Powering Bitcoin with Natural Gas
Private Placement Memorandum
Executive Summary
Project Name: Powering Bitcoin with Natural Gas
Prepared For: Cristina Serrat
Prepared By: CTC Energy Partners, LLC
Created Date: April 26, 2024
Location: Creek County, Oklahoma
Overview: CTC Energy Parters, LLC (CTC) is seeking a $100,000 investment to establish a Bitcoin mining operation directly on an oil and gas well. This project harnesses underutilized natural gas to power mining equipment, providing a cost-effective alternative to traditional electricity sources. [reminder to include: in addition to cheap/free gas, we partner with several oil & gas operators giving us access to several leases for us to scale up).
CTC seeks an investment in a Bitcoin mining operation through a structured bond or debt financing arrangement. By lending $100,000 to our company, you will be entering into a fixed-term investment that yields a 12% annual interest rate, with the principal and accumulated interest fully repayable at the end of a 2-year term.
Investment Details:
- Amount: $100,000
- Structure: Debt financing as a fixed-rate bond
- Interest Rate: 12% annually
- Term: 2 years with a structured option for early repayment
- Security: Loan secured against the mining equipment and infrastructure
- Revenue Share: N/A (as this is a debt investment)
- ROI: Total repayment of $124,000 over 2 years, including principal and interest
The Opportunity
Market Overview: Provide insights into the current Bitcoin mining market and the role of energy costs.
Innovative Approach: Explain how using natural gas directly from a well differentiates your operation from others.
Financial Projections: Include simple graphs or charts showing projected revenue, costs, and break-even point.
Potential Risks and Mitigations: Briefly discuss potential risks and your strategies to mitigate them.
Technical Overview
Setup Description: Describe the mining hardware, the setup, and the infrastructure for using natural gas.
Technology Partners: Mention any partnerships with technology providers or consultants.
Operational Plan: Outline the steps to get the mining operation up and running.
Financial Details
Detailed Budget: Break down the initial investment for setup and operational costs.
Revenue Model: Explain how revenue will be made and distributed among investors.
Financial Forecasts: Provide a detailed 2-year financial forecast with assumptions.
Conclusion
Call to Action: Encourage potential investors to contact you for more detailed discussions or to arrange a meeting.
Contact Information: Provide your contact details and the best times for reaching you.
Disclaimer: oilwellinvestors.
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