Ignite Financing Bitcoin ATM Inventory Fund (“BTM”) is the first Bitcoin ATM lease inventory fund. The funds in bitcoin raised through this public offering will be invested in a diversified portfolio of Bitcoin Automated Terminal Machine lease inventory to international client operators by Ignite Financing.
Ignite Financing has strategic relationships with Bitcoin ATM manufacturers, such as Robocoin, GenesisCoin, bitXatm, BitAccess, Lamassu and others to procure inventory at the best rates, which it then purchases on behalf of the BTM Fund, and leases to qualified Bitcoin ATM operators and exchanges globally.
Ignite Financing already has orders for 80+ Bitcoin ATM units globally, with another 50+ units on a waiting list. Fully inventoried and funded for existing sales, Ignite Financing will represent over 40% of all Bitcoin ATMs deployed globally.
Funds raised through the BTM listing shall be allocated to capital purchases for Bitcoin ATM inventory for leasing. BTM aims to achieve Bitcoin denominated return through leasing Bitcoin ATMs to a diversified client operator base worldwide.
Ignite Financing (ignitefinancing.com) is raising 270BTC to purchase Bitcoin ATM (BTM) inventory for leasing to Operators and Exchanges globally via Havelockinvestments.com. Ignite Financing currently has active orders for leasing on more than 80 units in 4 countries, with an additional 50 units on a waiting list for available lease units.
Havelockinvestments.com will open the Fund under the ticker of “BTM” on Tuesday, 12 August 2014 at 11:00 EST. Feel free to follow us on Twitter for up to date announcements: @IgniteFin
250BTC will be used directly to purchase new BTM units from manufacturers for delivery to our existing waiting clients, with the balance going to Havelockinvestments.com and Ignite Financing for expenses incurred to date for fund set-up and management.
BTM Fund unit holders are entitled to receive dividends quarterly indirectly from the Fund's leases, less fund specific expenses and Ignite Financing management and administration fees. Ignite Financing collects fees monthly on behalf of BTM, and will place all pending dividend funds into a pool, to be dispersed quarterly through each disbursement period as determined by fund management (management will attempt to average distributions across each quarterly payment within each projected revenue period).
Dividend per unit of BTM is computed as:
Approved disbursement / # outstanding share = dividend per unit.
* See the Prospectus for further details.
If anything in the following FAQ differs from the prospectus, the prospectus will be considered as the actual case. Please read the prospectus and understand the risks involved. Neither Ignite Financing, nor Havelock Investments, are making an offer to sell these virtual units in any jurisdiction where the offer or sale is not permitted.
Why should I trust you?
A: I am Terry Woltman, all relevant contact information is provided in the prospectus. I have been verified via Havelock Investments and Seedcoin, and am active in the Bitcoin community in Mexico City and the US.
Find me on LinkedIn at: http://linkedin.com/in/terrywoltman
As well, Mike Snyder has recently joined the company and brings extensive technology related sales and operations experience.
Q: What manufacturer relationships do you have?
A: Ignite Financing has working relationships with Robocoin, Genesis Coin, BitAccess, bitXatm, and Lamassu. We are constantly working to bring additional manufacturers on-board.
Q: Are you qualified of running the BTM Fund?
A: Terry’s background is in network engineering and operations for national telcom providers in the US. Roles included 24x7 Network Operations leadership, Vendor management and negotiation, budgeting, project management, and stakeholder reporting. As well, I have extensive experience overseeing financial back-office projects, B2B sales, consulting, and entrepreneurship. Finally, we have some excellent advisers to fill in any missing pieces.
Q: Why don't you raise money from angels, venture capital, or traditional lending?
A: We have raised Angel funds from private investors for Ignite Financing direct business operations. Our BTM Fund model allows Havelockinvestment.com qualified investors to participate in “fractional ownership” of many Bitcoin ATMs, increasing returns and reducing individual risk. This model is similar to purchasing Hash Shares from an organization like PetaMine (PETA), where you own a percentage of their hash capability, rather than buying an ASIC miner individually.
How many BTM units will the initial raise fund?
A: We expect we will be able to purchase a minimum of 12 machines, but this depends on several variables, such as: manufacturer and options ordered. Depending on volume discounts from manufacturers, we could end up with more units in inventory.
What reinvestment provisions does the Fund have?
A: The Fund does not reserve any revenue back for reinvestment, meaning that the total asset value of the fund will slowly draw down until all leases have been completed and the remaining assets liquidated. In the method the Fund acts as a loan with a variable rate dividend until completed. Investors are free to reinvest their returns in future releases or funds.
What are the benefits to fractional ownership in the inventory?
A: The Fund expects healthy quarterly returns, so we believe that BTM would be an excellent to any investor’s portfolio, especially with the recent stability in Bitcoin price. Bitcoin ATMs allow immediate and physical access, so you will be helping to increase direct access to Bitcoin globally through BTM proliferation.
Q: What is your fundraising target? How do you decide whether this funding succeeds or not?
A: The target raise is 270 BTC. However, we would like to raise more (200-500 BTC) to fill even more of our outstanding orders. We could opt to continue raising via this fund, or via additional separate funds.
Q: So you will sell additional shares at some time?
A: That is the plan. Any additional shares released to the public beyond this initial raise will be for additional inventory for additional revenue streams, and will not detract from per share dividends over the course of the fund.
Q: Why don't you use Ignite Finance for your ticker?
A: Ignite Financing is a separate entity from the BTM Fund, and is only providing management of the inventory for fund in this case.
Further information available at:
Havelock Investments official discussion and Q&A
(for registered users of Havelock Investment):
Why lease a Bitcoin ATM and not buy?
A: There are many reasons a business may choose to lease rather than purchase. Here are just a few:
1) Operational Expense vs. Capital Expense: By leasing equipment a company can take advantage of the payments of a lease as a business expense for taxation purposes, rather than as a capital purchase.
2) Risk Management: In recent news we have seen increased regulation (NYC Bit License), bans (Ecuador), and the inability to secure bank accounts (New Zealand). In the event a BTM Operator is no longer able to operate their BTM, they can break the lease for small fee and Ignite Financing will find a new home for the machine, rather than the Operator needing to sell a used unit on the international market.
3) Upgraded Equipment: Leases afford Operators an easy upgrade path, allowing Operators access to the latest and greatest equipment on the market. We are easily able to relocated used machines to other areas, allowing further BTM proliferation.
4) Lower cost of entry: An Operator can expend far less capital to start or expand their existing business. This lower cost of entry allows the Operator to deploy more locations, better capitalize their operations, better liquidity, larger marketing budgets, and more.
*Other benefits can be: testing business models, cash flow optimization (directly matching expenses to revenue), preservation of credit lines, expense consolidation, and access to Ignite Financing’s further product and service lines.
I am interested in leasing a Bitcoin ATM, what should I do?
A: Please e-mail email@example.com and we can discuss your needs and see if leasing is the best option for your specific goals, and how Ignite Financing can empower your business. We have flexible lease terms on par with other technology related business leases, and a full suite of services to help you operate and grow your business successfully. Even if you already have Bitcoin ATMs deployed, we are currently investigating methods of moving existing machines onto leases through a cash buy-out and lease-back program. We would love to hear from you.
How does Ignite Financing use Bitcoin?
A: We raise funds in Bitcoin, the vast majority of our supply chain uses Bitcoin, we invoice in Bitcoin, we pay dividends in Bitcoin, and we hold our profit in Bitcoin. We only convert Bitcoin to Fiat when absolutely necessary.
Regarding returns: As part Havelockinvestments.com due diligence, we
provided guidance on unit holder returns. Per the current model, and
given the current market information, we are expecting to pay dividends
of greater than 25% per annum (after fund expenses and management fees) to unit holders above and beyond the capital repayment.
The Fund begins collecting revenue before the first leased machine is even sent (through prepayment of a portion of the lease up-front), meaning we will be able to move to dividend/capital disbursements very quickly.
We have a direct lease to revenue model that has been historically proven extremely successful (HP/Xerox Printer leasing, GM Financial leasing of vehicles, Dell/HP Server leasing, and so on).