Except the share value is not dropping 7% per week.
Oh its not gonna drop exactly 7% every week especially not as long as investors cant do basic math, but on average the market value of the hashrate that your share represents, will. Now you can allocate mining revenue to increase your hashrate ('reinvestment') or pay it as dividends or do both in any ratio you want, but if you dont earn more in net mining revenue than the rate at which difficulty goes up, it doesnt take a rocket scientist to figure out what will happen.
Besides, as it happens, last IPO was on May 23 @ 0.0975 Now 2 weeks later thats worth 0.072. -12.5% per week
But hey, enjoy the 2% weekly dividend for as long as it lasts.
This is what Puppet is referring to:
Div Pay Day Div % Re-invest Repay
6-Jun 2.10% No Yes
13-Jun 1.95% No Yes
20-Jun 1.82% No Yes
27-Jun 1.69% No Yes
6-Jun 1.57% No Yes
4-Jul 1.46% No Yes
11-Jul 1.36% + ? Yes No
18-Jul 1.26% + ? Yes No
25-Jul 1.18% + ? Yes No
For the next 6ish weeks we will repay the loan, then after that reinvest will start again
You can see the Div% diminishes each week, in the calc I used the 7% reduction/week. it wont be like this but over time will average out this way
From the 11th I estimate our reinvestment will kick back in, so we should see an increase in hashrate/divs around then
The thing that I can't calculate into this, is the fact CryptX is selling off old hardware, not sure where this extra btc is going. Two speculations:
1, Will go to pay down loan as comes in
2, Will go to reinvestment, if this one the % decrease in div week to week should be les than 7% but without knowing numbers can't guess.
Last thing that can effect the divs is if the btc price rises it should do two things:
1, Reduce cost of hardware
2. Reduce cost of hosting, since this is in fiat
if goes down, the opposite
Disclaimer: Loads of guessing, some speculation, some rounding of numbers
edit: btc price rises