The Energy-for-Bitcoin Partnership Model

The Core Idea (Simple Version)

• You provide surplus or underutilized energy

• We deploy and operate Bitcoin mining infrastructure

• We absorb all technical and capital costs

• Net Bitcoin revenue is shared according to a predefined ratio

No energy sale.
No fixed electricity price.
No speculative exposure for the energy owner.

Just shared upside from value that would otherwise be lost.

Step 1: Energy Contribution (Your Side)

The energy partner provides:

• surplus electricity (curtailment hours, off-peak, isolated production)

• grid-first operation (miners shut off when grid needs energy)

• physical access / interconnection (where required)

Important:

• energy is not paid upfront

• energy remains priority for grid or core business

• mining only consumes what would otherwise be wasted

This keeps the model politically and socially safe.

Step 2: Infrastructure Deployment (Our Side)

Entropy888 provides:

• Bitcoin miners (air / immersion depending on site)

• containers or modular units

• electrical integration & control systems

• monitoring, optimization, and maintenance

• operational risk management

All CAPEX and OPEX are covered by us, including:

• hardware

• installation

• repairs

• replacement cycles

The energy partner does not invest cash.

Step 3: Cost Recovery (Before Profit Split)

Before any profit sharing, the system first recovers:

• mining hardware cost

• infrastructure and deployment cost

• operational expenses

This recovery is:

• transparent

• auditable

• capped in advance

Once costs are recovered, the system transitions automatically to profit-sharing mode.

This aligns incentives:

• we recover faster if the system performs well

• you take zero downside risk

Step 4: Profit Sharing (The Antiparochí Moment)

After cost recovery, net Bitcoin production is split.

Typical structures (indicative):

• 50 / 50

• 60 / 40

• 70 / 30

Split depends on:

• energy quality & availability

• curtailment profile

• site constraints

• regulatory environment

Bitcoin can be:

• distributed in BTC

• converted to fiat

• partially reinvested (e.g. expansion, batteries, restoration)

The key point:

You earn from energy you were not monetizing before.

Why This Model Works (And Fixed-Price Models Don’t)

Traditional models fail because they assume:

• stable prices

• constant demand

• predictable markets

This model works because it accepts reality:

• energy oversupply is structural

• prices collapse during abundance

• volatility is normal

Instead of fighting volatility, the model uses it.

As explained in Why Bitcoin Volatility Is an Asset for Energy Systems, Not a Bug, mining economics adjust naturally:

• hardware reprices

• difficulty adjusts

• inefficient operators exit

This keeps the system resilient.

Risk Distribution (Very Important)

• Bitcoin price volatility
  Shared between both parties, with asymmetric buffering through cost repricing and flexible operation.

• Hardware failure and equipment replacement
  Fully assumed by Entropy888.

• Operational and maintenance risk
  Fully assumed by Entropy888.

• Regulatory or policy changes affecting energy
  Shared between both parties, addressed through adaptive system design.

• Energy curtailment or intermittency
  Neutral by definition — curtailment is the input to the system, not a risk factor.

The energy partner avoids:

• capital lock-in

• stranded equipment

• speculative exposure

Why This Is Better Than Selling Cheap Power

Selling surplus energy at:

• zero price

• negative price

• temporary PPA discounts

creates no long-term value.

This model:

• creates an asset instead of a discount

• converts waste into capital

• aligns long-term incentives

• keeps energy sovereignty intact

It is monetization without extraction.

Why Early Partners Win Disproportionately

Early partners benefit from:

• lower miner prices

• flexible system design

• better revenue splits

• first-mover positioning

Late adopters inherit:

• saturated models

• tighter margins

• fixed rules

• less optionality

This is exactly the dynamic described in The Risk of Waiting: How Late Movers Will Inherit Broken Energy Economics.

Optional Extensions (If Desired)

The model can be extended to include:

• reinvestment into local grids

• funding of environmental restoration

• shared battery + mining hybrids

• sovereign or regional energy funds

But these are options, not requirements.

The core model works on its own.

Conclusion: A New Value for Value Era

This is not energy trading.
This is not mining speculation.
This is not financial engineering.

It is a value-for-value exchange:

• energy that had no buyer

• converted into digital capital

• shared fairly between partners

In an era of energy abundance, ownership of surplus matters more than price.

This model ensures surplus creates value — not waste.