285k in DC costs? For 8 active Sierras? Each one is 4U, so 32U. How much of this is lining your pockets. What a joke.
Perhaps I should clarify as to what is included in the DC costs line item.
IceDrill has an agreement with the DC that requires a minimum monthly commitment even if there are no units being hosted - this means that the minimum commitment was being paid since October. Now that there are active units, the monthly DC costs will increase slightly. So a portion of the $285K is made up of all the monthly minimum payments that were made even though no equipment was hosted.
In addition to monthly payments to the DC, there were a significant amount of one-time setup costs ($100K+) to have everything setup and prepared for the units.
The combination of set-up costs + monthly DC payments add up to this amount and match up with invoices.
Hi Eric,
Thanks for your answers on the report. Regarding the hosting costs. If I understand correctly, 185k$ has been paid to the DC as a minimum commitment for 5 months (October-February) and 100k$ has been payed for one-time setup costs.
That makes 37.000$ minimum hosting payment per month which will only increase as you say. Can you elaborate on this? I can understand you have to pay a certain minimum amount (for example the profit the DC should make) but it makes no sense to pay for everything (including power and cooling costs which is 90% of all DC costs) if no hardware is running.
What will be the hosting costs per rack/sierra in the future once everything is hashing? the 37k$ / month makes me wonder if you got the best deal.
With regard to the one-time setup costs, what exactly were those? A 100 grand is a lot of money when it comes to one-time setup costs. You could have a DC setup ~500 racks for that amount of money depending on what you mean by setup costs. If racks and parts for racks (APC, UPS, trays etc) have been bought for that amount they need to be listed as assets and depreciated over time. Especially DC stuff still keeps pretty much of its value over time (5 year depreciation isn't uncommon).
Thanks in advance,