Kodak KashMiner Bitcoin Mining Rig Rental Collapses

The Kodak KashMiner Bitcoin Mining Rig Rental Collapses. It's a shame, because the idea was intriguing - a plug-and-play solution for mining Bitcoin, with no technical expertise required.

The Kodak KashMiner was announced in January 2018, with the promise of renting out a Bitcoin mining rig for a monthly fee of $3,449.

Kodak partnered with a company called Spotlite to offer the KashMiner, which was a container-sized data center that would be located in an undisclosed location.

However, it appears that the rental service never actually launched, and the project was ultimately shut down.

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The Kodak KashMiner was a Bitcoin mining computer that was promoted by Spotlite USA, who had licensed the Kodak name for LED lighting. It was displayed at the Consumer Electronics Show in January 2018.

The plan was to rent a KashMiner for two years for an up-front fee of around $3,400, and customers would keep a cut of any Bitcoins generated. The devices would be housed at Kodak's offices in Rochester, New York, and use surplus power from Kodak's in-house power plant.

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The scheme was widely criticized, and branded a "scam" by many. The brochure handed out at the show promised a steady monthly return of $375 for two years, but this was impossible with the ever-rising Bitcoin hash rate.

The "Kodak" branding was present on the miner at CES, but by Thursday 11 January, it had been removed and replaced with "Spotlite Digital Assets" branding. The Kodak representative at CES said that the stated rates were "preliminary."

In July 2018, Spotlite USA CEO Halston Mikail said that the U.S. Securities and Exchange Commission had put an end to the scheme. Kodak stated that the KashMiner had never been a Kodak-licensed product, and no miners had been installed at their headquarters.

The "Kodak HashPower" website had never been finished, with lorem ipsum placeholder text still present on the "Terms and Conditions" and "Privacy Policy" pages in July. This was a clear indication that the project was not well-planned or executed.

Here are some key facts about the Kodak KashMiner:

The Kodak KashMiner rental scheme has collapsed.

The US Securities and Exchange Commission (SEC) blocked the plan, which would have allowed customers to rent the mining rigs for a two-year deal with a $3,400 upfront payment.

Spotlite, the company behind the project, will now operate the machines privately with kit installed in Iceland.

The company's CEO, Halston Mikail, confirmed this change in a phone call with the BBC.

There were some inconsistencies in the information provided by Spotlite and Kodak at the Consumer Electronics Show (CES) in January.

Spotlite initially said demand for the rigs was high, with 80 miners already in operation, but the SEC's intervention has put an end to the plan.

Kodak's booth at CES prominently displayed the branded Kodak KashMiner, but the company later claimed the rigs were never officially licensed.

Critics were highly sceptical of the KashMiner from the start, labeling it a "scam" due to the companies' business model, which involved Spotlite keeping half of all currency mined by the machine.

Here are some key points about the collapsed rental scheme:

The Kodak KashMiner was a bitcoin-mining rig that was touted as a way to make money, but it's now clear that it was a flawed idea. The scheme to rent out the rigs collapsed due to the US Securities and Exchange Commission (SEC) blocking it.

Spotlite, the company behind the project, told the BBC that the scheme won't be going ahead. The company's CEO, Halston Mikail, said that the SEC had blocked the plan, and that Spotlite would now operate its machines privately with kit installed in Iceland.

The initial plan was for customers to pay $3,400 up front for a two-year deal to rent the mining machines. However, critics were highly sceptical of the project, and some labelled it a scam. They pointed out that mining Bitcoin becomes more difficult over time, and that Spotlite would keep half of all currency mined by the machine.

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The companies behind the KashMiner claimed that people who rented the rigs would make $375 a month, resulting in $9,000 over the two-year rental period. However, this calculation didn't take into account the fact that mining Bitcoin becomes more difficult over time.

The project was also plagued by inconsistencies between what Spotlite and Kodak told reporters at CES in January, and what they are saying now. Spotlite's CEO said that 80 miners were already in operation, but Kodak told the BBC that no devices were ever installed.

Here are some key facts about the failed KashMiner project: