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Things may be on hold for a while. You can msg me directly if you have questions.

Why is it called hydro mining?

Hydro as he's using cheap hydropower ?

what price are the shares going to be?
How many are going to be issued?
what happens if you no longer want to offer this buyback rates etc?
Or if your equipment blows up etc?

are you using hydro power?

0.0208 of what per kWh exactly? USD? EUR? BTC?

Is this a bond or a share? If it's a bond, we don't really care what your power costs you. It makes no difference to payouts as these are calculated according to a formula for the PPS expected output. Your costs are included in the price you offer the bonds for. And the hardware is yours. Bondholders have no claim. But if it breaks down, the issuer is liable for replacing it.

For a share offer, power costs do matter as they are expenses of the company. Shareholders generally have a claim over assets in liquidation and are liable for expenses in replacing faulty hardware not covered by warranty.

Do a bit more research of the current offerings and what terms they have and work out which category you fit in.

+1

It is a bond like stated above. The power costs may not seem to matter, but  if I could no longer afford to mine because of high power costs it would matter. I would not invest with someone who had low profit margins with the block reward dropping to 25 soon.

That's why I used the name..

Are you generating the hydro power? If not, how are you sourcing your power?

Ok. Thanks.

As mentioned, if its a bond we don't care about your electricity price. If it becomes unprofitable to mine, most bonds will buy back the shares at a higher price.

Anyways I'm interested, mainly due to it being hydropowered. Is there a buy-back clause, and when do you plan to open the IPO?

+1

I guess we can agree to disagree on that.  I've looked at a lot of the mining bonds. I have not seen anyone with a guaranteed buyback price.
I'm not in a hurry, I wanted to get some feedback first. Maybe a week or two. I would not have a buy-back clause just what's listed above.

Nearly every mining bond out there has a clause similar to "Buying back for 110% of higherst trade in the last 5 days" or so. You seem to be wanting to offer a share in your mining operation instead...

I'm very interested.  Will keep an eye out for the IPO.

Same here. However, I think that there are a couple of rough spots in your presentation.

Ya, I was filling out the GLBSE forms this morning and needed a link for bitcointalk. Figured I would get a chance to work on it before anyone posted..

sounds good

I thought I already had listed the buyback price earlier. It's up there now. Most bonds can be repurchased buy the issuer. I don't see how they could guarantee a price at liquidation though.

Most mining bonds are perpetual mining bonds (they last forever). The only way the bond can be cancelled is by the issuer buying back, there is no liquidation as the bond holders don't own any assets, so it is a guaranteed price.

Please give 2 example payout calculations, one with a week without difficulty changes and another one with a difficulty change during the week.

I'm currently evaluating mining bonds to conformity to their claimed payout rate and these things can become interesting to say the least...

Good question, I want to hear (read) the answer.

What's their Ticker symbol on GLBSE? or price?

read the forum thread

It sounds like a person who is trusted is setting up a account for someone anonymous, but taking no responsibility for the account. The anonymous person claims to have enough liquid cash to cover all the bonds. Instead of using his money, he's paying to borrow it. The only price listed, was the same as me charging 2.5-3.0 btc. If they do default on the bonds the only person you can go after is the anonymous guy. If hes already risking his money, why borrow it at all?

Low power mining operations are definitely lower risk and you have a cool name, I'm in!

 
I got the impression the anonymous investor is responsible for buying back bonds in liquidation, which would take responsibility off the manager..

Exactly!  A bond is essentially a loan.  Even if you trust the issuer to continue paying even if the venture is losing money, there is much less default risk if the venture is profiting well.


How?  Is that a commercial rate?


Will this be a corporation, LLC, or sole proprietorship? 

Looking forward to the details, like how much capacity, what type of mining equipment and facility, your qualifications, etc.

Can the equipment be commercially insured against theft (& fire)?

This may add cost, but I think that it would increase investor confidence, so you should do it.

I've been meaning to do it for myself as well. It's not very much to cover against that. I will see about getting it done before I sell any bonds.

I have made a update regarding the ASIC announcement. I set the bond price at 1.73 btc.

If you like to make this bond even remotely interesting, fix part of the coupon and let part of it float, based on Mh/s.
Make it even more serious, add a fixed price and the date, when your bonds mature aka date and price you buy back all the bonds.
This is how bonds are usually issued. This perpetual garbage, with floating call price and what not, has to die :)

If you really want to issue a proper perpetual bond, fix the call price and set a reasonable call protection (date before bonds can not be called).

Let me ask this. Will you lend me money on similar terms like this perpetual garbage that floats around in GLBSE? Something like this: I'll pay you a part of what ever I can earn from the money you gave me and I'll pay you back the loan when it has become worthless (coupon payments are close to 0 an nobody wants to hold the bond any more)? Pay pack the loan when? Oh, when ever I feel like :)
Will you lend me money on those terms?

BTW, In case of liquidation, bond owners come fist and you have to pay them before stock holders get anything. This also means you have to buy back all the bonds. Debt (bond, perpetual or not) must be taken care of first.

It's impossible to know what the profits will be from a single. I've set the price to be as fixed as possible.


Yes, I just had $2,500 in GBLSE before I purchased my last order of singles. It's impossible to know if mining will be profitable in the long run. Bond holders are taking the same risk as normal miners. If you want a guaranteed buy back date and price they have US Savings bonds with 2.2% yearly interest.

Why are you telling me this? Stop TROLLING everyone's security threads. Get a life dude.

Payments issued.

Payments issued 7-8

0.197 BTC per Mh/s with free ASIC upgrade, good deal.

Payments issued 7-15

This week's payment?

Payments sent.

Received, thanks.

In an ideal world, what I (and I suspect many others) are looking for in mining assets is something very much like this, but as a share rather than a bond.
IPO it, set it so that half the mining proceeds (less the cost of your cheap power + 5% or so for yourself) get paid out as dividends and the rest get spent on new hardware for the company. You'd end up with quite a large hashrate quite quickly. I'd certainly be happy to invest  :D

There's no reason why you couldn't do a second IPO  ;)

You can always reinvest your dividends. If you reinvested half your dividends you should end up with nearly the same result. 

Payments Issued 8-5

Is there something unclear about the announcement that would lead to uncertainty or are these currently undervalued compared to GIGAMINING or BITBONDS?

GIGAMINING    - 1.13 - .226
BITBONDS        - 0.45 - .214
HYDRO.BONDS  - 1.335 - .1335

Some of the older more popular bonds are being overvalued.  It's hard to believe bonds invested in gpu's would hold a value that high with ASIC's coming out.

So you are offering free upgrade to 215Mh/s per bond, right?

That's 1.325/215Mh/s ~ 0.006BTC per 1Mh/s after upgrade. That's about two times cheaper than what Bitbond offers. What's the catch?

That's an easy one, bitbond & gigamining are making a profit from the transition to asics, he's not.

(disclosure, I own some hydromining bonds)

This bond is only invested in butterfly singles. The bonds you are talking about are invested in gpu equipment. It's a whole different situation for them.

Thanks for pointing this out. I got to the bitcoin game a bit late, there is a lot to catch up!

Dividends?

If the announced increase in hashrate of the butterfly SC singles does pan out (60GH versus 40 GH) will the bonds get the extra increase included in their hash rate? Would it work out to something like 320MH per bond. Also what's you SC upgrade order number?
-A happy Hydrobond holder.

There is no such thing as a happy BOND holder...

Yeah, I'm surprised there has been no increase in the price of this bond... guess it's time to get some more on the cheap :D