Topic: Optimal Bitcoin Mining Corp. now offering remote GPU use contracts! - page 4. (Read 11188 times)

That electricity will jump to 135% of revenue seems absurd to me.  How much of mining is conducted below ~$0.12 KwH with no other costs in terms of hardware depreciation? It would have to be a large fraction for a near-term movement like this where electricity cost > revenue at $0.16 per KwH. I think it will take about a year for mining to move to low cost locations, so they might have a timing window though I agree that it is dodgy.

People who set up ops in areas where electricity is heavily subsidized such as the Ukraine [$0.03 per KwH] have the best investment prospects.
http://en.wikipedia.org/wiki/Electricity_pricing

Note: I am not suggesting that anyone send coins to Ukrainian scammers who set themselves up on GLBSE. Just that if you live in the Ukraine, investing in mining is probably still a good idea.

Edit, my calc's were a smidge harsh, but still pretty much made sense

1x 5830's = 260Mh/s
40,000Mh/s / 260Mh/s/card = 154 cards
@5 GPU's system: 154 GPU's / 5 GPU/sys = 31 systems
31 * $1,345 = $41,695

+ deposit + rent + AC + fans + electrical installations + internet + racks + networking equipment + KVM's + surge protectors


If you are making a profit with your current total of 15 GPU's you should consider yourself really lucky and just mine those until it's no longer profitable. Then put all your money into Plan B.

I can't tell if your post is a joke, or a scam or if you simply haven't thought it through.

How can the computers you described only cost $900? Even if you had all the other parts and only needed to buy the 160 5830's needed to reach 40GH/s, you'd spend about $180 per GPU. One hundred sixty Radeon 5830's at $180 a piece. I suppose that's about the going rate for that card right now, if you could even find them for sale. Now you need to assemble all the other parts for 32 systems: Athlon II X4's, 4gb ram, DVD drive (pointless for mining), cases, motherboards, 1200W power supplies, fans, and PCIe riser cables. The case you linked to won't hold 5 GPU's without mods. Add $ for that, even if it's just shelves to prop up the cards.

Parts:
mobo   $130.00
PCIe extenders   $30.00
ram   $25.00
PSU   $180.00
case   $40.00
hdd   $20.00
DVD   $20.00
cpu   $80.00
Fans   $20.00
Total: $545 without video cards
Total with video cards @$160 each: $1345
x40 = $43,040.00  just for the machines alone.

Good luck getting all those parts and the video cards, for that price in under a month. The price of a bitcoin has already fallen from $20 to $15 and it's only been a day since you made this thread. Counting on the price to stay steady is crazy with something as a volatile as bitcoins. The difficulty will adjust more than every 14 days. More like every 8-10 days. At that rate the difficulty will have already increased AT LEAST 3 more times between now and when you finally get up and running (this assumes you are able to raise money and get your operation up and running at an above average speed). So by the first week that you are up and mining, electricity will already be 87% of your revenue (assuming bitcoins are still $15 at that time, which could go either way). After your 10th day of mining electricity jumps to %135 of your revenue. From then on out who knows what happens. People will begin to drop out of mining so you drop out so you might put your operations on pause or just keep mining with the expectation that you might lose money for a while while you wait for people to drop out.

Also consider that 40x of these rigs, is going to put out about 29,000W of heat. I'm basing that of actual measured power draw from my own system with 2 5830's, extrapolated to 5 cards. That's 115W/sqf, which is in datacenter territory. You should research what spec of AC you actually need to cool off this kind of heat. And be careful to not use more than 80% of the max amperage for each electrical circuit.

Good luck finding investors who will invest in a plan where the #'s already exceed your planned costs, and that will begin to lose money after about 10 days of getting the operation up and running, and only get worse from there, or stay near a barely break even point. Then how are you going to deal with liquidating your "company" when you go under? I'm assuming you're going to either start an internet gaming center or sell the PC's.

If your plan B were more profitable than mining why would you not just jump straight to plan B? I'm guessing it's because you expect a bunch of strangers online to pay for your hardware so you can actually do "Plan B". But if Plan B is as well thought out as Plan A, you should assume there will be a high probability of that plan failing within the first 45 days. Would the cash from liquidating the hardware be split evenly among the bondholders? Or do you for some reason get the privilege of keeping the hardware and/or cash and leaving the suckers, i mean, investors, high and dry?

Note: i assumed 260Mh/s per 5830. I guess if you overclock you could get more than that, but you'd also be using more electricity and generating more heat so that would only at best buy you about another week of operating before you start losing money.

Why not just solicit shares for plan B if it is more profitable?

Cost per kWh is $0.16 at this location.  We determined that at $20/btc, we will be able to mine profitably until the difficulty reaches 4800000.  Once the difficulty reaches this level, if the value of the bitcoin is not higher than $20, we will switch to our plan B, which we are not ready to make public yet, but I will say that plan B is not dependent on the bitcoin at all and is more profitable than bitcoin mining.

How much US$ per KwH in your location? In the long-run, this will be a deciding factor on who is driven out of the business.

Hi I'm optimalbitcoinminingcorp - you might recognize me as dubious on IRC around the bitcoin channels. Teaming up with me is AnonX, who is a recognizable user on the bitcoin-IRC channels. Additionally, I have been speaking with Nefario over IRC to prepare this IPO for launch. (he can verify this as well)  I'm very excited to announce Optimal Bitcoin Mining Corp. a new bitcoin mining business, which is the first bond offering and largest IPO on GLBSE.com to date.

Currently, I am running 15 gpus at around 4 Ghash/s, so I've invested about $5.5k of personal funds and I am looking for bonds as loans to expand my cluster to around 40 Ghash/s.   I would like to raise $45k for expansion funds within the next month.

We are issuing 0.8 btc bonds that mature at 1 btc on or before December 1, 2011.

The way this venture differs from those that exist so far is that as far as I know, this is the first bitcoin mining company in which 10% of the total profits will be donated to a few different charities including at least one aiming to benefit the Bitcoin community. The specific charities have not yet been determined and I will allow the investors to make suggestions causes they would like to see benefit. The idea is that with the recent negative publicity surrounding Bitcoin in the US news, it's important for our image to be redefined in a more positive light.  I see great potential in Bitcoin for the future and I don't want to see U.S. government regulation ruin this for everybody.  Additionally, this should encourage a "feel good" mentality that comes from giving to others that should benefit the bitcoin community and cause it to grow in countless ways, while increasing chances of survival.
Here are our numbers:

Each computer will be built primarily with mining in mind, but also with some consideration towards retaining high resale value.  Each computer will contain approximately 5x hd 5830, 3.1 ghz Athlon ii x4 processor, 4 gb ram, 16 gb sd card, 3 coolermaster sickleflow 120 mm fans for case airflow, dvd-rw drive, thermaltake v3 black edition case, 1200 W power supply, motherboard that has slots for 5 graphics cards, 3 pci-e extender cables
The space used will be a commercial space 350 sqft., approximately 10-15 minutes driving distance from dubious, who will be taking care of installing and maintaining the equipment and costs $350/month to rent.  At approximately 20 computers there will be an upgrade cost of about $4,000 to upgrade the electricial system to support the additional load.

Here is a picture of the 350 sqft space:


The ceilings are 7.5 feet high, but this will be sufficient as the server racks are 6 feet high.  We will be using this space to begin with and if it turns out we need more space, there is a 250 sqft space next door that is vacant.  The debris on the floor and all dust will be vacuumed out before we move in.
To prevent the systems from overheating, there is air conditioning in the building that will be turned up full blast, plus we will be building a ducting system that directs heatflow out the window.  If needed, a portable air conditioner or window air conditioner can be purchased cheaply to cool a space this size.
The cpus will not be overclocked, but the core clock of the gpus will be increased to the highest tested stable frequency, and the memory clocks will be underclocked as much as possible to reduce power consumption.

Each computer will cost approximately $900.  Only one monitor will be purchased for the whole system along with kvm switches daisied together to reduce total expenses.

We have compiled several Excel spreadsheets that I put into Google docs for investors to view.  We expect difficulty to continue rising at around 50% per two weeks.  At this rate and approximating the value per bitcoin to be $20, bitcoin mining will remain profitable for 2-2.5 months.  In this amount of time, we expect to make $14858.49.  However, there are several different cases: if the bitcoin value goes to $50 we make $70,000 over this time period. ($30->$33,238.93 and $40->$51,619.38)  In the case where the bitcoin drops to $10 we run a loss on our hardware of -$1,845.44.  In case the bitcoin does not retain value, we have a plan B.

Here are our numbers:
https://spreadsheets3.google.com/spreadsheet/pub?hl=en_US&hl=en_US&key=0AmTXg8oCxjy5dDRYa3NPNDVlMnBSR2E2LV9VOHZWRlE&output=html

You can buy the bonds by creating a new web account for the web client for GLBSE.com here: http://dev.glbse.com:4567/client/index.html
Then generate a key pair and register, deposit some bitcoins and you are ready to go.
The asset ID is cbc7c9f999f94665e599d0ab0e144e1953e40d399a0f9191b91b843db4bb92da
The Ticker Symbol is OPTIMALBITCOIN

If you have any questions about getting started, concerns or feedback you can post them on this thread or email us at [email protected].

Thank you for taking the time to read this and stay tuned for further updates!