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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.

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