The midwest Mining facility was at 850 Industrial Rd in Madisonville, Kentucky. Dynamics has implemented new mining policies and new methods for generating hash-rate, as it officially ends hosting as a service.
Dynamics Mining, after having its facility locations disclosed and confidentialities broken, has closed its mining operations to focus on research and development in preparation for a new, ultra private and secure location for mining activities. This becomes a necessity as many hosting companies, and 3rd parties, oftentimes have misrepresented the ownership of, and relationship to our facilities.
For example, April 11, 2023, in a now terminated hosting agreement with Dynamics Mining, Wattum, without consent or fact checking, preemptively announced through the press, their false expansion into Kentucky. This caused serious and irreparable harm to Dynamics Mining. Wattum declared Dynamics resources as its own, having only a hosting contract for 2.5MW at this facility.
Wattum’s contract was to host 750 brand new S19, XP 143 Terahash miners; a contract that was instantly breached after Wattum shipped only 169 SJ19 90 Terahash miners.
Disturbingly, 27 needed to be sent back because they were antiquated and inoperable. This shipment constituted only 23% of the ‘agreed upon’ quantity of machines to be hosted. Moreover, given the inoperable machines, the hosting quantity decreased to 18% without any communication regarding the miners status and intentions, no one part of this transaction with Wattum was ‘above board’. The arrival of 16% unusable miners, of a vastly deficient shipment, revealed their clear disregard for Dynamics and fair equitable US trading practices.
Although Wattum’s announcement made it appear as though they obtained the total capacity of Dynamics facility, their failure to acknowledge DYNAMICS ownership created contention within Dynamics Minings customer base.
This was an ‘offering’, made by CEO Lee, to announce a limited mining partnership. This deal was underhanded and ultimately resulted in the closure of the Dynamics’ Kentucky facility.
At the time of Wattum’s April 11, 2023 announcement, Dynamics had placed substantial energy security deposits but only for the use of 5MW of the facility’s available 31MW power capacity. Dynamics was instantly subject to additional and higher deposits by the Power Company. Wattum’s press release and the subsequent energy security increases, charged to Dynamics, simply did not add up for such a low level, limited joint venture.
At the same time, these false representations along with threats of legal action by misinformed and confused clients added pressure, from the property owner, to close the facility based on false allegations. In fact, references to the city of Madisonville and the slated energy supply upgrade to 24MW were to be prepared, for Dynamics -not Wattum- in the following quarter, beginning July 1, 2023.
Having expensed build out capital, outlaid tremendous manpower, allocated energy resources and taken on weighty financial responsibilities for the implementation of the Kentucky mining facility, Dynamics never officially got to announce its own new complex. The tremendous strides that it took to provide consumers with a safe and consistent method for mining bitcoin was ‘under fire’ and our strategic plan contravened by low-end ‘renters’.
Companies like Wattum, whose blatant, malicious attempts to misrepresent the scale and the reality of their business created contention and caused severe damage to Dynamics and its expansion plans for the midwest region. What’s more, Wattum’s fraudulent public announcement, lacking confirmation and validity of ownership, prompted Dynamics to increase its security measures to assure all new Miners, at all of Dynamics facilities, will be securely and exclusively accessed only by our mining partners.
Looking ahead, Dynamics’ restructuring phase is focusing on bitcoin adoption, education and support for bitcoin miners.
“Our approach to hosting was to offer consumers the ability to have a transparent mining experience with immediate online hosting” says Bill Stewart, Manager.
Dynamics Mining, after having had both positive and negative experiences with third-party hosting companies, has made the conscious driven decision to provide consumers direct access to their hosted miners. Also, clients will have full immediate access to their serial numbers, MAC addresses, certificate of ownership, as well as proof of ownership, for miners sold by Dynamics, LLC.
“…[I]n an industry, with particular volatility, for the novice but enthusiastic consumers, their experience can be troubling and put their investment at risk- when, typically, left alone or placed in the hands of 3rd parties; distancing them from proprietary support and secure real-time access to their investment” says Stewart.
Dynamics Mining believes the problem with the 3rd party providers is that their incentive is to procure and/or deduct a fraction of the cost of energy utilized by a consumer’s miner. For example, a company like Dynamics Mining may charge a hosting fee of $0.07 per kilowatt hour and the 3rd party might end up charging the consumer 0.0825 cents per kilowatt hour-profiting 0.0125! More often than not the 3rd party also earns a portion on the consumer’s hardware purchase.
Result: Thousands of consumer’s miners have been displaced; lost to sanctions; stolen; used for ill-gains; profits diverted to unauthorized accounts and worse, offline for months at a time.
“In order for consumers to adopt bitcoin and bitcoin mining, it requires a large number of people to have extremely successful experiences. Moreover, customers need to feel comfortable with the investments that they’re making”, confides Stewart.
Many of these 3rd party companies have tarnished the reputation of bitcoin mining. Companies like Wattum, Compass Mining, Goldopp Energy and XeroLabs to name just a few are making profits off of bitcoin mining without having any commitment or responsibility whatsoever to customers or investors.
Shockingly, consumers have lost tens of millions of dollars to 3rd party companies, who are simply wired to make a penny off of their energy cost increases and a ‘cut’ from the sale of mining equipment”, says Stewart.
Throughout Dynamics journey, we have discovered that people frequently believe bitcoin to be a scam. However, we have come to realize that this is due to their not having the full understanding of how the process works, especially when it comes to mining bitcoin protocols.
One of Dynamics Mining’s motivations, in opening the Mining complex in Kentucky, was to allow consumers to visit the facility, feel comfortable about the company that they’re working with and be able to have 24 hour access to their equipment”, states Stewart.
Dynamics realizes that the best and most effective way for consumers to mine Bitcoin is to establish a direct relationship with a facility and its managers so they can physically visit the site and monitor their investment.
3rd Party Hosting clients who had miners in our Kentucky facility are encouraged to contact Dynamics to resolve any outstanding issues or to establish a direct to facility agreement. Please complete our claim form at: www.dynamicsmining.com/claim-form.
For more information about Dynamics Mining visit our website at dynamicsmining.com or follow us on IG:@dynamicsmining and Twitter @DynamicsMining