ZeusMiner had just released their big update on May 7, 2014, and one of the pieces of new info in there was that they were partnering with GAWMiners for their hosting. I was able to speak with Josh Garza of GAWMiners about the deal. One of the things he told me was that he worked very hard to secure a deal with Zeus, and there was much more that would be announced in the coming weeks as the launch of Zeus’s Scrypt ASIC miners begins. I respect that Josh and GAW are working so hard not only to get mining equipment to people at good prices yet they are also working with smaller and new mining hardware manufacturers to get their products to a broader market. [divider]CCN[/divider] [dropcap size=small]W[/dropcap]ith the news, they are also providing the hosting services for Zeus shows that Josh is looking at the bigger picture than just hardware or hosting. He sees the whole ecosystem that needs to be in place to facilitate growth and stability. Josh also told me they had been busy expanding their hosting capacity and strengthening their current centers, as well. This step will allow them to offer this to more new manufacturers coming on the scene. When I interviewed him the first time, one thing he kept telling me was how he was going to broaden the reach of new mining hardware companies and strengthen the ecosystem. Getting a deal to provide hosting for Zeus Miners is another step in that direction. I have been looking forward to Zeus miners for a while now. Zeus put up a video of the miners working, and they also sent prototypes to Josh. Josh had said before he personally checks out everything before GAWMiners will sell it. He said the Zeus miners are well built and run great. Most importantly he said they are not vaporware and that Zeus is going to ship on time and not to worry.
Josh: We feel great about going to work with Zeus. They have made us comfortable doing business with them.
Building trust in the market space has been a big goal for GAWMiners. Josh had this to say on the Zeusminer deal. Josh: When we first started out people were so distrustful that we were asked often to use escrow for in stock items. Now a month and a half later we are able to sell $500k in pre-orders in a day or two with no problems. This has allowed us to bring some legitimacy to companies like Zeusminer that did not have the scale to do that themselves. People trust that we are going to be able to deliver. With the news on KNC, we are coming for them. We are right on their tail, and it is only going to get better. Once this launch is underway we will be able to sell $2 to $3 million in pre-orders the next launch, and we have been making good decisions in the way we reinvest back into the business that allows us to do so. A lot of these guys treat this business like it is a cash cow and do not put anything back into it. I have personally doubled my investment in GAWMiners from when we started. It will allow us to do more things. Working out this deal with Zeusminer was a big part of that. We have a very special position with them because of our brand. People know and trust our brand we were able to create this scale for them. The news is reassuring as there have been so many let downs with different hardware manufacturers that either never ship or have shipped in the past and not followed through with their next gen units. Or even worse yet take customers pre-order money as KNC has for new mining hardware and instead build a huge mining farm while shipping a few, very late, shoddily built and broken miners. Zeus also is not like BFL who antagonizes and harasses the very community that has purchased from them in the past. Actions like that have created a massive distrust in the community ZeusMiner is certainly making strides in the right direction. Batch one sales are closing on May 15th and miners are supposed to start shipping on the 20th. We should have them in the wild shortly thereafter. [divider]CCN[/divider] The implications of the ZeusMiner and GAWMiners deal are clear. New hardware will get to market from new companies and at much better prices than the usual direct from the manufacturers approach that has been the norm before now.
Josh: We want to send a message loud, and clearly. We will make it hard for one manufacturer to control this market. We will help and support smaller companies that do not have a global presence or global brand. We will help them grow in scale. Our number one goal is to bring healthy competition to this market.
With the hosting deal, also struck between ZeusMiner and GAWMiners, it gives the manufacturers another way to sell their products with less overhead allowing them to concentrate on their products and still have viable revenue streams. Recent deals like this one between ZeusMiner and, others in the works have enabled GAWMiners to recently retarget their 12 month financials from $30 million to $100 million projected income. In building their customers trust, they have been able to do $500k in pre-orders. GAWMiners recent Double
Your Hash promotion resulted in 71+ bitcoins being sent to customers following through on their promise. That is a very huge deal in this growing crypto currency market and ASIC miner industry. The fact that they are able to do this by bringing new manufacturers on board instead of waiting on established manufacturers shows their growing scale in the mining hardware and hosting market. It also shows that the same abuse by some of the existing manufacturers of their customers is coming to an end.