Bitcoin Forum

YABMC is expanding.  

Many people want the benefits of mining without the hassle, and want to be part of something with scale.  Therefore, we have combined the resources and skills of JWU42, HashKing and PatrickHarnett.  Collectively more than three years mining experience and with significant combined assets, the expanded YAMBC will be a multi-location mining operation with more than 1% of network hashing power.

Our existing mining resources are committed to this venture along with several large items of equipment that will complement existing mining hardware.
The existing YABMC is issuing additional securities to bring 150Ghash of bonds to the market, and with scope for a further 100Ghash if required.
On market (GLBSE) sales can take place at 0.3BTC per Mhash, and volume discounts apply for off-market transactions for a minimum 1,000 bonds or for 10,000 or more.

This is a major initiative with serious financial backing underwriting payments.  There are still good volumes of bonds available and we are adding equipment progressively as was originally planned.

Edits and updates:
1: The latest coupon payment has gone out to investors holding over 30Ghash of bonds.
2: Latest difficulty has fallen around 10% to 1.59M from 1.73M.
3: We are planning on moving to more frequent coupon payments either weekly or two weekly and are confirming the change with the exchange.

Frequently Asked Questions:

The hashing power is planned to come from Minirigs I suppose?
Actually a mix - MR is part of the equation along with a stack of equipment from our existing farms.  There are a few other items around FPGA that will be used too.

With multiple-location mining, how will the clause in the YABMC contract for ceasing mining if it becomes unprofitable work? Based on location or an all-together average? And would this cause payouts to cease?
The responsibility is to pay the bond holder irrespective of mining.  We have worked through this point in some detail as we have different cost structures, equipment mixes and even seasons.  Partly why we have put the current mix of people together is to ensure financial strength to back the bonds.

There doesn't seem to be much liquidity, most history under or well under 50 shares traded, a couple of days about 100 over the last month & on only one day 180 or so, at present under 50 shares being bid for - if I were to buy a lot it doesn't look like I would be able to sell anywhere near the offer price or even at all unless something changed or I have misunderstood how this works.
Up until now YABMC was a 5000 bond issue, and as a smaller mining company did not have the profile of something like PureMining or GigaMining.  Also, 60% of the bonds were initially held by one person.  By bringing scale to YABMC we expect a larger number of bond holders and some will choose to hold for the long term and some will want to exit at some stage.  We can not predict the future price and liquidity with certainty, but that is true of all of the other GLBSE companies also.

sub

sounds like an interesting idea.

interesting

Giant askwall is up and running, huh? ;)
Might be some nice profit for people who still want some 0.3 per MH/s shares.

The hashing power is planned to come from Minirigs I suppose?

Sukrim,

Yes - askwall in place for now...

Discounts are available for bulk buys as noted.  We do have the ability to scale up based on demand.

Mini-Rigs are part of the puzzle for sure in addition to other FPGA (and eventually ASIC) solutions.

Looking forward to continued support  :D

With multiple-location mining, how will the clause in the YABMC contract for ceasing mining if it becomes unprofitable work? Based on location or an all-together average? And would this cause payouts to cease?

Well, to me it only seems that the issuer can stop mining if he wants to - however "The holder of this bond will receive as coupons a number of bitcoins equivalent to 100% PPS output of ONE MILLION HASHES PER SECOND for as long as they hold the bond."

This would mean I'd still get paid, even if the miners aren't running. He doesn't have to keep his rigs running at a loss though.

The giant askwall is really not nice at all, especially as it came on such short notice and without warning. :(

That seems the case, but I'd like it confirmed for the sake of my paranoia. ;)

Some notice would have been nice about the askwall, but I can understand the decision. The market is quickly becoming saturated; I suspect they didn't want to delay release any more than necessary.

Sukrim,

There have been posts going back several a couple days in the YABMC thread that more bonds were coming.  The expansion discussion started in early May (and was noted in the OP) with no definite mention of more bonds.  I am sorry that you believe there wasn't sufficient notice/warning.

As far as the contract language, I would like tweak a few things but it cannot be edited at this point, however, so it remains as written.

Can you clarify this point, however? If you want me to phrase it explicitly:

If mining becomes unprofitable, as determined by the backers of the YABMC bond, whether individually or in unison, would YABMC bond payments continue regardless?

The responsibility is to pay the bond holder irrespective of mining.  We have worked through this point in some detail as we have different cost structures, equipment mixes and even seasons.

I read your comment above and that you were looking for capital gain rather than a long term hold?  The first round of 5000 bonds sold at 0.3 so I am interested to know how much you consider you are "out of pocket".

Thanks, that answers my question.

This will be interesting to see how investors react to forced expansion.
I'm planning on Cognitive expanding soon as well, but I don't have the initial money required. It looks like I'll have to be a little more creative :)

Garr,

A tad different in the case of Cognitive as it is equity and YABMC is debt (i.e., bonds).

That said, best of luck - you are doing a great job and learning skills that will be beneficial when you get to be an old fart like me  ;)

Great to hear another 1% getting secured by publicly held mining power.

Good Luck!

Thanks Zefir!

Please note that purchasing YABMC @ .3/sh offers the best yield of the mining bonds.   ;D

Dividend will be paid on Thursday - around 1600 UTC.  Buy your shares now and get ~14 days worth of coupons for holding 2 days -- ~1.53% yield for 2 days

Please review the following on a potential change to coupon frequency...

https://bitcointalk.org/index.php?topic=83229.0

Help us reach our growth plans of ~1% of the network hashpower.  Put your idle BTC to work and earn ~1.5% per week with coupons paid on Tuesday and Friday.  With difficulty looking to drop yet again the yield only looks to improve more in the coming weeks.

Coupons tomorrow  ;D

I just received this amount:
0.0   YABMC   2012-06-08 08:08:59

I own 59 YABMC bonds and I used to receive around 0.12 BTC per payment.
Anything wrong?

[edit]: it was just a glitch probably. I had received this other payment 6 minutes before:
0.11201858   YABMC   2012-06-08 08:02:20

@consirospere.tk -- I suspect the 0.0 was a result of me trying to payout the small balance I mentioned in this thread ==> https://bitcointalk.org/index.php?topic=75867.msg949020#msg949020

The mining bond market has been very dynamic in the past week.  There have been new entrants at fairly modest hash levels (i.e., less than 2 Gh/s) and more recently major expansions at other existing offerings.  All of this compounded with a significant rise in price of BTC versus most major currencies has created uncertainty in what was a fairly stable market.

HashKing, PatrickHarnett and I (JWU42) believe it is best to pause issuing bonds while we continue to expand our hashing capacity.

We all have additional hardware arriving in the coming weeks and MAY use that as an opportunity to release more bonds.  We will do so publicly and will continue to offer discounts for bulk purchases.

We all sincerely appreciate your support of YABMC!

The past week has seen some interesting developments including BTC price increases relative to the USD, falls in prices for bonds on GLBSE and recent large off-market sales.  We have also seen some new equipment become available and the wait for BFL MRs continues, while we (JWU, HashKing and myself) keep our mining operation humming along.

We think that there is appetite for us to offer additional bonds for those after exposure and the benefits of mining without the hassle or cost of running and maintaining equipment, but also do not want to disadvantage existing bond holders.  Therefore, before making further moves we would appreciate some feedback as to volume and price and even timing if we were to issue additional bonds.

I'd appreciate if you try to not reduce the dividend yield whatever you do. 

Well - new shares at a lower price (more reflective of today's market) would have a higher yield than shares purchased 2-3 weeks ago.  New bonds would (assuming keeping the same structure) receive the same coupon as older bonds.  Since the purchase price would be lower (in this example) the yield would be higher.

If you are referring to yield not decreasing over time that is ultimately a function of difficulty since we are paying 100% PPS of 1 Mh/s.

There have been some other comments on alternates to the variable coupon (difficulty based) mining bonds.  Something we will discuss but would need to be a new issue and not additional shares (most likely).

Thanks again for the comments!