How will the increased production affect dividend payouts?

October is on pace to be far and away our best month ever.  Through the first 12 days of the month, we have produced 73.96 BTC.  Given the near certainty of another drop in difficulty, we should have our first 200+ BTC month.  

If we feel that this is a sustainable pace, we will be increasing our dividend payout.



We would like to begin lining up investors for our second round of share sales.  We sold roughly 10% of the company in our first round, and would like to sell the same amount this time.  If you are interested, please contact us either through the forum, or Bitcorpmining@gmail.com.

Thanks!

I believe it's his shares being sold off, so he'll be getting less of the dividend.

You're doubling the number of available shares. Will the dividend payout be halved or will you be doubling production?

OBO,

Don't need them.  Need to sell. 

Im curious why you'd do this? Whether you get the BTC revenue from mining or someone renting the farm, i dont quite see the point? Unless you have a small pool, with 9GH you wouldnt see a lot of variability over the course of a month...

BTW, however got that 30 day contract probably did a good deal as difficulty is about to drop quite a bit.

I believe that i was the first person to state early in this thread that i wished to be an investor/angel & I ebay messaged the OP & had a positive reply re my 1,000+ positive feedbacks there over 10 years+ but did not receive any offer to invest in this venture or even polite notifications of why i may have been overlooked so as to at least keep me on board as a potential future backer, weird...

Edit: I didn't post my offer on the thread - just ebay messaged i see, same day as original post, early on

Why would anyone invest in someone who replies so veraciously to direct questions?

People are asking you direct questions and questioning aspects of your business for a reason. This is what investors do prior to investing. When people are gambling their own money they have a right to know what the stakes are.

FFS.

Seriously, learn about shares. Learn about valuations. Maybe attend a business course or something, or even read a book about business. Maybe consider taking a course on communication skills too while you are at it.

You've had a lot of good advice in this thread. I suggest you might consider taking some of it.

You might not be a scammer, but you have a terrible approach to business.

Good luck.

Hi week 20-27th ends today. How I can buy next week?
Regards,
Saykor

Why should I invest into that then? If you can not make back most of my money before the next risk cfactors hit (which are the 7xxx series and the drop in payout) then why should I invest?

Seriously, 15% isa good yield for a B style bond or a viable long term business perspectiv, but this is missing here - you will run into significant depreciations left and right and your mid termfinancial credibility is bad to start with. This is not a gold mine where gold will still guaranteed to bein demand in 20 years. I would expect the hardware cost to be recouped in a year or... the risk is too high.

Pardon my french, but this has got to be one of the stupidest investments I've seen. An investor ponies up 8 BTC for the chance (and I'd say a very low chance) of getting 1.2 BTC back in a years time? Idiotic. I'd be happy to offer double that return to anyone with BTC they want to get rid of invest.

This is going to sound like a copout but I don't know.    The issue may be that for me any return high enough to warrant the risk makes the business plan nonviable.  I believe this is currently freezing up a lot of capital in bitcoin economy.  

Still if I had to guess lets compare it to me buying another mininig rig.

If I were to build a new miner.  Say 4x 5970s, 1500W powersupply, cheap MB, CPU, RAM usb drive running linuxcoin, open frame rig ... ballpark.  2.8GH costing $2800.   After electrical costs ($0.10 per kWh) I would net at current difficulty & price 30BTC or $150 a month giving me a monthly return of 5%.

So I could buy shares from you returning 1.25% per month or buy my own rig returning 5% a month.  Now obviously difficult may increase and/or price may drop but if it does it will affect my profitability equally if I own a rig or own shares so for now lets just assume the difficult/price relationship remains solid.

Now there are some difference between me owning/running my own rig and owning shares.
1) w/ shares I don't need to do anything.  
2) w/ shares I don't need to devote space/heat/noise to the venture.
3) w/ owning a rig I have material ownership of the assets (I can sell parts on ebay for partial return if things go south)
4) w/ owning a rig I have no risk of fraud.

Honestly I don't think the pros of shares outweigh risk of shares but lets say an investor considers them equivalent that would put fair return @ 60% annually.  The company wouldn't need to pay all of that as a dividend as long as it has a plan to build out capacity but I would want to see at least half that as a dividend.  

So 30% would be the minimum for me (personally) to consider it.  Given the higher risk I think it would take a return of 40%-50% before I would consider it.  

I wasn't confused about that.  Just to be clear A 15% annual return is insufficient for the risk of the deal.  Paying out dividends in the short term doesn't materially mitigate risk.  If the company/deal folded after a say a year 85% (instead of 100%) of capital would still be lost.    No doubt you will get some people to sign up but they are being under-compensated for the risk they are taking.  

My comparison to Angel investor of VC is accurate.  I mean you aren't a "blue chip" mining corporation with a lock of low cost way of mining and paying a solid low risk dividend.  It is a startup in the venture capital phase.  Adding a dividend doesn't reduce the risk.  Total return adjusted for risk is all that matters.   Nobody investing in something this high risk needs the cashflow that a regular dividend provides but they do want to be compensated for the risk of losing their investment.   15% is simply insufficient even for a "normal" company startup.    Combine that with the anonymous & irreversible nature of bitcoin and the inability for anyone to do any true Due Diligence you are just behing dishonest with yourself if you can't see the VC comparison as valid.

I like what you are trying to do but a good idea at the wrong price is still a bad deal.

Wildly successful IPOs happen when there's a market-changing product/service. Google took over the world of search. Groupon started a new trend in advertising.

I don't see how mining bitcoins is going to become wildly successful. You might make some small profit here and there, but there's not much that will be able to change your output massively, at least not in a positive way. Sure, you can buy more rigs, but it's still going to be very slow and steady. There is no critical mass, unless you're going for the 51% or writing your own mining code. Small potential for appreciation, high risk, low return.

ETA: risk/appreciation/return etc

JohnJ brings up some good points.

A 15% return is not an acceptable risk to reward ratio for an investment with this level of risk.

Average return on an angel investor or venture capital deal is usually >200% over 3-4 year incubation period.  No VC don't achieve those kinds of returns because ... most deals fail.  The few deals which are highly profitable offset the majority of deals which are a total loss.

A 15% return simply doesn't justify the risk of capital especially for a first round offering from an unknown entity.

At current rewards/hardware, it'd take 6.6yrs to recoup the initial investment.  During these 6.6yrs, the mining reward is expected to half itself twice.  The main 'oomph' from the next-gen 7x AMD is a massive reduction in power consumption, with little predicted mh/s increase.  But as your power is already not included, the next-gen hardware upgrades won't increase yield (as much).

If transaction fees -don't- recoup the lost mining rewards, after 1 yr my expected break-even time becomes 11.2yrs. 5yrs into that it halves again, leaving me still at ~12yrs.

All this based on an idea (Bitcoin) which hasn't been around along as the initial investment return period.

I'm not fancy at math or nothin, but I don't see how I this current proposal would be a good investment.  Maybe I'll end up with egg on my face, who knows.