Topic: Cointerra is dead - page 3. (Read 5673 times)

That speaks volumes. I believe they were specifically  looking for a hosting provider that didn't require a deposit. That way they could not pay their bills for a period of time at the end and effectively mine with free electricity for a while  (like 60 days). They wouldn't care if the hardware was forfeit, 60 days free mining is worth more than those old Terraminer IV units will fetch second-hand (plus the cost and hassle of selling them, shipping them out, dealing with returns, customer support etc).

Cointerra also raised money in a pre-order for a 16nm product... who knows whether they ever actually intended to manufacture it or not? The cynics amongst us suspect it was just another cash-grab before the company went under.

Terraminer IVs from my understanding.  Whether they were new, old or what, I have no idea.

To be fair, it started out as an inquiry on whether or not we could handle 100-150 units.  Then it turned into a conversation about building a new datacenter that could house up to 5mW worth of their hardware.

Do you know if that was a new hosting project using new hardware or a relocation of existing servers ?

They inquired with us about a large scale hosting project in early November.  I mentioned a downpayment and the email chain ended.

If you actually pay attention to the context instead of isolating seemingly contradictory phrases, he's saying "Cointerra was no longer profitable [if they were paying their bills] ...they continued to profit [by paying themselves instead of covering owed debt]". Any business model with a revenue stream can be "profitable" if you don't pay the associated debts.

"Cointerra was no longer profitable...they continued to profit"

Umm, could you make up your mind about whether or not CT was profitable?  And whether or not you are ignoring me...  

If the price of BTC had gone back up, CT would have been able to pay C7, etc.  But that was a risk both businesses were willing to take.  Adults understand risk doesn't always produce reward, and don't indulge in personalizing the outcome by retroactively assigning criminal motivations.

tl;dr: People have access to lower cost power and are willing to run on thinner margins. It's not fair.

No icebreaker, what is shady is Cointerra was no longer profitable months ago with there cloud mining operation, and instead of paying their accounts, or saying "hey we can't cover this bill" they stayed silent.  In the meantime, they continued to profit from the operation (withholding payment to C7), they probably didn't pay themselves anything different, but chose to pay certain creditors, while not paying the data center.  In the mean time, C7 had a huge bill for JUST the electricity alone, that they paid piling up (a line of credit - that the DC didn't offer) - after 60 days of paying Cointerra's power bill, they finally shut them down.

Cointerra never evolved there equipment to a more profitable design, and because of this, were never able to compete with other miners operating at .65j/gh.  Operating at nearly 1.3+j/gh, and twice the hosting costs, means over 1/4th as profitable, in an operation that was too expensive in the first place.  $101-$105 per KW, is too much for a large scale operation with needed support. Its why I never liked Cointerra, gear they never even made an effective 28nm let alone 20nm chipset, they continued to produce units designed in December of 2014 with an older chipset.

Had they replaced old equipment with new gear, they could have been profitable (twice the hash-rate) for the same space / price, and liquidated there equipment at a reasonable cost, not the ridiculous costs they wanted for those units on there website.  They knew they were screwed (unless bitcoin price doubled) yet they continued to gamble with someones else money (C7 the datacenter) - making them pay the bill.

This is why customers we take on pay a 1 months security deposit, then pay month to month.  The one month is so if they don't pay there bill, and we shut them down for being 2 weeks late, we're not out any money other than having space available.

There is a high mountain to climb for Cointerra, C7's contract is fairly straightforward and they have been doing this for quite some time.. They did a great job on the buildout for Cointerra and delivered everything, apparently they even went above and beyond per the suit.. Knowing them I wouldn't doubt it as they have a great team at C7..

He is HashFast's biggest cheerleader. Even to this day he defends them nonstop. Putting him on ignore is a very wise choice.

OK, so not only are you the kind of dumbfuck who thinks Cointerra can predict the price of BTC and bases evil conspiracies on that knowledge, but are also the kind of dumbfuck who needs to announce who he adds to his ignore list.

You think Cointerra knew what the price of BTC was going to do two months in advance...who cares who such a paranoid dumbfuck ignores?

"You dumbfucks...."
Really?  Though I have not run across you before Icebreaker, I feel very comfortable adding you immediately to my ignore list.

Right, it was a criminal conspiracy.  Cointerra's magical psychic genie told them 2 months ago BTC was heading down, and not back up to $1200.

Do you gamble on horses, and then declare the racetrack "shady as crap" only when you lose?

Do you buy stocks, and then declare your broker "shady as crap" only when your investments fare poorly?

You dumbfucks who suddenly see preplanned malfeasance only things go wrong need to understand that risk is part of life, and especially part of high-tech bleeding edge start-ups.

C7 is the name of the data center (DC). They're an expensive traditional server hosting facility. An absolute horrible choice to host miners there.

I'm sorry I don't speak abbreviation ... What is the C7 and who are the DC ?

there's two sides to every story.  I'm sure we will hear more about this.

lol no, just been in business for myself many years and read the brief.   I've owned, run and operated many companies, not all of them made it, thus, I know the drill on the court side.  Decided to stop focusing on small clients mid last year when I realized that only large scale mining operations and those that build there own hardware will be profitable in the long run. 

I suppose one thing I neglected to mention is that is the order of priority for a chapter 7, often times if we're talking a chapter 11 its a lot more complicated, but typically follows the same guidelines. Never trusted Cointerra and was fortunately able to steer my investors away from them and to profitable mining hardware...

Personally I think what cointerra did was shady as crap to the C7...  The knew they weren't going to pay, and let the DC provide them power for 2 months for free and collect profits.

Suprise Suprise...

Mining companies that were created when BTC was ~$1000 are unable to make ends meet in cutthroat mining land when BTC hits a couple/three hundred.

The only reason mining ASICs were ever such a lucrative business was due to the price speculation/increase which made even bad mining investments seem like winners for the uninitiated.

Good riddance!

You appear to have some quite specific knowledge of the companies current debt position ... Are you associated ?

investment repayment order:  employees (up to $12,475), secured credit holders, taxes, court-fees, customers (layway /$2,775* per customer ), creditors, and finally, investors.  And C7 has a 5 million dollar credit claim against Cointerra with at least $300,000+ in immediate damages., not long term contractual obligations.

just to clarify repayment process, you would be considered an investor.  They are not often lumped together with creditors as they are normally your bank companies, and depends what type of paperwork you had as an investor.