JamesPolk.net

Dual Bitcoin and GPU Collocation, Escondido CA and Permian Basin TX

This integrated business model allows clients to invest in:

    • Two Bitcoin Antminers colocated at a low-cost power site in the Permian Basin, Texas.

    • One high-performance GPU colocated in Escondido, California for resale on global compute platforms.

  • Total cost per client = $15,000.

  • Monthly income:

    • $441.92/month from Bitcoin mining (at $0.03/kWh electricity cost).

    • $240/month from GPU resale (after 20% company commission).

  • Total monthly income = $681.92.

  • ROI:

    • 4.55% monthly ROI

    • 54.6% annualized ROI

This system offers an attractive return while giving clients access to AI compute resources, Bitcoin payouts, and low-friction infrastructure services provided by your firm.

Client Investment Overview

● Client Bundle Purchase

  • Each client purchases a set of:

    • 2 Antminers (~$12,000 estimated).

    • 1 GPU unit (~$3,000 estimated).

    • Total investment: $15,000.

This bundle ties client success to both energy production and AI compute resale—creating multiple revenue streams per user, each supported by your infrastructure.

By structuring the investment this way, clients are not speculating on a single asset class like Bitcoin or AI; rather, they participate in dual-yield infrastructure ownership—a more resilient and diversified model.

● Antminer Collocation in Texas

  • Antminers are shipped to and installed at your West Texas facility, powered by stranded natural gas converted to electricity at a cost of $0.03/kWh.

  • Each miner consumes roughly 84 kWh/day, and two miners combined use 168 kWh/day.

  • Electricity is sold to clients at cost, and the miners generate Bitcoin continuously.

Based on current performance data and energy savings, two Antminers generate approximately $441.92/month in net profit, given the significantly reduced electricity cost.

This alone offers clients an annualized return of over 35%—before accounting for GPU income.

● GPU Colocation in Escondido

  • Clients also own a GPU unit, which is installed in a purpose-built GPU hosting facility in Escondido.

  • Your company manages the resale of GPU compute capacity via:

    • Vast.ai

    • RunPod

    • Golem

    • Internal contracts and direct clients

  • Monthly gross revenue per GPU is estimated at $300.

After subtracting your 20% commission, clients retain $240/month in income per GPU.

This makes the GPU asset not only a resale revenue generator but also a means to offset AI compute costs and receive free access to high-value compute cycles.

Client Monthly Income Summary

  • From 2 Antminers:
    $441.92/month in Bitcoin profit.

  • From 1 GPU resale:
    $240/month in net AI resale income.

  • Total monthly passive income:
    $681.92.

This means clients are earning nearly 5% per month on their $15,000 investment. This is extremely favorable compared to traditional investment vehicles like REITs, stocks, or crypto staking.

● Return on Investment (ROI)

  • Initial Investment: $15,000

  • Total Monthly Return: $681.92

  • Monthly ROI:
    681.9215000×100=4.55%\frac{681.92}{15000} \times 100 = 4.55\%

  • Annualized ROI:
    4.55%×12=54.6%4.55\% \times 12 = 54.6\%

This ROI is particularly compelling given that clients retain full ownership of their physical assets and can liquidate, upgrade, or repurpose them at will.

Client Value Proposition

● Diversified Income Streams

  • Clients gain exposure to both Bitcoin mining and AI compute resale—two of the most profitable digital asset sectors today.

  • While Bitcoin mining provides decentralized financial income, GPU resale taps into demand from:

    • AI researchers

    • LLM training applications

    • 3D rendering

    • Academic institutions

This diversification enhances resilience: if Bitcoin prices fall, AI resale may buffer losses; if AI demand dips, Bitcoin may surge.

● Passive Income + Free Access

  • Clients benefit from passive payouts in BTC and USD.

  • They also receive free AI compute access, made possible by resale revenue covering GPU electricity and hosting costs.

This structure is especially attractive to:

  • Developers seeking compute access without cloud rental fees.

  • Entrepreneurs and agencies who want long-term compute rights.

  • Crypto investors looking for asset-backed infrastructure returns.

● Tax and Asset Benefits

  • As asset owners, clients may:

    • Depreciate hardware (Antminers and GPUs) on tax returns.

    • Deduct business expenses (if structured correctly).

    • Count hardware as collateral for crypto lending or asset-backed financing.

This structure provides a route toward long-term capital gains while benefiting from short-term income and expense deductions.

Company Revenue Model

● 20% GPU Resale Commission

  • The company retains $60/month per GPU.

  • With 278 clients (278 GPUs), this yields:

    • $60 × 278 = $16,680/month

    • $200,160/year in passive recurring income.

This income funds facility operations, fiber internet, cooling, tech support, and a margin buffer for expansion.

● Electricity Margin and Resale (Texas)

  • The Texas facility sells electricity at cost to clients, but may sell surplus to ERCOT at $0.05/kWh, generating a $0.02/kWh margin.

  • Additionally, the company may:

    • Offer setup services.

    • Sell miners and GPUs at markup.

    • Offer hashrate contracts, maintenance plans, and insurance packages.

Together, these create predictable, high-margin revenue streams independent of short-term crypto or AI price volatility.

Strategic Benefits of Dual-Location Structure

● Texas: Permian Basin Mining

  • Electricity at $0.03/kWh

  • Modular container deployments for scale

  • ERCOT grid access for surplus sales

  • Stranded natural gas = consistent input fuel

  • Regulatory-friendly zone for energy development

This site becomes the foundation for long-term mining profitability, immune to high commercial energy rates elsewhere.

● California: Escondido GPU Hosting

  • Tech-savvy customer base

  • Enterprise fiber and infrastructure

  • Dense population = edge location resale demand

  • Ideal for future expansion into:

    • Decentralized GPU federations

    • ML-as-a-service resale

    • White-label AI services

This location supports cutting-edge AI services while acting as the public-facing interface for compute customers.

Risk and Mitigation

  • BTC Volatility:
    → Offset by low power costs and GPU resale.

  • Hardware Failure:
    → Optional insurance and RMA protection; clients own hardware.

  • Resale Demand Fluctuation:
    → Multiple platform listings (RunPod, Golem, etc.) and internal demand absorb shocks.

  • Operational Downtime:
    → UPS, generator, and redundancy systems in both locations.

  • Regulatory Concerns:
    → Energy site structured to comply with ERCOT/state emission laws; Escondido zoned for industrial colocation.

Overall, these systems allow for resilient and adaptive operations, minimizing downside while maximizing income stability.

Scalability and Future Phases

  • Phase 1: 278 client slots filled = full GPU and Antminer load.

  • Phase 2: Open up to GPU-only clients; lease unused compute for B2B contracts.

  • Phase 3: Tokenize GPU access for fractional ownership or subscriptions.

  • Phase 4: Build AI workload reselling layer (ChatGPT APIs, image generation services, etc.).

  • Phase 5: Offer off-grid Bitcoin mining kits for international deployment, under your brand.

Conclusion: Sustainable Returns and Powerful Infrastructure

This investment model offers clients and your company a rare combination:

  • Passive income with tangible ROI

  • Ownership of real infrastructure

  • Free AI compute resources

  • Low-volatility entry to crypto and AI sectors

For clients:

  • Monthly income of $681.92

  • Ownership of valuable assets

  • Annual ROI of 54.6%, with full transparency

For your company:

  • Long-term recurring income

  • Predictable scaling path

  • Revenue from sales, hosting, service, and resale