Recently, I have learned of two exciting crypto-mining ICOs: Ice Rock Mining and MoonLite. Here I review both to determine the benefits of these ICOs.
First, Ice Rock Mining’s crypto-mining operation is in a retrofitted military bunker inside a mountain with direct access to cheap hydroelectricity. The use of a large existing facility requires very little capital expenditure and the operational costs (labour and site maintenance) are very low in Kazakhstan. Ice Rock Mining does not pay rent or lease the property as they already own it.
MoonLite is operating in Iceland and has to spend capital to construct, build, lease or rent its mining warehouse facilities. Costs needed for warehouse and rig cooling also add to its operational expenditures. MoonLite has a higher operational cost for labour and site maintenance compared to Ice Rock Mining.
A number of categories can be used to compare these two crypto-mining ICOs.
a. Cost of living rankings from: https://www.numbeo.com/cost-of-living/rankings_by_country.jsp
Summary
Initially and superficially I thought it would be easy to compare two large-scale crypto-mining ICOs. Both Ice Rock Mining and MoonLite seek to build and manage large-scale crypto-mining operations. Both seek to achieve efficiency in their respective operations through similar means (eg. cheap electricity). And both present similar profit allocation splits to maintain and grow their mining operations.
However, Ice Rock Mining and MoonLite have established very different future paths making direct comparisons very difficult (like comparing apples to oranges).
Ice Rock Mining positions itself as a cryoto-mining dividend fund “for life” as the timeline for mining the remaining BTC (the majority of Bitcoins will be mined within the next decade reaching 20 million but Bitcoin mining is estimated to continue in theory until ~ 2140 before the last coins are mined). Over time as the difficulty of mining cryptocurrency coins increases the rate of return declines.
Ice Rock Mining will provide dividends, albeit likely with declining amounts, for the next several years offset by increased bitcoin price. This makes investing in Ice Rock Mining an appealing investment for those seeking immediate and ongoing returns on investment. Ice Rock Mining due to its 50% return of mining profits to investors is the only cloud mining company that offers an estimated 200% return on investment in 6 months. Although not in its original plans Icerock could switch to mine other altcoins in the future to offset increasing bitcoin mining declines.
MoonLite, instead of offering immediate dividends, will build a set of traditional and crypto-based investments overtime from its mined coins. Moonlite has higher initial infrastructure costs but a well planned mining operation to maximize efficiency. MoonLite provides a well thought out succession plan to move from ICO to IPO once its mining profitability declines (as the difficulty of mining coins will be increasingly difficult).
Overall, both ICOs are great to invest in with different future scenarios. Ice Rock Mining will remain committed to mining future altcoins while MoonLite will transition to a traditional stock exchange listed company using the portfolio of investments it has built up through its collective mining efforts.
The future looks bright for both Ice Rock Mining and MoonLite that are using crypto-mining strategies in very different ways to achieve long-term success for investors.
Ice Rock Mining Website: https://icerockmining.io/en.html
MoonLite Website: https://www.moonlite.io/