Bitcoin Forum

I would like to borrow 125 GLBSE PureMining shares. I willing pay all the dividends paid during the borrowing period plus an extra 15% of dividends as a borrowing fee. I would like a minimum term of a week, but potentially ongoing with say 7 days notice of termination from either party.

I'm negotiable on exact terms.

My otc rating is under the same nick. I could possibly post collateral with a third party, if required. Could do smaller quantities, but I would want at least 40 in a lot to make it worthwhile.

Surely there are some buy and hold investors out there who would like to increase their income?

Watching.

Does it have to be PureMining or would equivalent contracts also work? There are some out there that are fairly similar (YABMC, Bitbond, Gigamining...).

It seems to me as if you want to play/mess with the PM share price a bit though (PureMining is valued higher than some equivalent contracts), selling these shares, buying an equivalent different contract and paying your dividends + 15% of these dividends (a few Bitcents) from there... interesting idea.

Close, yes. A bit of arbitrage. Buying a different contract introduces mismatched counterparty risk. My intended alternative investment is on a different exchange.

I intend to short-sell the asset.

I plan to aid in efficient price discovery.

Seems like you want to buy http://polimedia.us/bitcoin/mpex.php?mpsic=F.PURE.SYNTH in bulk and do arbitrage there. Interesting indeed. PureMining seems to be in high demand still by the way, the high rate of dividends surely was a right move of Meni! :)

Bingo!

znort987 has lent me 125 PureMining shares.

Sorry, I had some, but they sold again for a modest profit.  Have fun.

lol I knew his was short selling related after I read the first post :)

'Normally' lending shares yields the lending party the right to receive the dividends without the extra 15%. The fee for lending the shares is determined by an open market and expressed in yearly effective interest on the base value of the shares. Collateral in fiat is in my case also received and updated nightly based on the closing price of the day.

I'd hope so, as there aren't many other reasons to borrow shares :P

Once the mining perpetuity market gets really nice and liquid, there will be plenty of opportunities for pairs trading/stat arb. Should be interesting!

I stated that because there was speculation in the thread about why he'd borrow shares and no-one had it right until Brendio said the reason himself.

Yes determined by market. That was my offer. It was accepted. I thought it a much easier way to calculate by referring it to the dividend yield, which for a bond is relatively constant. For a normal share, a percentage of share value would be more useful. The dividend of a bond is much less variable than the market price.

I have returned the shares to znort987. Thank you for the deal.