AZ Crypto Mining Holdings LLC. Executive Summary
AZ Crypto Mining Holdings LLC. is a cryptocurrency mining company that specializes in cryptocurrency mining services (“mining”). Based in Queen Creek, Arizona, The business has secured an appropriately positioned and standard industrial facility.
We are aware that running a standard cryptocurrency mining company can be demanding which is why we are well trained and equipped to perform.
We employ mining equipment purchased by member contributions, configured by specified expert shareholders, capable of mining a wide variety of cryptocurrencies.
Sometimes we mine established coins like Ethereum and Dash. Sometimes we mine emerging ICO tokens which are still at early stages of development and have a good team of developers behind them.
A percentage of the coins are dispersed to shareholder’s wallets each week. Sometimes we hold coins like Ethereum for a period and then disperse coins to the shareholder’s wallets.
There is a group of managers that decide on the day to day operations and each month all members meet to vote on the strategies for the coming month. Methods are proposed at these
meetings and voted on, the majority vote of the shareholders present will rule. There is no “minimum quorum.” These meeting will be online and 1-week advance notice will be given.
Shareholders are expected to be present and participate in each meeting.
Mining equipment is defined as a cryptography computing unit known as a “rig.” Rigs are composed of standard computer hardware with some number (usually six) of Graphical
Processing Units (GPUs) attached.
In the past and on average, a single rig with six GPUs is capable of mining approximately $12.00 US coin value each day.
In the past and on average, a single rig requires 750 watts, or 0.750 kilowatts to run. At this rate each rig consumes 18-kilowatt hours (KWH) of power each day. The cost of electricity in our initial mining location is $0.12 per KWH. Consequently, each rig will consume $2.16 of power each day and produce a net profit of $9.84 per day. Of course, there are many variables that affect mining profitability, but we have used these assumptions in the following example:
25 Rigs with 6 GPUs each
Rig cost: $3,700.00
25 rigs is $92,500.00
$7,500.00 in routers, switches, cabling, equipment racks, and other required gear.
Total Cost $100,000.00
25 rigs are expected to produce $246.00 in net coin value per day. Over a month’s time, $7,482, which will be dispersed to shareholders.
The initial, aggregate investment of $100,000, divided by $7,482 is 13.36 months. Which is the predicted time for all shareholders to achieve a “zero basis” (the point at which the initial investment is fully recouped).
As of December 2017, the consensus of people in the cryptocurrency industry is that the price of cryptocurrencies will continue to rise. As the price rises, mining difficulty (the time required to extract coin value) will increase. Along with a number of other factors the increase in difficulty cannot be predicted with certainty. However, based on current market outlook it is not unreasonable to expect coin appreciation to counter-balance increased difficulty and reduce time to zero basis to less than 12 months.
AZ Crypto Mining Holdings LLC. Business Plan
Cryptocurrency mining is the practice of adding transaction records to a cryptocurrency’s “blockchain” i.e. the public ledger of all previous transactions for a given coin. The blockchain is
comprised of individual blocks of transactions. Blocks are not added to the blockchain unless every transaction in the block as well as the block as a whole, has been cryptographically
confirmed by a certain number of holders of copies of the blockchain. Cryptocurrency miners keep the cryptocurrency blockchain secure by approving transactions. Mining is indeed an important and integral part of cryptocurrency that ensures fairness while keeping the coin network stable, safe and highly secured.
In addition, cryptocurrency mining as the name implies is similar to the mining of other commodities: it requires deliberate and calculated effort and it slowly makes new currency available at a rate that has been defined by the initiators of a given coin. In many cases this rate is meant to approximate the rate at which commodities like gold and copper are mined from the ground. Mining is also the mechanism used to introduce new coins into the system:
Miners are paid transaction fees as well as a “subsidy” for newly created coins.
Coins are a type of digital currency that is created and held electronically; it is a cryptocurrency and a digital payment system that is invented by an unknown programmer, or perhaps a group of programmers. No one controls it. Unlike Dollars, Euros, Pounds and other currencies coins are not printed, they are produced by people using software that solves mathematical problems.
If you want to start mining cryptocurrency, you would need an online wallet where your coins will be stored. There are several wallet options available online for coin mining.
The rule of thumb to follow before choosing an online wallet for your cryptocurrency mining is to choose a wallet that will allow you save cryptocurrency, buy cryptocurrency, use cryptocurrency and also accept cryptocurrency as a means of payment.
The most preferred wallet option that has all these features is coinbase.com. You can check out their website to see how it works.
The cryptocurrency and a digital payment system industry is indeed a large Internet-based industry that is active in many countries.
The Four Variables
Hashrate and Difficulty
A pre-built mining device from a well-known manufacturer will give you the details of the machines hash rate execution or the speed at which the device can perform mining calculations.
Device performance is typically measured in megahashes (MH) for every calculation solved per second (MH/s). This statistic can be measured against the current coin difficulty [the calculation
of how difficult it is to find a hash] which can give a person a rough idea if their machine performs well. Mining difficulty changes over time.
An nVidia GTX 1070 GPU is capable of a hash rate between 20 and 30 MH/s.
Mining also consumes electrical power. Unless someone is getting free electricity, the cost to power a mining rig always comes into play. In order to determine a rig’s return on investment (ROI) miners must divide the hash execution performance by the number of electrical watts consumed. Large mining facilities have found ways to offset electrical costs by utilizing different types of resources such as hydropower and geothermal power. Electric power has different costs depending on where it is consumed. For example, the U.S. the average cost of electricity is roughly $0.12 per kilowatt-hour. In other areas around the world, electricity is cheaper particularly in regions like China, and India.
Another calculation to figure into the equation is the cost to acquire a mining device. Mining rigs can be built for $3,500.00 to $5,000.00 depending on performance and if the device is new or used. To get ahead of your original investment you have to mine enough coins to cover the price of a machine and only after meeting this cost a person then can profit. Other things to consider are buying racks for multiple machines, connectors to tether all of the miners together in unison, and keeping capital handy for replacement parts.
Time and Maintenance
Coin mining also takes time to set up the machines and maintain them. Also just like any computer that operates consistently, factory parts can malfunction, and coin miners often need day-to-day maintenance. Additionally, it helps to be computer savvy, and know how to use software, command lines, and be able to configure wiring and replacement parts. Larger data facilities hire employees to take care of thousands of machines running 24-hours a day.
We plan to position the business to become the leading brand in cryptocurrency mining in Arizona, and also to be amongst the top ten cryptocurrency mining operations in the United
States of America within the first five years of operation.
AZ Crypto Mining Holdings LLC. is founded by Brandon Fish, Max Rezende, John Crockett and Michael Noel who have been business partners for many years.
Our Products and ServicesAZ Crypto Mining Holdings LLC. offers a variety of services within the scope of the cryptocurrency mining. We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim, and ambition.
Our Vision Statement
Our vision is to build a cryptocurrency mining company that will become the number one choice for individuals, smaller businesses and corporate clients in the United States and in the cryptocurrency space.
Our Mission Statement
Our mission is to contribute our part in adding transaction records to cryptocurrency’s public ledger of previous transactions or blockchain. We will position the business to become one of the leading brands in cryptocurrency mining.
AZ Crypto Mining Holdings LLC. Business Structure
Chief Executive Officer Michael Noel
Chief Technical Officer John Crockett
Chief Financial Officer Max Rezende
Roles and Responsibilities
Chief Executive Officer:
Creates, communicates, and implements the organization’s vision, mission, and overall direction
– i.e. leading the development and implementation of the overall organization’s strategy Responsible for fixing prices and signing business deals Responsible for providing direction for the business. Responsible for signing checks and documents on behalf of the company Evaluates the success of the organization
Chief Technical Officer
Responsible for cryptocurrency mining operations
Ensures fairness while keeping the cryptocurrency network stable, safe and highly secured Responsible for managing the company’s online wallet Handles any other cryptocurrency and digital payment system consulting and related advisory
services. Responsible for designing, installing, testing and maintenance of software systems for the organization.
Reviews current systems, Presents ideas for system improvements, including cost proposals, Works closely with analysts, designers and staff Producing detailed specifications and writing the programme codes.
Tests the product in controlled, real situations before going live Maintains the systems once they are up and running.
Chief Financial Officer
Responsible for preparing financial reports, budgets, and financial statements for the organization creates reports from the information concerning the financial transactions as recorded
Prepares the income statement and balance sheet using the trial balance and ledgers Provides management with financial analyses, development budgets, and accounting reports;
Analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions. Responsible for financial forecasting and risks analysis. Performs cash management, general ledger accounting, and financial reporting for one or more properties. Responsible for developing and managing financial systems and policies. Responsible for administering payrolls Ensures compliance with taxation legislation, Handles all financial transactions for the company, Serves as an internal auditor for the company.
Our core strength lies in the power of our team AZ Crypto Mining Holdings LLC. Employed the services of a core professional in the area of
business consulting and structuring to assist the firm in building a well – structured cryptocurrency mining company that can favorably compete in the highly competitive
cryptocurrency and digital payment system industry.
The opportunities in the cryptocurrency and digital payment system industry is massive considering the number of cryptocurrency exchange and trading companies that make online transactions all over the world. As a standard and well-positioned cryptocurrency mining company, we are ready to take advantage of any opportunity that comes our way.