Re: [LABCOIN] IPO [BTCT.CO] - Details/FAQ and Discussion (ASIC dev/sales/mining)

This can anyone run some numbers? Im going to take a guess of 5BTC+/share without hardware sales profits.

5btc/share is a ridiculous estimate (sorry, but it is).

Assuming the global network hashrate is 6PH by Jan 1 and Labcoin is hashing @ 500TH/s, that is 8.33% of the global network.

A conservitive estimate of global bitcoins mined in a 2 week period is 56,000 (4,000 x 14).

8.33% of 56,000 is 4666.648 bitcoins divided by 10,000,000 shares is .0004666 / share.

~30% is removed for costs/reinvestment etc.

Final result: .0003266/share for the 2 week period. (roughly .0085 annually) for a share price of .0339 @ 25% annual return.

Of course this is entirely unrealistic as nobody would at this point trust labcoin enough to be happy with a 25% annual return.

Thanks for the calculation.
Can someone do a quick calc for 20TH in 2 weeks time with 30% annual return.

20TH would be around 2%.

At this rate we will see 2PH/S Total Network hash rate.

So the next step is finding out the percentage of 20TH out of 2000TH. That one is easy: 1%

Now a total of ~4000BTC are mined every day on the network. This number never really changes much.. so LC would score 1% of 4000BTC every day.

1% of 4000BTC for LC is 40 BTC/day

Since we would get weekly dividends, we need to multiply 40BTC by 7 days which is 280BTC/week

Now we need to divide 280BTC by 10,000,000 shares which is .000028BTC/share every week

.000028BTC/week works out to .001456BTC/year. Since share prices seem to reflect 25%-50% return, this means LC should be roughly valued at about double what it is now, with 20TH deployed.

edit: I didn't see that you wrote "for 30%" return.. in which case we would see share price at .0048