Post
Topic
Board Securities
Re: Lab Rat Data Processing, LLC (LabRatMining) Official Announcement
by
maqifrnswa
on 19/05/2014, 23:14:18 UTC
Are fresh contracts being sold yet or are they still only available in the trading thread? If so what is the current asking price / 100mH from LabRat?

EDIT: changed wording to contracts
If for some reason you wanted to buy direct from LRM, I can certainly get a price for you.  It is highly unlikely to be better than the price you can get in the trading thread, though.  The current lowest selling price there is 0.006BTC per 100MH/s contract.



grnbrg.

If this is true, labrat should be using LRM funds to buy existing contracts. What you just said means that it is more expensive to go buy new hashrate than it is for LRM to consolidate existing hashrate. However, since Zach gets paid based on total hashrate (and not on share price), it's in his best interest to buy more hardware although it is in LRM's best interest to buy up cheap shares.

Such a conflict of interest is usually managed by the board of directors (company officers have a duty to what's best for the company, and if they do not they are personally liable and sometimes got to jail). However, LRM is set up in such a way that he's protected, and if a conflict like this comes up he wins and investors lose.

I don't think he understands this, probably not even worth discussing except to point out the conflict of interest and illustrate a bad decision (preordering hashrate for more money than it would cost to buy existing hashrate from your own company).