This is an idea I have been toying with for sometime, and I would like to put it out there for discussion.  I know that a lot of the trolls will come out to belittle and tell me how stupid I am.....but I am hoping to recieve a fair amount of constructive feedback from intelligent forum members.

Let's assume for a moment the following entity exists:

BitCorp Mining Company





Much like a gold mining company, BitCO owns a resource(a claim on future block discovery), there is a market for the resource, and thus there is value in the future claim. 

I think it would be tremendously cool for BitCO to have an IPO, have shares that are publicly traded, and pay dividends (in BTC) on those shares.

I imagine it would work something like this:

1)  BitCO issues 100 shares of stock.
2)  Stock is priced using a dutch auction to ensure fairness
3)  BitCO commences operations as a public entity
4)  BitCO begins declaring, and paying, monthly dividends

Let's assume that the shares are priced at 5 BTC per share.  Further, assume a conservative dividend policy that would pay out half the BTC production.  Thus, each share would pay a monthly dividend of .75 BTC.  That is a hell of a return on investment, especially given the current pay-back on new GPU's.

In my mind, the shares would quickly appreciate in value and settle somewhere in the neighborhood of a 10% dividend yield. 

I think it would be a great alternative for many people, rather than setting up their own mining operations and hassling with the well known issues of mining. 



OK, here is where I ask for feedback, and help in filling in the gaps.  I know this is rough, and very theoretical.....just looking to start a constructive dialogue. 

*UPDATE* for all those interested in these contracts.


I am now holding steady at 10,000 MH/s.


If you are interested in renting this type of capacity, the price is now 37 BTC per 7 day contract. 

The reason I dont use just one MOBO and the 3 cards together is they are slightly older DELL workstations with just one PCI slot each.

They were sitting around collecting dust, so I dropped a GPU in each, fired up the ole GUIminer, and put them to work.

Since I only had to pay for the GPU, seemed like a really cost effective way to get some extra MH's.

Now that I am looking to go more dense, I want to sell these and replace them with a more efficient set-up.

What is a reasonable price to ask for 3 PC's that hash at a combined 1 GH/s?

All have fully licensed copies of Windows XP, are properly set up to mine using GUIminer, and are "turn on and forget" ready. 

the GPU's are 6950(shader mod), 6950, and 5770.



I really have no clue what the going rate is for mining rigs at the moment.  If it is worth my time, I will post pictures and entertain some bids. 

The 20-27th has also been purchased. 

It looks like we have reached a point (with BTC around $5-6) where marginal miners really start to shut it down.

Just watching the Deepbit hash rate the last couple days has shown a drop of almost 600 GH/s!  That is a massive amount of mining power going by the way-side.

I think it will be interesting to see if that is a permanent loss of miners (ie, selling their equipment), or if most will stand by, and turn them back on at higher prices. 

I suppose the silver lining is that my 10,000 MH/s now comprises a larger slice of the pie.  More BTC for me! 

I have several 5970's, and all of them except one are working great.  The one in question seems to only want to let one GPU work 100%.  The other hangs out at around 70%.  Thus I am left with one core hashing at 350 MH/s, while the other only gets 250.

Has anyone else run into this problem?  Any suggestions? 

I am currently committed to a contract that runs through September 13th.  If you are interested in purchasing a contract after that date, we might be able to work something out. 

Precisely.  I am willing to forego some expected return to lock in some certainty.  The very definition of "hedging".


I jus topped 10,000 MH/s.....very cool moment!

So is anyone interesed in this contract?

I have miners that do not run during the day, as the workstations are being used for other purposes.  I bump up about 1 GH overnight. 

I went into a whole explanation of why I am willing to pre-sell for less than expected value.  If you really want to read the debate, head over the the thread titled "mining contract - 8,000 MH/s".  It basically boils down to exchange rate risk.  I get 32 BTC of certain value today, the buyer gets 36+ BTC of uncertain value over the next week.

that help?

There is another thread up here for my last contract, went off without a hitch and the buyer verified that. 

Look for the thread titled "mining contract - 8,000 MH/s"

I own a mining operation that hashes at the ridiculous rate of 9,000+ MH/s, and gets closer to 10,000 MH/s in the evening.  Over the last week I have averaged over 9,000 MH/s.  I am willing to rent out this "farm" to interested parties.  
  

Terms are as follows:

1)  7 day contract
2)  Guaranteed 9,000 MH/s average over the contract term
3)  MINING WILL BE DONE AT MY CURRENT POOL, you will merely recieve the pay-outs.  I will set auto payment for every 2.5 BTC
4)  Any increase in mining power over the contract is yours, gratis.  (I still have a few GPU's to put to work)
5)  Payment is to be made half in advance, half at the midpoint of the contract.  

Price:  32 BTC


My terms are firm, please DO NOT ask for something different.  If no one is interested, I am glad to keep hashing away and keeping the BTC myself.  

If you would like to purchase this contract, reply with your BTC address and send your initial payment (16 BTC) to my address (which can be found below).

Thanks!  


Please read this as well!

Since I have begun offering these contracts, the difficulty level has fallen SIGNIFICANTLY, and my hashing power has grown.  I now average over 11,000 MH/s.

Given these new circumstances, the price for a 7 day contract is now 55 BTC.  I am pricing this based on an assumed difficulty of 1,250,000 (which should be very close to where the next adjustment will be).

update on my speed....I just topped 9500 MH/s.....I am hoping to top 10,000 and then sit back and mine. 

Good God, the amount of ignorance on this forum is mind blowing.

Yes indeed....I added two 5970's (thanks Newegg!) and some random smaller cards.  I am well above 9,000 Mh/s, but with this many machines I suffer 1 or 2 outages a day.  Therefore I will only garauntee 8,500 MH/s.

Price is 30 BTC.

Not at all.  I track my miners individually and tally my total hash rate in a spreadsheet. 

I check it against what the pool reports to make sure it is close.  I am usually within 150 MH/s of what I expect to be.

If you are interested in the next contract, I have averaged 9,000 MH/s over the last 48 hours.  Those 5970's certainly kick it in the ass. 

Indeed, it was a great transaction.  Bitsense kept his word and was excellent to work with. 

The current contract expires today at 7:00PM EST.

Is anyone intrested in purchasing the next 7 days?  I will garauntee 8,500 MH/s for the entire contract.

Price is 30 BTC.