Final Noticehttps://bitcointalksearch.org/topic/m.3304465Financial ReportsSeptember 2013
https://bitcointalksearch.org/topic/m.3289371August 2013
https://bitcointalksearch.org/topic/m.3089234July 2013
https://bitcointalksearch.org/topic/m.2863287June 2013
https://bitcointalksearch.org/topic/m.2634034May 2013
https://bitcointalksearch.org/topic/m.2355025April 2013
https://bitcointalksearch.org/topic/m.2016480March 2013
https://bitcointalksearch.org/topic/m.1711100January and February 2013
https://bitcointalksearch.org/topic/m.1573941September 2012 through December 2012:
https://bitcointalksearch.org/topic/m.1444216August 2012:
https://bitcointalksearch.org/topic/m.1153179July 2012:
https://bitcointalksearch.org/topic/m.1070848June 2012:
https://bitcointalksearch.org/topic/m.1001489May 2012:
https://bitcointalksearch.org/topic/m.934452NoticeDiablo Mining Company has closed and liquidated.
Original PostThe PlanDiablo Mining Company is setting out to be the first $1m USD Bitcoin Startup.
DMC will focus on mining and secondary revenue streams by not only owning the largest mining farm in existence, but also by owning its own dedicated facility and generating green power by solar and/or wind. Extra space in the facility can be rented out to other mining operations or non-mining customers.
The funding will be used to focus on three areas: a dedicated facility that can not only house our hardware but also have spare room to be leased out, purchasing high efficiency mining equipment, and purchasing enough green power generation to eliminate the operational overhead of electricity prices to allow the mining company to continue operating in profit-adverse situations (such as Bitcoin difficulty rapidly increasing, or Bitcoin prices rapidly dropping).
The FacilityA dedicated facility will be purchased or built on un-/under-developed land located in Maine due to our cold 6 months out of the year environment and lack of natural disasters. $150k will be set aside for this purpose as a soft estimate.
The HardwareDMC will pursue any technology that gives the best performance per dollar and the best returns to our investors. We will never purchase Butterfly Labs hardware.
Post-Spartan 6 large scale mining hardware will be around for $16,000 for 50 ghash each, using 1200 watts each. Assuming we buy 40 units (or approximately whats left of the $1m after the purchase or construction of the facility with enough margin to maintain the construction of a green power generation system):
Hardware cost: $640,000
Mining power: 2000 ghash
Power usage: 50,000 watts, or about 438,000 kwh a year.
Operating cost: about $43,800 a year at 0.10 kwh maximum cost.
At approximately 1.5m Bitcoin difficulty and Bitcoin prices north of $5, 40 units should produce about 1344 BTC a day or about $6,720 a day or about
$2,452,800 a year.
The Part Where We Kill Operating CostsUp here in Maine, each 1kw of solar panels costs about $700 and produces about 1200 kwh a year (with weather patterns and nighttime factored in). Large scale wind is about $1000 per kw, but takes up less room and also generates at night, and many communities in Maine are putting up wind turbines due to excellent wind conditions.
To offset 438,000 kwh of usage a year, I'd need 365 kw of solar, or $255,500.
Hardware cost with solar: $895500.
Thats $895500 for a mining company that can operate in the most adverse conditions (ones that would bankrupt any other mining company) that can make $2.4 million a year.
What does the investor get out of this?The contract will revolve around splitting revenue in half: one half goes to dividends, one half goes to covering operating costs and a growth fund.
Given that, I am asking for 200k shares at 1 BTC each. Each share will pay approximately 0.05 BTC a month (calculated using 1.5m Bitcoin diff), which will drop to 0.025 BTC sometime in December due to the block reward cut.
Using this math and calculating on the 0.025 BTC per share dividend alone, investors should be making a profit in less than 2 years, factoring in a doubling of difficulty as worst case.
Share ContractThe revenue will be split in two parts:
1) 50% of all mining revenue will be distributed to shareholders in the form of dividends (henceforth referred to as "dividends"). These dividends will be paid monthly, split evenly among all shares regardless of class or issuing date.
2) 50% will be used to invest in additional hardware, decrease the cost of mining, and/or pay for long term operating costs of the company (henceforth referred to as the "growth fund").
Operating costs (electricity, repair work, unplanned maintenance, employee related costs, taxes) will taken out of the growth fund. Any operating costs that exceed the ability of the growth fund to cover will be borrowed from the dividends until covered. Dividends borrowed in this manner will be paid during future payment period(s) using the growth fund until repaid in full.
Each share represents 0% of the ownership in the company assets. In the event of liquidation, 100% of the revenue from sales of the assets and 100% of the growth fund, minus any expenses incurred from the operation or liquidation of the company will be paid to shareholders.
The operator of the company retains two special rights, regardless of the number of shares held by the operator: 1) the right to raise a motion, 2) the right to end operations and liquidate assets without motion. Any motions raised by shareholders will be considered non-binding advisory votes.
