60% to chips. 30% to IMET. 10% + the Loan to deliver miners. Bankruptcy costs money, and we thought if the market held we may have been able to pull through. The idea was to get clients something instead of leaving them with nothing.
Isn't that a somehow big amount for chips only? They are the cheapest component. You got a terrible deal on the chips imo!
Actually the amount spent for chips is right and even after the initial runs the chips are *not* the lowest cost parts by a long shot. The only thing missing from that budget break down is development cost of the rigs themselves. Ya know, general system layout, case design,
a properly designed hashboard layout, testing...
It is missing for good reason: Bitmine.ch was supposed to do that. Systems from Josh were based on their lead. We know how things went for Bitmine.ch's own direct customers... And while all hell was breaking loose, Innosilicon quietly sat back taking notes for a month or so seeing the problems. They made damn sure not to repeat the terrible design choices Bitmine.ch used...
For any 1st production run of chips there is always a massive premium on them to recoup the very considerable amounts spent on design, respins and production setup costs charged by the chip foundry (in this case GlobalFoundries). Hell, look at prices for the newest Intel or AMD cpu's for a good example of that. Now once demand is proven and production ramps up or is at least sustained - then prices drop like a stone.
Again - cpu's or better yet Bitmain s1's. Initial cost for one was well over $2k (and why the A1 chip rigs and BFL's Monarchs looked to be one heck of a deal). Bought my first s1's @ $750 each in mid March and the last ones I got for around $250.