[AMC] Hardware discussion and F.A.Q.

So, what do shares represent? Ownership?
Shares do not represent ownership, they are "solely a distribution mechanism for rights to profits", and used as a means to liquidation.

Wait a minute... I'm not "owning" a part of AMC, just a piece of the "profits"
Welcome to the bitcoin stock exchange game. Learn the risks, and stay, or get out. Please read https://bitcointalk.org/index.php?topic=245713.msg2616979#msg2616979

So, shares represent a part of profits then. How are they distributed?
Until at least May 2014, on the initial 40M, a minimum of 20M are retained for growth and expansion and a maximum of 20M can be sold to investors.
In May 2014, or when 0.0005 is payed by share, whichever happens later, an extra 60M are created, for the final total of 100M. On these remaining 60M, a minimum of 20M are retained for growth and expansion and a maximum of 40M can be sold to investors, with a 40M being retained by AMC/Ken.
So, I heard I am earning a lot from AMC right now, by bagging the dividends from all the unsold shares out of the 40M?
Wrong. The contract specifies that all dividends from issued shares still on AMC's hands are retained by the growth and expansion fund (the contract was originally written using correct terminology, but BF considers all shares "issued").
The first time I get a piece of the pie will be after a year of work (May 2014), when the rest of the 60M are issued. At that time, more 20M can be sold to investors, and I retain the remaining 40M.

I've read a lot of announcements, but have yet to see real documents. Can you please provide some?
Engineering Firm quote for Avalon machines: http://axs.net/AMC/SB-Prototype-Quote.jpg
eASIC NDA: http://axs.net/AMC/eAsic-NDA0001.jpg and http://axs.net/AMC/eAsic-NDA0002.jpg


So, how will the division between AMC and VMC be implemented, in respect to chip/machine sales?
Roughy, AMC takes care of the chips, VMC takes care of the machines:
- AMC develops the chip, pays the chip's NRE and sells the chip in bulk to customers (using VMC as intermediary).
- VMC uses AMC's chip (or any other chips) and builds bitcoin miners, paying a royalty cost to AMC whenever its IP is used.

Chip sales: AMC holds IP rights on the Fast-Hash-ONE chips, so AMC contracts with VMC the following services: (a) the representation services to negotiate chip production with eASIC and (b) the re-selling of AMC's chips in bulk. AMC also guarantees chip exclusivity to VMC, so that AMC won't negotiate a chip supply contract to any other bitcoin systems manufacturer. AMC gets 70% back from the profits on the sale of bulk chips, while VMC gets 30%. All of VMC's expenses, including representation, chip stock management and re-shipping expenses to final customers are taken from their 30% profit.

System sales: AMC also allows VMC to buy chips directly from eASIC at the lowest cost, for the manufacturing of bitcoin mining systems. On every sale of these systems or parts of it that contain AMC chips or IP, AMC receives a 10% royalty fee from the total gross sales revenue. Example: if a customer purchases a system for ฿100, AMC receives ฿10, whatever the profit margins for VMC are.

Just got off the phone with Ken.

• Avalon prototype boards - They will be finished within 2 weeks. He is going to provide a scan of the documents proving that that work is under way.
• AMC's proprietary chip - He will provide a scan of the NDA, he is currently talking with eASIC, and it looks like he will be able to pay the NRE, and if not, then in installments
• Storage - Springfield Underground is currently for sale. He is looking into acquiring it to host all of AMC's mining needs when the need arises.
• Klondikes - Will be arriving within a month, 300 GH
• Avalon Chips - The engineering firm that he employed for the boards has the 60 sample chips from the 2 avalon chip bulk orders, pictures will be coming for those when he gets his hands on them within 2 weeks. There are 20,000 of them incoming. Avalon will start shipping the chips at the beginning of July. AMC has pre-orders a for a few of these, the rest will be built and mined by AMC
• Avalons purchased - Ken received the 3 remaining Avalons. Team AMC is currently hashing at 435.32 GH/s on https://www.btcguild.com//index.php?page=rankings&section=teams
• Engineering - Ken wrote the code for the chip, which eASIC ran and found to be acceptable.
• Price - The shares at 0.0025 are going to remain there, since he values AMC above that price and thinks that it is a great value.
• When do I get my money? - 100% of the money raised for the NRE will be payed off first. Either through sales or mining.
• What is VMC? - VMC, Ken said was an afterthought. His main interest is in AMC(his baby). When he said that AMC gets first dibs on anything the VMC makes, he meant it. His plans for AMC is to buy as many mining machines AT COST from VMC and then leave the scraps for VMC to sell.
• The pricing of the machines are whack! - Whatever machines that are left over to buy will be priced competitively.
• What has AMC invested and why are there so many shares? - When a company looks for investment from say Angel Investors, they usually require 25-33% of the company's shares. Before AMC looked for money they had already invested in 6 avalons which are priced now at over $43,000 and a ROI much higher than that (data based on current auctions on bitcointalk, increase that value since AMC is already mining). So to say that 20 million shares are available for AMC after AMC had already invested a sizable amount of money into operations seems reasonable to me.
• When do I get my money? - 100% of the money raised for the NRE will be payed off first. Either through sales or mining.
• What happens after the NRE is paid off - After 100% of the NRE is paid off in the form of dividends, AMC will continue to get paid 100% of the mining dividends and 10% of sales from VMC. AMC will also activate the remaining 60,000,000 shares which represents the AMC's profits, which is perfectly reasonable since they havnt received a cent up until this point.

Pre NRE paid off

20,000,000	Shares for Investors
20,000,000	Shares for Reinvestment

Post NRE paid off

20,000,000	Shares for Investors
20,000,000	Shares for Reinvestment
60,000,000	Shares for AMC

Ken's workload is very high at the moment - among which people have expressed issues with the shopping cart on the website and needs to fix it), but he said that within the next day or so he will be posting receipts/documents that show that things are under way.

Is it possible to automatically re-buy shares with the dividend you got from another share?
i.e.

ASICMINER dividends ---> 1 BTC ---> auto-buy GRAET-LOAN

?

UPDATE

Due to ASICMINER's decline in hashing for several days now, I am pausing any new issuance of TAT.VIRTUALMINER units, and I will begin to find alternate backing for the hashes AM has taken offline.

Since it is likely that this is a temporary lull in hashrate from AM, I will not be securing new backing aggressively, but I will be buying other hashing assets at a modest pace until AM gets back up to a speed that covers TAT.VM's hashes, or I until I buy enough alternate hashes to exceed what is required for backing TAT.VM.

Any alternate hashing that is purchased will likely be held permanently as backing for TAT.VM hashes.

Once the dust has settled, I will issue a new TRANSPARENCY REPORT, showing all holdings used as backing, etc.

Thanks!

Ken,

A lot of AMC shareholders probably have Butterfly Labs machines on order and have chip credits.  I have some  BFL chip credits. If you think you are able to take the BFL chips and build complete miners from them, may I suggest asking AMC stockholders if they have BFL credits to offer up to AMC/VMC in trade for AMC shares.

I would love to keep my credits "in the family".

Lorenzo Money

+1

ATTENTION!!!

Since we have everyone's attention after another tremendous dividend, I'd like to update everyone on the work of ianp, VJain, Franktank, and myself. We have gathered and pruned what we believe are the most important questions we have for Friedcat at this time. We tried to be fair, and avoid speculative or selfish requests.

Now, we ask you to please review the questions in the form of this poll: https://docs.google.com/forms/d/1KYOoPt3SvM9agj54eah4rl5MabqbGheWSBgHFgFgA0U

Once you rank the questions, I will submit the top voted ones to Friedcat, and/or a board member in hopes of getting an official statement on each of the chosen questions.

Thank you!

Where other funds/fund of funds, or other share issues, diversify there portfolio by buying into other relevant issues/companies. ASICMINER is held relatively widely, amongst some of those other share issues you see on Bitfunder, for example.

This business is more incestuous, than you may realise, but its all good.

Next steps:

Seeing next order status change on Avalon ticket.
Receiving promised report in next few days.
Feedback on status of NDA agreement.

Also wondering what it will take for 'institutional' investment to occur, if it hasn't happened already.