Dunamis is a turn-key crypto mining platform that claims to be “highly profitable” for all users. Find out how it works – and if it’s too good to be true – today in our review.
What is Dunamis?
Dunamis, found online at DunamisMining.com, offers turnkey mining solutions to users via lease contracts. You buy a lease contract, then gain access to space within Dunamis’s facilities.
“We offer a completely turn key system to create a profitable mining solution for every customer,” explains the official website. Dunamis also adds that it has “global reach and reputation” and uses “the top mining equipment” while employing “top industry talent to identify the best crypto currencies to mine.”
Right out of the gate, we are going to come out with a little ‘hate' but before you retaliate let us put it into relatable terms. Any time a mining company guarantees profitable mining, you should be very naturally be skeptical. Crypto mining is notoriously volatile, and one price dump can force crypto miners to sell their machines and ditch the industry. The fact that Dunamis guarantees profits for “every customer” is a red flag but appears to be mere marketing terminology.
But where the rabbit hole gets a bit deeper here is where Dunamis claims to have a massive mining facility in Pinetop, Arizona near a power plant. They have a 75 year contract for $0.05/kw electricity rates. Dunamis also claims that users can visit their facility in Tempe Monday to Friday from 10am to 5pm, with tours of the actual mining farm in Pinetop available once per month.
Although we’re skeptical of Dunamis’s guaranteed profit claims, let’s take a closer look at how it works. Because if the map of Pinetop – Lakeside, Arizona of the Dunamis Mining Farm is in fact real and all of these building capacity facts of using 15,000 machines at max throttle would be quite an impressive feat.
How Does Dunamis Work?
The secret to Dunamis’s success is its mining farm. Dunamis claims to have a 37,500 square foot facility in Pinetop, Arizona, near Tempe. There’s space for a total of 2,000 machines in the big buildings and even more in this alleged Building D which was due at the end of 2018 according to the picture. The facility also has a sound proof filming studio and a presentation auditorium, although it’s unclear why a mining farm would need these facilities.
Dunamis has also purchased a 75 year contract for that mining farm with the nearby “Navajo Apache Cholla powerplant”, which supplies all necessary power to the farm. Dunamis has locked in a rate of $0.05 per kWh for the next 75 years, allowing it to maintain predictable electricity expenses. This ‘powerplant’ is actually a set of three power plants called the Cholla Power Plant, the Navajo Generating Station, and the Apache Generating Station, with all three being in Arizona.
For those who are skeptical about whether or not Dunamis’s mining facility exists, the company offers tours of its Tempe facility Monday to Friday from 10am to 5pm. They also run a tour up the mountain to their Pinetop facility once per month which is an impressive feat if enough can verify and attest to the physical bitcoin mining machine setup.
One of the things that makes Dunamis different from a typical cloud mining company or hashrate resller is that buyers actually own the machines. Dunamis describes its business model as like a “co-location company”: when you send money to Dunamis, you’re actually buying the machine. Dunamis even provides you with the serial number for your machine. You can tour the Dunamis facilities to see your machine at any time.
Dunamis is selling two specific products, including:
Product One: 1 year, 3 year, and 5 year High Capacity Secure Mining Space (HCSMS) turnkey lease plans.
Product Two: Discounted lease options, free power periods, and complimentary extended time durations.
The main product, of course, is the lease plans where users send money to Dunamis in exchange for getting access to the company’s mining equipment.
Dunamis has announced that it will sell 1 year, 3 year, and 5 year leases on its mining machines. All leases will be completely turnkey which is quite a different setup than solo bitcoin mining. You will send money to the company, and the company sends you High Capacity Secure Mining Space (HCSMS) in return. Dunamis claims customers will actually own the machines they’re leasing, and customers will receive a serial number of the machines they have purchased:
- 1 Year HCSMS Lease: Price unknown
- 3 Year HCSMS Lease: Price unknown
- 5 Year HCSMS Lease: Price unknown
All plans also include the cost of hosting, maintaining, and monitoring the mining equipment. Dunamis claims it does not charge any fees for these services: all profits are sent to users. So how exactly does Dunamis make money?
How Does Dunamis Make Money?
Dunamis claims to offer 1 year, 3 year, and 5 year leases for its mining facilities. Customers own the equipment being rented in the leases.
“You own it, and you receive 100% of the profits. We maintain it and monitor it at our facilities.”
In other words, Dunamis is claiming to do all of the work involved with maintaining the mining equipment while still giving you 100% of the profit.
This business model doesn’t seem to make sense. Based on the Dunamis website, the company claims to be operating mining equipment out of the sheer goodness of its heart. The company is taking no profit: they’re just maintaining and managing mining equipment on behalf of users.
What happens when miners break down? How does Dunamis make money? What happens if a customer wants to buy the machine outright? None of these questions are answered on the official Dunamis website – and not to delay the inevitable legal battle that any crypto-oriented mining business might endure in the future, it's optimal to provide complete upfront.
This video is a long-winded explanation of everything Dunamis Mining says they are and what they have to offer to the bitcoin ecosystem and blockchain space:
Who’s Behind Dunamis?
Dunamis is registered under the name Dunamis Mining, LLC. The corporation is registered as an Arizona limited liability company that leases “HCSMS” space, or “High Capacity Secure Mining Space”. Dunamis claims to be “authorized to conduct business throughout the United States of America and is in full compliance with all state and federal laws, statutes and regulations.”
There’s no information online about who’s running Dunamis or what their experience is. The company has social media links posted on its official website, although all these links are broken.
There’s one listed email address on DunamisMining.com: you can contact the company at [email protected]
The name ‘Dunamis’, by the way, is an ancient Greek word referring to “the philosophical concept of potentiality and actuality”.
There was one previous company called Dunamis in the crypto space, found online at DunamisVC.com. Announced in August 2018, DunamisVC claimed to use smart contracts to allow users to get paid for searching Google, Facebook, and Twitter. The Dunamis Mining company has no apparent connection to DunamisVC.com.
Dunamis makes big promises about its business model of helping individuals get started with bitcoin mining via cryptocurrency mining pools and co-locations. Dunamis’s official slogan is ‘Powered to Pay’. The company claims that users receive guaranteed profits by purchasing mining equipment leases today.
Customers can buy 1 year, 3 year, and 5 year “High Capacity Secure Mining Space” (HCSMS) leases, then obtain real mining machines at the Dunamis mining facility in Pinetop, Arizona. Dunamis claims customers actually own the mining equipment, which means they’re more of a ‘rent-to-own’ situation than a true lease – which is fine if you know what you are getting into from the start and are aware of all the details included in this research of Dunamis.
Dunamis’s business model may sound good, but there are plenty of questions that remain unanswered. It’s not totally clear how Dunamis plans to make money: the company claims it sends 100% of profits to customers, for example, while still maintaining and managing customers’ miners. As time goes on the answer will likely reveal itself and appear to have a real gravity to the longevity any bitcoin mining company and opportunity can last.
There’s also limited information about who’s running Dunamis and what their experience is even though the dug up video included below shares an interview with one of the leaders of the pack.
Overall, while there might be a slight lack of transparency over the Dunamis business model, it is still bottom of the first inning and will continue to update our review on Dunamis Mining throughout 2019.
It is appreciable that Dunamis discloses the general location of its mining farm and cryptocurrency-business headquarters, but it’s tough to figure out how Dunamis plans to make money – which will ultimately determine how long any operation can stay afloat especially given the high stakes, high risk nature of bitcoin and cryptocurrencies.
However, did Dunamis only came online at the start of 2019 and the company still seems to be in the early stages of launch, so more information may appear online in the coming weeks. If Dunamis wants customers to take it seriously, there likely needs to be significantly more information available than what we see online today. One thing is for sure, any company that can authentically position themselves with proper placement and fully-verifiable blockchain network mining hashrate power does have a fighting chance to stake their claim and etch their unique hashes into the growing bitcoin distributed ledger technology.