BTC Balance (BTC-TC)   17.66232086
CIPHERMINE Bonds    260.56000000
BTC Balance (Wallet)    328.21586392
TOTAL ASSETS    606.43818478
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   267,731,250
Hashes per MINING   5000000
   
Daily Dividend    0.00000939
50 days (Min Liquid)    0.00046960
100 days (Forced Close)    0.00093920
365 days (Buyback)    0.00342808
405 days (IPO)    0.00380376
400 days (Post SELLING div)    0.00375680
410 days (Pre SELLING div)    0.00385072
   
NAV Post MINING Div    604.90678119
NAV/U Post MINING Div    0.00370986
Days Dividend Post Div   395.00
SELLING Dividend    -         
NAV Post SELLING Div    604.90678119
NAV/U Post Selling Div    0.00370986

BTC Balance (BTC-TC)   19.19339792
CIPHERMINE Bonds    260.56000000
BTC Balance (Wallet)    328.21586392
TOTAL ASSETS    607.96926184
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   267,731,250
Hashes per MINING   5000000
   
Daily Dividend    0.00000939
50 days (Min Liquid)    0.00046960
100 days (Forced Close)    0.00093920
365 days (Buyback)    0.00342808
405 days (IPO)    0.00380376
400 days (Post SELLING div)    0.00375680
410 days (Pre SELLING div)    0.00385072
   
NAV Post MINING Div    606.43785825
NAV/U Post MINING Div    0.00371925
Days Dividend Post Div   396.00
SELLING Dividend    -         
NAV Post SELLING Div    606.43785825
NAV/U Post Selling Div    0.00371925

Still not finalised where we move to - but it definitely won't be Bitfunder (our US investors won't be able to use, I don't want to force everyone else to verify ID - and I don't think Bitfunder is even taking new securities right now anyway).

BTC Balance (BTC-TC)   20.72447498
CIPHERMINE Bonds    260.56000000
BTC Balance (Wallet)    328.21586392
TOTAL ASSETS    609.50033890
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   267,731,250
Hashes per MINING   5000000
   
Daily Dividend    0.00000939
50 days (Min Liquid)    0.00046960
100 days (Forced Close)    0.00093920
365 days (Buyback)    0.00342808
405 days (IPO)    0.00380376
400 days (Post SELLING div)    0.00375680
410 days (Pre SELLING div)    0.00385072
   
NAV Post MINING Div    607.96893531
NAV/U Post MINING Div    0.00372864
Days Dividend Post Div   397.00
SELLING Dividend    -         
NAV Post SELLING Div    607.96893531
NAV/U Post Selling Div    0.00372864

BTC Balance (BTC-TC)   22.25555204
CIPHERMINE Bonds    260.56000000
BTC Balance (Wallet)    328.21586392
TOTAL ASSETS    611.03141596
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   267,731,250
Hashes per MINING   5000000
   
Daily Dividend    0.00000939
50 days (Min Liquid)    0.00046960
100 days (Forced Close)    0.00093920
365 days (Buyback)    0.00342808
405 days (IPO)    0.00380376
400 days (Post SELLING div)    0.00375680
410 days (Pre SELLING div)    0.00385072
   
NAV Post MINING Div    609.50001237
NAV/U Post MINING Div    0.00373803
Days Dividend Post Div   398.00
SELLING Dividend    -         
NAV Post SELLING Div    609.50001237
NAV/U Post Selling Div    0.00373803

BTC Balance (BTC-TC)   23.7866291
CIPHERMINE Bonds    260.56000000
BTC Balance (Wallet)    328.21586392
TOTAL ASSETS    612.56249302
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   267,731,250
Hashes per MINING   5000000
   
Daily Dividend    0.00000939
50 days (Min Liquid)    0.00046960
100 days (Forced Close)    0.00093920
365 days (Buyback)    0.00342808
405 days (IPO)    0.00380376
400 days (Post SELLING div)    0.00375680
410 days (Pre SELLING div)    0.00385072
   
NAV Post MINING Div    611.03108943
NAV/U Post MINING Div    0.00374742
Days Dividend Post Div   399.00
SELLING Dividend    -         
NAV Post SELLING Div    611.03108943
NAV/U Post Selling Div    0.00374742

Have scheduled all today's dividends now.  Here's the report :

BTC Balance (BTC-TC)   260.1236189
CIPHERMINE Bonds    260.56000000
BTC Balance (Wallet)    328.21586392
TOTAL ASSETS    848.89948278
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   267,731,250
Hashes per MINING   5000000
   
Daily Dividend    0.00000939
50 days (Min Liquid)    0.00046960
100 days (Forced Close)    0.00093920
365 days (Buyback)    0.00342808
405 days (IPO)    0.00380376
400 days (Post SELLING div)    0.00375680
410 days (Pre SELLING div)    0.00385072
   
NAV Post MINING Div    847.36807919
NAV/U Post MINING Div    0.00519686
Days Dividend Post Div   553.33
SELLING Dividend    0.00144005
NAV Post SELLING Div    612.56143452
NAV/U Post Selling Div    0.00375680

The transaction fee on moving BTC from wallet to BTC-TC managed to knock 1 satoshi off the SELLING dividend (it actually is less than that - but gets rounded to a 1 satoshi reduction).

I'm about to go out but should be back shortly before the dividends get paid - so if anyone notices any mistake in the math it's not too late to correct it (very much doubt there's any error though).

  8fb01b421a5af31022c3320d96e5c05ba126f4e6fcd51a148038441603482c34: Seen by 4 peers. Pending/unconfirmed.
     from 1CzJY7pVkCqDjUtycHzFgeTTbbWokqYuXo / 040ff50735e1c8946f5d038b45b277c69fd68f63989897dd909b34dba718b433:1
       to 16ywYMGVQMepEgUCnQMjM6N4hEGYgXE88Z 120 BTC
       to 1CzJY7pVkCqDjUtycHzFgeTTbbWokqYuXo 33.86126722 BTC

There's the transfer done.  The wallet balance can, as before, still be verified at any time - all assets of DMS are still entirely visible to the public for verification (or will be, once the transfer confirms at the BTC-TC wallet).

NOT ACTUAL REPORT - PROJECTION OF TOMORROW'S

BTC Balance (BTC-TC)   140.1236189
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    260.56000000
Coinlenders CD 27/9    203.64459670
Just-Dice Balance    153.86136722
TOTAL ASSETS    848.89958278
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   267,731,250
Hashes per MINING   5000000
   
Daily Dividend    0.00000939
50 days (Min Liquid)    0.00046960
100 days (Forced Close)    0.00093920
365 days (Buyback)    0.00342808
405 days (IPO)    0.00380376
400 days (Post SELLING div)    0.00375680
410 days (Pre SELLING div)    0.00385072
   
NAV Post MINING Div    847.36817919
NAV/U Post MINING Div    0.00519686
Days Dividend Post Div   553.33
SELLING Dividend    0.00144006
NAV Post SELLING Div    612.56143452
NAV/U Post Selling Div    0.00375680

That's what tomorrow's report would look like before I moved funds around.  I'll need to move just under 100 BTC on to cover tomorrow's dividends + some more to cover MINING dividends up until next difficulty change.  So I'll transfer 120 BTC from the wallet to BTC-TC (and post the transaction ID here).

NAV etc tomorrow will be almost exactly the same as above - only difference being the loss of a transaction fee for the transfer (I'm not going to bother trying to avoid the default .0001 transaction fee.)

Paying today's dividend slightly early (which has no impact as there's no trading occurring).

Will then work out what tomorrow's dividends will be and have to move some BTC back onto BTC-TC to cover it.

Asset list will change from tomorrow - the items listed as LTC-ATF.B1, Coinlenders and Just-Dice will be consolidated into "BTC Balance (Wallet)" - which is where those coins have been for a while (address was given earlier).  I left it as it was for a while so people could verify that the wallet balance matched the old entries - but as I'm now going to have to move some of that to BTC-TC for dividends (at least I'm pretty sure I will - won't know for certain until I plug the numers in) the balance will no longer be the total of those three entries.

BTC Balance (BTC-TC)   142.288976
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    260.56000000
Coinlenders CD 27/9    203.64459670
Just-Dice Balance    153.86136722
TOTAL ASSETS    851.06493990
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   189,281,249
Hashes per MINING   5000000
   
Daily Dividend    0.00001328
50 days (Min Liquid)    0.00066423
100 days (Forced Close)    0.00132846
365 days (Buyback)    0.00484889
405 days (IPO)    0.00538028
400 days (Post SELLING div)    0.00531385
410 days (Pre SELLING div)    0.00544670
   
NAV Post MINING Div    848.89882679
NAV/U Post MINING Div    0.00520624
Days Dividend Post Div   391.90
SELLING Dividend    -         
NAV Post SELLING Div    848.89882679
NAV/U Post Selling Div    0.00520624

There's a public list of which Bitcoin addresses own what shares : https://bitfunder.com/assetlist

You can prove ownership by signing a message with the Bitcoin addresss of yours in that list.

Sorry - paying 10 minutes late today.

BTC Balance (BTC-TC)   144.4543331
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    260.56000000
Coinlenders CD 27/9    203.64459670
Just-Dice Balance    153.86136722
TOTAL ASSETS    853.23029702
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   189,281,249
Hashes per MINING   5000000
   
Daily Dividend    0.00001328
50 days (Min Liquid)    0.00066423
100 days (Forced Close)    0.00132846
365 days (Buyback)    0.00484889
405 days (IPO)    0.00538028
400 days (Post SELLING div)    0.00531385
410 days (Pre SELLING div)    0.00544670
   
NAV Post MINING Div    851.06418391
NAV/U Post MINING Div    0.00521952
Days Dividend Post Div   392.90
SELLING Dividend    -         
NAV Post SELLING Div    851.06418391
NAV/U Post Selling Div    0.00521952

No I don't.  I asked because I happened to have some Kenilworth shares on BTC-TC when the closure announcement occurred (LTC-ATF traded them a bit and I inherited them when I paid out all other investors in LTC-ATF at full NAV/U and took on the security holdings myself).

My transfer to Bitfunder went through some days ago - and I sold them off into the market.  I'm sure I sold them for less than they were worth but it was too small an amount for me to want to go through all the hassle of relisting elsewhere (plus I made a strategic decision that I'd get everything I possibly could off of Bitfunder ASAP).

On ASIC purchases I'm fairly torn in opinion.

A) One part of me says "Surely they;'re going to notice at some point that for the last 6 months next to nothing purchased will ever mine the BTC it cost to buy".
B)  The other part says "Heh - they're just idiots and will continue throwing away BTC in the misguided belief that mining has some divine right to be profitable".

The practical part of me just says "fuck it - I'll continue printing money : if fools insist on throwing away their BTC then I'm at least as deserving to collect some as everyone else".  If only I was willing to lie and/or mislead to make BTC I could do a lot better.

Yep - a massive spike in BTC prices WOULD break prices.  But my prediction was (and remains) that isn't going to happen until AFTER difficulty has stagnated.  But, obviously, something could arise to make that wrong.

I'm fairly confident in a medium to long-term rise in BTC price (vs fiat) but short-term I don't see any prospect of a sustained significant rise.  Certainly not of one likely to matter on the scale necessary to have impact here.

As mentioned earlier - in retrospect I should have built provision for this into the contract (though it's actually very hard to do - as any reverse-split is either unnecessarily beneficial to those holding small quantities of shares or unfairly prejudicial towards them).  In theory the current contract could operate right down until MINING dividends fell below half a satoshi (i.e. were rounded down to zero) - in practice I'd want to close the situation out an order of magnitude higher.  I'd also need to correct my spreadsheets to round to what was actually paid at some stage (at present the discrepancy is tiny enough not to make any difference at all).

Noone other than the seller was ever going to make a profit 'investing' in this compared to just holding BTC (had BTC risen sharply vs fiat then a profit in fiat was possible).

Mining hardware is presently lucky if it can break even when bought at cost.

Add on 3 different stages of takign a cut out and there was never any chance whatsoever of profit for investors.  If you add on not even being willing to honour contracts then rather clearly a significant loss for all dupes who bought in was in order.  That doesn't make it a scam - any more than selling £50 for £100 is a scam if you can find people sufficiently stupid to buy.

If it's a scam at all it's because of the entirely misleading and unrealistic claims about potential profit made to early investors (think their current claims have reduced from "totally stupid" to merely "isn't going to happen").

What's sad about this is that the operator appears to feel the need to default on contracts,  All he had to do was not bother ordering ASICs at all and he could have paid out based on PPS, avoided a ton of hassle and kept the majority of investors' funds with no risk and no reliance on third-parties.  Mining is, right now, a loss-making proposition unless you have ridiculously low power costs and/or access to hardware at near cost - if you're selling the right to mining output at a massive markup (plus taking a management fee AND keeping 'reinvested' funds at end of contract) then it seems amazingly stupid to actually buy hardware at all.

I'd be tempted to run a scheme like this myself were it not that:

a)  Even with the evidence in front of me in this thread I still struggle to believe anyone's stupid enough to have bought it.
b)  I'm able to make a profit without lying to/misleading/causing loss for others so have no reason to ruin my reputation.
c)  There's just something unattractive to me about ripping people off - no matter how retarded they are and how much they deserve it (and yes - anyone who fell for this DOES deserve it as reward for deluding themselves into believing that they were competent to 'invest').  Doing it would feel like an admission that I lacked the capability to make profit in a more honest and straightforward manner myself.

Pretty sure most buying into this didn't even do basic stuff - like working out the cost/hash and comparing it to things like my DMS.MINING which pays out 100% of PPS equivalent with zero exposure to things like late delivery of hardware.  Let alone doing the more complicated stuff - like working out that people were insistent on overpaying for DMS.MINING for ages even with the ability to take the other side (it's now beyond doubt that early on the market was setting far too high a price on DMS.MINING - even without an issuer ABLE to manipulate the price upwards).

Noone other than a sock-puppet or someone severely mentally defiicent could claim this ever even remotely looked like a worthwhile investment for BTC.  Unfortunately my guess is that most investors weren't of the sock-puppet variety.

I've had a few (i.e. a lot of) beers so apologies if I'm not as clear as I could be.  MINING can't ever reach 0 or near to it (relative to the price of PURCHASE).  That's because if there's a massive rise then immediately there's a large dividend to SELLING reducing the NVA/U of PURCHASE.

After EVERY increase i ndifficulty greater than a few % MINING is always going to be paying dividends equal to 1/400th of NAV/U per day.  That sets an absolute minimum on the value/price of MINING (depending on what you believe the minimum to be between dfficulty changes).

Where the contract is currently silent is on the situation where MINING's dividends/value end up being effectively rounding errors (which requires a few orders of magnitude increase in difficulty).  Whilst I believe that unlikely (prices were, in part, set based on what I believed to be best/worst cases in the short-mid term) it obviously isn't theoretically impossible (note that if it occurs then nearly all ASICs produced to date would mine less coins than the power cost of running them let alone any recovery of sunk costs).

My expectation was (and remains) that at some point in the not too distant future MINING will end up being the majority of PURCHASE value - and SELLING will then vote to close the fund (obtainin 10% of NAV/U rather than the 0% they'd receive back if they waited).  I don't want to poison the pool by giving by prediction of when that will occur but rather obviously it would have to occur between difficulty increasing by 1 order of magnitude (which is almost certain) and it increasing by 2 orders of magnitude (which I believe to be highly unlikely with current technology).

If it actually happens that MINING dividends drop below 10 satoshis per day then we DO have a problem that isn't covered by the contract.  I believe it exceedingly unlikely that will happen without a period of stagnation previously (where SELLING should rationally vote to close) as the break-even point for those obtaining free hardware and $0.01/KWh electricity falls before that with current technology (and that's the edge case I used when setting hashes/share initially to avoid this problem).

It may not be the most satisfcatory answer ever - but my response is that:

a) It isn't likely to happen.
b) If it does happen then I'll sort something out.

In retrospect there's a few changes I should have made when designing DMS - one of which definitely IS provision for reverse splits to keep the price of MINING in a sensible range.

Do bear in mind when considering this that you'd only be discussing dividends per month of under 1% of current market value of MINING - whatever else is the case it's entirely trivial when currently assessing the value of MINING.

On a last note let me give a (probably irresponsible - but I've had few beers so who cares) teaser.  The biggest profits to be made trading DMS are yet to come - predicting the cross-over point where difficulty ceases rising and the price of MINING gos through the roof (SELLING has no exit route other than paying 90% of NAV/U to MINING).  I don't pretend to know exactly when that occurs but when it does it's going to catch a lot of people by surprise.

From a management perspective it's been a fun (and profitable) security to run - right up until recently.  Hopefully we can get back to that : it offers a legitimate method for people to bet on their judgment vs others KNOWING in advance the odds they get - which is very rare in BTC land (most betting services either don't give fixed odds, have no market depth or are just random in outcome).

Yeah it isn't Bitfunder - which seems to be dieing right now with withdrawals impossible for last few days (one or both of Bitfunder and/or Weexchange seem to always be down).  It's not an exchange which exists at all at present (in the sense of being open to public use).  Whilst I'd have preferred to move to an existing exchange of the two credible & feasible ones one (Bitfunder) ceased to be credible (issuer defaulting on his own loans security - but refusing redemptions in line with its contract) and the other (Havelock) isn't taking new listings nor is it clarifying its position on US investors.

MPEx is credible (though allows some dodgy practices - such as the issuer issuing warrants to himself but not disclosing their expiry date making valuation impossible for everyone else) but not feasible due to the burden imposed on existing investors of either paying a subscription fee there or committing to regular monthly fees to use a third-party broker.

As soon as I can provide more information I will - but I'd prefer not to give anything detailed until it's finally agreed : better to say nothing than say something which later has to be retracted.  I can confirm all investors would be able to trade without providing ID as that's a precondition on me moving DMS to ANY exchange.  So if it doesn't allow that then we wouldn't list there.

BTC Balance (BTC-TC)   146.6196902
9071 LTC-ATF.B1    90.71000000
CIPHERMINE Bonds    260.56000000
Coinlenders CD 27/9    203.64459670
Just-Dice Balance    153.86136722
TOTAL ASSETS    855.39565414
   
Outstanding MINING   152575
Outstanding SELLING   152575
Outstanding PURCHASE   10479
Effective Units   163054
   
Block reward   25
Difficulty   189,281,249
Hashes per MINING   5000000
   
Daily Dividend    0.00001328
50 days (Min Liquid)    0.00066423
100 days (Forced Close)    0.00132846
365 days (Buyback)    0.00484889
405 days (IPO)    0.00538028
400 days (Post SELLING div)    0.00531385
410 days (Pre SELLING div)    0.00544670
   
NAV Post MINING Div    853.22954103
NAV/U Post MINING Div    0.00523280
Days Dividend Post Div   393.90
SELLING Dividend    -         
NAV Post SELLING Div    853.22954103

Ciphermine.B1 dividend for this week came through (a bit under 1 BTC) so NAV/U has dropped by less than the MINING dividend today.

My expectation at present is that DMS will be relisted and trading at some point late this month or very early next month - with ALL investors able to trade without providing personally-identifying information.  That's not absolutely certain yet - but I'd say there's a 90%+ chance of it being the case.  I also expect full liqiuidity to return within weeks of that (i.e. the CIPHERMINE.B1 to be liquid and so fully BTC redemptions being possible).

I'll provide more information on this as soon as I can - hopefully in a week or so's time a more detailed explanation can be provided.  I'm not certain yet whether modifications to the contract will be needed - most likely there'd have to be short-term limits on exchanges of PURCHASE for MINING+SELLING due to transfers being manually processed but that doesn't require a change in contract as the existing contract already provides that "If activity on these security reaches a level which warrants it then this procedure may be amended or automated at Manager's discretion."  Any such restriction would not, of course, be such as to prevent existing holders of PURCHASE from converting all their holdings into SELLING+MINING in one go.

Hmm, let me make one thing perfectly clear - as maybe you don't understand my position.

I AGREE with you that it appears clear the US are now considering Bitcoin as money (for some purposes) - and it would be exceedingly unwise for someone based in the US to startup a Bitcoin exchange serving US investors.  But I'm not based in the US - and am only concerned with their laws to the extent that they're in accordance with those of a jurisdiction in which I operate (or where compliance with them is covered by a treaty/understanding/whatever).  If I (or anyone else) operates in a jurisdiction where Bitcoin is NOT considered as being money then what some judge in Texas says is neither here nor there.

Ask yourself why, when the largest poker sites were not just serving - but actively targetting - US customers (despite the US saying it was illegal) no action was taken against them for doing that.  They DID eventually run into trouble - but it wasn't for providing the service, but for misrepresenting financial transactions to banks/FSPs (to get around laws brought in that prevented US banks/FSPs handling their transactions if they were honestly identified).

The US can't (in general - there are exceptions) prevent those in other jurisdictions conducting business that's legal even if it involves serving US customers.  In the same way that the US government doesn't insist any website criticising the North Korean Government requests KYC/AML identification from every user to ensure they don't supply it to North Korean residents (where, for the purpose of this post, we'll assume such material is illegal).  If a country wants to stop its citizens doing something that is legal elsewhere then the onus is on the country to block it - not on every business in every other country in the world to expend time and effort complying with every whim of every dictatorship.  Shocking as it may seem to every US citizen, your country does NOT have the right to expect everyone else to jump through hoops to ensure we don't happen to provide something to you which your government would prefer you not to have.

You should look at Eve online then - there have been securities issued there for years in their currency ISK.  Or second-life for that matter.  Not seen the SEC making a fuss about either.  And both of those can be traded for USD (very openly in the case of second-life currency).

The fact that something CAN be used as money/currency isn't sufficient for it to be legally considered as BEING money or currency.  That's what you're missing.  It doesn't matter what your intention, my intention, Satoshi's intention or MPOE-PR's intention is when we hold/buy/sell/trade BTC.  What matters is how your jurisdiction defines BTC.  In the US that's now tending towards it being treated as being money/currency - in at least some situations.  In other jurisdictions (e.g. the UK) at present it is NOT considered as being a currency or money and we have none of the regulatory limitations that the US are attempting to impose (though, of course, that's always subject to change).