Quote from: davos on April 11, 2013, 01:18:16 PM

Quote from: Garr255 on April 11, 2013, 03:30:24 AM

Quote from: davos on April 10, 2013, 01:17:23 PM

Quote from: gog1 on April 09, 2013, 09:56:00 PM

will COG.F be converted to cognitive shares upon delivery of the 7 BFL singles or is it some other conditions?

My understanding (garrett can correct this) is that COG.F will remain a separate fund until the funds have been spent and until the equipment purchased with those funds is hashing.

That is correct. The 7 SC Singles are unrelated to COG.F.

Davos, the intent of COG.F was to provide investors incentive to make substantial investments, while maintaining a competitive price. A split would defeat those purposes (or at least one of them).

I believe when the Bitcoin exchange rate stabilizes a bit, the cognitive price will rise as well. Because after all we're generating roughly the same amount of btc regardless what the exchange rate is

Also when BFL delivers I believe Cognitive price will rise.

Best,
Garrett

I think I'm glad to hear it Re: no-split. The only concern I have is that when the IPO was issued it was a very nice discount against the main-fund shares (even including the potential hit from the dilution), but at the moment there's almost zero liquidity in the fund shares and the discount doesn't really exist.

I hold a fair bit of COG.F (relative to the 31 shares sold so far) and balance future purchases against the main-issue price and ASICMINER. ASICMINER has a lot of future hashing power already priced in (although I think it's still cheap), whereas it seems to me that COGNITIVE is being discounted heavily, perhaps based on the lack of certainty in the BFL timeline.

Actually I think you'll find part of the reason for the discount on Cognitive shares IS the existence of COG.F. Cognitive shares will tend to fall until they're slightly above COG.F. They've likely fallen too far - but in the recent bull market for BTC nearly all share prices have been taking a kicking (ASICMINER being the notable exception). Certainly, at a MINIMUM, Cognitive should be trading at .125 + the expected dividends to be paid out until COG.F hardware arrives.

That's unless someone has done the math and determined that even with the COG.F hardware it's still overpriced at .125. I haven't actually done the math for Cognitive on that - but it's not impossible. The approximate value of Cognitive ignoring COG.F is the cost of 7 Singles equivalent at the new prices + the 2nd-hand value of the existing mining gear converted into BTC and divided by the outstanding shares. As that's what it would cost to order that hardware now. That would then need to be marked up because it's an already running company with infrastructure in place and a solid reputation. And further marked up because pre-orders already in place are worth more than new orders. But that's how I value mining companies - haven't actually done it for Cognitive yet though (I've been lazy and been trading it based on a floor price of around .12).