Topic: Looking for a 1000 EURO / 125BTC (European) litecoin mining rig investor (Read 2441 times)

Fair enough, but considering you don't seem to have invested any of your own money into the operation (IE: buying the rig first getting it all working) etc... Your offer doesn't not come across as very tempting.

Also, the "HOST" in Austria? In effect you are asking people to trust that you can accurately trust some other guy we have no idea about. Not exactly very comforting.

My advice is to make the 1000Euro and set up yourself. Why not make a deal with the sellers of 6950? pay them more later as you start earning money? etc...? And if something goes wrong- do you have to fly from the netherlands to Austria to fix it?

Sorry now I get what you mean... I should sell shares for my Litecoin mining rig.

I don't want to right now because I'm wanting to test how this works out with a single investor and a single rig. This reduces the complexity and gives me room to get a feeling on how to handle this. 
Selling shares for other rigs can be one of the future plans indeed.

I would like to start my own little mining farm and not be dependant on other people's success. I've done stocks and it's just not what I want for various reasons. I think my post clarifies this enough.  
EDIT: see below.

Why don't you IPO on the Litcoin Global Exchange - https://www.litecoinglobal.com/

Hey all,

Introduction
I found an investor a while back, we almost closed the deal but he had to pull back after the sudden $$ drop last weekend. So, I'm looking for a new investor!
You will be investing in a Litecoin GPU mining rig. I will purchase the rig, set it up and host it at a 'cheap' electricity rated place (for European standards).
Because the rig will be placed within Europe, North-American investors might not be interested because of the (for them) 'high' electricity pricing. That is why this will be interesting for mostly European situated investors.

What does the rig consist of?
The rig will be built using 4x 6950's, 2x 750W Antec PSU's and probably a cheap AMD-based platform. The 4 6950's will be purchased second hand for less than 500EURO's total. The 2x Antec PSU's will cost 2x 75EURO's, bringing the total up to 650EURO's. The platform will probably cost somewhere between 100 and 150EURO's bringing the total up to 800EURO's.
4 6950's will at least push out 1600KH/s. The current owners of the 6950's claim to have never tried a shader unlock. When all 4 cards can be unlocked, at least a hashrate of 1800KH/s will be achieved.

Where will the rig be hosted?
The rig will be placed in Austria, high up in the mountains where it's cool. The place holds a couple of other mining rigs and thus has a sufficient power supply, cooling and internet connectivity. Shipping from my country to Austria will probably be 20EURO's and shipping back will be the same. The electricity rate charged is 'only' 12 EUROcents/KWH. This is way better than my own 21 EUROcents/KWH.
The host lives about 10 minutes away from the mining rig 'facility' and is able to manually reset the rig when needed. Accommodations for remote control (reset/power) could be implemented when highly required. I will be controlling the rig through TeamViewer probably. Electricity payments are done every month and are possible in BTC.

Crunching numbers
I estimated that the rig will use a maximum of 1000W continuously ( http://www.legitreviews.com/article/1488/18/ ). 1KWH*24hours*30days*0,12EURO = 87EURO's on electricity per month.
Assuming that the rig will be pulling 1700KH/s, at a difficulty of 8.5, roughly 6000 Litecoins are mined per month. http://www.litecoinpool.org/calc?hashrate=1700&difficulty=8.5
At a price of ~ 4EUROcents/LTC, 6000LTC*0.04 = 240EUROs. These are estimates, you can use your own imagination of what the difficulty and price will be doing the upcoming months.
The costs of the rig will be around 800EUROs, leaving 200EUROs for initial electricity bills. 200EUROs will cover at least 2 months of electricity, without touching any coins.
In the first two months 2*240 = 480 EUROs will be mined. The three following months will cost 3*87 = 261EUROs of electricity and will bring in 3*240 = 720EUROs. A total of 1200EUROs is mined, minus 260EUROs of electricity costs, will give a net profit of ~940EUROs after 5 months. This brings my ROI estimate to 5~6 months.

Possible risks
Of course, there are some risks.
- The host in Austria could run away with the hardware, leaving us empty handed. Of course, I've done some research and I have enough information. I will share this information with the investor openly.
- The hardware breaks down (6950's) and Asus is not willing to repair it for free. The second hand hardware has roughly 1 year of warranty left. Fortunately I have some contacts working at Asus and they have always been VERY helpful when dealing with RMA's.
- LTC becomes nearly worthless. I'm considering in splitting the mined coins: each week I can sell half the mined Litecoins for Bitcoins, lowering the risk of holding 'large' amounts of Litecoins becoming worthless.

Why?!
Why should you invest into a mining rig and not in Litecoins directly? Well, the 6950's and PSU's are not likely to loose much value in the upcoming months, since the deals I found are pretty good IMHO. Also, for Litecoin to become a good cryptocurrency, we need more miners/more stable network hashrate. Investing in LTC alone will not guarantee you your initial investment back and does not directly increase network safety. Also, LTC is unlikely to get hit by a large FPGA and/or ASIC mining market because of the increased difficulty used in the Scrypt algorithm.
Why don't I invest this myself? Well, I currently don't have the funding, nor am I expecting it to come soon, to be able to start this mining operation. Also, I'm more the scientific kind of guy and not the risk taking investor kind of guy. I like to setup the rig(s) and earn a couple of coins, but not sell all my belongings and putting it in an operation which could make me rich or broke.

Who am I?
I'm a student in The Netherlands, studying a technical study at a University. I have very good knowledge of computers etc. and basically all the money that I make comes from helping other people with PC problems. I'm currently mining with my own 2 6950's, but the electricity price is way too high.
I'm also a global moderator at the litecointalk.eu forum http://forum.litecoin.net/index.php?action=profile;u=87.
BTC-e.com reference users: Raido, sexystick and asdf1234. Also many other users can confirm that I've been active for almost 2 months in the BTC-e.com chatbox.
I'm willing to share more information about myself once you're interested in investing.

Future plans
Because I'm able to close these deals with the 6950's sellers and the host in Austria, I would like this plan to get launched. I already put a decent amount of time into finding these deals and I would like to start off with this single rig at first.
Future plans contain making more efficient rigs (with 7970's and/or 7990's) and placing rigs in North-America (The USA or Canada) where the electricity costs roughly 5EUROcents/KWH. I still need to find the people that are able to buy/build/host a couple of rigs in that region.

*I'm interested*
That's cool! Send me a private message here with your email/Skype/MSN and we can email, chat or talk the deal.


Because I found the 6950 sellers a while ago, I would like to close a deal before the end of the weekend. It's not nice to let the sellers wait for too long or cancel it all.




TL;DR
Looking for a 1000EURO/125BTC investment into a 4x 6950 mining rig @ 12EUROcents/KWH ele rate.