LR -
2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?
2: For those contract holders who wish it, they can select the new contract. This does not answer my question. I'm not asking about choosing one kind of capped bond over another. I'm asking what options I have as an investor if I do not accept ANY capped bond in exchange for my original, proportional bond? We are not providing legal advice, but you may chose to sell your contract at any time. |
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Would you submit LRM financials to a third party audit paid for by contract holders?
There are no contractual obligations to do so, but if in the future we deem it necessary we will consider it. I DO have a CPA overseeing my books, including BTC wallets. |
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So to clarify, holders of original bonds are locked at 300Mh now? Then if "upgraded" to new contract they get 3 for 1 split at 100Mh each plus bonus which is depending on how much mine is costing to run and expand etc.
Yes this is confusing. Does that mean there will be two different bond types now? So when we trade bonds, we need to pay attention to what type of bond it is? We really need to land in a place where all bonds have the same practical valuation. Yes, this is correct. We will be addressing this issue in the near future and will advise if we do. |
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PSUs are being recycled from previous hardware.
So you will be selling all your 65nm BFL equipment? Where? eBay? Yes. |
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So to clarify, holders of original bonds are locked at 300Mh now? Then if "upgraded" to new contract they get 3 for 1 split at 100Mh each plus bonus which is depending on how much mine is costing to run and expand etc.
The effective rate of original contract holders is 300MH/s which is being paid at 100MH/s per contract due to the 3:1 split. Whomever goes to the new contracts, will receive 1 new contract for each current contract they currently hold. EX: If you hold 100 contracts currently, you will receive 100 new contracts at 100MH/s + bonus. The bonus will be based upon the then available funds to pay it. |
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Q2) Given that we have just received the contract, I would really like to digest it for 24 hours as I may come up with follow up questions. Would you consider scheduling another Q&A session with lawyer present later next week?
Q2: There will be time allotted for all contract holders to decide what they chose to do. I believe this time will be 60 days from today. . Appear to have missed that, apologies. This has not been planned or scheduled, but we will discuss it internally and advise. |
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LR -
Would you be willing to provide an update once per week as to the state of Lab Rat Mining?
Specifically, we'd like to know:
Amount of Hashrate on-hand.
Amount of Hashrate ordered.
Expected arrival date of hashrate on-order.
Bitcoins mined this week.
Bitcoins paid out this week.
Amount paid per contract.
Number of contracts in existence.
Any other pertinent information.
Thank you.
EDIT: Corrected typos.
Most of these do not change on a week to week basis. The important information is the hashrate which is updated instantaneously on the top of the website under Current Hashrate. Any major developments will be posted as they occur. |
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Did the 3 to 1 split happen or not? I don't see anything in the new contract that makes a 3 to 1 split beneficial or necessary. When people start trading again, it will be very important to know if the number of outstanding bonds has tripled or not. Edit: Rewording since a good answer just appeared above. It sounds like we did incur the 3to1 split and the number of outstanding bonds has tripled. This is correct. A new contract holdings list will be provided showing no more information than payout address and contracts held. This will confirm the 3:1 split. |
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LR -
1) Please tell us the original reason why the bonds were capped at 100 MH/s? We've seen a lot of hand waiving, but no concrete reason.
2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?
1: To the extent that we can answer this question without supplying legal advice we have already done so. 2: For those contract holders who wish it, they can select the new contract. |
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How would we move to the new contract if we wanted to?
All you have to do is tell us you agree to the new contract. I have verified email addresses for almost all contract-holders. Please tell us via the email address you have used in the past. If I do not have a verified email address of yours, grnbrg will explain that process in detail upon request. |
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Lab_Rat, could you please provide the original contract you are referring to for the original bonds for us to compare? Or a link to the original.
A digital copy of this contract is not available on this computer. This will be done in a timely manner. |
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How many Monarchs do you have on order?
How much electricity do you have at your warehouse? How many AMP service?
I can't answer about the Monarch's due to contractual obligations until that order has been fulfilled. Combined between hosting locations there is a total of 2400A 3phase. What PSU's are you using for the Monarchs? Have you bought the PSU's yet? PSUs are being recycled from previous hardware. |
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7a. The BitFury hardware I believe you're referring to has been in just over A month, not months. The hardware is still in the process of being put online as there have been multiple delays. These delays include but are not limited to, AC failure, transformer explosions, fiber cuts, etc.
How much BitFury equipment is waiting to go online? Why not move it to the other hosting facility if you are having problems at one facility?
40-45% is still to go online. At this point it is not logistically possible to move to another facility. |
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Hi LabRat, Ok have just printed off and skim read the contract... Two initial questions come to mind: All investments are at the customer’s sole risk. You should not purchase contracts if
you do not understand the terms and conditions. By purchasing a contract you are
acknowledging that you understand the investment, accept the risks inherent in any
investments, and specifically the risks of this investment. Q1) Given that I am already a contract holder prior to these terms and conditions. How could I have understood and accepted the terms and conditions prior to purchase. Basically if I refuse to accept these terms and conditions what options are you offering me? Q2) Given that we have just received the contract, I would really like to digest it for 24 hours as I may come up with follow up questions. Would you consider scheduling another Q&A session with lawyer present later next week? Cheers Dave That term and condition that you quote was in the first contract (original contract) and is fairly standard language found in most contracts. Q1: The offer is simple, continue under your current contract with no obligation to change, or change to the new contract without cost. We are offering you the option to select at no cost and no obligation in either direction. We will continue to meet our obligations under your current contract. Q2: There will be time allotted for all contract holders to decide what they chose to do. I believe this time will be 60 days from today. |
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LRM,
This contract appears only to address the 100MH/s contracts being issued from here forward.
Please tell us how you intend to migrate existing contracts into this contract version. This is a
very clear change in your companies' growth and dividend philosophy. There must be some sort
of grand plan in place to migrate existing contracts to keep your investors as whole as possible
given their initial investments.
Please explain.
Thanks,
Rustyh17
Thank you for the good question. We far exceeded the hashrate promised on the initial contracts sold. We only promised and estimated 100MH/s and are currently paying out over 300MH/s. For legal reasons we believe there are issues with continued varying hashrate per contract. We have locked it in at the then current rate of 300MH/s, which is 3 times what was ever promised. We wanted to keep growing as you and all of our other contract holders want us to do. Our solution to the growth issue was to offer a new contract for sale that met the current individual contract hashrate of 100MH/s and offered the ability to make special distributions under the new contracts funds permitting. This is not a variable contract, but does offer the opportunity for additional payouts over the 100MH/s while providing funds for growth. Long term sustainability of both LRM and our ability to continue long term payouts to our contract-holders is our paramount goal. The actions we have taken are to meet those long term goals. |
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Regarding the contract, please state what is the case if we do not agree with the terms given.
Since LRM already took our BTC, it seems we are forced to accept. The 'All purchases are final' bit. Well, I didn't know I was 'purchasing' a crappy amount of hashing power for 4BTC I am not sure how people can legally be forced into accepting these 'new terms and conditions'. I, for one, want my BTC back. I don't care that the dollar amount has changed. 1 BTC then is 1 BTC now. To avoid spamming the thread and also defeating the purpose of the ama, please don't answer questions for him. You saying that all purchases are final is meaningless, as this is a change of the terms, and this cannot be done without agreement. It is of critical importance for him to state what happens if people reject the new terms. Thank you mmmerlin. |
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Slowest AMA ever. Hurry up I have to be at the gym in 26 minutes.
Apologies, the very first question was more like 17. |
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Also prior ad-hoc withholding of dividends for hardware has created "owed" dividends or hashrate, not discretionary bonus.
Everything we do, and have done, is pursuant to the contract terms that you have agreed to. Distributions to be paid as per prior response. |
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Any bonus hashrate declared by the company will be SOLELY at the company's discretion. That is not the spirit of the original agreement... it is not SOLELY at LRMs discretion... original bonds were sold as GUARANTEED growth as hashrate was added. I fail to see how you can legally change this on a whim... if it was not legal for you to sell those types of bonds... then full refunds for not accepting these new "terms" are in order. Please elaborate on how you expect us to accept "SOLELY at the company's discretion." We're not giving any legal advice and we're not stating it was illegal to sell. These are new contracts. They have nothing to do with the old contracts other than the ability to move over to new contracts if you wish to do so. We're not changing the original contracts. They are new contracts with new terms and conditions. It is your choice to decide whether you wish to maintain your current contracts or move over to the new contracts. This is an option to our current contract holders at their election without requesting any cost or consideration for the opportunity to select which contract they wish to be bound by. Anyone that doesn't elect to move from original contracts to new contracts will continue under the original contracts. There is no obligation to switch. |
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Regarding the contract, please state what is the case if we do not agree with the terms given.
Since LRM already took our BTC, it seems we are forced to accept. The 'All purchases are final' bit. Well, I didn't know I was 'purchasing' a crappy amount of hashing power for 4BTC I am not sure how people can legally be forced into accepting these 'new terms and conditions'. I, for one, want my BTC back. I don't care that the dollar amount has changed. 1 BTC then is 1 BTC now. Please do not answer questions with false information. You are not forced to accept. Your personal opinion. You are not forced to accept. Your personal opinion. |
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