Topic: Mining resources hosting/leasing service, worth it? (Read 4426 times)

en route and few are still available.
Ordering more after the first ones arrive, and quantity depends upon preorders.

Also waiting on delivery for some 7970s

Ok youre right, do you have a bfl yet?

Yeah the exchange rate :/
Then again you need to add electrical, space, maintenance, failure rate etc. on the price of owned one.

I'm working on assumption that BFL Single MTBF is just 2years if lucky.
At 0.10$/kWh you are also spending ~70$ on electricity a year + the host machine. If you need A/C add another 30-50%.
Also BFL Single shipping is 34$

That already brings ownership of one for a year to over 700$

I based my maths on a 1.28 exchange rate.

I like it, but now it just seems cheaper to buy a bfl for 599 for life

Setup fees are PER item, never to be refunded. It's the upfront cost.

The rate per month stays same any billing cycle, so if you choose semi-annual payment cycle you pay monthly rate * 6 at that time, and again monthly rate * 6 after 6months.
Setup fee is *NON-RECURRING CHARGE*, and amount depends on payment cycle. If you choose monthly it is 175€, if you choose 6months or longer it is 75€

You also got your USD<>EUR exchange rate incorrect.

So, 6month payment is:
75€ setup fee: 100.50USD
6 months recurring charge: 49.95€*6=299.7€  or 401.60USD
Total: 502.10USD for first 6months
Then 401.60USD recurring charge.

*NOTE: It seems USD rate jumped today, just yesterday paypal quoted 1.26 when purchasing stuff from the US :/ That or Paypal has significantly increased their currency exchange profit margin. Latter is more likely.

Yeah I don't get it. Is it
$261 setup, never refunded, PER item?
$67/month BFL single
$57/month 7970

Updated the pricing post.

I still don't know what's so illogical/fussy about them people don't understand :/

Both emailed is fine. I'm still not clear on the pricing though. Could you polish that and add usd?

Just e-mail us with what item you want, and we'll sort it out for you.

Domain for this has been registered, and site will be put together probably during next week.

Now question is:
 * Do you prefer weekly e-mail of graphs vs. a live site?
 * Do you prefer to be able to set pools at anytime, or is support e-mail sufficient for starting?

I'm leaning towards coding a management interface, where you get live graphs, and can setup pools etc. That takes a bit of effort tho. (Especially since i have to code custom tailored CMS from scratch!)

I'm in

I'm new but i can vouch for Pulsedmedia's company when it comes to seedbox hosting. Pure professionalism, they care about their customers and their support and service is top notch in my books!

Good luck with your new venture, I hope this will take off

Already taking preorders. If you want to be ensured your spot and price now you can e-mail [email protected]

This is a very probable GO now, targeting first customers up & running by end of april.

Hardware en route or available already for sale:
 - BFL Single * 2  (Should arrive around end of april)
 - 7970 * 2
 - 5830 * 3
 - 5850 * 2
 - 5870 * 2
 - 6950 * 2
 - 6970 * 1
 - 6770 * 1

Preorders for hardware is very limited, usually 1 every 2 or 3 sold & delivered, unless we have already put a significant order in place.
BFL Singles will have longer lead time, and more preorders are accepted for them because it's important to get early on the queue.

New hardware will be ordered once a month, usually around end of month, so stock status will be updated at beginning of month.

Brand name is 90% likely chosen now with domains registered, but still considering alternatives.
Payments will be accepted in: SEPA Wiretransfers, Bitcoin, Paypal  and maybe others (Suggest!)

SLA & service specification will *probably* be changed so that we can shutdown the hardware on the few days in summer when temperature rise too high for evap cooling to be effective enough - these periods of downtime would be automatically be credited at least 100% if not at higher ratio. This will likely be limited to several hours a day (6max) for a total of ~10 days a year when temperatures creep well above 30C. Only time will show us will ambient stay low enough. Target GPU temperatures are 70C, and shutdown will happen on 80C.

Mhash based leasing is currently out of question due to the technical difficulties in operating such.

Services are VAT deductible upon request by submitting VAT ID. People outside Europe are not subject to VAT.

Updated Mhash/€ rates to the table. 7970 is based on quite low Mhash rating, testing will show what will be attained in practice per GPU.

It's easier to sort with just devices, but yeah, it could be marketed as such.
Those terms are created so that we can still reap the important reward -> upfront ROI on the HW.
Dropping setup fees would mean that we are essentially donating money
In any case, 75€ is not much!

That is some BAD electrical rate :O

I'd totally lease some BFL singles for you for a couple of months to try, but not wanting to take the risk on setup costs and a longer term contract for a new player in the market I'd be wary just now.
I don't like paying annually or semi-annually for hardware leasing anyway - lease my seedboxes and VPS on a month-by-month basis.

Essentially though, what you're offering is mining contracts. Why not just offer in terms of raw Mh/s rather than based on what sort of hardware it is?

Regardless, if you can sort out the issues, I'll be a customer - paying $0.33/KWH equivalent here 

+75€ if you want to pay monthly.

Exactly, i will keep them mining if there is no takers, so opportunity cost is very low.

I also get the 7970s substantially cheaper than say NewEgg listing price, that helps too

515.4€ = 670.02$ so it's barely above the GPU price for the 1st year. I fail to see how that is NOT a good deal for someone short in capital?

I pay around 0.11 USD/kwh after all the taxes and fees and such..

So if I understand, the numbers you give in the first post "7970: 515.4€" for 1 year paid in 6 month segments. At 0.18 USD/kwh it looks like it'll take you roughly 2 years to pay off the cards. Not bad I suppose if you already have the infrastructure and are able to keep those cards occupied by clients 100% of the time. When not rented by clients I suppose they could mine for your own account and you'll just have to hope that the price per bitcoin climbs out of this 5 USD/BTC plateau we seem to be at.

Will be interesting to see how your service turns out. I don't think I'll take advantage of it at this point as I think I have a way to get power at 0.07 to 0.08 USD/kwh which will make HD 5830s incredibly viable for myself.

From european individuals i have to charge 23% VAT
How much are you paying for electricity?

I was also thinking for serious miners a faster way to grow, as there is no serious upfront costs, just the operational.
For me the benefit would be from economies of scale and long term prospects.
That way you could get additional 6Ghash/s today instead of just 1Ghash/s for the same money paid today, as an example.

The 7970 1st year costs on this should be less than the GPU + Electricity cost even for most US based miners.

We shall see, a lot of this i have to setup in any case, and when it's all setup there might be interest all of sudden, and definitively would consider mainstreamers would be interested, those without know how or willingness to setup their own GPU farms, and those which just want to support Bitcoin and enjoy some profit at the go.

See if you pay 75€ setup + 43€ for the GPU to be brought online today for ~600Mhash/s, instead of paying ~450€ just to get the GPU, you can purchase full 2Ghash/s from me to have online TODAY. That equals the cost of SINGLE GPU. It leaves me to finance the remainder 3 GPUs + node + supportive/overhead hardware. Platinum cert PSUs are *NOT* cheap.

The difference is: 70$ or 280$ revenue on the first month.

First year 4xGPU Setup: 2060€ fees collected by me.
Cost of 4xGPU + PSU + Mobo + CPU + RAM @ Newegg is roughly: 1963€ excluding PCI-E risers, Fans, power cabling, electricity costs, space costs, CPU heatsink.
At 0.06$/kWh, if that system consumes 750W: 302€ for the year, combining for 2263€ costs for you (Plus what 100€ for the other HW, plus space?), meaning for 1st year you STILL get ahead.

In the end it is too expensive for most non-European users. Your very high power cost will require relatively high rates for this service for anyone outside of the EU. In the US by my calculations it costs me about $240 per HD 5830 for the card, the chassis to run it in(split across 5 cards) and then the power to run the card. I currently run out of my garage where I vent the waste heat(in winter months I had the cards in the basement to heat the house). I am looking at a small industrial warehouse with a pair of roof vent fans to run out of as my operation grows. This will drop my power costs as I'll be on an "industrial" plan instead of a residential plan so it further makes your operation cost ineffective to myself.

However! For Europeans who seem to have much higher power costs your service might be quite useful. The other case would be users who don't want to manage their farm as it grows. Unfortunately at this point though mining is mostly a hobby for some people and a serious investment for others. The first group enjoys running their farm, the second group saw this as a way to make money and would be turned off by losing possible profit.