Both me and Ukyo have very little amount spare time at the moment same with Friedcat.
We will do our best to hurry up the transit.
Sorry about these delays.
//DeaDTerra

Hi!
We have now finalized the deal with HashFast.
The impact on the public investors is as follows:

1. The third batch does not need to be sold for the IPO to be deemed a success. This is due to that HashFast has changed the minimum amount of capital we need to bring them. Instead the more of batch three we sell the larger amount of Hashing power we can acquire. Please note that each share will still have the same initial hashing power (10 Mhash) independent on the amount we manage to raise in batch three.

2, There is a price change which will be absorbed by the private investors. Once we know how many shares we have sold and hence the hashing power the farm will have, the private vs public share ratio will be released. Please note that it will be under or equal to the current 60/40. (Please note that this is the same as for the discounts for the bulk purchases, as we maintain the hashing power per share of the public shares we will have to issue less private shares to pay for these discounts)

3, The amount of shares sold will be floating, with a maximum of 36.636 Million shares and a minimum of the current 17 million. The percent ownership of the profits will be adjusted so that each share is worth the capacity of 10 mhash at startup, please note that this percentage can only go up and not down. Hence it can not go below the current 1/50,000,000.

We think that these changes should not affect the attractiveness of the public shares and we have tried to keep the promises made as much as possible. In the cases where we could not we have tried to make it a neutral or positive change for the public investors.

//DeaDTerra

Noted, bid changed to 0.001414.
//DeaDTerra

Hi!
We have decided to leave the option open for anyone unhappy with the current situation to opt out of the operation.
Please note that we have not changed the contract or diluted any shares nor do we plan to.
Any changes will be made in favor of public shareholder and any costs with the new deal will be absorbed by private share holders.
We are now posting a bid at 0.0014 BTC anyone who wants out may accept it. (right now it is 252 BTC, we will deposit more BTC if needed)
//DeaDTerra

Please be patient.
We have not diluted any shares, we have not made any changes to the contract or the IPO.
We will answer your questions as soon as we can with an FAQ
//DeaDTerra

11 Million shares will be distributed once the deal is done with HashFast. (probably within 24 hours). Currently they are in my account correct.
These will go to the bulk purchase individuals.
//DeadTerra

Batch one has been sold out.
Batch two has been put up for sale.

//DeaDTerra

Hi all, just to be clear:
Any negotiations that we enter into with Hashfast on behalf of investors will go directly toward the benefit of our investors.
Amendments made to the IPO document, if any, would be to add options for our investors on the subsequent tranches (beyond the 1st). This will go directly toward a redefinition of their successful completion, which is currently all-or-nothing. This could be done by optionally allowing for a lower amount than the full investment amount required (as stated) to bring at least the majority of the enterprise-level machines that have been earmarked for the IceDrill into play, on a pro-rated payment basis. The documentation of the (optional) amendment is currently undergoing legal scrutiny (yes, Hashfast works weekends) and we'll take everything said here under advisement, before changing anything.

//DeaDTerra

'
IceDrill.ASIC gets chips from the first batch, the same one that will be used to produce babyjets.
We will not be receiving babyjets, we will have the chips set into racks to fit into our datacenter.
The reason why we state Novemeber is because we are unsure on how long time it will take for the chips to reach us and how long it will take for us to assemble them. Hence we prefer a conservative date.
//DeaDTerra

Hi!
We are currently renegotiating the deal with HashFast as it looks like we might not be hitting our goal (though there are still 12 hours left).
At the moment it looks like we will be able to move forward without the full amount, with some changes in the deal.
We will still uphold the commitments made to the investors, we will scale down on the mine but the shares will still be worth 10 mhash each at startup.
The exact details of the deal and what it means for the IPO will be posted in an announcement later.

First and foremost, I would like to remind everyone that this is not a traditional IPO. These are not traditional securities nor voting shares of the company. Having said that, we respect the rules set by securities regulators because they are very important to mitigate conflict of interest and protect interests of  investors. The self-governance spirit of BitCoin is observed and practiced by DigiMex.

In terms of investment process in the traditional sense, I would highly recommend everyone to read this on wiki to learn more about private equity investments.

http://en.wikipedia.org/wiki/Private_equity

In general, when you want to start a company and you need funding, there are several ways to do it. One way is to approach ‘private equity’ investors. These investors are the ones that believe in you at the earliest phase of the business. Sometimes, they are called cornerstone investors because they provide the chunk of capital that you need to start your business. Because they believe in your ability and your integrity, they are willing to take on the risk by investing early. Their trust is also rewarded by a higher rate of return on investment if the company succeeds. That would only seem fair to those early investors.

Before DigiMex was formed, much time was spent to gather a critical amount of capital in order to make ourselves relevant enough to negotiate with Hashfast (our supplier). We needed financial commitments from private investors and founders to make it happen.

Were their shares cheaper than the IPO price? Yes, we gave slight discounts for bulk purchases.

Would they be subject to management fees? No, IPO management fees (as previously stated) is nil, this applies to both public and private shares.  The private shares’ return on this project is via dividend payouts of the farm AFTER the IPO shareholders have been paid 0.0016 BTC.

Was there insider knowledge? No and they don’t need to. They know that we are trustworthy individuals with the right abilities to execute this project AND they know we have a good relationship with HashFast.

These private investors are people who wants to buy public shares in bulk and do not wish to disclose their identity, hence private not public. A better wording would have been anonymous or undisclosed investors.
These are not to be confused with the privately held shares (the 40%).
If we could and wished to lower the limit of fund raising we simply would announce a change in the batches, as we are allowed to.
There would be no need to claim to have anonymous investors, it makes no sense.
We are looking to announce the wallet holding the funds for IceDrill.ASIC so that you can transparently see as funds are being moved into it.
//DeaDTerra

It was a slight miscalculation from my part.
The amount issued and amount available on the market is still the same
//DeaDTerra

Hi!
6750 Bitcoins has been brought in through bulk purchases of public shares by private investors.
This means we are one step closer to reaching the 20k BTC.
6 million shares need to be sold additionally for the IPO to reach the first goal.
//DeaDTerra

Thank you very much
Some new announcements has gone out.
We have answered another Q and A.
We have also added a public investor protection clause similar to the one ASICMINER had in their IPO.
More announcements to come so stay tuned.
//DeaDTerra

New clause added for the benefit of public investors.

Q:
It would be better if the shares had a clause where the floated shares break even first. The founders and private investors get no profit until BitFunder investors break even.
https://bitcointalk.org/index.php?topic=269216.msg2889307#msg2889307

A:

Thanks for the feedback. After negotiations with the founders and private investors, they have unanimously agreed to amend the IPO to include this clause. Everyone believes that it is in the best interest for all parties involved.
Benefits:
No dividends will be paid to the holders of private shares until holders of public shares have received an accumulated dividend of 0.0016 BitCoin per share. After which, proceeds from mining will be distributed proportionally such that there would be no difference between floating shares or private shares.
Private shares can be converted into floating shares after all public shares have received an accumulated dividend of 0.0016 BitCoin per share.

Please note the IPO wording will be amended to include this clause and clearly marked as such.

FAQ #2 is now added to the original FAQ
https://bitcointalk.org/index.php?topic=269216.msg2884487#msg2884487
FAQ # 2

Q1:
A:
Asked and answered @ https://bitcointalk.org/index.php?topic=269216.msg2884487#msg2884487
see question 5
“We will be looking to setup PTs or similar services on other exchanges so that you may use the service of your choice. Due to the due-diligence work required to get this up & running and time constraints, please do not expect for it to happen for this 1st batch (due date 12 August).”

That said, we may be able to start listing PTs at other funding platforms for this round. We’ll announce it when it happens.

---

Q2:
A:
See the Last Paragraph of IPO documentation:
“However, the operators (PetaMex in this case) retains the right to stop Digimex operations if it becomes operationally unprofitable. At that point, this agreement will automatically be terminated.”

---

Q3:
A:
We have a very attractive and flexible agreement that we have signed with HF. This would allow us to purchase chips for upgrades in the most cost effective manner.

---

Q4:
A:
We received confirmation from Ukyo (bitfunder founder) that buyers pay zero fees @ IPO:
These were his words:
“Buyers (currently) don't pay any fees to buy shares, only sellers pay a fee (standard on BitFunder)”.

---

Q5:
A:
Please note that you are buying a share of profit of the farm. So, the operational costs need to be deducted before any dividends are distributed or reserves are taken out. The farm will have 500 Tera Hash and there would be a total of 50 million bonds (30 million float and 20 million private).

---

We are aware that not all of the current outstanding questions have been answered. The answers to these will be forthcoming in the next Q&A installment as they are being finalized. We implore you to please keep your questions clear, concise and to the point as it will ensure a quicker turnaround. Direct links to these Q&As will be included in the initial post to ease navigation for newcomers and act as an FAQ reference.

---

Q:
It would be better if the shares had a clause where the floated shares break even first. The founders and private investors get no profit until BitFunder investors break even.
https://bitcointalk.org/index.php?topic=269216.msg2889307#msg2889307

A:

Thanks for the feedback. After negotiations with the founders and private investors, they have unanimously agreed to amend the IPO to include this clause. Everyone believes that it is in the best interest for all parties involved.
Benefits:
No dividends will be paid to the holders of private shares until holders of public shares have received an accumulated dividend of 0.0016 BitCoin per share. After which, proceeds from mining will be distributed proportionally such that there would be no difference between floating shares or private shares.
Private shares can be converted into floating shares after all public shares have received an accumulated dividend of 0.0016 BitCoin per share.

Please note the IPO wording will be amended to include this clause and clearly marked as such.

We are working on improving the FAQ and clarifying some of the misunderstandings.
We are also looking to take your feedback and adjust the IPO to the investors demand
//DeaDTerra

Q:
What is the 40% “management fee” all about?

A:
The remaining 40% is not a management fee. The 40% has been pre-allocated to the founders and private investors the amount or exact details, for confidentiality reasons, cannot be disclosed.  If these private investors choose to resell their 40% stake into the market, DigiMex retains the full right to help facilitate this secondary placement into the public market.

---

Q:
What does it mean that you are reinvesting 25%. Does that mean that we only get 75 % out of the 60% of the profit of the company?

A:
“The holder of the asset has the right to the full profit of any hardware purchased with these reinvestments”
100% of the farm belongs to investors (total capacity of 500 Tera Hash). 60% of profit is being offered by IPO but the other 40% will be sold as well (either IPO or private sale). You can think of this as a hosted service. DigiMex mostly acts as a pass-through by collecting bitcoin by mining and then pass them to investors. However, just like other mines, we need to keep upgrading our hardware. So, for every 100 BitCoin that we mine (with the ENTIRE mine capacity going forward, not only 300Th), minus cost (say 10), we would distribute 67.5 to shareholders and keep 22.5 to expand the mining capacity of the mine. All new equipment will belong to the investors.

Further, to clarify: phrasing like "equates to X BTC/Gh/s" in the IPO is simply for reference purposes to investors as the comparative market standard is to quote bitcoin mining equipment prices in $/Gh/s or BTC/Gh/s.

The reason why we opted for this solution is that we realize that the mining market evolves and changes and we need to have a business plan which takes that into account. Reinvesting mining profit will allow us to purchase new equipment and technology as ASIC bitcoin mining technology improves over time.

---

Q:
When is the next date at which valuation will deviate from 0.0014 / be out of IPO?
In other words how much time does everyone in the world have to get in on the IPO?

A:
This will happen once the initial batch has sold. The deadlines that needs to be meet are 12 August, 25 August and 4 November for the respective batches.

---

Q:
buyback clause of 1.2x is risky for investors... they can make a lot of coin (off the INITIAL investment of OTHERS) then just buy all the shares back at a small premium before announcing huge investments that they will only keep to themselves. this should be taken out- the forced buyback clause.
A:
Agreed. We are changing the IPO to say  
“in the event of a sale of the farm, the profit made will be split proportionally amongst the asset owners”

For reference: The original IPO document stated “The Issuer has the right to buy back, at any time, all shares issued, for 1.2x the price of the previous 7 day average market price (determined by the data provided by bitfunder.com).”

---

Q:
Will you list the asset on other exchanges such as X,Y,Z

A:
We will be looking to setup PTs or similar services on other exchanges so that you may use the service of your choice. Due to the due-diligence work required to get this up & running and time constraints, please do not expect for it to happen for this 1st batch (due date 12 August).

---

Q:
Didn't DeadTerra just step down as a passthrough because it was too much effort for him to be a middle man (and press a few buttons)... now he is fronting a $15 million IPO?  

A:
What did you think kept me busy ^^
This project has taken up a lot of my time in the last couple of months but because I really believe in it, I have stepped down on my other responsibilities to focus on this project.

---

Q:
The IPO was clearly rushed to the scene and the numbers make no sense.

A:
The reason why this IPO seems a bit rushed is because of financial and deadline terms that we have agreed with different parties involved. We are happy to take feedback from the community and improve on the IPO information as we are doing with this Q&A.

---

Q:
Have HashFast said they will only sell chips to IceDrill ?

A:
We have a deal with HashFast that guarantees that we will get the chips from the first batch produced.
Once the chips are off from the fab they will be sent straight to us for assembly.

---

Q:
Spreadsheet scenarios aren’t realistic.

A:
We have amended our scenario analysis with new parameters. Again, you are free to do your own modelling. Our spreadsheet is meant to be a tool for reference and for you to try your own assumptions.

The scenario starts at 110m difficulty in early November 2013 and grows at ~17% with spot @ $100. Please note these numbers do not take into account operating costs and reinvestment into capacity expansion. Please also note that the default input parameters will become stale over time. We will not be updating the defaults on every difficulty change. The information provided in the tool is provided as-is with no guarantees.

New Link:
IceDrill.ASIC Profit Scenario v0.2
https://docs.google.com/spreadsheet/ccc?key=0ApavGWiMvgTXdFdPQmtCaTctZ1ctYVFkUEtIVXNTV0E&usp=sharing

We’ve left the old link up, unedited for reference, and we’ll point the IPO information to the new document to avoid further confusion.
Old Link:
https://docs.google.com/spreadsheet/ccc?key=0AqOET6CrjiUodFIxN1Q0Q2FVT0VsalhOcVhfTmhJRmc&usp=sharing

The original document stated “Estimates or speculation of potential return can be found here:”, we’ll change the wording to “Basic spreadsheet/tool for general bitcoin mining profitability calculations”.

---

Q:
Is Fasthash the same as Hashfast?

A:
No, please see Hashfast’s website here:

http://hashfast.com/

FAQ # 2

Q1:
A:
Asked and answered @ https://bitcointalk.org/index.php?topic=269216.msg2884487#msg2884487
see question 5
“We will be looking to setup PTs or similar services on other exchanges so that you may use the service of your choice. Due to the due-diligence work required to get this up & running and time constraints, please do not expect for it to happen for this 1st batch (due date 12 August).”

That said, we may be able to start listing PTs at other funding platforms for this round. We’ll announce it when it happens.

---

Q2:
A:
See the Last Paragraph of IPO documentation:
“However, the operators (PetaMex in this case) retains the right to stop Digimex operations if it becomes operationally unprofitable. At that point, this agreement will automatically be terminated.”

---

Q3:
A:
We have a very attractive and flexible agreement that we have signed with HF. This would allow us to purchase chips for upgrades in the most cost effective manner.

---

Q4:
A:
We received confirmation from Ukyo (bitfunder founder) that buyers pay zero fees @ IPO:
These were his words:
“Buyers (currently) don't pay any fees to buy shares, only sellers pay a fee (standard on BitFunder)”.

---

Q5:
A:
Please note that you are buying a share of profit of the farm. So, the operational costs need to be deducted before any dividends are distributed or reserves are taken out. The farm will have 500 Tera Hash and there would be a total of 50 million bonds (30 million float and 20 million private).

---

We are aware that not all of the current outstanding questions have been answered. The answers to these will be forthcoming in the next Q&A installment as they are being finalized. We implore you to please keep your questions clear, concise and to the point as it will ensure a quicker turnaround. Direct links to these Q&As will be included in the initial post to ease navigation for newcomers and act as an FAQ reference.

An FAQ is being prepared to answer all the questions which have been asked when I was sleeping
Be patient.
//DeaDTerra