Havelock DIRECT mining contracts


#1

Take a look at this:

https://www.havelockinvestments.com/fund.php?symbol=DIRECT
https://bitcointalk.org/index.php?topic=1144849.0

Highlights: 1-year prepaid mining contracts $0.55 per GH/s ($550 per TH/s), which means no maintenance fees but it will expire after a year. Unfortunately they don’t disclose the hashpower provider until the IPO is completed, which basically requires the buyers to fullly trust Havelock and the fund manager (twentyseventy).

My personal biased opinion is: this will not sell out but if it does I’d rather wait for round 2 or buy on the open market, when the actual provider will be known.


#2

Got some emails from them and forgot to grab some.

I think I know where this power is coming from and if I’m right then it’s a very viable contract and the issuer “only” added $50,000 to his/their own cost to rent this power for a year from the provider.

“Only” $50,000 because they will have close to 0 work with it to maintain, process etc.


#3

I took a look at the listing. It didn’t say anything about the maintenance fees. Where are you getting that its all inclusive?
DMT and ABC may look to get in on some of it, if it truly is fee free. It could be a worthwhile risk in the short term.


#4

See this:

https://bitcointalk.org/index.php?topic=1144849.msg12063066#msg12063066

For some reason they don’t make that clear in the listing itself. I guess the assumption is that if they don’t mention “fees” then there are no fees.


#5

My assumption is that if fees aren’t mentioned, they are larger than normal and they don’t want to scare people. When it comes to financial dealings, always assume the worst but plan for the best.

I have done the math to run a mining asset with 0 fees, it is definitely possible, so long as a few things are covered and accounted for. If they prepaid the power bill, or are pricing that into the per GHS, they stand to make some good money when BTC climbs.


#6

I can tell you now already that there won’t be any fees.

I’ve now read the BTCtalk topic as well and I’m 99.99999999% confident that I know who the “top tier provider” is. I’ve spoken to them very recently and the contract details match their quote.

One thing everyone should keep in mind is that this contract overlaps with the next BTC halving. Apart from that the estimate mining return for 1 PH per month is approximately $75,180 or $902,160 in 12 months. However this does not include difficulty increase and said halving.


#7

It’s impossible to run it indefinitely but since this is a 1-year contract then it’s fairly easy to collect the fee upfront for the year. With that in mind it looks quite good price-wise, just the secrecy part is a bit ridiculous.


#8

Yeah it is put it’s stated in the BCT thread that they will reveal the name “if” they manage to raise $550K from the IPO which makes sense. The provider doesn’t want his name out there on a deal that hasn’t been finalized yet aka the asset manager hasn’t paid for the power yet thus there is no contract with the provider.


#9

Of course. I have mulled running a small farm with 0 fees for the first 6 months or year and then the fees start when the funds for power and other overhead run out. I have also considered doing a fixed return like pyramining does, it would basically be a pacmic only without all the fancy math for profit calculations.


#10

Now if that provider could just come out and say that, along with guarantees in case of Havelock going out of business etc then I think it would sell faster than Pacman Microphones.


#11

Yes I agree but doubt they won’t until they have an actual signed and paid agreement with Havelock or twentyseventhy. The company does only work B2B however the fund can’t go belly up once it’s paid cause it’s paid with everything covered for one year.

@rdyoung


#12

Right, but Havelock is going to be distributing the dividends and maintaining the customer database, so if they disappear someone needs to be able to keep the payouts going. I think Havelock is the biggest risk here given that their exchange seems to be quite dead (edit: I mean very little volume - 54 BTC per week, half of which was the $subject IPO - so they make like 0.2 BTC in fees per week?) and that $50k or whatever is not going to last long so the risk of them going bankrupt within the next 12 months is very real.


#13

Yeah very good point. Twentyseventhy could always migrate over to a smart asset in that case and utilize GHcloud. :slight_smile:

Anyway, I do believe that the provider has a clause in the contract regarding such an event. I’m not 100% sure but based on some quotes in this article and “if” this is the provider then a Havelock meltdown should be covered.

[quote]“Here is how it should work: cloud service enters business agreement with mining company; mining company approves cloud service and allocates certain amount of hash power for sale (wholesale); cloud service sells virtual GHs to its client,”

“This way,” he continued, “the end client receives GHs straight from the mining company, so the deal is backed/guaranteed by the mining company through smart contract.”

Should something happen to the cloud service provider, he noted, the client would still have the hashing power from the mining company.

“This scheme eliminates maximum risks and is a win-win-win situation for all parties,” [/quote]

…so they make like 0.2 BTC in fees per week?

Hmmm,GHxchange collected more this week and it’s not even Sunday yet.


#14

Havelock will make fees off of trading too. Also off of all the other funds there.

Seriously the biggest risk is what happens with BTC difficulty and price. That is very hard to predict.


#15

How much would that be?


#16

When I was using Havelock it was 0.4% when you sold shares. There wasn’t any fee on buying. Havelock Investments has actually been around a long time, but it was sold at least once.


#17

wth, I bought .22 btc


#18

That adds up to ~0.2 BTC in the last 7 days. 0.1 actually because half of the volume was their own IPO.

I’d suggest that anyone who invested in this would withdraw ASAP after the refund (I assume it will end up with a refund because it can’t possibly sell 2000 BTC in the next 10 days at the current pace). Havelock might not survive long on 0.1 BTC per week without the $50k infusion they expected with DIRECT.


#19

$550,000 sure is a bit of a sum for an IPO / pre-sale.


#20

Hmmmm, Havelock has been surviving for some time. It may be possible there are things that we don’t know about, like what all Havelock Investments makes money on and what their expenses are. I sure don’t know, but I do know they have been around a lot longer than a lot of bitcoin businesses. Just looking at one thing and claiming they are going bankrupt seems to be pretty wild speculation.