LIBERTY COIN FARMS
Executive Summary
Overview
At the core of our business lies an innovative approach to Bitcoin mining, driven by our mission to revolutionize the bitcoin mining industry through efficiency, sustainability, and diversification. Our venture is poised to redefine the standards of energy consumption and miner consolidation, setting a new benchmark for profitability and environmental responsibility in the digital currency mining sector.
Innovative Energy Solutions
Phase One of our operation, requiring an investment of up to $25M, leverages commercial power rates at competitive prices. However, our strategic vision extends far beyond initial setups. Phase Two, achievable within six months post-Phase One funding, will transition our energy consumption to below 2c per kWh — a striking reduction of 66% — thanks to our commitment to renewable energy sources, primarily wind power. This not only slashes operational costs but also aligns our practices with sustainable energy goals, projecting scalability into hundreds of megawatts with an efficient build rate.
The synergy with Robotanai, our sister company specializing in Vertical Farming of Agriculture, further exemplifies our innovative approach. By selling waste heat from our mining operations, we not only boost our profitability but also contribute to a sustainable ecosystem, marking a significant departure from traditional mining practices.
Strategic Miner Consolidation and Income Volatility Management
Our ambition extends into the realm of hardware through plans to develop and distribute both commercial and consumer-grade mining equipment, anticipating a shift in the industry towards a more decentralized model. This strategy not only places us at the forefront of technological innovation but also serves as a hedge against miner income volatility. By generating our own power and diversifying into related sectors, we mitigate the conventional risks associated with operational costs and market fluctuations in mining.
Expansion Vision and Financial Outlook
Our expansion strategy is meticulously tailored to leverage the unique advantages offered by the Midwest region, from its conducive climate and wind energy potential to its political and economic landscape. These strategic choices are underpinned by a clear financial model: a direct path to cash flow within 60-90 days post-funding, with robust revenue projections based on operational efficiencies and market positioning.
Investment Request and Use of Funds
We seek an investment within the range of $10M-$25M to catalyze our Phase One setup and lay the groundwork for Phase Two's transformative energy solutions. The majority of these funds will be allocated towards acquiring the state-of-the-art mining equipment and infrastructure setup, with a portion reserved for operational expenses until the venture achieves self-sustainability.
Conclusion
Our approach is not merely to participate in the cryptocurrency mining industry but to redefine it. With a keen focus on energy efficiency, technological innovation, and market foresight, our business model is designed to not only navigate but also capitalize on the cyclicality of the crypto market, ensuring long-term profitability and growth. We invite you to join us in this journey, marking a significant step towards a sustainable and profitable future in cryptocurrency mining.
Business Description
Liberty Coin Farms positions itself at the forefront of the evolving bitcoin mining industry by capitalizing on a multifaceted revenue model that extends beyond traditional mining operations. Our business is crafted around the core principle of generating new bitcoins, a process intrinsically linked to the support and maintenance of the bitcoin network. The production of new bitcoins ensures a continual value generation, underpinned by the design of the bitcoin system to proportionally increase in value with the expansion of its supporting miner network.
Operating in an industry where daily production yields 450 new bitcoins distributed among miners worldwide, Liberty Coin Farms harnesses this steady stream of digital currency, translating it into a significant competitive edge. Our operation is not merely about mining; it's about optimizing the various income streams that mining enables. These streams include the direct sale of mined bitcoins, the innovative reuse of excess waste heat for additional revenue, the strategic holding of bitcoins to leverage asset appreciation, and active engagement in trading and investment for arbitrage opportunities.
At our core, Liberty Coin Farms leverages a unique capacity of 25MW in our Phase One operation, enabling us to claim a significant share of the global bitcoin production—approximately 3 of the 450 bitcoins produced daily. This capacity not only signifies a direct revenue stream from mining but also positions us to benefit from the fixed and predictable transaction fees shared across the mining pool. Historically, these fees have averaged more than $20 per day per machine, offering a stable income source alongside the volatile bitcoin market.
Beyond the immediate revenue from bitcoin mining and transaction fees, Liberty Coin Farms has innovated in the domain of energy reuse. Our strategy to sell excess waste heat introduces an additional revenue channel, further diversifying our income sources and enhancing our operational sustainability.
The business is currently in a strategic phase of expansion, with ambitious plans to scale operations and delve into new areas of blockchain technology and bitcoin mining. These include developing commercial and consumer-grade mining equipment and establishing self-sustainable mining operations across the Midwest. The choice of the temperate and cooler Midwest is deliberate, leveraging its favorable wind climate, political openness, and cost advantages for expansion.
Liberty Coin Farms is more than another mining company; it's a testament to the potential for innovation, sustainability, and strategic growth within the bitcoin mining industry. Our multifaceted approach to revenue, combined with a deep understanding of the mining ecosystem and strategic foresight into industry trends, sets us apart in a competitive landscape. As we embark on this journey of expansion and innovation, we remain committed to our principles of value generation, sustainability, and strategic asset management, ensuring a robust foundation for growth and a stable path toward realizing our vision of becoming an integrated powerhouse in the blockchain and bitcoin mining sectors.
Market Analysis
Liberty Coin Farms operates within the competitive and technologically advanced sector of bitcoin mining, an industry that is not only rapidly expanding but also undergoing significant changes in both technology and regulatory frameworks. The growth potential of this market is anchored in the increasing global acceptance of bitcoin and other cryptocurrencies, and the technological advancements that make mining more efficient and environmentally sustainable.
Our comprehensive market analysis reveals that Liberty Coin Farms is uniquely positioned to capitalize on these market trends, leveraging competitive advantages that are not readily replicated. Our ability to overclock Mining machines due to the colder regional climate for up to 9 months of the year, allowing for a 10-20% higher yield, places us ahead of our competitors in terms of production efficiency. The strategic decision to recycle and sell waste heat further augments our profitability, providing an additional estimated 15% cost savings that translates into acquisition of bitcoin as much as 35% below market costs.
The market size is underscored by the daily global production of bitcoins, and as a player in this field, Liberty Coin Farms is primed to capture a significant portion of this. Our operations, scaled to $25M, are expected to generate $2.5M per month, substantiating a revenue model that is robust and highly scalable. This is reinforced by our trading operations that cover overhead expenses, allowing us to hold and trade bitcoin strategically rather than selling at lower market prices to cover operational costs.
In comparison to competitors, as delineated in our Pitch Deck chart, our sustainable growth prospects are unmatched. While others are constrained by grid limitations or have to shut down during peak demand, our access to unlimited scaling wind energy and a substantially lower electric cost of $0.018 per kWh by 2026 puts us in an enviable position. Our projected energy costs underpin a 66% reduction in one of the most significant operational expenses, offering a clear cost advantage over competitors.
Our mining climate in Cold Iowa is optimal not just for overclocking machines but also for the utilization of waste heat, a resource that competitors in hotter regions cannot leverage. This geo-climatic advantage is compounded by the region's political openness to mining operations and the economic benefits of lower land and operational costs due to the sparse population.
In the broader market context, Liberty Coin Farms is preparing for a future that foresees a consolidation phase where mining, hardware, software, and exchanges converge. Our five-year strategic plan aligns with this vision, aiming for a radical expansion in both capacity and market reach, with a projected market capitalization of $5B after our Series B funding round.
Our diversified business model extends beyond mining into hardware, software, FinTech, and farming trade, enabling us to mitigate risks associated with the market's cyclicality. This diversification also distinguishes us from competitors, many of whom have a singular focus, enhancing our resilience and potential for sustained growth.
The Liberty Coin Farms market strategy is, therefore, not just about maintaining pace with the industry but setting a new standard for sustainable, diversified, and highly profitable bitcoin mining operations. The market analysis confirms that our strategic advantages—technological, geographical, and operational—are not only solidified in the present but are well-aligned with the anticipated future directions of the bitcoin mining industry.
Organization and Management
The organizational framework of Liberty Coin Farms is designed to effectively support our complex and dynamic operations within the blockchain and cryptocurrency sectors. Our corporate structure and management are streamlined to ensure agile decision-making and operational efficiency, reflecting our commitment to innovation and leadership in the industry.
Liberty Coin Farms has been strategically developed from its inception in 2008, pivoting from a foundation in distributed networks and network security to a robust player in the blockchain ecosystem. The company’s foray into bitcoin mining in 2017 marked a significant transition, leveraging our expertise in peer-to-peer technologies and network protocols. Despite facing challenges, including the need to recapitalize operations due to COVID-19 disruptions, Liberty has demonstrated resilience and adaptability, maintaining limited trading revenues and preserving our infrastructure valued at $2.5M.
Our corporate history is a testament to our evolution and persistence. From our beginnings with a focus on data storage and networking to our adept transition to blockchain technologies, we have consistently demonstrated foresight and flexibility. The closure of our smaller-scale mine during the pandemic was a strategic decision, allowing us to recalibrate and emerge stronger, now poised for substantial expansion.
As an entity, Liberty Coin Farms, is structured as an LLC, with a clear legal framework designed to support its current operations and future growth plans, including the intention to direct list to NASDAQ or merge with a Special Purpose Acquisition Company (SPAC) once conditions are favorable. Our current financial standing is solid, having raised $3.5M from friends and family since 2017 and maintaining operational costs for two locations and staff at $35,000 per month.
At the helm of our organization is a team of seasoned professionals, led by our CEO/CTO, Craig Bergman, a visionary with extensive experience in technology and finance. Our leadership team shares a commitment to research and development, prioritizing user-friendly products, exceptional customer service, and robust security protocols.
As we expand, Liberty Coin Farms envisions a corporate ecosystem with related but independent companies operating in manufacturing and software within the cryptosphere. Each entity will pursue its own path to public trading status, starting with shared senior management to ensure a cohesive vision and operational synergy. Over time, these companies will diversify their leadership with extraordinary external talent to helm their executive teams.
The expertise within our team spans across business, technology, finance, science, and more, equipping us to navigate the convergence of these fields. This multidisciplinary approach enriches our capacity to innovate and positions us to capitalize on the intersections of emerging markets, enhancing our corporate value and ensuring a resilient foundation for future endeavors.
In summary, Liberty Coin Farms is strategically poised for the next phase of growth with a solid organizational team, a skilled and experienced management team, and a clear vision for the future. Our corporate history and professional ethos are the bedrocks upon which we stand, ready to lead the charge in the ever-evolving landscape of blockchain technology and bitcoin mining.
Service or Product Line
Liberty Coin Farms’ service offering centers on bitcoin mining, an essential process that involves validating transactions and securing the decentralized Bitcoin network. Our mining operations are the backbone of our business, leveraging cutting-edge technology to remain competitive and efficient in the rapidly evolving cryptocurrency landscape.
Bitcoin Mining Operations
Our mining operations are set to deploy the latest available technology in terms of hardware efficiency and energy consumption. As the industry moves beyond the era of rapidly shrinking chip sizes with the standardization of 3nm chips, Liberty Coin Farms is positioned to capitalize on the market shift toward operational efficiency and longevity of mining equipment. Our mining operations are anticipated to be less impacted by the need for frequent upgrades, which historically have been driven by the quest for smaller chip sizes.
We understand that diversification in manufacturing is essential. To this end, our sister company, radix, plans to enter the manufacturing arena, producing mining hardware that is optimized for U.S. power requirements. This will eliminate the need for expensive transformers, reduce energy loss, and shorten the lead time for custom-built mining operations. By manufacturing our own hardware, we will not only cater to our operational needs but also serve the growing U.S. market for mining, selling to our competitors and thus lowering everyone’s operational costs.
Research and Development
Research and development (R&D) is a cornerstone of our business strategy, driving innovation and ensuring that we stay at the forefront of the industry. R&D efforts are focused on developing mining hardware that meets the specifications for U.S. power infrastructure and consumer usability.
Future Product Plans and Innovations
Looking to the future, Liberty Coin Farms, through Vortex & radix, aims to introduce a consumer-friendly mining product to the market. The Vminer will be a countertop mining device that offers profitability, quiet operation, and ease of use for the individual owner. Designed to operate on standard U.S. 110 volts/15 amp household power, the Vminer represents a significant innovation in the consumer cryptocurrency space.
The Vminer distinguishes itself by being specifically engineered for the U.S. retail market, contrasting with existing mining units designed for Chinese electrical standards and industrial-scale mining. Our competitive edge lies in the fact that there is currently no competitive manufacturer for a consumer-grade mining unit in the U.S. retail market. This positions us uniquely, as we alone will offer this innovative product, tapping into a new segment of the market that has been underserved until now.
The projected lifecycle of our Vminer is set to be a game-changer, with an estimated profitable lifespan of four years or more. This longevity, combined with the appeal of a household appliance, is poised to revolutionize the consumer mining experience. The development timeline for the Vminer is an ambitious yet achievable six to 12 months for spec-design and manufacturing, aligning with our goals for rapid market entry and penetration.
In conclusion, the service and product line of Liberty Coin Farms embodies a blend of high-tech mining operations, strategic R&D initiatives, and innovative consumer products. With a vision set firmly on the horizon of opportunity, we are committed to not only excelling within the mining industry but also expanding the reach of cryptocurrency technology to consumers, thereby fostering greater adoption and integration of blockchain technology into everyday life.
Marketing and Sales Strategy
Liberty Coin Farms’ marketing and sales strategy is designed to resonate with a broad audience, from institutional investors to individual consumers, creating a diverse customer base that spans the larger blockchain space. Our approach is to not only excel as a public-traded mining company but also to leverage our unique positioning through sister companies, offering innovative products like the Vminer for retail customers and USA-made commercial miners for industry clients.
Attracting and Retaining Customers
Our customer acquisition strategy is multifaceted, aiming to penetrate different market segments within the blockchain industry:
- For institutional and industry clients, we emphasize the cost efficiency and technical superiority of our USA-made miners. By manufacturing locally, we eliminate international shipping delays and reduce costs, which is an attractive proposition for our customers.
- For the retail market, the launch of the Vminer will be accompanied by targeted marketing campaigns highlighting its user-friendly features, profitability, and long-term value due to its extended productive life.
Pricing Models
- Competitive pricing for our commercial miners will be achieved through our cost-saving manufacturing processes and supply chain efficiencies.
- The Vminer will be priced to be accessible to the average consumer, with financing options to facilitate purchases and drive adoption.
Advertising and Promotions
- With the intention to list on NASDAQ and secure subsequent funding rounds, a comprehensive media campaign will be initiated, utilizing our team's extensive background in politics, film, radio, and marketing.
- Partnerships with influencers in the tech and crypto space, along with strategic placements in industry publications, will be leveraged to boost brand visibility and product awareness.
- Promotional offers, such as limited-time discounts or referral incentives, will be employed to stimulate market entry for new products, particularly the Vminer.
Distribution Channels
- Direct sales channels will be implemented for institutional sales, ensuring a personalized approach for high-value clients.
- Online platforms, including e-commerce and specialized crypto hardware sites, will serve as the primary distribution channel for the Vminer, ensuring a global reach.
Sales Tactics and Funnel Strategy
- Our sales funnel will be designed to guide potential customers from awareness to purchase, with each stage supported by tailored content and engagement strategies.
- Content marketing, including educational materials on bitcoin mining and the benefits of our products, will be developed to nurture leads at the top of the funnel.
- Demonstrations, webinars, and trial offers will engage customers in the consideration phase, highlighting the unique selling propositions of our miners.
- Closing strategies will include personalized consultations, bundle offers, and strong post-sale support, ensuring customer satisfaction and retention.
Long-Term Growth Strategy
Over the next 3-4 years, leading up to the next bitcoin halving cycle in 2028, we plan to incrementally scale our marketing efforts, aligning with our aggressive growth targets. By continuously refining our product offerings and customer service, and staying responsive to market trends, we aim to maintain a competitive edge. Our approach to marketing and sales is not static; it will evolve alongside technological advancements and shifts in consumer behavior, ensuring that Liberty Coin Farms remains a forerunner in the market.
Funding Request
Liberty Coin Farms is seeking an investment of $10-25M USD to fund the next phase of our growth and expansion plans. Over the next five years, our funding requirements and intended use of capital are outlined as follows:
Amount of Funding Required
- An immediate funding request of $25 million is proposed to catalyze Phase One of our expansion. This initial capital will be the driving force behind scaling our operations to meet our strategic objectives.
Use of Funds
- The bulk of the investment, approximately 90%, will be allocated toward the purchase of cutting-edge mining hardware. This capital expenditure is vital to enhancing our mining capacity and taking advantage of economies of scale.
- The remaining 10% of the funds will be utilized to cover operational costs until our cash flow becomes positive, which we anticipate occurring within 60-90 days post-funding.
- A portion of future investments will also support the development and manufacturing of the Vminer, our consumer-grade mining unit, which represents a strategic venture into the retail market.
- Subsequent funding will be allocated towards our Phase Two expansion, including the transition to our own renewable wind energy which will dramatically reduce our energy costs and increase our sustainable growth.
- Funds will also be allocated to R&D efforts, particularly in our pursuit of manufacturing our own mining hardware through our sister company, radix, positioning us to serve the growing U.S. market and sell to competitors, thus lowering their costs and ours.
Preferred Terms of Investment
- We are open to a mix of equity and debt financing, with a preference for terms that align with our growth projections and strategic timelines.
- Equity investment terms would offer investors a stake in our company, ensuring they benefit directly from our future growth and profitability.
- For debt financing, we would be looking to secure terms that allow for the flexibility needed to invest aggressively in growth while maintaining our operational stability.
Our financial strategy is designed to fuel our expansion while also providing significant returns for our investors. With our comprehensive business plan, robust operational model, and strategic industry positioning, we are confident in our ability to deliver on our promises and generate value for our stakeholders. We welcome investors to join us on this exciting journey as we set a new standard in the bitcoin mining industry.
Liberty Coin Farms is initiating a robust funding strategy to secure the capital necessary for our ambitious growth plans.
Phase One Funding
- We are seeking an initial investment of $10-25 million for Phase One. This capital infusion is critical for ramping up our mining operations, securing necessary hardware, and covering operational costs during the initial period in which we become cash-flow positive.
NASDAQ Listing and Crowdfunding
- Within six months following Phase One funding, we plan to list on NASDAQ. Parallel to this effort, a crowdfunding campaign will be launched to meet the regulatory minimum of 3,000 investors, supporting our public offering and facilitating wider ownership among retail investors.
- The initial public offering will price shares at $1, releasing 100 million shares, or 25% ownership in the company, to achieve a $100 million valuation. This valuation is conservative compared to our competitors and reflects a realistic and achievable target based on our projections.
Valuation Growth and ROI Calculation
- By the end of 2026, we aim to reach a valuation of $5 billion USD, or $50 per share, representing a substantial return on investment for early investors.
- Assuming a purchase price of $1 per share, the ROI for investors at a future share price of $50 is a 4900% increase.
Continued Funding and Growth Strategy
- To support continuous growth, Liberty Coin Farms will follow the successful blueprint used by industry leaders. We will conduct one or more Regulation A offerings, raising $250 million at each stage, initially pricing shares at $5 and then $10, with accompanying Volume Weighted Average Price (VWAP) discounts in matching warrants.
- The warrants will provide an incentive for investors by allowing the purchase of additional shares at a discounted price, offering the potential for greater participation in the company’s success.
- This strategic funding approach is modeled on the methods utilized by RIOT and MARA in 2021, which established them as industry leaders.
Competitive Edge and Innovation Strategy
- Unlike our competitors who have primarily focused on scaling their mining operations, Liberty Coin Farms is committed to a broader strategy that includes marketing, innovation, partnerships, and product development.
- This comprehensive approach is expected to not only propel us to industry leader status but also to ensure we maintain a competitive edge through diversification and responsiveness to market changes.
In summary, our funding strategy is meticulously structured to facilitate rapid growth, with calculated stages designed to maximize investor returns and scale the company to a $5 billion valuation by the end of 2026. The investment opportunity in Liberty Coin Farms represents not just a stake in a bitcoin mining operation but in a forward-thinking, innovative company poised to shape the future of the cryptocurrency industry.
A full deck and financials are available on request: