Managed Mining FAQ
What are my Portfolio management options?
Aurum offers three options for portfolio management:
- Long Bitcoin (we hold BTC to be sold during a price rise)
- Long USD (we sell the Bitcoin for USD as its mined)
- Trade/Speculate (we trade the Bitcoin and speculate on altcoins)
What about Insurance?
What about Maintenance?
Aurum estimates two hours of routine monthly maintenance on mining servers for a $100k deployment. We bill in 15- minute increments at $75/hour. This cost is debited from the joint account and an itemized breakdown of the work will be provided.
How do you decide what is routine maintenance and additional maintenance?
- Routine = rebooting, firmware updates, setting changes, replacing a fan
- Extra charges = changing major physical components of the machines, control board, and hash-board replacement
- The fee would be debited from the account and you would receive an itemized breakdown of the 15-minute billing cycle for the tech work
What happens if Aurum constructs another mining site with cheaper power?
What type of energy does Aurum use?
Does Aurum use battery technology?
What is Hedging mining risk?
Through the Bitcoin futures markets, miners can hedge 6-months out by selling our future production.
How do you get paid out?
Each Managed Mining Customer is provided with a managed account through our prime broker, Tagomi. Mining rewards will be received through the account daily. Each month Aurum will reconcile the account to cover the direct operating charges - after this is completed and approved the investor will receive their 80% profit payout. The account is jointly owned meaning no funds can move without both parties' approval.
What is the ordering process for miners?
Does Aurum have performance reports?
What is the exogenous risk that you think is infinitesimally small where all your fundamental investment theories get blown out of the water because this highly improbable event occurs?
The event would be a catastrophic event at the site. This would be covered under the insurance though. The insurance policy covers theft.
Why are miners seeking outside capital?
What is the exit strategy?
What is the difference between MMP and hosting?
Are all of the direct operating charges reconciled at the end of the month?
Do you net more money by selling the machines or continuing to operate them?
Yes, hash rate typically trades in backwardation when is it overvalued so selling makes more sense financially
What is the typical equity split for independent site projects?
Can you explain the direct operating charges?
Mining Pool Charge
- Charge that allows us to get steady payouts.
- We make a 2-3% margin
Facility Infrastructure Charge
- Covers the costs to deploy the miners (land, equipment, fans, all sunk costs)
- Covers costs we’ve already sunk
Tech support charge
- Used on % of power generation to support and maintain the operation
- Raw cost to cover on-site technicians
The performance fee
- Covers the management fee
Repair escrow fund
- The fund we put aside to maintain equipment and purchase replacement parts on the equipment