Cloud mining company FracMine announced Wednesday that it will hold a crowdsale of colored coins that will then allow the company to sell hashing power at just more than 1 USD per GH/s.
The crowdsale will help recoup the cost of the ASIC miners FracMine purchased, a cost that will be divided up into fractional units called FRAC shares, which will then be issued on the Coinprism colored coins platform.
There are 450,000 FRAC available for purchase in this initial offering. Each FRAC costs US$1.03, and one FRAC buys a user 1 GH/s of hashing power. That 450,000 GH/s of total available hashing power will be handled by 100 Spondoolies SP30 miners running on hydroelectric power, FracMine and Coinprism said in a joint statement.
“This price applies to each customer regardless of the number of shares purchased,” the statement read. “FracMine’s FRAC0914 [the name of this particular offering] shares are 48% cheaper than CEX.io's GHS offerings at approximately $1.98 per share.”
The presale will be operated on the Open Assets protocol, and miners will get paid in bitcoins along the colored coins protocol.
The crowdsale is not yet live, though FracMine and Coinprism have said it will begin sometime in September. Further details will be available on the FracMine page.
FracMine argued its FRAC shares offer four key features for miners:
- They are the cheapest way to buy hashing power, representing only a 15% profit margin for the company.
- The company charges no up-front costs for hosting or electricity. Rather, the $99 kW/month the company spends on powering its ASIC miners is paid out from bitcoin production.
- The company will only charge monthly operating costs. The rest of the bitcoins generated by the mining rigs will go to FRAC shareholders, and will continue to do so until operating costs are greater than mining profits for two consecutive months.
- FRAC shares can be bought, sold and traded on an open market because they are on the colored coin protocol.
“We decided to take on the giants of cloud mining by developing an overly transparent bitcoin mining solution that provides a reasonable profit margin for our company and a great overall value for the entire bitcoin mining community,” FracMine President and CEO Jason Melancon said.
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