I really like the open nature of your offering. I like the price.
But I got to be completely honest with you.
A quick comparison of GIGAMINING (currently the most active mining asset on the glbse) shows them trading @ .83 for 5mhash now with an option to pay .25 for an upgrade to 20mhash/s post asic.
you can buy BAKEWELL right now for .15 and have 20mhash/sec post asic.
You would need to hold GIGAMINING and save the dividends they paid for 65 weeks+ to equal the expected gains on BAKEWELL based on current market prices.
In your example, we can at the very least expect the difference back in 65 weeks.
Or, I can also invest my .15 BTC with
PatrickHarnett's Starfish Bank OR
NYAN.A and expect to have .25 in 55 weeks (rough guess).
As it stands right now, I can
not expect
any return in any number of weeks because there is no guarantee when ALL 50K shares would be sold.
Will all the shares be sold before or after the block reward halving? Will they all be sold by 2013? 2014? There is no way any one can know, unless you can get some big investors ready to drop the 7,500 BTC needed. And that is a tall order.
My reason for structuring it this way is the BTC:USD volatility. I want to assure the purchase of the first BitForce Mini Rig 'SC'.
I fear that if we take funds as they come in, and buy the gpu's .. and the exchange rate tanks ...
Again, with no way of knowing when all shares will be sold there is no way what the exchange rate will be at that time.
I would like to hear some other opinions on this.
The bottom line is: You
need to have some kind of return for the investors and you
need to be able to tell them when to expect it. Without that information I fear you will never sell all the shares.
As said in an earlier post, you are not the first one to do this... so this is how others have done it:
- Buy equipment as shares are sold. This is not always ideal, as you have to purchase a little at a time over a long time. But it does produce coins that can be paid as dividends. COGNITIVE, BTC-MINING, and NASTY do exactly this... by buying FPGA singles from BFL with the intent on taking advantage of BFL's ASIC exchange program. You said that you would use GPUs to mine. Why not start with that?
- Take the proceeds from current sale of shares and invest it in something like NYAN.A or Starfish to get dividends that you can then re-pay to your investors. Once all shares are sold, cash out and buy the equipment. The downside to this is that you would have to clearly explain this process in the GLBSE asset and/or make a motion to invest current funds in this way.