All else equal (ha there's a broad statement) if cryptx reinvests a larger % than the difficulty rise, petamine will have a seat at the grownups table. By having enough $ to be a lead investor/customer for each next generation round of ASICs petamine can stay ahead of all the others buying the same chips.
+2
That is some serious misquoting going on there...
Nay, it is you who is ignoring what others have posted.
They likely got the money for the PCBs the same place they got the money to pay for the deployment of an extra 500+ Terahashes of hardware. The havelock ipo happened when BTC/USD was a lot higher than the original ipo last year. My bet is that the funds came from that or, the folks behind cryptx have some deep pockets and decided to anty up to make up for the major delay in deployment, it helps us as well them because it puts us further ahead than we would have been.
They can't take money from the IPO. The contract states that the money is used for
producing or
deployment of hardware. Not the development of hardware. The word 'development' isn't even mentioned in the contract so i would assume that the development of hardware is an insignificant portion of petamine's expenses.
As for your attempted "question" about cryptx selling hardware to petamine at a markup thereby possibly hurting the petamine operation and profits. This is why I said that some people have no clue how a business is run. It is in their interest to get the most efficient and lowest priced hardware online so that the mine can get and stay ahead of difficulty.
Please explain how cryptx can make a profit on this operation unless A) they are shareholders themselves, B) overcharge hosting costs or C) overcharge hardware costs.
What?!?!?! You think Cryptx is just a charity to help aspiring bit investors? You are naive.