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Topic: This D.C. bitcoin company raised $2.3 million to ... mine more bitcoins - page 2. (Read 1889 times)

legendary
Activity: 1512
Merit: 1012

Well, they have rather ambitious plans:

Quote
BTCS Digital Currency Mining

We're rapidly scaling our low cost bitcoin mining efforts and believe this will provide revenue growth as we build our ecosystem. We've secured an 83,000 square foot facility, about 1.4 times the size of a regulation NFL football field, to expand our mining operations. With minimal improvements, the new facility is anticipated to handle over 10 megawatts (mw) of power and can potentially house up to 40,000 TH/s of mining hardware.

http://www.bitcoinshop.us/index.php#mining

They also provide few other services: shopping engine, storage (multisig wallet), ATMs and are building own 'Universal Digital Currency Platform'.

All looks promising, but I have doubts whether they'll hit ROI on mining operations, unless they'll be selling hashpower as cloud mining.
 


I don't see how they're not going to setup a cloudmining service. These investors need to know they'll get their money back + profits in almost no time, and I don't see how can they do that just by mining for themselves.

Also, they're trying to kill to many rabbits with one stone only. This seriously does not sound good, at last for me.
sr. member
Activity: 910
Merit: 302
So it's true VC give money for all kinds of stupid stuff?
legendary
Activity: 2436
Merit: 1561

Well, they have rather ambitious plans:

Quote
BTCS Digital Currency Mining

We're rapidly scaling our low cost bitcoin mining efforts and believe this will provide revenue growth as we build our ecosystem. We've secured an 83,000 square foot facility, about 1.4 times the size of a regulation NFL football field, to expand our mining operations. With minimal improvements, the new facility is anticipated to handle over 10 megawatts (mw) of power and can potentially house up to 40,000 TH/s of mining hardware.

http://www.bitcoinshop.us/index.php#mining

They also provide few other services: shopping engine, storage (multisig wallet), ATMs and are building own 'Universal Digital Currency Platform'.

All looks promising, but I have doubts whether they'll hit ROI on mining operations, unless they'll be selling hashpower as cloud mining.
 
legendary
Activity: 3066
Merit: 1047
Your country may be your worst enemy
Huge investment! Makes you confident in BTC's future.
I wonder where there will be based, as electricity costs can vary a lot from state to state.
legendary
Activity: 1512
Merit: 1012
What are these guys supposed to be, more cloud mining stuff? Another web wallet? Whatever they're doing, someone has really hope they aren't some kind of ponzi/pyramid... Let's see where this goes. Not really convinced...
legendary
Activity: 1218
Merit: 1003
It's a fairly interesting idea if they can mine more than cost.
Add hash to a secure network and raise the difficulty without adding much value to the network besides the miners, is the whole point of the company.
Keep control through their mining presence and get some coins.

In this sense, the system is self-perpetuating. Each transaction of bitcoins must be verified and added to the ledger by bitcoin miners, who are then rewarded for each successful verification. With more bitcoins.
I am surprised that a company in America can mine at a profit, and at such a profit that it is worth investors while to invest.
I wonder if they have some special mining equiptment, or if they have a renewable energy source that means they basically get free electricity.

Otherwise as far as I am aware, ROI is either luck or improbable!
legendary
Activity: 1568
Merit: 1001
This is my bullish factor so it's best that yall get with it or stay home.
hero member
Activity: 644
Merit: 500
I love to see some hedge funds interested to make bitcoin related company as part of their investment portfolio.
It means bitcoin have good response from financial expert out there Smiley also some individual investor there mean rich people
and that company use 2.3 million to mine bitcoin Smiley
Good to see this comment in that article :
Bitcoin is a virtual currency, yes, but what makes it special is that it's not really a currency in the traditional sense. There are no entities "printing" bitcoins anywhere. It's not linked to any single institution, meaning it is totally decentralized, one of the defining and most alluring characteristics of this bizarre monetary system.
If they invested heavily using USD fiat which can printed everyday by Fed, why they won't invest on non printable currency like bitcoin? Cheesy
hero member
Activity: 700
Merit: 500
It's a fairly interesting idea if they can mine more than cost.
Add hash to a secure network and raise the difficulty without adding much value to the network besides the miners, is the whole point of the company.
Keep control through their mining presence and get some coins.

In this sense, the system is self-perpetuating. Each transaction of bitcoins must be verified and added to the ledger by bitcoin miners, who are then rewarded for each successful verification. With more bitcoins.
newbie
Activity: 28
Merit: 0
What is the vulnerability referred to?
legendary
Activity: 1568
Merit: 1001
Bullish sign that hedge funds and likely wealthy individual investors are investing in local mining operations. Just another chink in btc's armor.
legendary
Activity: 3976
Merit: 1421
Life, Love and Laughter...
Quote

Bitcoin Shop, one of only a handful of D.C. companies that operate in the virtual currency industry, raised $2.3 million in venture capital last week, according to an SEC filing.

The investors were not disclosed by CEO Charles Allen, but include a mix of hedge funds and individual investors. The funds will be used to expand the company's "mining" operations — that's explained below.


http://www.bizjournals.com/washington/blog/techflash/2015/04/this-d-c-bitcoin-company-raised-2-3-million-to.html

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