June 19, 2014
An Update on Pre-order Refunds
Dear CoinTerra customers,
We wanted to take a moment to provide an update on the status of outstanding refunds for those customers who opted to cancel their pre-orders of our TerraMiner IV Bitcoin miner.
Since CoinTerra’s launch in mid-2013, we have experienced high demand for our product, with a large volume of customer pre-orders and pre-payments through our website. From late January, when we handed over our first unit to a pre-order customer, we have shipped more than 10,000 TerraMiner IV’s. At the time of writing, CoinTerra hardware powers more than 18% of the entire Bitcoin network – a truly phenomenal achievement in such a short time!
Of the 10,000+ units shipped to date, a small percentage of customers requested a refund, prior to their order shipment. At the time the majority of these requests were made we were preparing to ship our largest pre-order batch of hardware. Coincidentally, also around the same time, the Bitcoin price declined steeply from its previously lofty heights, before it recently began to climb back up again. Each of these factors has played into the volume of refund requests received.
CoinTerra is still a relatively young startup business which has grown tremendously quickly in a very short time period, and along the way we have experienced some growing pains. Yet, we have always taken steps to address and learn lessons as we continue to evolve and grow as a business.
Although it has sometimes taken longer than we had hoped, we are now making good progress in addressing the backlog and processing remaining requests. As of today, we have fulfilled well over 50% of the pre-order refund requests made, and we are working towards resolving the remaining valid refund requests in the next 20-days.
One of the benefits of cryptocurrencies that has attracted a significant number of people to the Bitcoin ecosystem is its pseudo-anonymous nature, but in some circumstances this can also be problematic. We have a sizeable international customer base and multiple incoming payment methods –including Bitcoin. The verification process can at times be arduous and time consuming – before we process a refund we must verify receipt of payment, true customer identity and physical address, and then we refund in US dollars. These steps validate the legitimacy of the request but also add to the time it takes for a refund to be processed.
In some cases, we have found that as an alternative to a refund we have been able to offer our clients another option that better meets their needs. A number of customers who had previously requested refunds (including international customers in countries that are not Bitcoin-friendly, or that impose high import duties) have since decided to switch their refund requests to a cloud-based Bitcoin mining contract through CoinTerra Mining. Many customers have found this to be an incredibly attractive solution, and we are happy to extend this offer to any customer with a refund request who would prefer this option to receiving their refund.
We are dedicated to providing our customers with the best value in turnkey, high-end Bitcoin mining technology, and we apologize for any inconvenience that the refund delays have caused to our pre-order customers. We will work diligently to process the remaining pre-order refund requests and continue to innovate and lead the industry in both Bitcoin mining hardware design and Bitcoin cloud-based mining contract solutions. We appreciate your confidence and support, and thank you for your business.
- The CoinTerra Team