Thanks for your reply. Good to know they are doing the mining in...

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gatto

104 Posts.

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25/07/14

15:12

Post #: 13715721
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Originally posted by investomania ↑

"Electricity costs currently are exceeding mining revenue for many people. There is no way a profit of $4 million has been achieved."

Hi gatto.
Here are my thoughts.
1. DCC have an incredible deal with cloudhashing.com DCC supplies the hardware and couldhashing supplies the software, there the expenses are minimised.
2. Mining operations for DCC are predominantly taking place in Iceland. Whats the big deal with Iceland you ask? LOW cost renewable hydroelectricity that has a stable and therefore predictable electricity bill ensuring that DCC can in fact predict their power bills for the next 10 years.
3. Minimal or NO airconditioning required. They use direct blasts of artic air into the mining warehouse to cool the computers.
4. One Director is getting $400k and that's the Chair, Zhenya. You get what you pay for, you want someone qualified with a track record of making a personal net worth of $100M in the technology field, well that comes at a price. The rest other Directors do not get such a salary, please read the appropriate paperwork to get numbers.

Does that help?

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Thanks for your reply. Good to know they are doing the mining in Iceland.
Doing it this way it is possible to be profitable. Still, they will need to ramp things up significantly and/or move into other things in future.

DCC Price at posting: 34.0¢ Sentiment: None Disclosure: Unspecified
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0 Great analysis

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