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Weekly Financial Disclosure
Time: 11:27 AM, Beijing time
Date: August 22, 2012
Funds of Last Week: 86.405BTC
Number of Total Shares in Circulation: 5000
Assets:
JLP-BMD
Holding: 1569shares 155.311BTC
Dividends Paid: 0.000BTC
YABMC
Holding: 1000shares 132.000BTC
Dividends Paid: 3.819BTC
PIMP
Holding: 1382shares 221.120BTC
Dividends Paid: 4.493BTC
MOVETO.FUND
Holding: 109shares 125.350BTC
Dividends Paid: 0.000BTC
BFLS
Holding: 50shares 50.000BTC
Dividends Paid: 0.688BTC
Cognitive
Holding: 179shares 123.510BTC
Dividends Paid: 0.359BTC
BDT
Holding: 0shares 0.000BTC
Dividends Paid: 1.824BTC
BTC
Holding: 247.054shares 247.054BTC
Holding After Dividends: 235.871BTC
Calculated Dividends: 0.000+3.819+4.493+0.000+0.688+0.359+1.824=11.183BTC
NAV: 155.311+132.000+221.120+125.350+50.000+123.510+0.000+247.054-11.183=1043.162BTC
Weekly NAV Growth: (1043.162-1080.446)/1080.446=-3.45%
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He has said before he doesn't have access to internet at all times only when he goes to internet cafes etc.
//DeaDTerra
In fact no. I do have access to internet and don't have to go to internet cafes. But I'm in a different timezone from most of people so I may not reply timely enough. |
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I'm dying to hear if the conference call has taken place and what the feedback is  It's finished. This time I had some kind of problem with my place so it turned from a video chat to a text-only meeting soon. But expect more of them in the future whenever I'm free to answer questions and make discussions. |
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@friedcat
Will you be testing the ASIC processor/board out on the bitcoin Testnet to demonstrate it's hashing power to the public prior to release?
What in my mind has been directly mining on the main blockchain and relay it with the pictures of mining devices to the public. Would you please elaborate the advantages of doing it first on the testnet? Thanks. |
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, are still reserved till the expiration date that each investor has said in the reservation request.
Are you able to tell us when is the last of these due / When do you expect to be holding the funds committed? The last of these due is within the next week. |
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Hello everyone, I'm a partner of Bitfountain. friedcat is on the train to Beijing for some meetings of the project. He can't access the internet now, your message will be replied as soon as he arrives about 8 hours later.
I have a question. When is the video chat going to happen that you have been promising me and other larger investors for days now? Every day I ask and everyday Friedcat says sure we'll do it, but nothing happens. I'm getting tired of this. He was supposed to send out an email about it. I sure haven't received one and it was supposed to happen tomorrow. Video, or I'm out. Sorry for the absence in the day and the delay of response. The e-mails about the skype video meeting are sent to all to-be board members. |
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Update
We have raised more than 8k BTC already and have another 7k BTC worth of bulk order reservations to be executed. Thanks to all investors.
From now we no longer process new bulk orders or order reservations. All shares pre-ordered before but not traded yet, are still reserved till the expiration date that each investor has said in the reservation request.
After the reserved orders are either executed or expired, the IPO will finish. Then we will transform the BTCs to fiats. If the fiats exchanged reach the amount of our (budget + redundancy), we will return the rest of the BTCs as dividends. Finally we will send the extra shares to investors.
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Friedcat:
I'm thinking bitfountain had a certain amount of $ in mind when you started the IPO
With the increasing price of BTC vs the $, does this mean you will consider lowering the amount of shares in the IPO ?
Yes. New reservations will be closed soon and we will focus on processing old reservations. After all old reservations are either executed or cancelled, and the amount of $ still exceeds our budget plus abundance, we will return the spread as dividends. |
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I think you should list one more risk in your list of risk scenarios, which is another manufacturer beating you in time to market or manufacture. The implications of this would potentially be higher difficulty at start of mining + earlier halving of the block reward. Hedge would ofc be the same: to diversify your portfolio.
Added. Thanks. The case that some of our competitors get their products working earlier is already considered. Normally it won't be as serious an impact on us as a risk. However, dramatic scenarios like secret startups launching their chips tomorrow, or our competitors lower their price to nearly the margin cost level from day one they deliver their products, are indeed potential risks. |
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No, I'm not. |
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Is there any chance of Chinese gov interference, or copy cats? Are you 100% protected from some sweat shop taking about your design and selling it for less? We have a flood of copy cat products here in the USA. Or the gov taking your business? I'm sorry I do not know how things work in China.
The chance of Chinese gov making action is small, or at least not significant higher than that of governments in US or EU. By copycats, you might mean one of the several following possibilities: 1. chip reverse engineering from our buyers. 2. foundry stealing our design. 3. foundry employees leaking our design privately. All of the three will not make the copycats' lives much easier than ours. Because unlike software, the copycats will also spend the same amount of money as NRE. There's no way that they could just duplicate our chips using magic devices. Plus, our foundry accepts lots of orders of taping out embedded-CPUs each month, and many of them involve ~2M$ worth of bought IPs (ARM architecture), so we expect that 2 and 3 is very unlikely happen to us, and if it does happen, there will be much more people (cellphone and pad manufacturers) worrying about them with much more money. Thanks for your question. |
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Update
The GLBSE works well now. Shares are being sent. Thanks for waiting.
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Additionally, the GLBSE contract does not mention the 10000 stock offer bonus that the OP does.
Yes. It also has a typo of 2012 to 2011, and misses several clauses and details in the thread. Since it is not possible to edit it ourselves after it's submitted, the updated version will be sent to the GLBSE manager. Thanks. |
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Update
The GLBSE transferring system seems to be not working at this moment. It reports "Internal Server Error" when sending shares out. All current bulk purchase requests are being processed, and the shares will be sent immediately when the system works again.
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Question: If someone does not initially purchase 5000 shares, but later obtains that amount, would they become a board member?
They will. But the total of 5000 shares should be obtained directly from us. |
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SmiGueL, thank you very much for your criticism. We admit that we have considered not carefully enough when allocating the portion of shares for public sales. But at this moment we would prefer not changing the plan by putting new ask walls, but rather let people directly buy from us. 1: The first post made clear that 'the ratio may be adjusted' so there could be more shares issued at GLbSE.
Yes, but we created it as a clause for more unexpected scenarios. 2: Current investors knew from the first moment that 200k shares were issued. What would be the difference for them whether the shares are sold are private or trough GLbSE?
Totally nothing, 200k shares = 200k shares..
The ONLY difference is that if the 30k shares were sold out, they could probably sell them with a big profit.
So actually, by not issuing more shares, u are supporting the people (who actually don't give a .... about the company, because they bought them to sell with profit) who are trying to rip other REALLY potential investors off..
Our private offering is still open. Interested investors are always welcome to buy directly from us before our IPO succeeds. |
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Indeed, It says initially 30.000 are for public sale, the ratio might be adjusted I can understand if you want to keep it at 30.000, but then I suggest you lower the threshold for private sales What will happen if not enough funds are raised when private sales are insufficient, yet many people want to buy smaller lots of stock, and are now even willing to pay over the 0.1 initial pricing  Thanks. The 5,000 and 10,000 thresholds are for becoming board members and have more extra shares. There are practically no threshold for bulk purchase. However I would prefer larger numbers, say, >500 shares, to reduce our manual work of the GLBSE transferring system. |
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I feel a bit cheated buying shares above IPO price when the IPO isn't done yet. If I would have known there would be more shares coming I would rather have waited.
I am sorry but the number of 30,000 for public sale and 170,000 for private bulk sale was written in the thread at the time this IPO has started. And also, as I said in the reply above, no shares will be put as ask walls by ourselves. |
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As not all the shares allocated for private sales have sold yet but the 30.000 shares on GLBSE sold out within 4 days wouldn't it make more sense to try and sell part of those shares allocated for private sales on GLBSE ?
Keep it totally transparent so people know exactly how many shares are up for grabs (private and GLBSE)
That will also keep arbitrage in this 'pre-ipo' at a minimum
Thanks for your suggestion. We indeed have considered it. However, all current investors' choices are made on the expectation that 30,000 shares are publicly sold and the rest are for private bulk sale. We feel that it is not a good idea to change people's investment assumptions by changing our IPO policy. So we would rather keep the plan as it was, and let the market settle everything down. |
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Thanks for your questions. Assume one chip is consuming 5-10 Watts (per GHps), your 12THps rig would pull 60-120kW from the wall. Now that's a fat power plug for those used to limit their mining rigs to 1.5kW Are you prepared to facilitate according needs? Yes. For a 60-120kW operating, the most similar places are local net-cafes. Larger ones have different electricity cables more close to those of industrial uses than family ones. This is why we have taken the place rent into consideration, it also contains the effort of (industrial-level) power supply. Second, are you prepared to secure the proper continuous operation of that 12TH rig in terms of immunity to external impacts? We see how the large pools have been under DDoS attacks every now and then and needed to gradually implement counter measures to provide their services. Now if you pop up with a hashing power worth the largest three pools have combined, you inevitably become a target. Are you aware of those risks, and prepared?
Yes, we are aware of those risks, but we haven't immediately began to work on it because currently the highest priority is making our IPO succeed, our design reliable, and our production on time. In fact there might be more "real-world" attacks like theft. All of them should be finally taken account. We feel that, solving them in parallel with the mask-set production as well as PCB production, are a good idea. Thanks for your answer and the transparency you provided so far.
You are welcome. More questions and suggestions are always welcome. |
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