I will add my voice to Epoch's to state that the only reasonable course in this process is to wind up the company rather than spending additional resources trying to fight your bondholders or somehow restructure the deal. All existing and inbound equipment needs to be sold and the proceeds distributed to the bondholders accordingly.
Lab_Rat's response on this has been that it will result in less value for the bond holders than ongoing operation with each original bond being worth 300 MH/s (including the 1->3 split).
grnbrg.
Are you saying Labrat is going to cap investors return? We might need to know the name of Labrat's lawyer soon. No joke.
The timing of this news is VERY odd and suspect.
1.Zach said he knew about this for a couple months, BUT just a month ago he was talking about adding 156TH to LRM hashrate.
... That doesn't sound like a person that had legal concerns brewing. At least not a responsible person.
2. The legal issues stated are not cited, and are trivial at best - especially compared to how companies already pay dividends. Also, Zach admitted no certainty on the legal reference.
...Had Zach actually been contemplating this for two months, he should know the legal basis by heart and able to cite which specific new federal
and state laws are an issue.
3. The proximity of the news to Zach's recent position as Coinseed CTO and the deals Coinseed leave reasons for one to be extremely suspect.
...Obvious question are: Was LRM becoming too much baggage for Coinseed? Was it a concern of Kauffman that LRM would grow under benefits of the umbrella of his own mining operation?
How things play out could cause things to turn very very ugly. If Zach is Coinseed, then it may turn out that Coinseed is a risky or toxic investment.