IIRC, it was implied that production costs were in hand from previous sales, hence the aggressive dividends. Lost in translation, or simply a change of plans? Either way it has not been directly addressed. This is nothing new or panic worthy, but an explanation would still be welcome. May the aggression begin in the coming weeks as sales increase and mining ramps up!
AM only had about 5500btc + $1,000,000 in cash. That wouldn't even be enough to cover wafer costs. (maybe for the first batch but definitely not the next)
so he just paid all income from batch 1 for producing batch 2, and all income from batch 2 will be used for producing batch 3 etc?
Yes, that is how I am guessing it will happen. If we guess batch 2 is 20PH being sold at $0.5/gh that would earn ~$10,000,000 which would be enough to purchase 50PH worth of wafers which could then be sold for $25,000,000.
Basically turning $4 million in to $25 million.
*Numbers are extremely approximate but I think it shows why reinvestment is a good idea.