New Mining Data Center in QC: *Update*- PRICE REDUCTION!

Project Announcements
1

Hi everyone,

We are currently accepting new business until we reach a capacity of 3 MW. That will complete Phase 1 of the project.

At Phase 2 extra 3 MW will be added later this year. The facility will easily accommodate 4 times as many, so extra power capacity is planned for Phase 3 etc etc.

The facility is in QC, Canada and currently Phase 1 is about 50% completed, meaning about 1.5MW still available.

Currently accepting any mining equipment, except obsolete models, and will start with as many as 1 machine.

The pricing is on ‘all included’ basis, set up fees are extra on smaller plans and waived on larger ones.

Check plans, facility pictures and most common questions at www.prudentmining.com.

2

Looked at your link. Ouch!

3

Why ouch?

4

You are charging way, way, too much for any profit on 1 year on Litecoin using say a Bitmain L3+ scrypt-pow miners…I have friends that RUN data halls, like you, and right now, running at their low costs, (not customer costs) are basically breaking even. Just saying, not a good bet IMHO, even with ‘paid off’ equipment ready to send your way. Not a fan of your rates/math, sorry.

5

Please put in the context, in which country your friends running their center? What is their electricity rates for customers per KW/month or kW/hr? Do they have any other charges, taxes and fees?

Our pricing model allows customers to know exactly what their price will be, no hidden charges or anything like that. Just one price per KW/month. If you convert it into kW/hr, we charge between $0.1 and $0.15 per kw/hr. Do you know a lot of data centers which charge much less?

The thing is that we are totally neutral, we don’t participate in mining itself, just providing space and technical support for miners, so if today the prices for major crypto currencies are low, making it not profitable to mine and sell, nothing we can do, our rates for electricity are stable. If tomorrow, the pricing for coins will double or triple, our rates will stay the same, all profits will be for customers who mine.

Electricity rates don’t go up and down the same way as price of crypto, I hope you understand.

6

Ok…for the purposes of transparency…I have say 30 Bitmain L3+ scrypt-pow miners sitting about with psu’s. My guess is say $150 per unit with PSU to send to Canada. (ouch!) so that is $4,500.00 usd. Add the $30 per unit that is $900 for setup. And let me know what that would be for the rest of the year and we can go from there. But as you can see with an amount of $5,400 for shipping the L3+ and the PSU and your setup fee…this viability of this is looking a bit lame. Now at 800 watts per L3+ at 500mh what is the other shoe to fall on this for your 12 month plan, again for 30 units?

Also, my situation in which they are OFF right now is a data hall in the states at 10c kWh and the equipment is there and a month to month lease, paid monthly…and I have them OFF. In that I’m basically, with LTC anyway would get the below on www.litecoinpool.org at 102% LTC mining below:

This is at 15,000mh at 24,000 watts with the above 30 miners, with no shipping, they are at this data
hall and OFF and this would be on a month to month.

Profitability Analysis

Expected Rewards Costs Net Profit
24 hours 0.85921501 LTC 47.55 USD 57.60 USD -10.05 USD
7 days 6.01450510 LTC 332.84 USD 403.20 USD -70.36 USD
30 days 25.77645044 LTC 1426.47 USD 1728.00 USD -301.53 USD

So I await your reply on my real costs of 30 units via your arrrangement…but I’m pretty sure the boat don’t float in the USA nor in Canada :frowning:

1 Like
7

I do, trade secret though :zipper_mouth_face:

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I feel your pain, but none of us is a magician here, so unfortunately I can’t fix your situation. I was just replying to your initial ‘ouch’. In your explanation you mentioned the same $0.1 kWh as we charge on our higher plans, so it’s pretty close and definitely not ‘ouch’. Yes, some people like you have currently their miners off because of the market value of the coin. Some still mine believing the price will increase tomorrow or in few months or years. We are not judging who is right and who is not, we are just providing space and technical support for mining, at the competitive pricing, as I explained earlier. For people who mine in Washington state we might be not the best fit, but for people in China or Russia or Western and Northern Europe we can be pretty great.

9

Well, we are there for the rest and it’s no secret. :slight_smile:

10

Looks good, I do think it’s a little pricy but pretty inline with the market, the bulk plans don’t look bad, I think if you were offering those to smaller miners you might get some traction, very respectfully

11

This is really the deal breaker for people considering Canada, shipping and VAT

12

Shipping is shipping, whether you ship to Canada or USA or Europe, there is not much difference in price. Most of miners are made in China and unless you leave them in China the shipping will be involved.

But may I say the shipping is very minor among other costs, the electric bill beats them all, so jurisdictions like Canada which can offer lower electrical rates should beat jurisdictions with higher electrical rates, no matter anything else.

And remember that Canadian GST (VAT) is only 5%, one of the lowest worldwide. To compare, importing miners to the USA, the one will pay more then 25% in duties and taxes, considerable difference, don’t you think?

Saying that, I understand there are different circumstances, like the one example shown above, where the gentleman shipped his miners to the States and now he switched them off. He must have already paid for shipping and duties and pay the same again does not make much sense to him, unless he is planning to keep his equipment with us for a few years to offset initial costs.

For someone just considering where to mine I think we are offering very good deal, especially on higher plans. I am not saying we are the best, I am saying we are one of the best.

P.S. As for the numbers I am not sure where $150 per miner for shipping comes from. I know our clients will not pay as much, we will suggest much more economical shipping options, if they contact us prior to shipping.

13

Yeah I think that @Searing 150 figure may be a little high too, maybe if you packed each machine in one box they’ll ask 150 each but if you pallet them up and work with a pro it can be lower

But still their economics of the whole thing are on point though, pretty risky too

14

Well…just saying it is unworkable in the USA. Someone in above in a msg said $150 for the Bitmain L3+ and a Bitmain PSU for shipping to Canada is too high. A bitmain L3+ and Bitmain PSU is about 12 lbs…with packing etc…call it 13 lbs so I get about $125 a unit for a bitmain l3+ PSU. Unsure if any other fees. (this was using usps.gov postage calculator)

Still comes out to with 30 units with the $900 setup fee to $4,650 USD. added to the $110 a month of the 1-year contract and that is If you add the leasing at $39,600 plus above $4,650 and that is an upfront ‘guess’ of $44,250.00 USD on the 30 unit plan for a year…sorry…that boat don’t float. Also my equip is paid for…even worse if you do this with new equipment.

A buddy (maxumark on bitcointalk) and I figured that IF the tariff or 25% and 2.7% import fees stay in place…will make the above much worse…assuming any new equip of note…so we figure you’d need like 7k BTC and if LTC gained a bit more proportionally to that you’d need like $125 LTC. I’m guessing this is for ‘new’ stuff, but suspect it really would be for used stuff sitting about not on…In the USA that is. Most of the USA has 4 months of summer rates which is usually 33% of more than winter electric rates. Thus all mining is dead on arrival here in the USA or if you try to host someplace else. It may have made sense at one-time w/o tariffs to a country that would take your new miner direct from the overseas maker like Bitmain…skipping the shipping issue…but them days are gone. So if you are basing your hopes on mining coming back …you have to base them on the price of LTC or your crypto of choice…and on such a choice the risk is better just to hodl for this hopeful pump…rather than pay a year of hosting these days. And again a gigawatt and a lot of other hosting places on a dump left the users holding the bag …not saying your place is that way…but sh*t happens.

So again, this may be the ‘best plan’ you can come up with. But if I was in Canada and/or if I was in the USA and had to sign up for 3 months or 9 months or 12 months…don’t matter. It is just ‘very ugly’ in Canada Hosting used stuff and downright impossible in the USA for used stuff. As to something NEW you’d have to buy and ship directly do a data hall in Canada…well, that unicorn doesn’t exist anymore.

Myself, I’m ‘attic mining’ stuff and selling stuff on eBay I’d otherwise die with. (about 5k worth of crap I figure) if crypto goes tulips with my attic empty and now a rec room my house value goes up 15k…if all is well in crypto and price doubles on the eBay sales of my attic mining of such I have the above and say in the future 3x the price of the btc I got from selling on eBay, as I call it, attic mining, that is a win/win…again, likely to just die with all this crap w/o a reason to sell it on eBay… that is the only angle I have at this time for any mining USA, my bsmt, Canada etc

sorry to say :frowning:

Lastly, this may go on for awhile low prices…don’t pay to mine or get new equipment of any crypto flavor…

My big concern is if crypto is a 3 legged stool set up like adoption/speculation/mining…well adoption is way out of synch with the other 2 …mining difficulty is maxed out…at the high when the alts and btc were 3-4x higher…so that sucks…speculation seems to do its thing up or down…but newbie adoption is way, way down…unless that changes …well…we may be in for a long haul of ‘sitting on hands’ for any real changes in price or any of the above

So good luck on your hosting…and if you can yourself make $$$ by getting low equipment used prices and tossing it up at your base rate of yourself ‘to get by’ that may be the best bet. Not sure how many folk are gonna flow thru your door…but hey, cheap equipment for your own uses. :slight_smile:

my 2c worth…what do I know…at one time I trusted ButterFly Labs (did get my refund on a fluke) but still…I know zip

brad

1 Like
15

Brad, thanks for your opinion, even if it’s a gloomy one. Everyone has it’s own opinion and only future will know who was right. As for your numbers- I already explained that you should pay much less for shipping and as mentioned on our website prudentmining.com, do not use couriers or post office for bigger deliveries, they are not your best or cheapest options for anything over 20kg or 45lbs.

As for mining calculation, I don’t want to dispute your numbers, though sites like this say it’s still profitable to mine even at $0.12 kWh: Mining Calculator Bitcoin, Ethereum, Litecoin, Dash and Monero

Again, we are neutral, we are not mining, we are providing space and support for people who still want to mine and we are doing it at a very competitive price.

16

Not sure where you are coming from but at 10c kwh (see previous post) I can’t miner L3+ (that are paid off) profitably in the current data hall they are sitting in and shut off. (see previous post) showed I was losing the following below:

litecoinpool

Profitability Analysis

Expected Rewards Costs Net Profit
24 hours 0.85921501 LTC 47.55 USD 57.60 USD -10.05 USD
7 days 6.01450510 LTC 332.84 USD 403.20 USD -70.36 USD
30 days 25.77645044 LTC 1426.47 USD 1728.00 USD -301.53 USD

this was at 56 LTC if I remember right…anyway…was under water

So even w/o shipping paying for 30 units for a year at 39k in advance on the hopeful LTC or scrypt-pow price pump seems to be an extreme bit of optimism…if the LTC and or crypto price pump is needed…it would be best to HODL coin IMHO

Now if LTC was around say 90-100 bucks you may have a better case…but you still would have been better off on the 55 to 90 -100 buck gains in the price pump instead

the problem is adoption…difficulty for most coins I think, LTC at least is at the high of difficulty it was WHEN the price was much higher…
again speculators are 1/3 of crypto action they do their own thing
mining is basically in limbo due to difficulty vs price (assuming not a lot more to turn on…if a price pump
you could see that go up 1/3 in difficulty again as folk turn their now profitless stuff back on)
lastly
adoption new users etc is so far behind the other 3 above…again IMHO it may take a year to come back
I like that ‘volume’ is up for coins…but not showing a lot of hope.

again, worse fear is the same thing happened when they had a futures market in gold…then sideways…we could be in the same boat …at a bit higher price…as a better alternative to gold…but again, myself…‘attic mining’ stuff on ebay and converting to crypto equiv of 0.10 btc for 2 weeks…this is far an away more than I could make on mining…so I’ll do that till i run out of stuff in the attic to sell

if a person belives that this is the bottom for coin crypto ltc btc prices…then you should be accumulating

I just don’t see equip in data halls or home mining as workable at this poing in time…and new equip is really off the table to roi now

thus … again if I’m wrong about all this the worst i have is a clean attic and new rec room
the other options on data hall etc…the price of LTC would have to creep up to say $60 to over come and turn my stuff on sitting idle in the 10c kwh data hall now…just because of all the folk that would also turn on at the same time

we will see…but we need a kinda/sorta 1/3 drastic price pump up in crypto of many flavors to compensate for the crypto crash of 3/4 price or more price down…to fire up any miners IMHO

brad

1 Like
17

er using your calculator I get the below (30 L3+ units 500mh at 800 watts)
again…shows a loss of (using your above calculator and above stuff at 10c kwh and 30 units)

I’m down $309.47 a month …again this is if you were a block away with no shipping per month

500mh x 30 is 15,000mh (L3+ above units) I would lose at 24,000 watts $309.47 a month…your yearly contract was 110 x30 x 12 or $40,500 with your $900 buck setup fees if the stuff was teleported to your data hall with NO shipping.

So hell, if 30 L3+'s and PSU’s already paid for can’t float this boat…maybe bigger folk than me can make a profit…but I’m out

better ways to get coin (hopefully at the low) than mining at this point in time

good luck on finding some BIG players to make your setup work

brad

1 Like
18

Update to initial post: Currently, prices for hosting were reduced on average by 20-25%.

19

So from 10c kWh from our last conversation. (plus shipping and setup fees of course, whatever they are)

So you are talking in the ballpark of 7.5c kWh?

1 Like
20

Depends on the number of miners. Full price structure is on the website. In your case of 30 miners it’s $0.11 kWh.