BitFury funding round

I am about to offer an additional 7,000 shares onto the market at LTC 4.00 / share as discussed in the last motion. Please see the updated business plan v2.01 at docs.ciphermine.com.

The funds raised from this round will be used to purchase between 5 and 6 EUR 7,500 400 GH/s BitFury SHA256 mining rigs which have recently become available for pre-order. We intend to go for the October delivery date (half the price). The BitFury ASICs are four times as productive in terms of capital costs and power compared with Avalon ASICs. Further, Giles believes that at 55nm it is unlikely anyone will come up with something better for a while.

The remainder of the funds will go towards another ~5 quintuple-GPU scrypt mining rigs (~25 Sapphire 7950 Vapour-X's with supporting hardware).

The price of LTC 4.0 / share is based on two factors:

1) With BitFuries incorporated into the plan, even with the reduced BTC price of EUR 60 and our new model which assumes difficulty will pass 100 million within a year, our forecast profits are now around EUR 880,000, 50% of which will be released as dividends. The 4.0 LTC / share price represents a P/E ratio of roughly 2, which is still lower than ASICminer's.

2) There has been considerable demand for shares recently and prople have been paying well in excess of 4 LTC/share. This was based on our old model with much lower forecasted yield. Thus we further believe this is a fair price.

Finally, following the dissatisfaction expressed by some shareholders over the manner in which this motion to issue more share capital was approved (I dominated the votes, basically) I have removed my right to vote "yes" on any motion which will result in dilution of existing shareholders until the end of the year. Further, we believe we must now enter a period of consolidation and focus on getting all the mining hardware up and running before considering further funding rounds.