Just to clarify - I probably missed this.

What was the disposition of the 27,000,000 units specified as 'privately held' in the prospectus?

Is this new offering diluting of the original 30M issued units - or were some of those unsold 27M shares issued into the treasury - if so, how many?

Basically - is 1 unit sold in the current offering still equal to 1/30,000,000 of the profits of the company? If so, this would be additive so long as it produced any revenue at all... if not, why not and what is the new number of total issued units?

You would only connect to the network through people to whom you have extended some amount of credit (ie people you would trust with money - be it 0.005 BTC, $500 or 50 kilos of fresh fish... whatever currency and in whatever amount you trust them to pay you back if owed to you) - likewise they are only connected to people they would trust.

Imagine there are two books - one is the BTC order book and the other is the debt record. When you buy bitcoin on the order book, you are paying with the credit granted to you by people who trust you to pay them back - all along a chain until it gets to the BTC seller. If you are owed money by your friends, you can collect it - if you owe money to their friends - they can collect it. You deal with BTC more or less anonymously (address to address) and with fiat on a friend-to-friend basis - if I'm understanding correctly.

It is easier to price in the difficulty on hand-to-hand trades of equipment - you're not dealing with static pricing from vendors. As evidenced by the most recent acquisitions (not to mention the stock-only deal for the minirig) creativex is an expert at getting the best equipment at the best price.

Personally I'm somewhat opposed to any pre-order investments. I'd rather see bM put funds to work on altcoins than see us pay for anything that can't ship or be picked up immediately. It seems to me insane, at this point, to assume anything less than that difficulty continues to rise at an ever increasing rate. Obviously such things are impossible to maintain indefinitely - I only mean to say that it seems safer to assume that until the difficulty finally flattens out.

By that time I estimate that it will be impossible for hardware vendors to make a profit selling hardware. Even with extreme BTCUSD growth, if the machine cannot produce more coins in its life than the buyer could purchase with the same investment of fiat then the machine cannot be sold at that price - it must be sold cheaper... and given the flood of new manufacturing entrants and the hard limit on how much total BTC can be mined per difficulty period it seems to me inevitable that the mining manufacturing industry is getting ready for an epic crash.

Also: anyone who hasn't yet received their BFL and paid for it via paypal should start the refund process. Bitcoin-buyers are SOL but they'll be better off if the fiat buyers get out of line. Fiat buyers shouldn't be getting out as a favor to BTC buyers of course, but because unless they ordered last summer they're never going to get the machine delivered within the window of profitability. BTC buyers have already lost so much to the exchange rate that they're screwed no matter what.

The goal of bM, again in my opinion, needs to be to keep a growth rate of our on-hand hashing power equal to or superior to the growth rate of network difficulty - and the only reasonable way to do that is through the purchase of in-hand units that can be shipped or picked up immediately and for which creativex can negotiate on price.

As long as we can somewhat keep pace with difficulty we'll stay in a strong position as the market continues to develop.

Can you go into a bit more detail on the 'secondary location' where you're housing the new Avalons?

PMBs are absolutely not the way to go. We will always get better price performance from owned hardware. PMBs are for people who don't have their own hardware manager - which we do.

---

I think it might be worth considering hedging our current hardware and any future orders with Difficulty Futures and/or DMS.SELLING shares - which I'd be happy to discuss with you (creativex) if you're interested at all.

---

I'd suggest bM be nimble enough to act with purpose if, for example, the 1st and 2nd Gen ASICMiner blades are priced competitively - having actual hardware hashing is more valuable than any pre-order.

---

Disclosure: I've recently liquidated the balance of my bM position that isn't currently leveraged. I consider myself likely to re-establish the position in the near future.

The real question is how long basic can maintain a growth rate in excess of difficulty growth - and if difficulty growth will allow the investments past and future to reach lifetime positive yield. I think there's real risk in mining that just one or two new entrants could do serious damage to the profitability of already hashing hardware (let alone their now hardware).

Just for fun (as mining profitability calculators are not by any means the word of god, as it were)


The most expensive mining.thegenesisblock.com thinks you should be able to sell BFL minirig for is:  BTC429.941

This would yield, they surmise, a lifetime profit of BTC0.000616

The "O" futures are for Odd months, not even ones.

If you own mining units / orders for mining units / shares in mining bonds / shares in mining farms then the higher the future difficulty, the less you will earn from your units/shares/bonds/etc - so you hedge this investment by purchasing mining futures - this will only protect you, however, if the difficulty rises higher than the price you paid for the futures contract. You can also purchase a futures contract simply as a speculator - if you feel the difficulty reflected in the price of the contract is lower than what will be reached by the settlement date.

You sell a futures contract when you believe that mining difficulty will not rise above the current price of the futures contract, or above the price you can get for a futures contract.

---

Take the September contract (the current -O issue).

If you believe that
Then this is akin to saying that there will be approximately 5.47 difficulty adjustments between now and 18 September 2013 (25% growth per period = 7.5 days per period = 41 days (til 9/18) / 7.5days and that difficulty on 9/18/2013 will be approximately 114,113,665 as of the fifth of those adjustments (do I have you right? difficulty will increase by 25% each cycle?).

Based on this model, you should definitely buy the futures contracts at any price up to BTC0.01, as they will automatically settle at BTC0.01 per contract early (on or around 14 September 2013) - if I have your model correct - both to hedge your mining investment and also because your model says there's a solid 10-20% ROI available on the market price of these futures (currently in the 0.008 - 0.009 range)

When does this auction end?

Do I take that to mean you'd wait for the October deliveries? How do the various delivery periods/costs fit into your difficulty projections?

I personally value mining companies on two points, primarily...

• Dividend growth / difficulty growth
• Management

Over the last 30 days...

• Difficulty has gone up ~75.8%
• bASIC-MINING dividend has gone up 262.25%

The stock performance and dividend growth, all while maintaining a significantly strong cash position... speaks volumes about the management's commitment to shareholder return. I like that creativex didn't just spend the cash on chips or more pre-orders. Investments in in-hand machines only have proven to be an excellent avenue for growth.

Quantifying our excellent asset manager:

---

TAT.VIRTUALMINE prices 1MH/s @ BTC0.002986


This yields approximately BTC44.79 in additional asset value from creativex's optimizations

---

This is an improvement of 1.62% from the pre-optimized hashrate.

Estimated daily generation prior to optimization: BTC14.436413 (BTC0.00028872 / share)
Estimated daily generation with optimization: BTC14.670571 (BTC0.00029341 / share)


These are just rough estimates for fun to distract me momentarily from monumentally boring work-task.

Based on current bids, everyone who has bid BTC0.001 or greater will receive 71.14% of their order.

If I just used 100% secured loans to pay off other loans in an unending cycle (doing nothing else) I'd ultimately lose everything to the fees charged by BTCJam.

The reason you secure a loan fully is so that it doesn't matter what you do with the money - as far as the investors are concerned. All an investor in a loan should care about is the borrower's ability to repay the loan. By securing the loan fully, I have effectively already pre-paid the loan (meaning even if I never make a payment on the loan, people lending to me will still get their money back from the sale of the shares backing the loan).

That said, the reason I am paying off the remainder of another loan with this loan is that it is easier to do that than to try to move funds around at the moment. The reason for paying off the other loan is that a bit more than half of the loan is now paid off, which means that the collateral I have on that loan is inefficiently tied up. By paying off the ~BTC6 I have left on that loan, I will be freeing up an additional BTC9 in assets which are currently tied up in that loan.

Something like a dutch auction option for IPOs would be useful I think. It would help mitigate some of the confusion surrounding over-subscribed IPOs for both issuers and novice investors.

Without such an option I tend to think that actually running your own dutch auction on the forums and pushing the shares out for the IPO on BTCT makes more sense than attempting to run the IPO through the open subscriptions on the market - but as an LTCGlobal shareholder I'd prefer if the transaction fees from the IPO were captured by the market.

This ฿55 loan is secured and scheduled for a 90-day repayment. Payments will be made weekly at a 0.52% weekly interest rate (฿4.38637 every 7 days) for a term yield of 2.538% which translates to an annual yield of 27.11%.

Funds from this loan will be used to pay-off a previous loan (which will, itself, be relisted) and to make other investments.

I can't really stress enough how bad an idea it is to wipe the order book at this point.

Going to sleep? Place a higher bid - you'll probably get some shares.

All wiping the order book does is ensure that only people awake when the IPO sale is actually placed (or when the order book is re-opened) will get shares. Let people do their own math and place their bids accordingly - deliver the sale per the terms you've agreed to at the time you've agreed to it.

------------

And an update,

When 7,000,000 shares are sold by issuer at 0.001

• All bids equal to or greater than 0.001011 will be filled
• The first 553,680 shares bid at 0.00101 will be filled
• Any lower bids will NOT be filled.

As of the last time I pulled it (so 13:24 forumtime)

Timer removed. End time: 2013-07-31+19:58:40