Re: [HAVELOCK] PETAMINE - NEW IPO, NEW HARDWARE, 1,500 TH/S HASH RATE
I think there is a lot of confusion going on about the latest developments. Let me try to elaborate on this.
First we want to clear some misunderstandings:
You bought 14,500 units and now you sell them at a higher price in the IPO to make a profit for yourself.
The money that is raised at the IPO will go to the purchase of 1000 TH/s of mining equipment, which costs about 3,760 BTC. Financial breakdown to deploy 1PH/s:
* Current reinvestment funds: 150 BTC
* Mining revenue (16-31 May): 300 BTC
do you think you could tell us what that 1000BTC will be spent on cryptx? Shares or what?
We will pre-finance the 1000 BTC to be able to purchase up to 1000 TH/s after the IPO. This means it is a loan from us to the PetaMine. The more shares are sold in the IPO, the less has to be pre-financed and paid back in dividends.
Why are dividends withheld for a few weeks?
This is a joint effort of current investors, new investors and CryptX. Investing in new hardware now will have a much better impact in the long run on both unit value and dividends.
But they are misleading people so they can maximize their own profits. The first few months will be the most profitable, but instead of pumping out dividends then are going to use it to reinvest so they can have more machines, which makes them more money.
We can tell all of you that we have already invested over 1,000,000$ of our own private money into this project. This money has been spent on:
Datacenter: Electric installation, cooling, infrastructure, alarms, network, etc
Shipping costs: We have paid all the express shipping from US (Cointerra), from Switzerland (Bitmine), from China (Dragon miners, custom miners).
PSU: we have bought about 200 psus so the Coincraft desk could be delivered faster.
Custom miners: Apart from the chips, we have paid the full production of 250 miners.
Custom designs
Labor costs
Etc
We have a margin on hosting costs, so it is in our interest that PetaMine grows. We have cut hosting from 0.45$/kwh to 0.25$/kwh because we believe in the project for the long term and want it to have every chance to succeed.
Old situation:
We were hashing at about 500 TH/s with 80,760 units. What would have happened if we did not make some drastic changes?
First we would pay the last part of the Bitmine contract and we would be in the same situation like before. We would have to wait on the RIGs to be delivered. In best case, all RIGs would be deployed in a couple of weeks and we would hash at 700 TH/s with 80,760 units outstanding. This would have meant 8.67 GH/share.
Second every week the dividend payments would have gone down and the hosting fees would have gone up.
The overall result would have been that the PetaMine would produce less and less dividend until costs became higher than revenue. The consequences would have been a dropping unit price and a dropping dividend.
New situation:
We have cut the hosting fee from 0.45$/kwh to 0.25$/kwh. In other words we gave up a large portion of our income to the PetaMine project. We could have left it at 0.45$ and receive a lot more hosting for the coming months. Instead we want the project to thrive and become one of the larger players in the Bitcoin mining place.
We bought back about 14,500 shares with the money we otherwise had to spend on Bitmine for our second part of the contract. We did this because we are convinced that we could use these shares to take the PetaMine to another level.
What will be the overall result?
Plain and simple, if the IPO is successful PetaMine will be much larger and the unit holders will be owner of 15 GH/s per share instead of 8.68 GH/s per share. On top of this the costs of the mine are almost halved.
We are convinced that we all have to look at this project with our long term glasses on. Big dividends in the short run will result in a dead project in the long run. PetaMine cannot simultaneously grow exponentially and pay large dividends at the same time. We want to become and stay one of the large players in Bitcoin mining.
First we want to clear some misunderstandings:
You bought 14,500 units and now you sell them at a higher price in the IPO to make a profit for yourself.
The money that is raised at the IPO will go to the purchase of 1000 TH/s of mining equipment, which costs about 3,760 BTC. Financial breakdown to deploy 1PH/s:
- Cost: 3,760 BTC
- Income:
* Current reinvestment funds: 150 BTC
* Mining revenue (16-31 May): 300 BTC
do you think you could tell us what that 1000BTC will be spent on cryptx? Shares or what?
We will pre-finance the 1000 BTC to be able to purchase up to 1000 TH/s after the IPO. This means it is a loan from us to the PetaMine. The more shares are sold in the IPO, the less has to be pre-financed and paid back in dividends.
Why are dividends withheld for a few weeks?
This is a joint effort of current investors, new investors and CryptX. Investing in new hardware now will have a much better impact in the long run on both unit value and dividends.
But they are misleading people so they can maximize their own profits. The first few months will be the most profitable, but instead of pumping out dividends then are going to use it to reinvest so they can have more machines, which makes them more money.
We can tell all of you that we have already invested over 1,000,000$ of our own private money into this project. This money has been spent on:
Datacenter: Electric installation, cooling, infrastructure, alarms, network, etc
Shipping costs: We have paid all the express shipping from US (Cointerra), from Switzerland (Bitmine), from China (Dragon miners, custom miners).
PSU: we have bought about 200 psus so the Coincraft desk could be delivered faster.
Custom miners: Apart from the chips, we have paid the full production of 250 miners.
Custom designs
Labor costs
Etc
We have a margin on hosting costs, so it is in our interest that PetaMine grows. We have cut hosting from 0.45$/kwh to 0.25$/kwh because we believe in the project for the long term and want it to have every chance to succeed.
Old situation:
We were hashing at about 500 TH/s with 80,760 units. What would have happened if we did not make some drastic changes?
First we would pay the last part of the Bitmine contract and we would be in the same situation like before. We would have to wait on the RIGs to be delivered. In best case, all RIGs would be deployed in a couple of weeks and we would hash at 700 TH/s with 80,760 units outstanding. This would have meant 8.67 GH/share.
Second every week the dividend payments would have gone down and the hosting fees would have gone up.
The overall result would have been that the PetaMine would produce less and less dividend until costs became higher than revenue. The consequences would have been a dropping unit price and a dropping dividend.
New situation:
We have cut the hosting fee from 0.45$/kwh to 0.25$/kwh. In other words we gave up a large portion of our income to the PetaMine project. We could have left it at 0.45$ and receive a lot more hosting for the coming months. Instead we want the project to thrive and become one of the larger players in the Bitcoin mining place.
We bought back about 14,500 shares with the money we otherwise had to spend on Bitmine for our second part of the contract. We did this because we are convinced that we could use these shares to take the PetaMine to another level.
What will be the overall result?
Plain and simple, if the IPO is successful PetaMine will be much larger and the unit holders will be owner of 15 GH/s per share instead of 8.68 GH/s per share. On top of this the costs of the mine are almost halved.
We are convinced that we all have to look at this project with our long term glasses on. Big dividends in the short run will result in a dead project in the long run. PetaMine cannot simultaneously grow exponentially and pay large dividends at the same time. We want to become and stay one of the large players in Bitcoin mining.
Let's make this simple.
We are now 0.6% of total network hashrate.
If this ipo goes the worst scenario, not a single share be sold.
Then we will have to halt all dividends until July.
Let's assume that difficulty rises 15% each stage.
By the time of July, total network hashrate would be around 135PH/s.
And with our 1.5PH/s , we own over 1% of total network hashrate, which is better than now.
That's why I didn't sell my shares.
If we can buy those Bitfury machines in small amount as reinvestment part now, and stop the new ipo would be even better.
