Invest in JP Baric Bitvault LLC

Welcome, esteemed guests and fellow Bitcoin enthusiasts, to this unique journey aboard the "Bitcoin Voyager," the world's first time-traveling cruise ship. Over the course of this voyage, we're not just traversing the seas but exploring the evolution of Bitcoin, the world's first decentralized digital currency, and the possibilities it holds for our future.

Bitcoin is truly an unprecedented innovation, combining computer science, economics, cryptography, and network theory. More than just a form of digital currency, Bitcoin is a novel kind of network infrastructure that can't simply be shut down. The Bitcoin network is decentralized and spreads across the globe, using computational power to maintain its security. Energy is indeed a key player in this equation, fueling the mining operations that sustain the Bitcoin network and its cryptographic security.

As we embark on this journey, our mission is to harness the world's energy to secure the Bitcoin network. Despite the attempts of governments to thwart its growth, the decentralized nature of Bitcoin renders such attempts ineffectual. Energy, a global resource, can't be controlled or restricted by any single entity. When utilized for Bitcoin, this energy creates value not only for individuals but also for communities. 

• This very fact will keep driving Bitcoin's growth.
• Let us venture into this exciting future.
• Let us secure the electric grids of Mid-America. 
• Let us secure more of the Bitcoin network.
• Let us create more wealth for ourselves and our local communities.

In the process, we're not just protecting our time and money; we're protecting a technology that can fundamentally alter how the global financial system operates.

In the end, our investment in Bitcoin gives us optionality. This isn't about simply investing in a digital asset; it's about participating in a technological revolution. Our Bitcoin holdings give us the ability to participate in a new, decentralized economic system, but it doesn't force us to abandon the old one. We have the freedom to operate within whichever system best serves our interests.

Welcome aboard, fellow Bitcoin voyagers! 

We have a fascinating journey ahead of us.

Unbeatable 14% Preferred Return on Capital - A Decade-Long Income Generator 💰🎉

Imagine getting a 14% preferred return on your capital every year from year two till either the entity ceases to exist or a decade passes. Yes, you read it right, a whopping 14%! This isn't a pipe dream.

Our chart paints the picture more eloquently - a decade of robust returns that are nearly impossible to match elsewhere. The sturdy structure of this investment promises consistent growth and returns that you can bank.

Here's the best part: At the end of the ten years, the remaining assets are liquidated and distributed back to you, the investor. Think of it as the cherry on top of a decade-long, money-making cake!

In order to align our interests with yours, management will retain a 20% ownership stake in the entity. Our position can grow, and the growth is strictly based on the defined set of financial outcomes. (Listed at the bottom of this page.) I am vested in the success of this enterprise because your success is my success.

The Strategy:

As a Bitcoin miner with low-cost power and no debt payments on the mining machines, we are able to consistently mine Bitcoin for a lower cost than the market price of Bitcoin. We are able to achieve this by purchasing our own slot space, which results in having a lower cost of energy than mining groups in hosting contracts or those mining at home.

Our strategy is to lend against the mined bitcoin to cover expenses incurred by the mining operation, including but not limited to: (Interest Payments, Power Bill Payments, Yearly Management Fee, Parts, and labor for machines)

The portfolio will hold WBTC and USDC/USDT following a long-term approach that considers the Bitcoin Halving event that occurs every four years. These events have historically led to an all-time price of Bitcoin roughly 500 days after the halving event, where the amount of new Bitcoin supply minted on a daily basis is reduced by 50%, reducing the selling pressure of BTC by miners.

In order to ensure obligations to shareholders, the portfolio will be managed based on this four-year cycle resulting in an increased position in WBTC during the Panic and Capitulation stage, while a USDC and stablecoin position will be built during the Intermission to Euphoria stage.

Potential Gain:

Bitcoin, the first and most well-known cryptocurrency, began trading in 2010 and has since experienced significant growth. As an investment, it has attracted the attention of both retail and institutional investors worldwide. This report aims to provide a comparative analysis of the potential gains in Bitcoin versus other traditional investment indexes, including the S&P 500, NASDAQ Composite, and Gold, since 2010.

1. Bitcoin (BTC): Inception of comparison: July 17, 2010 Initial value: ~$0.08 Current value (as of May 10, 2023): ~$28,000 Potential gain: ~35,000,000%

Despite experiencing significant volatility, Bitcoin's value has soared from just $0.08 in 2010 to $28,000 in 2023. This remarkable growth represents a potential gain of around 35,000,000% for early investors.

1. S&P 500: Inception of comparison: July 17, 2010 Initial value: 1,064.59 Current value (as of May 10, 2023): 4,875.32 Potential gain: ~358%

The S&P 500 is a market-capitalization-weighted index of 500 leading publicly traded companies in the United States. Over the same period as Bitcoin's trading history, it has experienced steady growth, with a potential gain of around 358%.

1. NASDAQ Composite: Inception of comparison: July 17, 2010 Initial value: 2,179.05 Current value (as of May 10, 2023): 15,987.13 Potential gain: ~634%

The NASDAQ Composite is a stock market index that includes more than 3,000 companies listed on the NASDAQ stock exchange. Since 2010, it has outperformed the S&P 500, providing investors with a potential gain of about 634%.

1. Gold: Inception of comparison: July 17, 2010 Initial value (per troy ounce): $1,188.50 Current value (as of May 10, 2023): $1,925.10 Potential gain: ~62%

Gold, a traditional safe-haven asset, has seen modest growth since 2010. While it has not experienced the same level of growth as Bitcoin, the S&P 500, or NASDAQ Composite, it still provided a potential gain of approximately 62% over the same period.

Conclusion: Bitcoin's potential gains since it began trading in 2010 are unparalleled when compared to other traditional investment indexes such as the S&P 500, NASDAQ Composite, and Gold. While past performance does not guarantee future results, Bitcoin's meteoric rise illustrates the potential of investing in emerging asset classes. It is essential, however, for investors to consider the risks associated with investing in cryptocurrencies, including market volatility and regulatory uncertainty, before making investment decisions.

Potential Risk:

Bitcoin is a protocol that allows any user in the world to transact value across the network without intermediaries. Bitcoin protocol is a store of value due to the increasing amount of energy required to capture new coins in the mining process. This extraction value gives it a cost of production floor that could be higher than the cost of the bitcoins price.  In this event, the Bitcoin miners providing cash flow to the operation would have to be turned off to reduce potential costs.

The cost of production includes but is not limited to the following key factors:

1. Price of Energy: This is one of the most significant costs associated with Bitcoin mining. Mining Bitcoin requires powerful computers that consume large amounts of electricity. The cost of electricity can vary greatly depending on where the mining operation is located. Our energy rate will be between $0.039 cents per kwh and $0.050 per kwh
2. The Efficiency of Machines: The efficiency of the mining hardware, used to mine Bitcoin also plays a significant role in the cost of production. More efficient machines will be able to solve the complex mathematical problems required for Bitcoin mining more quickly and with less energy. Additionally, as technology advances, older mining equipment becomes obsolete, which means there is a constant need for upgrades.
3. Price of Bitcoin and Network Difficulty: The price of Bitcoin is crucial because it directly affects the profitability of mining. When the price of Bitcoin is high, miners can potentially earn more from their mining activities. However, when the price is low, they may not be able to cover their costs. Network difficulty is a measure of how difficult it is to mine a new block in the Bitcoin blockchain. As more miners join the network, the difficulty increases. This means that miners may need to invest in more powerful equipment to continue earning Bitcoin, which increases their costs.
4. Transaction Fees: Bitcoin miners are rewarded with a combination of newly minted Bitcoin (block rewards) and transaction fees from the transactions they include in the new blocks. While block rewards are halved approximately every four years in an event called halving, transaction fees become a more significant part of the reward as the network grows. High transaction fees can therefore make mining more profitable, while low transaction fees could make it less so.

Additional costs can include the cost of cooling the mining equipment (because it generates a lot of heat when it's running), maintenance costs, and any expenses associated with running the facility where the mining operation is located.

For a full list of risks and disclosures, please see the risk page.

My history:

I am the Founder and Chief Executive Officer of MiningStore, and we are leading experts in the crypto mining industry. I have personally overseen fifteen different mining deployments and introduced hundreds of people into the Bitcoin space.

My journey began as a senior in high school when my interest in coding and cryptocurrency led me to bring a few family members and friends together to test the idea that mining cryptocurrency could be profitable. Soon enough, I had technicians building machines, and I began running them in Graham, N.C. 

Later that year, I started exploring new avenues, selling my machines to others. In 2017, I continued to grow my team and started to earn revenue. By the following year, I had set up an office in my hometown before moving our headquarters to Raleigh, where my team built even more Ethereum miners.

Since then, I have expanded MiningStore to Iowa and have three active facilities. I now lead a company of over 20 dedicated individuals working across the country.

Aside from running a successful multi-million dollar business, I have creatively implemented today’s impactful social media marketing strategies and platforms into my success as well. I have garnered over 80 million views on my TikTok alone, focusing on Bitcoin mining. I also run my 'Digital Gold with JP Baric' podcast, which can be found on Apple Podcasts, Amazon Music, Spotify, and more. I have been mentioned in Forbes, DailyMail, Economics of Mining, Dr. Phil, and many other notable platforms.

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 ($2,000-$3,000) and require advanced technical expertise to set up much less maintenance.

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.

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

We have 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 grid energy in Iowa at competitively low power costs, so more money funds the operation rather than a utility company.

We launched this Wefunder because we believe in Bitcoin’s ability to beat the old-school finance system head-to-head in everything that matters.

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

We Convert Energy To Wealth By Offering Trusted Bitcoin Mining Solutions Through Low-Cost Sustainable Energy Sources.

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 MiningStore team (MiningStore | Bitcoin Mining and Management ) through BitVault, Bitcoin enthusiasts 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 5000 miners for more than 1000+ customers
• S19 XP Bitcoin Miners - 70% of the funds will be used to purchase Bitcoin Miners at market price using Luxor RFQ platform as a proxy for the price of a machine.
• Synthetic Hashrate Exposure / Hedging - Hashrate price and the value of the bitcoins we mine will be hedged using 8% of the raised funds of the life span of the investment.  (Learn more here)
• Cash Accounts - 7% of the funds raised will be used to cover the cost of electricity for the first few weeks of operation.
• Hosting Deposit - 2.5% of funds will be used as a hosting deposit with BitVault LLC, the electric company, or National Rural Utilities Cooperative Finance Corporation.
• Wefunder Fee - 7.5% This fee is charged by the platform to operate a raise on Wefunder.
• There is a cost to running Bitcoin mining operations (power, maintenance, etc.). Since we will be purchasing the infrastructure to hold our machines, the cost to operate will remain flat and competitive.
• During the 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 an 80%/20% split in Bitcoin to the investors (80%) and the co-founders (20%) respectively.
• 2% Annual Entity Management Fee - This fee is charged by the manager of the entity annually to operate and manage the vehicle. Further details are available in the operating agreement.
• Investors will have access to blockchain accounts outlining the growth of the BUM, the underlying hardware value of MUM, the hash rate 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. These mining facilities tend to be filled with miners owned by larger institutions which restrict 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 $3,000 or more.

 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.  

The Exit Strategy:

Commitments

All corporate debt over $100,000 will be tracked on a blockchain.

All company blockchain addresses will be shared with investors

Annual GAAP financials and annual reports will be provided to investors

Related Transactions

JP Baric the manager of Work4Coins LLC and the manager of JP Baric Bitvaul LLC is a partial owner of multiple Bitcoin mining-related business ventures that provide data center construction, operation, and resale services. JP Baric Bitvault LLC will purchase infrastructure with the "Bitcoin Mining Slot Fee" funds for no more than a 22% markup of already developed infrastructure and 11% for undeveloped infrastructure. Container hosting services will be offered at a similar price point to other container hosting customers. Machine sales will include a 5% markup and at least three quotes will be obtained from Bitcoin mining vendors.

Frequently Asked Questions:

What is WBTC?

WBTC brings greater liquidity to the Ethereum ecosystem including decentralized exchanges (DEXs) and financial applications. Today, the majority of trading volume takes place on centralized exchanges with Bitcoin. WBTC changes that, bringing Bitcoin’s liquidity to DEXs and making it possible to use Bitcoin for token trades.

The BTC will be deposited into the protocol and in return, we will receive WBTC at a 1:1 ratio. The WBTC will be added as collateral on AAVE or a similar DEFI lending Protocol.

What is AAVE?

Aave is a decentralized non-custodial liquidity market protocol where users can participate as suppliers or borrowers. Suppliers provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.

When using AAVE V2 we are able to borrow USDC a stablecoin similar to USD but in a token format against the market value of the WBTC in the account.  This is similar to lending against the value of your house or a stock portfolio.

What has the historical interest rate been? APY 3.11% on 3/29/23

How is the interest rate calculated?

The interest rate is calculated based on the number of people borrowing USDC on AAVE compared to the amount of available liquidity in the pool.

What are the collateral requirements?

The Max Loan To Value is 80% while the liquidation threshold on the loan is 87.50%, and a 4.50% liquidation penalty if your loan is closed about the liquidation threshold.

As a miner, we use Bitcoin Mining Pool Luxor which sends mined coins to our public Bitcoin address which will be available for all investors to see on the Bitcoin blockchain. Either Anchorage or Nunchuk will be used to hold BTC before the BTC is converted to WBTC.

The details:

Custody Solutions

• We will use Third Party Solutions with multi-sig, and two keys will be held by lawyers, and only two signatures will be used to verify transactions. This signature protocol is used to protect investors in the event of the influencer's death or the manager of the LLC. These provisions are outlined further in the operating agreement.

We will be using https://www.tholos.app/ for custody of the mined cryptocurrency.

MPC Implementation - https://docs.tholos.app/mpc/mpc-in-tholos

Management Performance Bonuses

# of Bitcoins or Wrapped Bitcoins * Price of Bitcoin is US Dollars + Value of Mining Equipment + USD  - net of liabilities =  Net Asset’s