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rmccay@castleplacement.com | |
(310) 999-3411 |
jmiehls@castleplacement.com | |
(614) 657-8398 |
Overview
Liquid Mining is seeking $5 million of equity under Reg. D and $25 million of equity under Reg. A+ to launch and grow its BTC mining and mining pool operations
Operates 700 mining rigs generating 100,000 Tera hashes per second (Th/s)
Purchasing 1,500 miners, adding over 350,000 terahash
$4.3 million previously raised
Utilizing immersion cooling to cool its miners increasing the hash rate and the expected ROI
Creates additional hash rate efficiency by using technical expertise to obtain the output of 3 ASIC from 2 ASIC
BTC Market Trends
Institutional investors hold positions in public mining operations – Blackrock, Fidelity, Vanguard, Citadel, State Street, Northen Trust, Jane Street, Morgan Stanley, and others
The ETFs have been approved, and demand is outstripping mining by a factor of 10. After only one month 1% of Bitcoin is now held by ETFs
BTC miners are addressing environmental concerns by migrating to hydroelectric, wind, solar, and carbon neutral power sources or purchasing carbon credits
Manufacturers are consistently developing more efficient ASIC equipment reducing the electrical demand
Two nation states have adopted BTC as legal tender and others are experiencing their citizens opting to use crypto currency due to high fiat currency inflation
BTC Has Regulatory Clarity
The SEC and IRS have ruled that BTC is not a security, it is property
Wall Street brands (Blackrock, Fidelity, Invesco, etc.) have filed spot BTC EFT applications
DC Appeals Court vacated SEC’s denial of Greyscale BTC Trust’s application to convert to ETF
BTC derivative contracts have been trading on CME since December 2017
May 2021, Micro BTC derivative contracts (1/10th of BTC) began trading, opening the BTC derivative market to a broader investor base
Management
Joe Dwyer, Co-Founder
Experienced entrepreneur with technology focus. National sales manager for a digital sign company. While doing real estate development was presented an opportunity to get involved with a Tropical Smoothie Franchise. With team built that from one location to eleven and sold them all at the end of 2021. In addition, to strategic planning, overseeing the acquisition and setup of the commercial real estate and electrical needs for the company.
Rick Dwyer, Co-Founder
Ten years in the US Navy aboard submarines. Gained in-depth knowledge of computers and operating systems. Went into the financial services sector involved in mergers and acquisitions for 16 years raising capital and helping companies list on NASDAQ, AMEX, and OTCBB. Responsible for strategic planning, operations, and securing capital for the company.
Specific Risks
- As the maximum supply of Bitcoin inches closer, solving the mathematical puzzle to win block rewards requires increasing processing power
- Political climate globally is not settled around crypto assets and changes in regulations can significantly impact values
- SEC has taken an aggressive enforcement stance against crypto assets as securities
- BTC mining requires specialized hardware that consumes a significant amount of electricity
- Environmental concerns around high electricity use and associated carbon output
- New regulation relating to power consumption may adversely impact Bitcoin miners
- Mining hardware can become outdated, requiring continual investment in equipment
- BTC mining landscape is highly competitive making profitable operations challenging
- BTC pricing is volatile impacting the predictability of mining rewards
- Mining operations involve specialized technical knowledge especially in heat dissipation
- 51% of node operators could control the BTC network for illicit purposes
- BTC market could be vulnerable to technological advances rendering it obsolete
- ASIC manufacturing is controlled by a relatively few manufacturers creating the opportunity for price manipulation
- BTC adoption could slow down or reverse, negatively impacting the price
- Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment