Re: ASICMINER: Entering the Future of ASIC Mining by Inventing It
It could be, but guess what? All this would make per-GH costs higher, not lower.
I've established a best-case scenario for AM and it STILL appears significantly overvalued. Thus my short position.
You fundamentally misunderstand. That 75% is the average projected over the next year.
If Cointerra is selling at $3/GH, do you see the issue with AM producing at $15?
So, I show you the income statement and explain the methodology, and you continue to imply the $1.50/GH figure is "completely made up"?
Please explain your investment thesis, I'm dying to know.
Your choice of cointerra is not a good sample choice it may be profitable in January but that is a long wait in bitcoin and delays are very common.
http://decentralizedhashing.com/bitcoin-mining-equipment-table/
The fact that the stiffest competition doesn't deliver until January is the rationale behind a profit margin as high as 75%.
You must understand - all of my estimates are very conservative to offset the factors I may be missing. Yet, with those conservative estimates, the conclusion is still quite clear.
That is why I have such a high degree of certainty while everyone else appears to be purely speculating. It is extremely rare for a situation like this to appear in a market. I suspect it is a result of the bizarre wealth distribution. Many (most?) of AM's shareholders do not really understand finance.