Invest in To The Moon

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

Why have I believed and been an advocate for Bitcoin since 2013?

If Bitcoin were a company, it could have been corrupted.

Bitcoin is a decentralized protocol and a commodity that does not allow anyone to control or shut it down.

Therefore, it is ethically superior to any big tech company or government . Bitcoin is a protocol that represents the economic empowerment of 8 Billion people regardless of their beliefs and views. By owning Bitcoin, you help move the human race forward through increased clean energy and better money.

This graphic captures humanity’s innovation journey in lighting, transportation, information, and money. It begins with the humble candle, our first light source, which gave way to the revolutionary lightbulb—safer, brighter, and more efficient.

Transportation has moved from the horse, a trusted companion for centuries, to the automobile, symbolizing speed, convenience, and independence. The automobile has forever transformed how we travel and connect.

The flow of information evolved from newspapers, once the primary medium for news and knowledge, to the computer, bringing instant, global access to information in the digital age.

Lastly, the story of money transitions from physical cash and coins, the cornerstone of trade for millennia, to Bitcoin, representing the rise of decentralized digital savings and reshaping how we store value.

Each shift illustrates humanity’s pursuit of progress, transforming everyday necessities into more powerful, efficient, and transformative tools.

As we embark on this journey, I aim to harness the world's energy to secure the Bitcoin network. Despite governments' attempts to thwart Bitcoin's growth, the decentralized nature of Bitcoin renders such attempts ineffectual. Any single entity can't control or restrict energy, a global resource. When utilized for Bitcoin, this energy creates value not only for individuals but also for communities. 

Investing in Bitcoin mining operations offers a unique opportunity to acquire Bitcoin at a considerable discount compared to the open market. At S21 HYDRO PRO, the cost of producing one Bitcoin is around $35,000, while the market price is currently valued at $88,000. This cost efficiency equates to a 59% discount below the market rate for Bitcoin, offering investors a significant advantage over purchasing Bitcoin directly on exchanges. This remarkable discount is achievable due to two primary factors: the efficiency of our mining hardware and our access to low-cost energy, at just 0.065 cents per kWh. Approximately 78% of the funds raised will go directly towards buying Bitcoin miners at market rates. With our cutting-edge technology and energy partnerships, I can keep operational costs low, enabling each machine to operate at maximum efficiency and ultimately driving down the cost of Bitcoin production.

Additionally, I will actively manage risk through hedging. Allocating 4% of the raised funds to synthetic hashrate exposure protects the value of our hashrate and the Bitcoin we mine over the investment's lifespan. This ensures that while investors gain exposure to the potential upside of Bitcoin’s market price, they are also safeguarded against volatility in mining revenue. Our model presents a highly efficient path to Bitcoin ownership through careful resource allocation, advanced risk management, and leveraging partnerships with low-cost power providers. With these efficiencies in place, I'll deliver a path to Bitcoin accumulation that bypasses market fluctuations, making Bitcoin mining an increasingly profitable investment avenue, especially when the acquisition cost significantly undercuts prevailing market prices.

Beyond the cost advantages of mining Bitcoin, S21 HYDRO PRO and S21+ HYDRO provide investors with a substantial tax benefit through accelerated depreciation of mining equipment. Under the current IRS tax regulations, particularly the Modified Accelerated Cost Recovery System (MACRS), mining equipment is eligible for accelerated depreciation, allowing investors to depreciate up to 60% of the value of the equipment within the first year. According to IRS Tax Code Section 168, machinery and equipment used in mining operations can be depreciated over five years, with a significant portion recognized upfront. This accelerated depreciation allows investors to offset taxable income, making it a tax-efficient investment. However, as tax implications vary, I strongly encourage investors to consult their independent tax advisors to understand how these tax benefits might apply to their situations.

To optimize these tax advantages, our financial structure allocates a dedicated portion of the capital toward purchasing Bitcoin miners, which are depreciable assets. This allocation of funds means that as machines are bought and depreciated, investors can gain substantial tax deductions in the initial years of the investment, thereby increasing the effective after-tax return. By coupling low operational costs with favorable tax treatment, our investment model is designed to maximize returns and mitigate taxable income for our investors. This dual approach of achieving discounted Bitcoin acquisition and leveraging tax-efficient strategies offers a decisive investment advantage, making S21 HYDRO a compelling choice for investors seeking growth and tax savings in their Bitcoin portfolios.

In the end, our investment in Bitcoin gives us optionality. This isn't about investing in a digital asset but participating in a peaceful savings revolution. Our Bitcoin holdings allow us 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.

I am the Founder and Chief Executive Officer of MiningStore, and we are leading experts in the crypto mining industry. I have overseen over twenty mining deployments and introduced thousands of people to Bitcoin.

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 team of over 15 dedicated individuals working nationwide.

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.

As Bitcoin miners with low-cost power and no debt payments on the mining machines, we consistently mine Bitcoin for a lower cost than the market price. We achieve this by buying the most efficient machines cooled with water and at a lower cost of energy than other mining groups in hosting contracts or mining at home. A capped admin fee of 2% per year ensures that Public Mining costs associated with public mining companies on the stock market do not degrade shareholder equity.

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/CBBTC and USDC/USDT/ etc.*  following a long-term approach considering the Bitcoin Halving event occurring 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.

We will maintain a safety ratio of 170%, protecting against any significant short-term Bitcoin flash crashes. A safety ratio is the ratio of our borrow limit (Value of assets) versus borrowed funds.

Funds will be used to purchase the most efficient Bitcoin miners that use water to cool themselves. The profitability of the S21 XP Hydro can be seen here. 

Funds will be stored in Bitcoin, and I will lend against the Bitcoin we mine to pay hosting bills at a cost of ~$254.33 per machine per month. This allows us to capture the upside and premium of the bitcoin mined for all investors and increase the amount of Bitcoins owned per share over time.  I aim to increase the amount of bitcoin each investor obtains through this five-year investment.

At the end of the five years, the remaining assets are liquidated and distributed back to you, the investor.  I am vested in the success of this enterprise because your success is my success.

Bitcoin, the first and most well-known crypto savings tool, 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.

The Previous 4 Years in Asset Pricing

Bitcoin is a protocol that allows any user to transact value across the network without intermediaries. The protocol stores 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 Bitcoin's 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:

• 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 0.065 cents per kwh.
• 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 upgrades are constantly needed.
• Price of Bitcoin and Network Difficulty: The price of Bitcoin is crucial because it directly affects the profitability of mining. When Bitcoin prices are high, miners can earn more from their mining activities. However, when the price is low, they may be unable to cover their costs. Network difficulty measures how difficult it is to mine a new block in the Bitcoin blockchain. As more miners join the network, the difficulty increases. Miners may need to invest in more powerful equipment to continue earning Bitcoin, increasing their costs.
• 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.

What’s better than buying Bitcoin?

So, how do you earn Bitcoin?

Bitcoin miners update the blockchain every ten minutes 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 for crypto enthusiasts. The problem is that Bitcoin mining computers are expensive ($2,000-$3,000) and require advanced technical expertise for much less maintenance.

Furthermore, the average house or apartment cannot access 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.

I am here to help bridge that gap, connecting already successful mining operations to Bitcoin enthusiasts who want to invest in them.

We will run the machines in MiningStore facilities, which have been operating servers since they 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.

Our miners run on grid energy in Iowa at competitively low power costs, so more money funds the operation than a utility company.

We launched this Wefunder because we believe Bitcoin can outperform the old-school finance system 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 and Bitcoin mining.

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

I 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 8000 miners for more than 1000+ customers

(National Rural Utilities)

National Rural Utilities Cooperative Finance Corporation.

Operational Costs

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 vital indicators which are essential to our investors.

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, restricting 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 $5,000 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.  

All corporate debt over $50,000 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.

APY Calculations.

• 2% Annual Entity Management Fee—The entity manager charges this fee annually. The operating agreement provides further details. It covers the cost of the fund's ongoing compliance and monthly work to manage the BTC and USDC loans.

Crypto Holdings:

Company Public Bitcoin Address: bc1q0lz4yfurylmkd7n385dx8aal0x8dnnlvlvczev

Company Public Base Address: 0xE3719C62d4797b33D0876f74285e7F0b7E270178 -

How much am I going to make? What projections can you make?

The regulation crowdfunding rules do not allow me to project future returns for the business and its operations. I can only talk about what I have done in the past and what Bitcoin has done.

Other investors who invested $643k into  Josh Terry Bitvault, a similar project, have earned 1.2M in BTC over 998 days, an annualized return on the investment of approximately 25.94% per year net of all fees and not inclusive of deprecation.

How is depreciation calculated?

(Invested Amount) * 80% [The investor's portion of funds] * 78% The money used to purchase machines * 40% ( Year 1 depreciation). Year 2-5 would be a straight-line depreciation on the remaining 60% of asset value.

Note: 100% bonus deprecation could be available in 2025, pending the passage of The 2024 Tax Relief for American Families and Workers Act

A detailed explanation of active vs passive investors and depreciation benefits/what income it can used against can be viewed here.

Do I have to be an accredited investor to invest?

No. Wefunder allows you to invest without being an accredited investor. All you have to do is sign up and invest.

What is the minimum amount I can invest?

$100.

What's the maximum I am legally allowed to invest?

Through Regulation Crowdfunding everyone can invest at least $2,200. How much you're able to invest above that depends on your net income and net worth. You can see how much you're allowed to invest by entering those two numbers under "Investor Limits" here (once you've created and logged in to a Wefunder account).

While you may be legally able to invest more, your investment may be lowered depending on the interest we receive in this round.

Can I invest if I don’t live in the United States?

With a few exceptions, investments can be accepted from international investors as long as you represent that you are complying with the law in your country. Here's a step-by-step guide on investing from outside the US.

The only exceptions are the Canadian provinces of Quebec, Ontario, and Alberta which have requested that Wefunder bar their residents from investing on Wefunder’s platform, as well as certain sanctioned countries.

For accredited investors from one of those Canadian provinces, we’re looking into creating an opportunity to invest. You can email wefunder@substackinc.com to express your interest.

What fees do investors pay?

For payments made by bank ACH, wires, or checks, Wefunder charges investors a transaction fee of 2%, with a minimum of $8 and a max of $100. For credit cards, Apple Pay, or Google Pay, Wefunder charges a 5% fee, with a minimum of $8 and no maximum.

Investors can get their first investment fee-free by completing the welcome sequence when creating their account (www.wefunder.com/welcome) and using their ACH bank account (US banks only) or a wire. Just so you know, this only applies to first investments.

Fees are one-time and are not reoccurring.

How will I make a return on my investment, and when?

The company will be dissolved and all funds will be liquidated into cash or paid out in Bitcoin if possible five years after the investment round closes.

Where can I ask a question? 

You can ask any questions you have in the “Ask A Question” section of this page.

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 we will receive WBTC at a 1:1 ratio. The WBTC will be added as collateral on AAVE or a similar DEFI lending Protocol. (CBBTC) by Coinbase could be used as an alternative if WBTC collateral value becomes impaired.

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 V3 we can 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. Moonwell could also be used as a lending market.

What has the historical interest rate been?

APY 5.34% on 10/22/24

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%, the liquidation threshold on the loan is 87.50%, and there is 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. This wallet will require multiple signatures to authenticate actions to ensure the safety of funds over the five year period.

The details:

Custody Solutions

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