Josh Terry BitVault, LLC

Overview

What’s better than buying Bitcoin?

Earning it.

So how do you earn Bitcoin?

Every ten minutes, Bitcoin miners update the blockchain with a new block of transactions. In exchange for that work, they receive a mining reward—a certain amount of Bitcoin.

Earning Bitcoin by maintaining the Bitcoin network may seem like a dream come true for crypto enthusiasts. The problem is, Bitcoin mining computers are expensive ($10,000-$20,000) and require advanced technical expertise to set up, much less maintain.

Furthermore, the average house or apartment does not have access to cost-effective electricity to keep a miner on and working at all hours and through potential power outages.

These factors have quickly taken Bitcoin mining out of reach for most people.

Our company is here to help bridge that gap—connecting already successful mining operations to the Bitcoin enthusiasts who want to invest in them.

Josh Terry BitVault LLC has partnered with a Bitcoin mining facility with a proven, five-year track record. Leveraging funds from individual investors, we will scale up operations, buy new miners, and earn more Bitcoin for us all.

Our miners run on wind-based green energy and competitively low power costs so more money funds the operation rather than a utility company.

Individual investors receive a full payout in five years. Contrast this timeline with traditional investments like a 401(k), which can’t be touched until age 59½ without penalties. (This is a forward-looking statement that cannot be guaranteed.)

We launched this Wefunder because we believe in cryptocurrency generally and Bitcoin specifically beat old-school finance head-to-head in everything that matters.

So if you can earn more Bitcoin beyond just buying it, why wouldn’t you?

Bitcoin is the future. If you want to help us build that future, consider investing in this Wefunder. For even $100 you can get access to the potential growth in Bitcoin

How It All Works

• We have created a one-stop-shop solution for the purchase, procurement, and management of a scaled mining operation funded by individual investors for as little as $100
• In partnering with the Mining Store team (miningstore.com) through BitVault, Bitcoin enthusiast and investor Josh Terry and other investors have the satisfaction in knowing that the same technicians who will be maintaining their newly purchased miners, are already actively operating and managing over 1200 miners for more than 120 petahashes
• We are using 90% of the funds to purchase new S19J Pro Antminers at extremely low prices
• We are using 7.5% of the funds for Wefunder Platform Fees
• We are using 2.5% of the funds for legal, insurance, accounting, and other associated expenses.
• Investors will participate in a mining & HODL (hold on for dear life) blend as the mining rewards will be retained within the entity for a five year mining term
• There is a cost to running Bitcoin mining operations (power, maintenance, etc.). From our past experience, we estimate it to be roughly 5% of mining revenue. Approximately 95% of the Bitcoin mined will be retained for the owners and investors of Josh Terry BitVault LLC.
  
• At the conclusion of the five year mining period, the Miners Under Management (MUM) will be liquidated and realized value will be added to the Bitcoin Under Management (BUM) and paid out in a 63%/37% split in Bitcoin to the investors (63%) and the co-founders (37%) respectively.
• Investors will have access to monthly reports outlining the growth of the BUM, the underlying hardware value of MUM, the hashrate performance of the MUM, the timeframe remaining before the proceeds are paid out, the ROI to date, the IRR to date, and other key indicators which are important to our investors.

In Detail: The Current State of Bitcoin Mining

Bitcoin mining is experiencing an explosive volume of interest and growth at the institutional level due to its profitability and interconnectivity with the energy sector. In the current state of affairs, extremely efficient management of the miners is needed as well as very low power rates to successfully and profitably mine Bitcoin. These mining facilities tend to be filled with miners owned by larger institutions which restricts the individual investor from accessing the Bitcoin mining space. There is little room left for the investor who seeks to gain exposure to the space as the barrier of entry can be as much as $100,000 or more.

The Problem

As with most investments, the institutions and market makers are first in line and able take advantage of the opportunity given their capital availability. When the big players get to the table first, the individual investor seeking to participate in the sector gets left behind. In the world of decentralization, where Bitcoin is becoming ever more accessible, Bitcoin mining has become more and more limited in its access.

Our Solution

We’ve solved this by creating a company where you can be invested in the potential profit of bitcoin mining at a lower cost than you could anywhere else, with the advantages of a larger facility run by experts without doing any of the work yourself.

We will pool investor capital to purchase large quantities of Bitcoin miners. Through investing in this company, individual shareholders can participate in Bitcoin mining at competitive energy rates and management fees that are only available to larger institutions

At $100, there are next to no competitive alternatives that give investors this reduced barrier to entry

Finally, the operation of the miners will be handled completely by a team with over five years of successful experience in the industry

The Full Story

After seeing the opportunities available in the Bitcoin mining space, Josh Terry reached out to JP Baric, the founder and CEO of the Mining Store, to learn more. What he learned was that, while it was a great opportunity, it was a complex field with a high barrier to entry and a lot of possibility for failure for the average consumer.

With JP already running a successful operation, Josh asked if there was a way to enable retail access to the individual investor with the dependability of a proven operation and a reduced barrier to entry.

The solution turned out to be creating a company that investors could invest in to receive equity and then use the funds raised to buy and operate Bitcoin miners so that investors could benefit from mining operations by holding equity.

To test the idea, in July of this year, Josh Terry posted a video in which he said:

“I'm thinking about creating a public offering to enable both retail and accredited investors to get involved. I believe this is a great opportunity and I'd like to see it available to more people.”

From this video with about 30k views, Josh received over 400 submissions for a total of over $1.5 million worth of interest. So we decided to move forwards with the idea.

The task was set, to figure out a way to bring viable individual access to an industry where a single S19 Antminer could cost more than $15,000.

With over five years of experience in Bitcoin mining coupled with the infrastructure capacity and relationships to acquire and run miners, both Josh Terry, JP Baric, and the Miningstore team came together to create Josh Terry BitVault LLC.

The goal is to raise $5 million in investor capital through a Reg CF offering. At the completion of the raise, 90% of the fund will be used to purchase Bitcoin Miners, 7.5% for Wefunder fees, and 2.5% towards legal, insurance, accounting, and other associated expenses.

In less than 2 months, we worked out the logistics, talked with the lawyers, and created a way for investors to buy into the Bitcoin mining space for as little as $100.

Welcome to Better Bitcoin Mining

Bitcoin mining is the process of utilizing computational power to maintain the Bitcoin network.

Each Bitcoin miner is a computer that competes for the opportunity to update the Bitcoin blockchain. The miners compete by doing many trillions of calculations per second (measured in terahashes) to find the answer to a cryptographic problem before any other computer.

Due to the nature of the problem, the way these payouts occur is dispersed fairly evenly. But the larger the number of calculations at your disposal the higher the probability exists that you will be the one to find the answer and receive the payout. And the lower the cost of electricity you are using to run the miners the higher your profit on that payout will be.

A new answer is found every ten minutes, and once the answer is found, the computer that found it updates the Bitcoin ledger, the record of all Bitcoin ownership and transactions on the Bitcoin blockchain. Then, a payment of Bitcoin is sent to that computer as a reward, or payment for services rendered.

This is an extremely important process for the Bitcoin network because it incentivizes many computers to come online to earn rewards, and the more computers that come online, the more stable and secure the network is. And it's very profitable when you have access to low-cost power and the right mining equipment.

Because the process is written out in code, the potential risks and rewards are in many ways very clear. The more computers that come online the more competitive the network is for Bitcoin rewards. And the ways to gain a competitive edge are through having more computational power available to you than others in the network and access to power at a lower cost while reducing costs in the overall maintenance of the Bitcoin miners.

We have that competitive edge. Our miners will be operating in facilities in Iowa, Oklahoma, and Texas. Where power is available at an average cost of 4.5 cents per kWh, 65% cheaper than the national average. And the operation is already in place and scalable, with a team of people running and maintaining equipment 24/7.

As more Bitcoin miners come online over the years, the difficulty of mining does increase, and the rewards decrease. But historically, the difficulty of mining has increased at a rate that has enabled the total amount of Bitcoin mined to be significantly more than the purchase and operation price of the Bitcoin miner. And the rewards for Bitcoin mining decrease according to a predictable halving cycle that can be planned for.

Overall, it's a business that, when all factors are understood, can be made highly profitable through optimizing power costs and computer performance, something a skilled technical team in a strategic location where power is inexpensive is well equipped to do.

Calculating Profitability

So now you know about Bitcoin mining but what about the math behind Bitcoin mining profitability? The following is a breakdown of how the profitability of a single S19J Pro - 100TH (± 5%) Antminer is calculated.

Going to the core of Bitcoin mining, the S19J Pro - 100 (± 5%) terahash (TH) miners have a hashrate of 100TH (± 5%) meaning that they are able to solve math equations as defined by a "hash" at a rate of 100 trillion hashes per second. Each miner is hashing to find the correct "solution" to the equation and if the miner is not part of a mining pool, the Antminers will continue to put out work with the goal of finding the correct block and getting paid out the 6.25 Bitcoin as a reward but there is a large luck component.

Due to the fact that the network hashrate has continued to increase since Bitcoin's inception in 2009, the ability for single miners or users to profitably hash on the network without being part of a mining pool is extremely hard. As part of a mining pool, the mining pool takes on the risk of finding the correct block and getting the 6.25 Bitcoin and in turn guarantees what's called PPS+ or pay per share plus. PPS+ means that everyone contributing hashrate work within the mining pool receives payment for their work regardless of if they find the correct block or not, and they also receive a portion of the transaction fees based on when the mining pool finds the correct block.

Given that the mining pool is taking on the risk of finding the actual Bitcoin, they pay fair market price for the hashrate output of the miners operating within. The fair market price for hashrate is determined based on your percentage contribution to the network on a daily basis so with 6.25 Bitcoin minted roughly every block or every 10 minutes, there are currently 900 BTC minted daily (6.25 Bitcoin x 144 (10 minute blocks) = 900 Bitcoin / day).

The value of the terahash is determined based on the USD to BTC price plus network fees divided by the total amount of terahash on the network. Based on current Bitcoin price, network fees, and network difficulty, each terahash is worth roughly $0.37 / TH / Day as of December 2021. The mining pool in turn, pays out $0.37 worth of Bitcoin per TH of work each miner contributes per day and the mining pool has to continually take into account the fair market price of a TH in order to ensure the miners are paid for their work output and not the actual blocks discovered.

Keeping in mind that each S19J Pro - 100TH (± 5%) Antminer has 100TH (± 5%) worth of work output and is being compensated on a PPS+ basis, the daily revenue of each miner is calculated as:

(Hashrate) x (current USD / TH / Day value) = Daily miner revenue

Based on the USD / TH / Day value of $0.37 (average Oct. 2021 TH value), each S19J Pro 100TH (± 5%) Antminer miner would generate roughly $37 worth of revenue in Bitcoin per day. The active current market value of a tarahash can be found here: https://data.hashrateindex.com/network-data/btc.

Mining can be extremely profitable, but without hundreds of thousands of dollars to put into a scaled operation, it can be difficult.

Josh Terry BitVault LLC was created to solve the problems that arise when investing in Bitcoin mining.

• Individual investors can invest at a lower amount than the price of a single bitcoin miner
• Power costs are optimized in remote locations close to cheap, sustainable power sources
• Buildings, cooling systems, and quality internet connections are all built out
• And teams with the expertise to do the job are running the operation twenty-four hours a day, seven days a week

With the right expertise and infrastructure, Bitcoin mining has been a highly profitable venture.

The explosion of growth in space is indisputable. This is an industry that has the ability and historical record of outperforming one of the best-performing assets of the 21st century - Bitcoin.

And we're experiencing a gap in a billion-dollar industry, where individual investors should be, a gap that Josh Terry BitVault LLC will fill.

Josh Terry BitVault LLC reduces the barrier to entry, incorporates all-inclusive topline management, and promotes the HODL, coupled with the fact that this is all done using Green Energy.

This opportunity gives people in all walks of life and from all backgrounds the chance to participate in an industry that hedge funds, angel investors, and politicians have thrown hundreds of millions of dollars at and the ticket to the ride has been reduced to $100.

Transparent Use of Funds

We're working to be as straightforward with the use of funds as we can. Our goal is to buy and operate as many miners as we can.

What if you invested 4 Years Ago?

These two stories show you what your investment could have looked like if you got into Bitcoin mining 4 years ago when the S9 Antminer was released. 

So now you may have a clearer picture but you still want the math of how mining works, you want to see the opportunity we’re seeing, at least that’s what we’d want.

Our team worked to pull the daily profitability data from 2017 to 2021 showing the Bitcoin mining profitability change and price change over the last 4 year period. We want you to see that while buying and holding Bitcoin is great, mining Bitcoin is better.

In the above chart, you can see that in 2017 Jake's Bitcoin count was less than Sarah's because he went the mining route. However, overtime Jake's Bitcoin holdings surpassed Sarah's held Bitcoin count thanks to going with mining instead of a buy and hold route.

Jake and Sarah both profited immensely since their 2017 Bitcoin investment. Though Jake was lagging in the early months, you can see the end payoff is higher than Sarah's due to an increasing Bitcoin count but he was able to depreciate his miners against his investment and he could continue mining beyond this time period.

Our Team

As has been emphasized, while this is a new company, there's an already available infrastructure with the currently successful mining company we're working with, and years of experience being brought to the table.

This is an industry we have the knowledge and expertise to operate within.

So you may know Josh Terry but what about everyone else involved in enabling your access to professionally managed Bitcoin mining?

So outside of the possibility of getting more Bitcoin than your friends buying it at Coinbase, what can you expect as the investor?

Not only are you getting better power rates 65% cheaper than national average, skilled technicians to run the operation, and already running facilities to house the miners.

You’ll also be getting a user portal to see the active uptime of the collective miners along with digitally delivered monthly reports showing the performance of your investment.

So what are you waiting for?

Our goal is to bridge the gap between entry-level retail investors and a multibillion dollar industry. Don’t buy because we told you it’s a good idea, invest because you realize the potential and want to be part of the future before everyone else realizes it’s here.

The greatest financial and technological revolution of our generation is already underway. Combining individual investor capital and premium miner management, together with staff who have over five years of dependable performance in Bitcoin mining, we have the strategic advantage to benefit from the growth available in an innovative industry. There is a lightning-paced movement of infrastructure and ideas happening at a massive scale, and we’d love to have you working with us as we move forward.

“The future is already here — It's just not very evenly distributed.” — William Gibson

Disclaimer: The project will be initially owned and entirely managed by AlphaVault LLC. Josh Terry owns a minority share of AlphaVault LLC, which will receive a portion of the project’s profits; Josh Terry will also receive a minority monthly allocation from the flat mining fee in exchange for sponsoring and managing the project.