Post
Topic
Board Securities
Re: [BitFunder] IceDrill.ASIC IPO (500 Thash Mining Operation powered by HashFast)
by
Eisenhower34
on 08/08/2013, 06:55:15 UTC
Q:
What is the 40% “management fee” all about?

A:
The remaining 40% is not a management fee. The 40% has been pre-allocated to the founders and private investors the amount or exact details, for confidentiality reasons, cannot be disclosed.  If these private investors choose to resell their 40% stake into the market, DigiMex retains the full right to help facilitate this secondary placement into the public market.

If you dont disclose any details I have to assume that "the founder" and "private investors" indeed dont finance anything and those 40% are a management fee. So its still only 45% (0.75*0.6)

To rephrase this, you want to keep all investors who finance 100% in the dark.

To play around with your example here:
Q:
What does it mean that you are reinvesting 25%. Does that mean that we only get 75 % out of the 60% of the profit of the company?

A:
“The holder of the asset has the right to the full profit of any hardware purchased with these reinvestments”
100% of the farm belongs to investors (total capacity of 500 Tera Hash). 60% of profit is being offered by IPO but the other 40% will be sold as well (either IPO or private sale). You can think of this as a hosted service. DigiMex mostly acts as a pass-through by collecting bitcoin by mining and then pass them to investors. However, just like other mines, we need to keep upgrading our hardware. So, for every 100 BitCoin that we mine (with the ENTIRE mine capacity going forward, not only 300Th), minus cost (say 10), we would distribute 67.5 to shareholders and keep 22.5 to expand the mining capacity of the mine. All new equipment will belong to the investors.

Lets estimate you mine 100 BTC, then you pay your costs (minus 10 BTC). The remaining 90 BTC would distribute 22.5 to expand the mining capacity of the mine (thats fair indeed), 40.5 to the shareholders and 27 BTC into the pocket of "the founder" and "private investors" (not fair if they finance nothing)...