Obvious COI is obvious.
To do the right thing, Josh either needs to step down from his BFL position, or fold this "Mining Company" idea.
He explicitly stated when he took the BFL position that he would not further expand his "mining footprint":
Q. You are going to have an unfair advantage when it comes to mining equipment, youll be able to get as much as you want before anyone else!
A. I will not be expanding my mining footprint as it would be a conflict of interest. I will continue with my current obligations and already acquired/paid for equipment but will not be purchasing or utilizing additional equipment as part of my mining operations. This is one of the hardest changes I will be making, as I firmly believe there are plenty of opportunities in this space that I am going to be missing out on, but I believe I can do more good for the bitcoin community as a whole working to provide that equipment to people as opposed to using it myself.
Your quote is from after he already bought the rigs and IPOed. August versus June. As long as he hasn't expanded since August 1, 2012, he's keeping his word.