Quote from: repentance on September 26, 2011, 12:48:38 AM

Quote from: yochdog on September 26, 2011, 12:23:23 AM

Quote from: joeyjoe on September 25, 2011, 11:25:44 PM

You really dont understand how shares work do you? You cant set the price of the shares as you wish, by saying 0.1btc per share with 1000 shares, your automatically valueing your "company" at 100btc... for what exactly? you dont have anything.

Since Alfalfa pointed out that I can be fairly condescending is my responses, I will go easy on this one. Really though, your post is silly.

To say I don't understand how shares work, considering what I do for a living outside of Bitcoin, is stupid. If you would take the time to read the proposal, or had any knowledge of how share sales actually work, you would see how off-base you are.

When a company offers shares to the public for the first time, they absolutely set an acceptable range for pricing. In terms if valuing the company, you really did not read a bit of the proposal did you? .1 BTC is what the monthly dividend will be set at, not what we are willing to sell shares for.

Finally, we don't have anyting? What in God's name are you talking about? We have a hardware investment of over $7,000 and monthly BTC production in excess of 150 BTC. How exactly is that having nothing?

Seriously, if you don't take the time to educate yourself on the matter, just don't post.

I think the point that the other poster was trying to make is that you seem to have valued your company at $42,800 (based on the current BTC of 5.35) without offering support for that figure. Based on your numbers, monthly revenue from mining would be ~ $802 with 10% of that amount being returned to shareholders. Projected earnings don't justify the $40,000+ valuation and neither does your capital investment to date, so the question of how you arrived at that figure is not an unreasonable one.

I completely agree valuation is a legitimate conversation to have, I just would like the person asking to have the figures correct first.

lets talk about it for a second. Again, I think even you are a mis-interpreting what we are proposing.

Lets talk exclusively in terms of BTC, as that is what we are truly interested in. We are not trying to get rich here, we simply want to create a truly legitimate BTC investment.

Our monthly production will exceed 150 BTC. By paying out .1 BTC per share, PER MONTH, we are in reality paying out roughly 66% (100 BTC) of monthly revenue, not 10% as you claim. Right there, any valuation analysis you present subsequent to that assumption will be deeply flawed.

If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year. That is a 15% yield per annum. Any serious investor will tell you that type of yield is very high. However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield. We feel it will be beneficial to the Bitcoin community.

Does that help?

PS, just as a follow up, we figure we are offering shares in the company at roughly 6x earnings....hardly an outlandish multiple. Wink