Second of all: yes OP should rewrite the offering to be a bit more clear. Because as it stands now you are completely right. Of course the 2nd round of shares would technically mean a 10% dilution, but I'd rather look at it as a 910% value increase for round 1 investors. I'm rather confident that Bithub (sorry Bithub) would rather own a 3.63% stake in a company that has the ability to expand rather than a 4% stake in a company that is, by contract, bound to finance any expansion through a meager 15% wanker tax while paying its contractors and shareholders an honest fee.
So OP should sit down and rewrite the IPO in such fashion that it reflects exactly what is being offered. I'm not betting my reputation here (if any in the first place) but it seems to me that OP is not acting out of malevolence. To me it seems OP just doesn't have a lot of experience in seeking public funding.
That's never an excuse of course, and OP should fix the IPO text. But don't burn him for that. I've seen worse IPOs on these boards seeking millions of dollars in funding rather than the 12000$ we're talking about here.
Yeah, I don't have any vested interest in this, as I'm not a shareholder. It just struck me that some people weren't realizing that they were having their shares diluted and I wanted to ensure that I made that clear.
I don't blame Klye for wanting to raise additional capital, I just take issue with the fact that he promised not to dilute the shares and then did it just days afterwards. I don't think that there was malicious intent, but it is unfair to current investors in its current state.
Only hoping to improve the IPO terms here, not freak out and scream 'scam scam scam', because nothing causes people to close their ears and minds faster than that.
If there are going to be 2.75 Million shares and current investors are only getting 10x shares, then they are getting a bad deal, especially since it was promised that there would be no dilution. What Klye should have done is up the Phase 1 offering to 2.25 Million Shares @ .0001 BTC (he'll have to live without that extra 2.5 BTC for now) and still increase investors' shares 10x, while holding the last 250,000 shares for the Phase 2 IPO.
That way, there are still 250,000 shares on hold for Phase 2 and current investors don't see any dilution.
Or simply 11x current investor's shares instead of 10x :]
I thought about suggesting that!
It seemed less elegant that way though, haha.