Quote from: bitcoin.newsfeed on May 30, 2014, 08:07:43 PM

Quote from: jimmothy on May 30, 2014, 08:05:45 PM

Quote from: eiprol on May 30, 2014, 07:55:50 PM

Quote

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.

I think the question is, have we entered in an infinite loop of reinvestments, or someday those gains will be paid as dividends?
What happened to those aggressive dividends?

It wouldn't really be an infinite loop of reinvestments in my made up scenario since the reinvestment amount would be doubling per batch.

about that infinite loop of reinvestments, how can you explain this (one month ago) :

Quote from: Jutarul on April 21, 2014, 10:25:34 PM

The dividend schedule will be aggressive, as AM will not require large sums of retained capital. The rationale is that AM doesn't need to invest large sums into infrastructure and that the majority of chip production costs will be covered by the business partners on a contract schedule. The new round of dividends are scheduled to begin as soon as the first large purchases have concluded and should precede or coincide with the publication of the updated financial statements.

Let's just write another round of questions. FC said, that he will glad answer them.

I don't profess this to be an explanation but the simplest answer would be: There were no business partners who wished to cover the production costs or contract the chip production.