Why would we give away the company like that?  If we are going to pay a 150% yield, we will keep the shares to ourselves. 

Strange people who come out to comment indeed. 

It is a concern, but we (like many people), are hoping that transaction fees will make up some of the shortfall.

Also, we hope to have expanded the operation enough to offset some of the 50% drop in rewards. 

How is it sleazy at all?  I have a 5 year lease agreement that very clearly lays out what is allowed.  We are absolutely in compliance with that agreement.
 
I love how people just assume to know everything. 

We are already solvent, so I am not sure what your question is.  Are you asking how long it will take us to pay off our capital investment? 

Like we have said a few times already, the price of BTC/USD is not a primary focus for us.  We seek to mine BTC, take investment in BTC, and pay dividends in BTC.  The obsession with the exchange rate by some people is completely missing the point of what we are trying to accomplish here. 

Finally, last time I checked the difficulty has dropped 3 or 4 times in a row.  It is our belief that we have hit a ceiling in terms of difficulty increases. 

ROFLMAO.  Once again, your initial post shows you have no clue what you are talking about.  Move on loser. 

LOL....well see, there ya go! 

I completely agree valuation is a legitimate conversation to have, I just would like the person asking to have the figures correct first.

lets talk about it for a second.  Again, I think even you are a mis-interpreting what we are proposing.

Lets talk exclusively in terms of BTC, as that is what we are truly interested in.  We are not trying to get rich here, we simply want to create a truly legitimate BTC investment.  

Our monthly production will exceed 150 BTC.  By paying out .1 BTC per share, PER MONTH, we are in reality paying out roughly 66% (100 BTC) of monthly revenue, not 10% as you claim.  Right there, any valuation analysis you present subsequent to that assumption will be deeply flawed.

If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year.  That is a 15% yield per annum.  Any serious investor will tell you that type of yield is very high.  However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield.  We feel it will be beneficial to the Bitcoin community.  

Does that help?

PS, just as a follow up, we figure we are offering shares in the company at roughly 6x earnings....hardly an outlandish multiple.  

Since Alfalfa pointed out that I can be fairly condescending is my responses, I will go easy on this one.  Really though, your post is silly.

To say I don't understand how shares work, considering what I do for a living outside of Bitcoin, is stupid.  If you would take the time to read the proposal, or had any knowledge of how share sales actually work, you would see how off-base you are.

When a company offers shares to the public for the first time, they absolutely set an acceptable range for pricing.  In terms if valuing the company, you really did not read a bit of the proposal did you?  .1 BTC is what the monthly dividend will be set at, not what we are willing to sell shares for. 

Finally, we don't have anyting?  What in God's name are you talking about?  We have a hardware investment of over $7,000 and monthly BTC production in excess of 150 BTC.  How exactly is that having nothing?

Seriously, if you don't take the time to educate yourself on the matter, just don't post.   

Here are some photos of the first office location:

Here are some more empty GPU boxes.  I know ya'all love GPU porn:  https://i.imgur.com/hgVAn.jpg

There are 6 workstations that are identical, and look like this:  https://i.imgur.com/04xr3.jpg

Here is the side panel removed from a workstation:  https://i.imgur.com/yAnf7.jpg

and another:  https://i.imgur.com/RjTga.jpg

and a third:  https://i.imgur.com/dIlgt.jpg

my pride and joy, matching poweredge servers.  2 6-core xeons each.  Unreal power:  https://i.imgur.com/YjyLc.jpg

a custome build stuffed in a back room, alongside another dell box:  https://i.imgur.com/1GqRQ.jpg

did not bother taking the side panel off this one:  https://i.imgur.com/x1F9n.jpg


Am I getting close to convincing some of you we are for real?

You hit it on the head in regards to the Dell boxes.  Believe it or not, all of the Dell machines were collecting dust in a back room.  It was a great way to start a farm.

This is going to have to be done in stages, until I get down to the offices later today.

Here are the empty boxes of a little less than half our GPU's:  https://i.imgur.com/1L8TJ.jpg

Here is a miner in a spare room: https://i.imgur.com/Zeu9Z.jpg

Here is the same miner with the side panel removed:  https://i.imgur.com/2jrAd.jpg

A picture of our 24 port switch and server chasis:  https://i.imgur.com/bMpXO.jpg

3 more mining rigs in home office:  https://i.imgur.com/qF72o.jpg

side panel removed on the miner on the left:  https://i.imgur.com/RJLR7.jpg

side panel removed on the miner on the right:  https://i.imgur.com/nZumT.jpg

The miner in the middle is identical to picture 3

a picture of a miner in the bedroom:  https://i.imgur.com/iYnXB.jpg

side panel removed on bedroom miner, with 5970 ready to go back in:  https://i.imgur.com/AAf66.jpg


That is a start, more to follow.

Forgot to post this one, a 6970 hashing away in our living room HTPC:  https://i.imgur.com/FLk4E.jpg

We probably should have addressed this a little more directly in the business plan.  Our cost structure is very, very low.  As we own the two office locations already for other ventures, we do not charge ourselves "Rent".  As for electricity cost, only the residectial location has a meaningful amount of power expense.  The office buildings we are in have pooled utility expense, so our increase in cost is barely perceptible.  That is why the BTC/USD exchange rate does not matter that much to us....we really don't need to convert that much BTC to USD.   

Hope that helps. 

FPGA mining is a business risk that investors will have to weigh before deciding to invest.  We are aware of the threat, but are willing to continue mining despite the risk.

Well that thread was interesting.  Wow.

Alright, I suppose we were a bit presumptuous in our approach.  We are going to take some time today and go around to our 3 locations and take some photos of the machines.

We will not be giving a video tour, of the place, but we will post some video of the miners hashing away.

Makes sense.  I was only looking at it from the perspective of a business....not just trying to build credibility. 

No, I believe we can only go to 15 GH/s total.  Your contract is locked and ready.  Part of our ongoing operations discussed in our business plan.

Just out of curiosity, where would be the value in selling a contract to someone, then renting out the hash-rate from someone else?  How could you make that work?

My biggest problem is certain people on this forum will scream "scam" no matter what evidence is provided.  If I post pictures, they will say the pics are photoshoped.  If I post a read-out of our BTC prodution for the last 30 days, they will claim we made it in excel.  If I post the names of people we have been a great business partner too, they will claim we have multiple accounts.

Maybe I was a little harsh in my first response, I let my frustration come through. 

We are willing to provide evidence that we are legitimate, and would like your suggestions (we are re-considering posting pictures per you request).  We genuinely want this to work, and are being completely straight-forward.

The whole chicken and egg thing is killer.

I guess this is pointless since you ae ignoring me, but I will briefly respond.  I apologize for the somewhat coarse and sarcastic responses, but I felt that I was responding in kind.  Perhaps I was hasty.  Mea Culpa.

You act as if a person cannot learn a great deal in a small amount of time.  My first miner early this year ran at 15 MH/s.  I know run a network of 26 machines hashing at over 10,000 MH/s.  I learned from mistakes, picked up a lot of good advice, and now have one of the larger mining ops I have come across. 

I am not sure how not knowing as much 2 months ago as I do today disqualifies one from offering a professional service.  Seems somewhat arbitrary.  This is Bitcoin, not open heart surgery.  Let's face it, mining is fairly straightforward once you learn the ropes. 

Again, I apologize for the sarcasm and abruptness.....I felt much the the legitimate advice I was given was not so kindly given. 

 

Got feisty up in here didn't it?

No parents house here, guys.  I know you all like to project your own situation on everyone, but alas, tis not the case. 

I am 30, married, own my own home, and pay my power bill like a big boy.  Keep on trucking and you too may be able to have all this someday. 

Please don't take this the wrong way, but That's great.  A truly brilliant observation.  You should probably be given a prize for your power of deductive reasoning. 

All joking aside....assuming the price of BTC will always go down is stunningly assinine (have you even been paying attention for more than 5 weeks, or are you a newcomer who assumes they know all?).  I would not base a business on that assumption, but if you want to, be my guest.  furthermore, I really could not care less about what the BTC/USD conversion rate is, as we are in the business of mining Bitcoin, Paying dividends in Bitcoin, and taking investment in Bitcoin.  We produce a very steady, very predictable stream of BTC per month, and tha has value to many people. 

In regards to the photos, we don't feel the need to disclose them simply because you feel entitled to throw accusations around.  We have a track record of being legitimate partners in mining contracts.  This can be verified here: https://bitcointalk.org/index.php?topic=41888.0 and here:  https://bitcointalk.org/index.php?topic=38904.0  Our reputation can also be looked into by talking with "payb.tc", "jduck1987", and "BitSense Informatics"

Hi there,

This is the CTO of BitCO....I wanted to expand on this topic a little more.  Our only direct cost of electricity comes from the residential location.  The two office locations have pooled elecricity cost, so it is hard to break out exactly what our network uses.  BitCO pays a small fee to the business' occupying the office space, and that fee is indeed included in Operating Costs on the financials. 

We believe we have suficient infrastructure to reach 15,000 MH/s.  Our plan is to strategically expand when financially advantageous (read: good deals on additional hardware).  If we feel the cost benefit of further expansion is not in our favor, we are happy to continue at 10 GH/s and pay out generous dividends.