Ninjastic
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Board Securities
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[BTC-TC] CIPHERMINE.B1 - a virtual corporate bond with a 22% fixed-fiat APR
by
woodrake
on 02/09/2013, 20:56:17 UTC
I am pleased to announce that CipherMine shall be issuing a virtual corporate bond on BTC Trading Co in order to raise growth capital.

Herein all EUR/BTC valuations refer to the 30-day weighted moving average of BitStamp's USD/BTC price converted to EUR at the current rates according to XE.com. For the purposes of the examples below we have used a price of €85.00 EUR/BTC.

100,000 bonds are to be created priced at 0.01 BTC each. The terms of the bond are as follows:

  • An interest rate of ~22%/year (0.38%/week) based on EUR/BTC value at time of issue (eg. ~€0.0032 / bond / week).
  • Dividends to be paid weekly.
  • All 100,000 bonds to be issued at the first opportunity, at which time the interest yield will be set.
  • Bond proceeds shall be spent discretion of CipherMine management, and only if they are satisfied that the funds can be repaid and that there is a useful way to spend them. Unspent funds shall be held as BTC to mitigate appreciation risks.
  • After 12 months, each bond may be redeemed at any time by bondholder for 0.01 BTC.
  • If before 12 months, three months notice is required to redeem bonds and rights to interest waived during that period.
  • Bonds may be sold on the market at any time with no penalty.
  • CipherMine has the right to redeem any bond in full with one month's notice to the bond holder at face value plus 12% less the number of months since issue.
  • For example, after three months the redemtion value would be 0.0109 BTC/bond, and after 12 months the redemption value would be 0.010 BTC/bond. The redemption value will always be at least 0.010 BTC/bond.
  • The bonds shall ultimately be secured against the assets purchased with the funds, but this security would only be needed in dire circumstances where CipherMine had completely run out of cash.
  • Changes to the bond's shareholder contract would require approval both by a majority of CIPHERBOND bondholders and a majority of CIPHERMINE shareholders.
  • Only CIPHERMINE shareholders would have the power to veto a motion (>25% voting against).

For further details please see CIPHERMINE.B1 on BTC TC.

Edited to bring inline with changes to main listing following feedback below.