wow! I like your logical thinking Jimbo. You might be right or you might be wrong but the fact that you actually back up your thinking with some valid logical deduction with facts is great. Your logic seems to make sense the most to me as well given what I asked earlier and none of the skeptics were able to answer. (ie. my line of questioning matches with yours except I wasn't as smart as you to deduce from the BabyJet price. I didn't even know they have one)
Wouldn't the hardware supplier be smart enough to squeeze every last cent out of the selling price of chips to maximize profit from the middle man? (ie. do a quick discounted cashflow of possible BTC mined via some mumbo-jumbo simulations) Unless you are assuming that the hardware providers are naive enough to sell chips at cost + profit margin as if they are any other hardware makers...
Best as I can tell, this investment will only make money for the issuers, their hardware suppliers, and perhaps a few flippers
How do you square this with the fact that these shares pay out .0016 btc before the issuers get any money from the mine? All of the profits are front loaded to the public investors.
evoorhees, I've actually been thinking about this for a long time and have been trying to figure it out. It seems to me the hardware suppliers are controlling the share price. The share price works out to be $14/GH. The BabyJet works out to be $14/GH. This, I believe, is not coincidence. HashFast wants both the BabyJet and the IceDrill hardware to sell in number equally so they maximimze profits. I belive they have contractually negotiated the IceDrill IPO share price to be equal in $/GH to the BabyJet $/GH. No company wants to compete with themselves which is just stupid. So HashFast is only the true winner in this game and not IceDrill. HashFast is pricing their hardware as close as possible to their nearest competitor while still remaining competitive and making a tidy profit.
However, I still believe in HashFast and I believe in them. As long as they have superior hardware, which they do, they will continue to be relevant.