Quote from: Findus on March 28, 2014, 09:38:40 AM

I did not follow the whole story, but there's something that does not compute from my point of view.
I bought 12 COG.F2 for 5 BTC each in August. My 60 BTC investment was used to buy CT hardware. Then each COG.F2 was converted to 20 COG in March.
Selling the hardware now would make the final dividend around 0.025 by robitnik's estimation below. So if we liquidate, my 60 BTC become 6 BTC?

What I don't understand is, how did the hardware loose 90% of its value without yielding significant hashing dividends for COG.F2 investors?

The problem is that the CT hardware was priced in dollars. At the time 1 BTC was worth ~$120. IIRC, ~650 BTC were needed to raise the required dollar amount. If BTC was still worth $120 and we sold 19 units at $8,000 each, that's 1,266 BTC. Now BTC is worth 4+ times as much. If we sell the hardware for dollars now, we get ~300 BTC.

If BTC keeps rising, it's better to keep mining. The COG.F holders effectively locked in a share price of 0.25 BTC (5 BTC for 20 shares). The dividends from current hardware (assuming all 30 TH/s gets running) could support a share price of between 0.12 and 0.38 BTC based on 50% dividends alone. If the reinvestment fund is used well, it could be higher.

I expect mining difficulty increases to continue to slow down except for a spike when ASICMiner's gen 3 stuff comes online. This means that our current hardware and whatever we buy next will perform for a long time. I'm sure it is possible to salvage this operation. The question is do we all agree and if so, what plan can we come up with. YoYa's board suggestion is a good one and worth following up on.