I'm not sure if your fees need to be lower, but I wish you would move to a maker-taker structure; people who post limit orders don't pay fees or pay reduced fees compared to people who place market orders. I think you would see it has a great effect on market liquidity.

I currently am sitting at the bid which has been placed at book value.

Don't you find the notion of price appreciation on a fixed face-value bond... non-intuitive?

Hello!

You may know me as Usagi. I ran BMF and what not in the good old days of GLBSE. When GLBSE closed down, a bunch of people decided to blame me for their loss investing in GLBSE. I swore to do the right thing. The first thing I did was go after Brendio. With help from a few community members I retrieved our BITVPS shares. Next, I went after BAKEWELL. I spearheaded the movement to track him down and with the help of people like strello, icebreaker and tradefortress we got Ian's AVALON units redirected to Fenix mining. I say this so you will know I am serious about going after the money and giving it back to my shareholders, to whom it is owed.

Today I will spearhead another movement.

Today we will go after AmazingRando.

Here's BMF's position. We invested 300 bitcoins into BTC-MINING. BTC-MINING was run by Namworld, and was primarily invested into BITBOND, which was run by AmazingRando. AmazingRando decided to take the money and run. Unfortunately, BMF was not directly invested in BITBOND. We may have had ten or twenty shares. And, unfortunately, we sold our stake in BTC-MINING to someone in a liquidation auction quite a few months ago. However, AmazingRando cost us over $6,000 US by his actions, and he owes a lot of people a lot of money. By going after AmazingRando, I will require a commission from all those involved. That is the financial cost that this will require. I will also require a very small amount of money to cover the costs of retrieving the information and serving him. That is what will be required if AmazingRando decides not to contact me.

Now I am going to make this very plain and very simple for AmazingRando. I know who AmazingRando is, I know where he is, I know where his mining farm is (yes, I know it was moved recently), I know about the recent ASIC sales he's done, and I know who the investors in the project are. I would rather resolve this quietly, but let me be frank, I intend to use what I know to get my money back.

BMF's interest in this matter amounts to the US dollar value of the bitcoins we lost at the time we lost them. I think that is VERY fair. I think that is well within AmazingRando's capability to pay without incurring too much pain. We've recovered about $2,000 or so from the liquidation sale IIRC, so our remaining interest amounts to $4,000 US or about 40 bitcoins.

I realize AmazingRando has "issues" and/or "problems". But facts are facts. Money is moving. Units are hashing. Major investors have been paid. ASICS are being bought and sold. But I have been left to die. My money bought AmazingRando's ASICs and I am dying a slow death while he is banking. Well they say knowledge is power, and I just want my money back. I'm not bitter. I just want what is fair for my investors.

Pursuing this matter has been expensive, and it will continue to be expensive. If I am not paid what I am owed, I am capable of spending even more money on this matter, enough to hire the counsel that needs to be hired to go after AmazingRando legally.

I am almost ready to move. I have a lot of information. A lot. I would prefer to resolve this quietly but that will really boil down to the choices AmazingRando and the people he has been working with make over the next thirty days.

AmazingRando and friends, you have until the end of August to contact me. I suggest you use my OTC key to send me an encrypted e-mail at usagi@tsukino.ca so we can discuss what I am owed. And hey, if you can't afford 40 bitcoins, just talk to me, maybe we can make a deal.

Everyone else: Please post here if you were invested in BITBOND or BTC-MINING or if you had a contract with AmazingRando. It's probably important that we speak. Now's your chance.

I consider this thread a success and the matter of BitFunder's BAKEWELL shares closed.... for now.

But Ian, if you're reading this, be very aware that you owe me money and I will hold you liable for the 430 shares of BAKEWELL you stole from BMF investors when you relisted on BTC-TC.

Not to mention the other people you ripped off by running with the shorts & loans you took out. Those matters will not be closed until they are resolved.

Huh, amazing. It worked!

I've never seen that problem before, thanks!

Hmm, odd, I just deposited 1.5995 coins to BMF's deposit address, and they didn't show up after the confirmations -- the confirmation counter just disappeared.

I assume the coins will show up later? I checked my deposit history and it looks like I'm also missing several dividend payments that were sent to my account. They just don't show up on my balance.

Interim Update:

The sale of hotwallet.ca, all code and intellectual property has been completed. I've also been hired on a short term basis to modify the site. The payment for this work will not be very much, probably about the same as was paid for the site.

I have donated the proceeds from this sale to BMF. The NAV has increased by approximately 1.1%.

When the modification work has been completed I will post another update here.

Happy investing!

So why not just launch on BTC-TC and BitFunder right away? You're not gaining anything by waiting for the Havelock tranche to finish?

starsoccer won the auction.

Starsoccer, please send payment of 1.6 BTC to: 1Ms6ofnEVmUp6dQm47wFLwdi9pYDBw1cvu

Please rate me on OTC (nick: usagi). I will rate you there and give you a trust rating here as well.

Send me a PM and we will discuss how you want the feature implemented. I can probably add an escrow feature without much trouble, it sounds like the kind of thing that will not be difficult to do.

Actually another person just asked me these in PM.

1. My KVM is prepaid for another 12 months, i'll let you use hosting on my BitVPS KVM-6 for another 2 or 3 months, after that I'd have to charge you if you want it on my KVM. I'm not really into subletting, it could be done, but there's not really any reason to do it. I don't think it would be really cheaper than running your own KVM-3. Then again you might want to reconsider that, running bitcoind and litecoind is a bit heavy. My KVM-6 eats it up like butter tho. I am guessing a KVM-3 would do you fine though if this is all you're doing with it.

2. The domain has at least a few years on it. Maybe 5.

3. I'm more than willing to spend a couple weeks helping you out on the site, adding a few features, stripping other things down, etc, but anything major would of course require hiring me. By major, if you're thinking of making a just-dice clone that would require a new game and game UI, a chat window, and invest capability. Remember, my original goal here was to help you understand the site and transition it to you. Don't worry I'm not going anywhere, I am not going to leave you with a project you don't understand. Just PM me with what you need.

The package should probably go for at least 9 or 10 BTC. But at this point I just want it out of my hair

Supply and demand. It works the same on the sell side. If you're in a hurry to sell you might have to sell below NAV. If you're in a hurry to buy, i'm sure someone will sell to you, the only question is at what price.

Ahh, so this is a fixed face value bond which is backed by mining assets.

Thank you :>

Some questions. One; please outline the meaning of the word "reserve" in the following passage:
"TAT investments will always reserve a portion of it's bitcoin-denominated holdings... with a market value that is greater than 100% of the face value of our issued debt".
My question revolves around the use of the word reserve without specifying precisely why these funds are reserved. I assume you mean reserve with the intent of consisting of the assets representing the debt or holdings from which the bond will be repaid under a call or redemption order. Or do you mean reserve in the sense that if there is trouble with the actual holdings, said funds will be used as "insurance" for bondholders?

The next issue; you state "Backing equity will be held in publicly verifiable accounts, and a quarterly transparency report will be provided to detail all backing assets. TAT Investments may use bitcoins or any publicly traded bitcoin security assets as backing." I believe this identifies the source of the assets backing these bonds as holdings owned by TAT investments, and not owned by any security TAT investments operates. Just asking.

Third and final issue; if the value of these holdings falls below 100% of the face value of the issued debt, will TAT investments contribute more assets and holdings to ensure the bond's backing, or will this imply a default on the debt? This question revolves around the meaning of default, do you mean the default of a security or the default of an exchange?

Thanks in advance!

BMF Letter to Shareholders
August 1st, 2013


1. July Results and Guidance for August 2013
Our market cap as of today is 146.23 BTC. Our records indicate an expected monthly income of 7.62 BTC based on current holdings. This represents a return on investment of 5.2%.

As a result, we are increasing dividends by 6.7% this month, to 0.00048/share over 30 days. These payments have been scheduled in advance. The total is 1.15 BTC, which will leave us approximately 6.47 BTC to reinvest.

Our book value is currently 0.3107. We have experienced a decline recently due to negative performance in ActiveMining; over the course of a week it has gone from 0.0025 to 0.0095, to 0.0038 and back up. Our investment in ActiveMining is currently 9.16% of the fund, so it may continue to have a significant impact on our book value going forward.


2. Management Fees
The management fees of 5% (0.381 BTC) have been donated back to the company in order to strengthen the share price. Management doesn't feel that it is appropriate to take management fees until our book value is above our IPO price of 0.036.


3. Investment Targets
We believe that there are no legitimate investments with a predictable ROI greater than the 5.2% which we currently enjoy.

There is also the complication of our deprecating and wildly volatile mining assets. TAT.VIRTUALMINE and DMS.MINING have fallen by over 60% since our IPO on June 13th, and our recent investment into ACTIVEMINING has been shown to be a short-term mistake. This has had a significant negative impact on our share price (we have fallen from 0.036 on June 13th, 2013 to 0.031 today).

Due to these issues we will continue to reinvest in face-value assets (preferably mining-related, such as FIMB) during August. Most importantly, we will pursue a share repurchase program.


4. Share Repurchase Program
Today BMF faces several challenges on the road to success. Management speculates these challenges have led investors to undervalue BMF by a significant margin. In order to turn this situation to our advantage, Management has decided to repurchase a limited number of company shares in August. It goes without saying that as a result, no new shares will be sold into the market for the duration of August.

To implement this buyback program we have placed bids at (and slightly above) our NAV in order to defend the share price and show our committment to investors. I had originally intended to offer a repurchase at up to 20% of NAV, but after some investors showed concern on our discussion thread I will limit bids to 5% above NAV for now. Based on an expected income of 6.5 BTC per month, we will attempt to repurchase between 100 and 200 shares in this way. We feel this will have several positive effects:

o Shareholders will be protected from panic-selling;
   -- if someone panics and sells, they will get a fair price
   -- if someone needs to sell for other reasons, they will not be forced to sell at a loss
o LTC-GLOBAL moderators will have more evidence we are "trustworthy".
   -- We're not sure why so many of them voted "no" or are abstaining, but actions like this should help them realize they should have voted YES a lot sooner.
o Other investors will take this as a sign of strength.
   -- investors may be willing to pay more for BMF if they think it's a stronger company.
o We expect to gain value on a per-share basis by reducing the number of outstanding shares.
   -- we will attempt to maintain the market cap at or above 150 BTC.


5. Response to LTC-GLOBAL moderators' NO and ABSTAIN votes.
Two of the LTC-GLOBAL moderators who had voted YES to get us listed have changed their votes to ABSTAIN without any explanation. There are now five ABSTAIN votes for BMF, and three NO votes.

We remind the LTC-GLOBAL moderators that it is no longer their job to approve or disapprove of our listing on BTC-TC. It is their job to offer guidance on how well are keeping the Asset Issuer Terms of Service, in particular how well we live up to our a fiduciary responsibility to the shareholders. In that respect, negative votes which do not offer constructive criticism are not just useless, they're negligent. If you are a LTC-GLOBAL moderator, please recognize your responsibility and take the time to do your job properly. BMF places a huge value on comments from our shareholders and from LTC-GLOBAL moderators, and it's very frustrating to see the people who are our gatekeepers act this way. You've voted YES to this company and this contract -- now it's time to work together to make BTC-TC a better place. If there's some deficiency in how we are fulfilling our contract, it is your responsibility to point it out so that we may fix the problem.


6. Upcoming Interviews & Analysis
BadBitcoin (James Sutton) has not returned his interview yet. We have therefore scheduled interviews with three other companies which we hope to complete this month.
During the time where we are not preparing interviews, we will take the time to perform detailed analysis of various companies on BitFunder BTC-TC, and we will post these to our disclosure page (http://tsukino.ca/bmf).


7. Usagi's health problems
For those of you who did not know, I was admitted to the hospital for surgery on July 13th and was discharged on the 18th.

This is related to my prior hospitalization in October 2012 for several weeks after GLBSE closed -- it's my kidney stones. I feel weak and a bit loopy due to the medication. I will continue the medication until approximately August 6th. I apologize for not being my usual self and for taking a bit longer to get things done. I don't believe the fund has suffered as a result of this problem, but for the record I don't anticipate any further problems of this nature. To health and long life!


8. Request for Comments
Are you a shareholder? Do you like how we've been doing so far? Do you have a suggestion?

Tell us!

Our shareholders are very important to us. Please e-mail comments and questions to usagi at usagi@tsukino.ca. Yes, your voice counts. We respond to all shareholder inquiries and often take serious steps to change things based on shareholder requests. For example, just recently we completely re-did our Holdings & NAV spreadsheet to use a script that automatically pulls values and balances from BTC-TC. This was done because of a chat we had on IRC with one of our shareholders.

Good communication is important. One thing a BMF invetsor will never tell you is that it was difficult to contact management with an issue or to resolve a complaint. So if you have any problems with BMF please let us know so we can take steps to solve your problem, We are here to serve you!

Happy investing!

Confirmed.

Remember, the auction closes on August 1st. That means there are around 27 hours and change left to bid!

I am the fund manager, I am making the call, and I am willing to accept responsibility for my decisions. I'm willing to explain to you why I am doing what I am doing. I'm even willing to listen to a valid argument or a better solution if you have one.

But all I am getting from you here is that you are oblivious to what's going on. You said "If you want to do things fair... they should get LESS money now than they would get later..." but I've already said that's what we will do. I said, "I've calculated what I believe is a fair P/E ratio for my company and I am buying back shares at or below that ratio." This goes all the way back to the post where I gave the examples featuring Company A. When you keep raising issues like this it looks like you haven't even read what I wrote. It's actually a little disrespectful. You should put some effort into it before accusing me or assuming I haven't thought things through properly.

I'm not. In the example, the company had 1000 BTC, made 100, and spent 110. The market cap was then 990 BTC, as stated above (1000+100-110 = 990).

I don't see a problem with that though.

Continuing with the previous example, if the company never reinvests it's 20 BTC a month income, that income will start to become worth less and less on a percentage basis. The first month 2%, the next 1.96%. Then 1.92%. After just five months we're already down to 1.82% -- lower than the payment made in the first month of a repurchase program. So clearly it's bad management to simply hold the BTC. This thought experiment shows us we need to reinvest at least some of the money if we would like to maintain a stable NAV and dividend payment program. The question is, invest where? If we can't find anything that pays a stable 2% per month, there's no shame in repurchasing company shares. Doing the math again, after 5 months let's say the company has made 100 BTC and repurchased 100 shares at 1.1 BTC/share. They would have 990 BTC market cap and 900 shares. This would be a gain of 10% per share. The best part however is that the 20 BTC is no longer a 2% gain but something slightly more. In this case it's clear that reinvesting into the company is very much better than just sitting on the money.

Of course I'm not suggesting the best strategy is always to repurchase company shares. In BMF's case in particular, if I could find an investment that pays more than what we make it would be wise to invest in that instead of repurchasing shares. And I do in fact invest in a wide variety of assets -- most recently I picked up a few more shares of B.YABMC, and another few hundred shares of ACTIVEMINING. We've also bought some LTC in order to get more LTC.MINER and support our friends in the Litecoin community. So we invest in other assets all the time; I just happen to feel that the market has undervalued BMF and that buying a few "shares of opportunity" here and there will increase the long-term profitability of the fund. Again I will point out that there are plenty of market participants who are willing to place bids above what I have placed from the company. I'd actually prefer people sold into my bids but they're not doing that.