Offer temporarily closed as of 6/4 in light of yesterday's two crackdowns on similar offerings based out of this very subforum.
http://www.coindesk.com/sec-eric-voorhees-deal-unauthorized-securities-sales/
http://www.coindesk.com/missouri-secretary-state-halts-mining-business-deceptive-tactics/
Thanks to those of you who chose to comment. Please feel free to contact me privately to see where things are headed from here for Cosmic Ventures.
Dear Potential Investors,
cosmic_apex here, and today I’m introducing my company’s new offering of Perpetual Mining Bonds. We're a US-based company offering bonds with absolutely no ongoing fees, competitive & fair IPO valuations, absolutely no mandatory bond buyback clause, as well as having an open & honest approach to the relationship between the company & the investors.
UPDATE: 6/3/14 With Bitcoin prices rising and processing power prices declining (as per the norm), I've revisited our pricing model and changed initial bondholder hash-rates to 1 GH/s, to simplify things. Price per bond has changed to
.007 BTC, bringing the cost per GH/s to around
$4.50. Additionally I've revised the planned increases in bondholder hash-rate during subsequent bond groups to account for the fact that bondholders are receiving more power upfront.
Cosmic Ventures LLC
Cosmic Mining Group LLC (DBA*)• ‘Group 1’ Bond IPO Official Announcement Cosmic Ventures LLC, operating under the DBA name “Cosmic Mining Group LLC” is a company that will be operating as a small to medium scale virtual currency mining company, paying out dividends (or “returns”) to bondholders. Each ‘Group 1’ bond in the company represents a portion of the overall hash-rate produced by the mining hardware purchased with ‘Group 1’ Bond proceeds. ‘Group 1’ is slated to be solely for Bitcoin mining, with subsequent groups for alt-coins as per community demand. Hardware is to be fully operated by Cosmic Mining Group LLC. Bondholders do not own any part of Cosmic Mining Group LLC or the hardware purchased with bond proceeds. Cosmic Mining Group LLC has plans in place for expansion & reinvestment of profits, as well as planned dividend increases, outlined below.
The purpose of this Official Announcement is to gauge community interest in bond purchases from our company. We’re willing to be very flexible in the terms of our offering, should the community chime in with improvements to the plan we’ve laid out here today. We do not have a firm date for our IPO; however, it will start no sooner than June 16th. I’d really like to propose that as the official IPO start date, however, as I am currently waiting to hear back from several individuals on key matters (real estate agent & accountant to name a few) I do not have a firm date as of yet. I’m leaving the door open for the 16th, as things could be completed on my end within one week at the earliest. Additionally, at the end of this post, there will be an FAQ that I will update as users post questions.
• Bond Structure ‘Group 1’ will offer 10,000 bonds during our IPO, with a minimum purchase amount of 10 bonds. These bonds represent the hash-rate that these machines produce rather than the hardware itself. In this way Cosmic Mining Group LLC assumes all risks associated with mining operations as well as control of all assets. There will be NO ongoing maintenance fees, operating cost fees, or any fees of any kind associated with ‘Group 1’ bonds. We’re also not putting mandatory buyback clauses into this IPO. You will always be able to sell your bonds to third parties (minimum 10 bonds per transfer) for a .5% fee, and although there may be a time when Cosmic Mining Group wants to buy back bonds from bondholders, you will never be forced to sell them to us. Should you chose to sell bonds back to us, there will be no fee for the transfer.
• Dividends & Bond Value Each bond in ‘Group 1’ shall represent 1 GH/s worth of mining power (with planned increases in value) and bondholders will be paid dividends on a weekly basis accordingly. ‘Group 1’ IPO price will be .007 BTC per bond with a minimum of 10 bonds purchased. Payouts will begin 14 days after the official launch date of hardware purchased with ‘Group 1’ proceeds (this means you will receive no dividends for the first two weeks and additionally all Bitcoins generated during this two week timeframe will be banked for operating costs & emergency funds.) If the entire 10,000 bond IPO is not sold within the specified time frame (2 months from IPO start date), bonds purchased will still represent their full 1 GH/s of processing power output per bond, and Cosmic Mining Group LLC will retain leftover bonds, with the intention of selling them during future rounds, to existing bondholders, on a secondary market, or to be held by Cosmic Mining Group LLC indefinitely. Dividends are to be paid out on Mondays.
• ‘Group 1’ Hardware & Setup Cosmic Mining Group LLC’s intention is to purchase Bitcoin mining hardware that achieves the highest hash-rate per dollar (we will offer Scrypt/alt-coin bonds at a later date). We do not have any affiliation or contracts with any Bitcoin Mining hardware manufacturers and do not plan to pledge our allegiance to any of them. We believe that a small-to-medium mining enterprise such as ours will perform best by purchasing the most efficient hardware on the market rather than by being forced to purchase sub-par products from partners even if it means a substantial discount. Our superior flexibility will let us achieve the most efficient setup. Should we grow beyond being a small enterprise and/or should the hardware landscape change, we reserve the right to affiliate ourselves with a hardware manufacturer if it is in the best interest of our company & our bondholders.
Our goal with this IPO is to achieve a minimum hash-rate of 12 TH/s in our farm in order to fulfill the 10,000 bonds offered at 1 GH/s each in addition to 2 TH/s reserved for Cosmic Mining Group LLC for operating costs & future expansion (including dividend increases).
Because our operation can begin before all IPO shares are purchased, we will begin to order mining hardware as soon as funds are made available to us.
Our intention for ‘Group 2’ is to start it no sooner than 1 week after the completion of the ‘Group 1’ IPO. ‘Group 2’ shall mimic (with some exceptions) ‘Group 1’ in operation but will offer double the amount of bonds (20,000) at the same price (.007 BTC per bond) and with the same hash rate representation (1 GH/s). ‘Group 2’ intends to raise funds for a 36 TH/s Bitcoin mining expansion. Payouts for ‘Group 2’ will begin 14 days after the official ‘Group 2’ hardware launch date, similar again to ‘Group 1’. Once payouts have begun for ‘Group 2’ dividends, ALL bondholders from groups 1 & 2 will receive a minimum 25% permanent increase in the hash rate of existing bonds, from 1 GH/s per bond to 1.25 GH/s per bond. We plan to further increase dividends in the future depending on how our company performs. We believe firmly that rewarding initial bondholders is the most sure-fire way to draw more bondholders in the future.
While we fully intend to begin ‘Group 3’ and subsequent groups of bonds as soon as groups 1 & 2 are completed, we reserve the right to re-examine our company’s operations and possibly delay subsequent group rounds in order to determine the best way to offer bonds, should things be drastically different at that time. As of writing this, mimicking groups 1 & 2 is the most logical way to offer continued expansion of our company, but again, this ideology could change. Because the Bitcoin landscape changes very quickly, both in terms of coin price & hardware manufacturing, it is our flexibility that will allow us to thrive for years to come, so we reserve the right to offer different bond products in the future, according to what would be best for owners as well as bondholders.
• Why chose Cosmic Mining Group, LLC? Cosmic Mining Group’s goal is to offer affordable Perpetual Mining Bonds for those wanting to join the bitcoin mining fun & games, without all the hassle of having mining equipment of your own. There are a number of reasons why I believe that we can achieve these goals in an efficient and profitable manner and I’ll touch on these briefly in this section. Additionally I hope to have a lot of interaction with interested investors on this forum and to expand on any topics that I’ve failed to cover properly in this thread. If you have any thoughts or questions, no matter how small, please do not hesitate to reply to this thread or send me a private message!
Bitcoin mining operations of any measurable scale (that is, beyond having a few computers in your spare room at home) represent enormous risks, including (but not nearly limited to) overhead & operating costs, dealing with heat generated by miners & being able to power all of your miners. These three reasons alone are enough to stop most investors who might have a full-time career of their own & a family to worry about at home. The idea behind Perpetual Mining Bonds is that by centralizing mining equipment to one managing party, we are all able to save significant amounts of money in operating costs per each piece of hardware & thus realize a larger profit in the long term.
The Perpetual Mining Bonds that we are offering have no expiration date. Hardware purchased with bond proceeds will be fully owned and operated by Cosmic Mining Group LLC and thus all costs and risks associated with properly managing a mining company are also taken care of by Cosmic Mining Group LLC. Our technical experience and attention to detail will allow us to achieve maximum uptime & run at peak efficiency. We pride ourselves on offering a friendly & personal experience; rather than expanding on that last sentence, I’ll leave it to my interactions with the community to speak for themselves. I do not presume to be trusted personally by the community without first adhering to the community’s expected level of dedication & knowledge.
We’re a US-based company and plan to fully comply with all legal requirements & licensing involving virtual currency-related business entities. While not all of you will be in the US, I know there are a great deal of people who are in the US who would enjoying an increase in accountability from their Bitcoin investment vehicles. I hold myself to the highest moral standard both in business & in my personal life.
*mini-disclaimer*
The bonds discussed above are defined as Perpetual Mining Bonds or Bitcoin Mining Contracts. PMB’s and mining contracts are private contracts with anticipated returns based on investments into the company.
This document represents an announcement of Cosmic Ventures LLC & Cosmic Mining Group LLC and is not a binding IPO document. IPO terms will be released as the bonds become available to the public. Literally any word from this document could be change, but absolutely will be finalized before I accept any money.
In order to include as many individuals as possible in our IPO, we will be accepting USD as well as Bitcoins for purchasing bonds. You will be entered into a more formal attorney-drafted contract for USD bond purchases, for the protection of all parties involved.
Cosmic Ventures LLC & Cosmic Mining Group LLC are privately held and are not publicly traded in any jurisdiction. Cosmic Ventures LLC & other divisions of the company, along with PMB's being offered are not regulated by any governmental entities including the SEC or any other agency or board.
Returns on investment are not guaranteed. All investments are speculative, subject to influences beyond the company's control and are non-refundable unless agreed to by the company.
All investments are made at the investor’s sole risk. You should not invest in these bonds if you do not understand the risks involved. By purchasing a PMB or Mining Contract you are acknowledging that you understand the investment, accept the risks inherent in any investment, and specifically the risks of this investment.
*end mini-disclaimer*
• Who is Cosmic Apex? A little bit about my personal background. I’m 25 years old and I’ve been a tech enthusiast since my family’s first computer when I was very young, back when they had those 5.25”-ish square disks that were actually floppy. I’ve been involved in two technology start-up businesses to date, one that did not experience much growth and was subsequently shut down (no investors, just my own money at the age of 20), and another in which I was a manager at a 2 year-old start up in the video game community last summer. I currently run a small trading card game related start-up on the side.
I’ve been involved with Bitcoins since early 2013, including some day-trading (mostly to satisfy my personal curiosity) and a Scrypt mining operation in November 2013. That operation was liquidated before it had a chance to grow; I had no investors so there was nobody to upset. After purchasing GPU’s for mining operations they subsequently doubled in price and became largely unavailable. This was a double-edged sword, as it caused my potential expansion costs to skyrocket, while at the same time offering a chance to get out and nearly double my money with almost no effort and no risk involved, due to the liquidity of consumer-grade GPU’s. With the overall uncertainty of Bitcoins and alt-coins, this was an easy decision. Though I left the mining game early, I never lost faith in Bitcoins and traded a lot of inventory for Bitcoins right on these very forums. I’ve continued to hold and research Bitcoins and the document you’re reading now is the culmination of my efforts to support Bitcoin to the fullest extent. My goals this time around have shifted. I am looking to solidify my presence in the Bitcoin community. I believe that I can become a leader within the community while helping us to grow as a whole, all the while offering great returns for my bondholders. I’m aiming for a truly transparent operation, offering potential & existing bondholders access to most any information they should desire. This will include personally identifying information, opportunities for live video chat and allowing bondholders access to company facilities to view active mining hardware!
Thank you all for reading. Should you have any questions, please don’t hesitate to reply to this thread, send me a private message, reach out to me on twitter (@cosmic_apex) or send me an e-mail at
[email protected] (NOT “
[email protected]”).
Sincerely,
cosmic_apex
FAQ
•
Where will the mining hardware farm be located? I live in Pennsylvania (Philadelphia-ish) with particularly cheap office space available as well as fair power & internet prices. Once we have space established, I would love to extend an invitation for any Philadelphia area investors to come check us out. Additionally, I'd like to start attending Philadelphia area Bitcoin related events; if any event coordinators think that we can have a mutually beneficially relationship, please reach out to me.
•
What hardware do you expect to order upon receiving funds? If I were able to sell all 10,000 shares today, we would order CoinTerra IV miners to fulfill the hash-rate requirements set-forth above. Beyond what is available today, I cannot say with confidence where will purchase our hardware. We’re keeping up to date with hardware manufacturers and will purchase from whoever offers the best mix of reliability, trustworthiness & cost-efficiency. After we reach our target for hash-rate, additional funds not used for hardware (but still raised during ‘Group 1’) will be split between holdings for future hardware purchases, ongoing operating costs & dividend reserves for bondholder dividend payments (likely several month of dividends worth, in case we should ever run into persistent issues with our equipment or have other problems that could otherwise hinder our ability to make dividend payments for a short period of time). In this way, we cover operating costs without having to charge fees to bondholders, and we allow ourselves room to grow, hence our desire to offer increases to dividends relative to company growth over time, similar to how large publically-traded companies do.
•
What will happen to bondholders in the event that Cosmic Mining Group LLC becomes insolvent? As much as I don’t want to have a conversation about such a catastrophic event, it’s important that we do have a contingency plan in case we experience financial issues. In the event that we’re going bankrupt, bondholders will have receive a priority in the restitution queue. We will do our best to liquidate all assets at the highest possible value & in a timely manner, with 80% of proceeds from asset liquidation going proportionally to bondholders. An example of this scenario is if ‘bondholder A’ held 1,000 Group 1 bonds, equivalent to 10% of Group 1’s hash-rate (assuming no subsequent bond groups have taken place), then ‘bondholder A’ would receive 10% of the portion of the asset liquidation fund reserved for bondholders; if $8,000 were 80% of a theoretical $10,000 asset liquidation fund (80% being reserved for bondholders), bondholder A would receive $800 (note that though I often talk in USD, we will mostly deal in BTC).
•
When will you offer a Scrypt Mining Bonds? The short answer is ASAP. P being the key letter, because what makes this Possible is you guys. If more people want Scrypt than Bitcoin miners, we’ll shift towards doing that first. We’re at the starting point of high-powered Scrypt mining and, if the first iteration of Bitcoin ASICs taught us anything, it might be wise to wait until we’re 2 or 3 iterations in. Again, this is something that can change pretty quickly and my company’s promise of superior flexibility allows us to take advantage of opportunities as they arise. How many Mining companies went to shit after investing heavily in, what are now considered to be, ancient, arcane technologies?
•
Why aren’t you partnered with Havelock or Crypto Stocks or other similar entity? This is a possibility down the road. In other words, I’m definitely open to it. However, with the problems that these types of entities have experienced in the past, potentially hampering fledgling companies when they’re in the early stages of growth & causing damage at the worst possible time, I’d ideally have a system in place that allows us to have a completely private exchange with no need for third-party involvement. This isn’t something that’s hard to do but I’m wondering what the community has to say on this issue.
•
Will I be required to sign an NDA at any point during this process? This is something I’ve considered addressing simply because the more I can trust my investors the more open I can be about future projects, which might otherwise be a trade secret that I would not normally reveal; for the time being this can be handled on a case-by-case basis for interested parties.
•
What forms of payment do you accept? Credit Card? PayPal? We will only accept cashier’s checks, Bitcoins, bank wires, and in-branch cash or check deposits to our business bank account with one of the larger national banks. As much as I would like to let you all purchase bonds with your Credit Cards or PayPal account, I cannot do either of those at this time.
