Quote from: smooth on December 23, 2013, 12:21:02 AM

Hey, I don't know about you but I have a substantial investment in this club, and I don't want to see the seat prices drop. I don't want to see long term prospects hurt either, so we all want the same thing (I think).

Yes, I do too. I want the seat prices to reflect the true value of this operation. That value is based on a lot of criteria and some may not see that true value by only looking at current donation yield, but that is their choice.

Quote from: smooth on December 23, 2013, 12:21:02 AM

I actually agree with that but I don't see a 30% debt to equity ratio (both measured in BTC) as being careless at all. It's reflective of the debt being fairly secure as a function of expected future BTC revenues, and also of debt being used to fund purchases of capital equipment, of of which is quite responsible use of debt. Most of the outstanding debt is for equipment that hasn't even been delivered yet.

I agree... I don't think it is careless, just not the absolute best policy when dealing with bitcoin debt. Surely it would be better to hold fiat debt if that option exists with very few caveats.

Quote from: smooth on December 23, 2013, 12:21:02 AM

I agree with that too. I believe when the next generation of miners starts arriving and the hash rate increases several fold, the debt should start getting repaid at a faster rate, using the current ratio. The current in-service equipment is aging and shouldn't be expected to yield that much. Trying to pay off future generation equipment with proceeeds from obsolescent hardware a bit of trying to get blood from a stone.

The debt will be paid faster at 75% regardless of the hardware generation. I have quite a few seats and yet the current donations are negligible even for me. I'd rather these small payments be used to get us out of debt and towards savings asap. Even a small amount of savings could be worth a heck of a lot of mining equipment in 3-6 months. I could be wrong but we are already hedged for low price and difficulty just by owning existing equipment and having debt.