I would not ask you to simply trust us however.  Hashfast has been making limited sales of chips to keep the lights on and pay some bankruptcy expenses.  It is our understanding that they are having difficulty selling these chips at $125 each.  Given that there are 27,000 chips remaining for bulk liquidation or transfer to Liquidbits, a valuation of $8 million would equate to a price of just under $300 per chip.  In a bulk liquidation scenario, it is highly probable that the unit cost of the chips would be even lower than the current $125, as people/companies buy in bulk to get a lower unit cost, not a higher one.  Further the price which one might realistically expect to get for these chips is bounded by the competing chips/rigs in the marketplace.  Specifically the BitMain AntMiner S3 is sold in rig form for $0.75 per ghash/s and a power consumption of .77 watts at the wall.  When you factor in the cost of mounting HashFast chips, installing cooling units, and in some cases cutting the wafers into chips of about $400 per unit, what you find is that Hashfast’s estate would need to be selling the chips with a final cost of $100 to achieve a cost per ghash of $0.78 in order to compete with chips already in inventory and being sold. Even at this reduced price, they would still be a difficult sell as they have worse power consumption at 1.1 watt per ghash/s

So using a realistic price of $100 per chip, this equates to approximately $2.7 million in chip inventory.  The intellectual property consists of little more than plans for a 16nm chip, which would take months and millions of dollars to produce, and then would be at best equivalent to what is already coming out now, and likely much lower performance than what would be available then.  Consequently, it would be highly generous to assume a value of $2 million for the intellectual property.  In addition, about $1 million (beyond the debts for Hashfast) is owed on this IP, so that the net value would, using a generous value equate to about $1 million.

This results in a total liquidation value of $3.7 million. From this there would need to be deducted the $2 million in priority/secured claims, which by law get paid before general unsecured creditors.  This then leaves $1.7 million to be split among $12 million in claims.  This would translate to a recovery of about 14% for each general unsecured creditor.  If these chips wind up selling for $80 per chip, or if the IP sells for $1.5 million instead of $2million (both entirely likely situations), then the recovery for each general unsecured creditor drops to 10%.  In the unlikely event that they are able to get $150 per chip, the recovery for general unsecured creditors would be approximately 25%.  This is how we arrived at the estimated recovery rates listed earlier.  We stand by these numbers, and think that anyone who thoroughly investigates this matter will arrive at the same conclusion.