Quote from: Findus on March 28, 2014, 02:04:07 PM

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However, I'd like to know roughly how much percentage of mining revenues these hosting expenses would be.
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I'd like to see those numbers too.

Quote from: Findus on March 28, 2014, 02:04:07 PM

Edit: I answered before thinking. Actually that does not make perfect sense. If ~650 BTC were needed to raise the required dollar amount, and if we sold the hardware for ~300 BTC now, that accounts for a 50% loss, not a 90% loss.

The best I can describe it is as follows (bear in mind, I'm working from memory here so the numbers might be a little off).

In dollar terms:
We bought 14 units for ~$78,000 which is $5,500 each (discounted from $6,000).
We will receive a total of ~22 units currently valued at ~$8,000 each for a total of ~$176,000
This is a 225% profit in dollar terms.

In bitcoin terms:
We bought 14 units for ~650 BTC which is 46 BTC each. [ 1 BTC = $120 ]
We will receive a total of ~22 units currently valued at ~15 BTC ($8,000) each for a total of 330 BTC. [ 1 BTC = $520 ]
This is a ~50% loss in BTC terms purely from the increase in the $/BTC rate.

If COG.F/2 shares were instantly converted to ordinary shares at the time of purchase (i.e. when we made the deal for the hardware), the value of the hardware per share would have been 650/14420 = 0.045 BTC per share. Now it is 330/14420 = 0.023 BTC per share. Which is a roughly 50% drop in terms of BTC.

The profit in bitcoin terms here is clearly not in selling hardware but in mining with it if we have it in hand. You can see those calculations in previous posts.