We recommend you to first take a look at all FAQ questions and answers. Then, take a look at our blog (link in the menu at the top of the page). And if you still have questions, feel free to contact us, we are always happy to help!
In order for our clients to get the best legal protection, we have registered our company in Europe, more precisely in Dublin, Ireland. Our offices are also based there.
The machines we purchase every month are dispatched in several locations where the price for electricity is low. Currently, they are located in China, in Russia and in the USA. This also allows us to reduce the risks while getting better prices for everyone.
We are not tax advisors and we cannot provide any advise on taxes. Generally, you have to pay some taxes on the profits and incomes where you live. We invite you to get in touch with an accountant if you are not too sure.
Yes we do. We invite you to contact us directly on email@example.com for more details about it.
We are trading experts but we are not fund managers. As such, we will not manage or invest your funds on financial markets and we will not be able to provide any advise on price movement, forecast, etc.
We purchase some equipment on your behalf, look after it for you and send you the profits you generate with your machines. That simple.
We have been working for a long time with our suppliers and partners. We have ensured that our business partners have valid company data, that they operate legally and that they have insurance. We also visited the facilities ourselves, so we know they are legitimate. We also have our own machines there, so safety is a priority!
Please get in touch with us. Send us your details and we will contact you within 24 hours to discuss the following steps. Please, CHECK YOUR SPAM FOLDER. Our email might be there!
We will then send you a contract to fill and we will provide you with our payment details (bank or cryptocurrency transfers only). Finally, if you do not have one yet, we help you setup a crypto wallet so that we can send you your mining rewards.
Mining is profitable if you know what to do and what not to do. First, you must have access to low electricity prices, or even free because the machines consume a lot of energy. Second, you must get a good price on the machines otherwise you will end up never paying back the machine. Third, if you decide to ship them to your home country, you are likely going to pay an extra 30% for custom duties + high shipping fee. In addition, mining machines are considered like encryption computers. As such, in some countries, they are simply forbidden unless you have some special authorisations.
We are now mining five cryptocurrencies: Bitcoin (BTC), Litecoin (LTC), Dash (DASH), Ethereum (ETH) and Zcash (ZEC).
We have only mined Ethereum since July 1, 2020.
Community Mining is a concept that we invented in the mining world. Normally, in conventional mining, when you mine, you buy some mining machines, you install them somewhere and they (hopefully) produce some money. The problem is that when a machine breaks down, you are the only one who pays for the repair. And during this time, you no longer mine. And in addition, if a new, more efficient machine is launched on the market, you cannot profit from it unless you reinvest.
With Community Mining, everything is shared. Costs are shared, machines are shared, revenues are shared. On top of that, since we mutualise all available funds and only place orders once a month, we have far better prices than anyone. So we can buy more machines, and that benefits you directly.
The group effect therefore allows additional income for everyone. Hence the concept of “community mining”.
No. If mining is temporarily not profitable, we contractually undertake to cover possible losses. For our part, we will simply disconnect the unprofitable machines until they are profitable again. This is the worst scenario. On your side, the worst scenario will be a ROI of 0% over the month.
The concept is as follows: with the machines we buy, we mine cryptocurrencies; with these cryptocurrencies, we pay the electricity bill every month.
Even if it is not perfectly exact in practice, let us take the fictitious example with the following parameters:
1. We are interested in the case of Bitcoin only.
2. From one month to the next, for mining, only the price of Bitcoin (BTC) varies.
3. We have machines that produce 3 bitcoins per month, gross.
4. The electricity bill is 20,000 euros.
The first month, let’s assume that the price of bitcoin is 10,000 euros, that is to say 1 BTC = 10,000 euros.
Having mined 3 BTC, it therefore takes 2 BTC at 10,000 euros each to pay the electricity bill which amounts to 20,000 euros.
We therefore have 1 BTC net in the pocket, which is worth 10,000 euros.
Suppose that the month following the price of BTC drops to 5,000 euros, that is to say 1 BTC = 5,000 euros.
We always mine 3 BTC, it does not change. So we mine 3 x 5,000 euros = 15,000 euros.
The electricity bill does not change either. It’s still 20,000 euros.
Having mined “only” 15,000 euros, we must therefore add 5,000 euros of our own money to cover the bill. And in this case it is better to unplug the machines than to run them at a loss.
This is of course an extreme example, but it makes it easy to understand why mining is more or less profitable.
To understand the impact of halving on yield, you must first understand why the profitability of mining machines is not always the same. The previous question in this FAQ answers this question, so please read carefully the answer first to understand the following concept.
During a halving, you should know that the mining reward is divided by 2. The date is known in advanced and it happens every 4 years on Bitcoin. So, in the example of the previous question, instead of mining 3 BTC, you suddenly only mine 1.5 BTC. Some machines may thus become unprofitable. Punctually. Why punctually? Because, there is a parameter that we did not take into account in our previous example: the mining difficulty. This is a mathematical parameter but, to put it simply, it means that if mining is suddenly less profitable, many miners will abandon mining so as not to mine at a loss. In this case, the remaining miners will share a larger amount of bitcoin if they continue to mine, which will pay the electricity bills. It is therefore essential to buy machines that are both powerful and to have electricity at a good price.
In the case of Summit Mining, the fact of mining several cryptocurrencies makes it possible to reduce the risks during halvings.
Mining is simple. But not easy. Lots of websites are scamming users and the legitimate websites are charging customers a fortune. So it’s not easy to find a company you can trust, believe us 😉 Then, the machines should be shipped (you’ll pay extra shipping fees, and they are not particularly light) and installed. And configured. Somewhere. Preferably where the cost of electricity is low. And where noise does not matter. Because yes, they are terribly noisy. And they heat. A lot. So you must have access to a serious cooling system. If you survived so far, your machines may be faulty within the first 3 days or after few months. As a result, they may have to go back to the manufacturer (waste of time and clearly waste of money). Finally, you must monitor them at all time because they often need to get restarted, like any computer.
One of our star model is the Antminer Z9. In April 2019, we were buying it for about 700 USD, including shipping + Power supply unit. On the website www.asicminervalue.com (no affiliation), which computes the miners profitability and compares prices from online stores, this model was sold at that time between $943 and $3,363. That applies to all miners we purchase. And please keep in mind that depending where you are located, you may be forced to pay the highest price for the miner since all websites do not deliver anywhere on the planet…
No. You will mine at the same time all currencies that our Mining Park is mining, on a prorata basis of your investment. You are more than welcome to suggest us some machines or coins to mine though, we will analyse them and decide accordingly. The problem is that some machines may look very interesting on the paper, but once installed, deliver completely different results (we have few models in mind like this). Also, most of the time, very interesting machines are recent models or models to be released soon. And for that reason, they are overpriced. And they can be delayed. So, our expertise and our network of supplier is a great trusted source of information to help us decide what models to buy and when.
No, we don’t. We are not an eCommerce business.
Our miners are located in China, in Russia and in the USA. The electricity cost is low there and the teams looking after the equipment there are very professional and highly qualified. This also allows us to reduce the risk, compared to having all machines in one location only.
The miners are mostly located in a hydropower plant, which brings us three main advantages. First, we use renewable energy, which is a priority for us. Second, we have access to a huge power source. Third, the electricity price is low. From an environmental point of view, we have also decided to join a program that plant trees in exchange of a fraction of the money we receive as management fees.
Only bank transfers and crypto payments. The reason is that with a card payment, the commissions are high (5%) and we prefer to see that you saved this fee and thus get more machines.
On 10,000 euros, this represents 500 euros. So, paying with bank transfer rather than with a card, you to get one more machine or more powerful ones!
We make payments at the beginning of the month, after sending you a mining report. We pay you with the cryptos you mined.
Currently, we are mining 4 cryptos, so you will receive 4 payments.
It is then up to you to decide whether to reinvest these funds in the following order, to convert them into euros, dollars, etc. or simply to keep them on your crypto wallet while waiting for an increase in the price of your cryptocurrencies.
We do not transfer money to regular bank accounts. We only transfer funds to crypto wallets. For example, if you mine some Zcash, we will send you some Zcash. Then, you are free to transfer your funds to your bank account, exchange them against another crypto, sell them, etc. It is just up to you.
In exchange for your investment, you will receive some Mining Park Tokens (MPT). One MPT corresponds to one euro you have invested. Thus, the sum of all MPT ever issued corresponds to the sum of all investments we ever received. That way, you own a certain stake in the Mining Park that we manage, proportional to the amount you have invested. This is then used to calculate how much you will receive.
For example, say you have invested €10,000 and say that all together, €1,000,000 was invested in total in the Mining Park by all clients. Thus, your stake represents 1%. If at the end of the month, we have mined net 10 BTC, 500 LTC and 300 ZEC, you will receive 1% of 10 BTC + 1% of 500 LTC + 1% of 300 ZEC, minus our service fee. As simple as that.
You will receive a certificate stating how many MPT you own. When you decide to reinvest, the number of MPT increase accordingly.
Note that the value of the Mining Park and thus of the MPT can increase or decrease, depending on the value of the machines that compose the Mining Park. Indeed, the price of machines, even second hand, can increase with time. This usually happens when the price of the cryptocurrency market increases.
Of course not. You are free to reinvest (add) or not money from your regular bank account and you are free to reinvest or not the funds mined during the month, for the next order. The initial investment is 2,000 euros but for future reinvestment, the minimum amount is only 100 euros in the case of fiat currencies (euros, dollars, pound sterling, etc.). In the case of reinvestment of mined funds during the past month, there is no minimum. As always, 1 euro (re) invested = 1 Mining Park Token.
We only transfer the mined funds once per month to you, unless you are closing your account.
Basically, we manage everything from A to Z.
No, all machines we purchased are shared with all our investors. Everything is mutualised. This allows you to avoid having to be the only one to pay for repair if a machine breaks. This also allows you to benefit from the new machines not released yet, that we will purchase when they are released and to which you would not have had access unless you invest again. This is a community-based investment, and we are the only one doing it.
Our service fee is 15% on the net amount you mine monthly. Net means that electricity and all other fees are already deducted. If you get a small profit, we get a tiny fee, so we strive to make you generate as much as possible!
Any time you want. You only have a 30-day notice period so that we have enough time to organise the cancellation of the service and the final balance transfer.
To answer this question, it is important to understand how resource pooling (mutualisation) works in general, and more precisely how it works with Summit Mining. If you have read the answer to the question “What is a Mining Park Token?” abover, you now know that in exchange for your investment, you will receive Mining Park Tokens (MPT) and that one MPT corresponds to one euro that you have invested.
When we order mining machines, part of the initial investment goes into costs such as transport, transport insurance costs, customs costs, machine verification costs, installation costs.
Let’s take a simplified but realistic example where you invest 10,000 euros. Keeping in mind the previous principle, we cannot purchase exactly 10,000 euros of machines. There are, for example, 8,000 euros in machines (8 machines at 1,000 euros per unit) and 2,000 euros in fees. So, yes, we only bought “8,000 euros” of machines, and the 2,000 euros of fees are “sunk”. That said, since you invested 10,000 euros, you get 10,000 MPT. By the way, the 8 machines purchased are added to the mining park that we manage.
The day you wish to withdraw funds, in whole or in part, we will therefore have to assess the value of your MPT. The value of your MPT is based on the value of the machines that make up the mining park. The value of the machines that make up the mining park depends on the profitability of the machines. And finally, the profitability of a machine depends not only on its power but especially on the price of the cryptocurrency it mines. Concretely, if it brings in 50 euros in the month but it costs 75 euros in electricity, it is not profitable and therefore nobody will be willing to buy it. So there is supply but there is no demand. Supply and demand basic rule, its price will be low. If, on the other hand, the machine produces 125 euros per month and costs 75 in electricity, it is profitable and its price will be higher. You can find more details on the variation in profitability of machines in the section that answers the question “Why is the profitability of mining machines not always the same?”
By understanding the basic principle of supply and demand, it is therefore wiser to wait for the market price of cryptocurrencies to be high rather than when it is low to recover invested funds, so that the value of your MPT is as high as possible. You also understand that the funds originally invested are not guaranteed.
When you have finally made your decision, there are four possibilities:
1. You can try to sell your Mining Park Tokens to another person (already a customer or not).
2. We can try to sell your Mining Park Tokens to another person (already a customer or not).
3. We can accept to buy your Mining Park Tokens (we don’t have to).
4. As a last resort, we will have to sell some mining machines to cover the amount that belongs to you.
In cases 3 and 4, payment will be made in the currency used for your investment(s).
In case 4, the machines will be sold and the corresponding MPT will be destroyed.
In general, 3 weeks after your investment. Your funds will be used to purchase some machines in our next order. We place an order once per month in general, depending on the market price for the machines. Like any cryptos, the price for the machines fluctuates. But the more machines we buy, the greater the price we can get. So we decide based on the funds we ave at our disposal what is best. After paying our supplier, it generally takes 20 days to get the machines delivered and one or two more day for installing them, depending on the number of machines to install. That’s when you actually start mining.
Yes, we will sign a contract. We will send it to you once we got in touch.
Yes it’s possible. In this case, in the contract that we send you, you can add the second person in the fields reserved for your name and in the signature field.
We also recommend that you use the conjunctive “or” between the two names. For example, “John Appleseed or Jeanne Appleseed.”
Your question is not answered in the FAQ? 😱
We may have a solution. You will likely find the answer to your question(s) in our giant video FAQ.
We have answered over 100 questions, just about Summit Mining service!
The list of all questions is here.
The video itself is accessible here, and indeed, it is a bit long!
If you still have some questions, contact us and we will clarify everything for you.
If you are ready to start mining like a pro, contact us to start the onboarding process.