Dave Carlson
Dave Carlson

Mine, all mine

Dave Carlson , founder and CEO, Giga Watt is a former FX trader and Microsoft engineer. Now, he’s selling tokens that give mining rights to multiple cryptocurrencies at below market price. Interested? William Essex finds out more.

First Published: e-Forex Magazine 77 / CryptoCurrencies / September, 2017

William Essex: You’re offering token-based access to your own cryptocurrency mining facility. Where are you now? Open for business, or still raising finance, or both?

Dave Carlson: We completed the sale of our tokens and raised about $23 million.  We have been planning and building new facilities since the beginning of the token sale, so we will be energizing several new pods in the next few weeks.  Many more are in the works and will come online in the next month or two.

WE: How much could be mined with one token – is this an all-you-can-mine deal? 

DC: Since one token represents one watt of mining infrastructure, customers usually try to match up the number of tokens they buy with the number of watts required by their miners.  For example, 1,450 watts is a common power requirement, so they would buy 1,450 WTT tokens.  The combination of our mining capacity and the mining hardware produces the best performing mine economically. 

WE: The token enables mining of any mine-able cryptocurrency. How does that work? You just call up and ask for some ETH? Or is there more investor involvement in the mining process?

DC: GigaWatt’s customers purchase actual mining units to create their chosen cryptocurrencies.  To do this, they must buy specific mining hardware for specific coins.  

standard miner options

We host and manage all customer hardware.  Since all these different units need power, the WTT tokens enable them to mine their chosen coins for the lowest cost.

WE: Are the tokens tradable? Is there a limited supply? Why the 50-year expiry?

DC: Certainly WTTs are tradeable like any ERC-20 token.  The supply is limited to the number of actual watts we build out as real facility infrastructure.  The tokens don’t expire after 50 years - we simply try to explain that we have designed and built the facilities to stand the test of time.

WE: To ask the obvious question – if mining this way is a good idea, why aren’t you mining? Perhaps you are? And, er, perhaps there’s a question to be asked about the regulation of mining? If so, what is it?

DC: We love to mine!  We mine along side our customers and so do many of GigaWatt’s employees.  Allowing anyone in the world to buy a unit and mine with us is a great way to build a business.  I’m sure regulation will come to mining sooner or later.  Mining isn’t really a place where we commonly find trouble in the crypto ecosystem - usually the troubles are with exchanges and we don’t provide those services.

WE: The idea of buying into cryptocurrencies by mining them seems almost to redefine FX trading. How do you see the future? What’s significant now, in terms of what’s coming next?

DC: Buying crypto currencies through the process of mining is simply that - acquiring the coins for cheaper than market, by creating them over time.  You are also performing the valuable and necessary service of transaction processing for the blockchains you are working on.  

Some people sell the coins right away to capture the value difference, but I recommend holding these “cheap” coins for the long term - the gains can be much larger this way.

WE: What message would you most like to get across to a readership of FX traders?

DC: I used to trade FX - its a hard road and took up many hours to be effective.  Now, I employ one simple strategy - buy, mine and hold a variety of interesting cryptocoins.  Look for interesting token project and buy some of those too.  Hold everything for the long term and don’t quit your day job!

WE: Dave Carlson, thank you very much.

Giga Watt’s what?

Giga Watt’s completed token sale is funding the construction of physical mining buildings to accompany already-functioning mining centers. Launched in partnership with Cryptonomos (“the blockchain solution for crowdsale”) on June 2, 2017, the 60-day token sale raised $22,351,937.58. 

Funds are currently held in escrow by Perkins Coie. Giga Watt’s proprietary Giga Pods “take advantage of mining’s high-power density by avoiding active cooling consumption to save power for efficient, cost-effective mining”. This allows bitcoins, for example, to be mined for significantly cheaper than their current purchase price. Giga Pods can accommodate any type of mining hardware.