Bitcoin Forum

I am sorry that some of you haven't got the memo but BTC-Mining hasn't spent a dime yet on the mining equipment it's set to buy and with good reason. As far as anyone is concerned, with integrity in-check, every share in BTC-Mining is backed by the 1 BTC it was bought with.

So, please, continue selling them for .8 BTC. I will buy them every time.

I guess CPA is selling their assets.
Same situation with OBSI on GLBSE.

People could be selling for under 1 because they see a better investment elsewhere... BTC-Mining probably won't get their equipment for a while if they haven't ordered it yet. By the time they get it, what was once worth 1 BTC of ASIC hardware could be worth less than .8 BTC

They will not be paying the same amount in BTC if they hardware buy in the future. The left over will be reinvested into more hardware, thus the share price will remain the same or grow. If this left over is stolen or fraudulently used while the price stagnates, well, then we are going to have a problem.

This isn't a fixed megahash bond.

Also, the dividends are pure profit at this point. So there is absolutely no capital dilution as far as I can tell.

The dividends have to come from somewhere....If they haven't spent money on equipment to generate any form of revenue and then earnings, the dividends are likely just coming from the initial capital from the sale of the shares in the first place.

However, they aren't. The capital was actually lent out to another mining operation which will either be returned or replaced in the future. The dividends are the interest.

Well then those lending practices are an added risk and may explain why some people believe the shares are worth less than what you think they are worth.

I find BTC-Mining to be highly competent. The entrepreneur makes the business in most cases and I doubt that will not be the case here.

They could be very competent; I can't attest to that. None the less, the lending is an added risk. Perhaps that is being reflected heavily in the share price. Regardless, I'm fairly certain it is not as black and white as you make it out to be.

Indeed, there's the lending risk. But I'm pretty certain the 0.80 BTC price it goes down to is due to a lack of bid, the fact there is no ASICs ordered yet and the fact 0.26 BTC in dividends has been given, so exiting as low as 0.80 might not represent a loss to them, at least from their point of view. (Although it seems to me lower than it could have been sold for.)

I'm basing my judgement on the following affirmations you made here https://bitcointalk.org/index.php?topic=110122.0;all: