fixed $ hosting fees chargeable each day become a smaller percentage of the earnings. Hence the contract could be more successful than one where the hosting fees are paid up front. Conversely, there is the equal risk that if the BTC:$ price falls, the earning could, in extremis, have to go entirely towards paying the daily hosting fee, leaving no earnings for the miner. (In the same situation, a fully inclusive contract would continue earning.)

The risk profile of these new contracts is therefore very different to the fully inclusive packages but, as MegaMine’s key values are transparency, flexibility and choice, we are delighted that we are now in a position to offer our customers the option of either package – or the ability to buy both types of contracts if a further spread view of forward risk is required.

The new PAYG hosted contracts are available from $0.479/GH initial fee with a daily hosting fee of $0.579/GH/Year (which equates to a charge of $0.00158630136/GH/Day or $0.04825/GH/Month). The hosting fee is charged in BTC based on the market mid price of the day. All PAYG contracts run for a maximum of three years, but are terminated earlier if the earnings from the contract are not able to fund the hosting fees.

One concern about PAYG contracts is the margin available between the hosting fee and the earnings. However, MegaMine has the lowest electricity cost base in the EU which, along with the exceptionally high efficiency of our data centre in the sub-Arctic region of Northern Sweden, means that our hosting fees are as low as they possibly can be. For example, a 100TH PAYG hosted contract purchased on Monday 26th January 2015 would have provided the following earnings:

Gross earnings:      1.08229662BTC
Pool charge (5%):   0.05411483BTC
Hosting charge:      0.56399821BTC
Net earnings:      0.46418358BTC

Notes:

• Hosting charge is based on $158.630136986/day on mid BTC price of $281.26 [low: $254.57, high:$309.00].
• The break-even point based on the earnings on Monday would have been a BTC:$ price of $154.28.

Our packages are available to purchase today at http://store.megamine.com
For further details on all of our contracts, go to http://www.megamine.com


Unique features of the MegaMine.com cloud hashing service

As MegaMine has continued to grow, it has gained significant economies of scale. What makes our service unique is that we combine the security and safety (from both a legal and tax perspective) of being hosted within mainland Europe, with the advantage that our miners are hosted in our own data centre just 60km south of the Arctic Circle, where there is no need for expensive and energy-intensive cooling.

Exceptionally low ambient temperatures in the region (last week the outside temperature was -28°C) mean that we do not need to waste energy running compressor-based air conditioning to cool our miners. Moreover, the data centre’s electricity is provided by the local hydroelectric power station, giving us the cheapest electricity in mainland Europe. For our customers, this adds up to very competitive pricing for both purchasing the contract and the maintenance fee.

In addition to our competitive pricing, our contracts come with these unique benefits:

• 100% owned equipment
  All of our mining equipment is 100% owned and operated by MegaMine. We don't rent, sell or lease anyone else’s equipment and we run all our own equipment ourselves. Not all mining companies are created equal, and not all guarantee they only use equipment they own, which is especially important for long-term contracts.
• Guaranteed pool “luck”
  MegaMine corrects all the pool earnings to remove any “luck” variances that have actually happened and hence customers earn exactly their share of the total earnings of the pool. A small 5% charge is made to cover MegaMine’s short- and medium-term risk in providing this, but it means that customers know in advance what their earnings will be for a given hash rate and network difficulty.
  
• London headquartered company with miners located in the sub-Arctic region of Northern Sweden
  MegaMine is fully open and transparent about its operation, its location and the people behind it, giving complete peace of mind about the long-term viability of the contract. Backed by Black Green Capital and run by people with more than 20 years’ experience in running hosting operations, MegaMine has the resources to ensure the safest delivery of the service. MegaMine’s services are provided in strict accordance with UK and European tax laws, and also comply with all UK and European anti-money laundering regulations. For further details see http://www.MegaMine.com/aboutus.php
• Real-time stats and updates
  The MegaMine customer portal offers real-time views of your earnings and the performance of your contracts. Earnings are reported every four hours in real time as blocks are solved, and daily summaries showing gross earnings, net earnings, pool charges and maintenance charges are provided.
  
• CashNow™
  For our larger fully inclusive contracts, MegaMine offers CashNow™ which allows the contract to be terminated early with the residual value of the contract paid back to the customer along with any earnings. This allows customers with a change of circumstances to be sure they can always get an immediate cash value for their contract. As there is no residual hosting value left in PAYG hosted contracts, CashNow™ is not available for those.
  
• On-demand withdrawals of accumulated earnings
  MegaMine keeps all earnings in 100% off-line wallets for complete security; earnings are only moved into a “hot” wallet to send to customers. Customers have total control over movements, with the ability to move earnings into their own wallet on-demand, 24 hours a day – so no waiting for the next scheduled transfer and no need for MegaMine to hold large amounts of earnings in “hot” wallets.
  
• 5% discount for payment by Bitcoin
  Here at MegaMine we are passionate about Bitcoin and so are offering a 5% discount on the up-front costs when you purchase any of our contracts using Bitcoin.
  

About Megamine
Megamine was formed in January 2014 to offer cloud based Bitcoin mining that is simple and straightforward, so that anyone who wishes to acquire Bitcoins can do so easily and cost effectively. Headquartered in London, UK, with its mining operation running in Boden, Sweden, the MegaMine operation is fully compliant with all UK and EU tax and anti-money laundering regulations.
For further information, visit http://www.megamine.com or email [email protected]
You can also contact joust on this forum.