Distributed Edge Data Centers For Bitcoin Mining
Redivider is investing exclusively into two portfolio companies. The first investment is a majority stake in a company building & deploying edge computing data centers throughout US Opportunity Zones. The second investment is a minority stake in a Bitcoin mining company leveraging those computing services. We plan to create jobs for Americans and build wealth for our Limited Partners in a growth industry with seemingly unlimited demand.
Simple Yet Powerful Fund
A focus on vertically integrated micro data centers, 5-50MW, can be deployed faster than legacy monolithic sites, in dozens of locations nationwide. Along with the insatiable demand for Bitcoin mining and edge computing Redivider can do well and do good at the same time.
Mobile Data Centers
Deploying next-generation, in-house manufactured, 40’ ISO containerized, immersion cooling edge data centers. Operated as Qualified Opportunity Zone Business.
Distributed Bitcoin Mining
The issuance of Bitcoin – or proof of work mining – can be 60-80% cheaper than buying Bitcoin on the spot market over the next decade. Mining is lucrative and has a 140-year revenue potential based on the 21 million issuance cap. The industry cannot build capacity quickly enough.
Opportunity Zones
Created as part of the Tax Cuts and Jobs Act of 2017 the OZ program has several advantages namely 1) strategic political support at federal, state, and municipal levels, 2) is geographically diverse for edge computing use cases & environmental risk mitigation, 3) allows us to employ multiple energy sources to reduce operating risks and 4) aligns investors through profound tax incentives.
ESG Like No Other
A focus on renewable energy implementation and property stewardship. This fund delivers job creation and preservation in the economic areas that need it the most. Bitcoin is separation of wealth and state. There are high compliance requirements that lead to better quality business outcomes.
Opportunity Zones
Qualified Opportunity Zones (QOZ) are an economic development tool designed to spur investment and job creation in distressed communities. This new investment from a Qualified Opportunity Fund, under certain conditions, may be eligible for preferential tax treatment.
Permanent Exclusion of Taxable Income on New Gains
For investments held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in Opportunity Funds.
Temporary Deferral of Taxes on Previously Earned Capital Gains
Investors can place existing assets with accumulated capital gains into Opportunity Funds they’re not taxed until the end of 2026 or when the asset is disposed of.
Frequently Asked Questions
Twelve percent of US census tracts are Opportunity Zones (8,762 tracts). Governors of the 50 states, 4 territories & the mayor of Washington, DC, nominated the zones, which were officially designated by the US Department of the Treasury. The designated zones have lower incomes, higher poverty rates, and higher unemployment rates than eligible non-designated tracts.
Opportunity zones are currently being designated by the governors of each state. Each state may designate 25% of the eligible census tracts in their state. As of right now, all 50 states and Puerto Rico have submitted and have been approved for designated Opportunity Zones.
No. Opportunity zones must meet certain criteria to qualify. Census tracts with over 20% poverty and median family income no greater than 80% of the area medium will qualify. There are also contiguous zones, which are census tracts that are adjacent to a designated opportunity zone, and also do not exceed 125% of the median family income of that same opportunity zone.
Individuals who are realizing a capital gain across all asset classes can invest those monies on a tax deferred basis, as long their gain is invested in a qualified opportunity fund within 180 days of the sale or exchange. The process is very easy. Agree to subscription agreement, transfer funds, receive stock certificate and tax statement. The whole process is usually completed within 48 to 72 hours. In certain situations where an individual is facing the expiration of the 180 day window we can expedite the process to same day. Ordinary income investors may also participate with different benefits; however capital designated as ordinary will not receive the 10-year tax free return nor the 5-year deferment.
Yes. This is a mixed use fund that can accommodate a range of investor profiles. Investment may come from both ordinary income as well as capital gains. However, if the investor uses capital gains they must be invested in qualified opportunity funds that have 90% of their assets invested in qualified opportunity zones. Non capital gain money can be invested into opportunity funds however there would not step up in tax basis benefits for earnings of non capital gain money.
All capital gains on the sale or or exchange of any property to an unrelated party invested within 180 days are eligible for the tax benefits.
For Class-A shares the minimum is $1,000,000. For Class-B shares the minimum is $250,000.
Class-A shares receive a 1.25X participating preference on monies invested while Class-B shares receive a 1X preference.
Yes. The Redivider Opportunity Zone Fund is designed to be easier with less hassle than 1031 Exchanges.
The Fund is qualified opportunity stock meaning you are investing in the entire interest of the fund and its holdings including any and all portfolio companies within and outside of Opportunity Zones.
There is a subscription agreement that is signed by the investor and a wire transfer agreement. This is then followed by an execution of the Operating Agreement with a wire transfer into the Qualified Opportunity Fund account which is administered by OZ Invested.
If using capital gains, investors have 180 days to invest realized gains.
No. You can take receipt of the gains, as long as you reinvest within 180 days. As an Opportunity Fund we have to certify with the IRS. You receive a tax statement at the end of the year.
Investments made by the Fund are made within Opportunity Zones. While all the care is taken to ensure sufficient due diligence is done prior to investment, these investments are subject to risks. Startups can have a high success rate but these also come with intrinsic risks associated with markets & other factors.