Alternatively, govt can go take a hike.

They have already ignored me long enough for me to get the hint. To my knowledge ( but I didnt look too hard ) the scam section only has this thread relating to nefario scamming. So I put my complaints where they belong, I don't care if I shot myself in the foot since I know my bitcoins are already stolen.

That's what I've been thinking for a while. When BFL first announced preorders, the price per BTC was half what it was today. This means you can buy an ASIC for half what it cost you 3 months ago.

Future customers?!

You're right.

I am officially dropping this investigation and am releasing all parties of any obligations. BadBear will now decide this, if he wants.

But - yeah, bank runs are a big problem for reasons I've already given. It ain't rocket science. If the majority of depositors leave a bank within a month - the bank's fucked, and if the bank isn't FDIC (or with CUs, NCUA) insured, remaining depositors are probably fucked, too. OTOH, as you point out, if the majority of depositors withdraw from a ponzi operation - the ponzi op's fucked (well, he'd probably just leave), and the remaining depositors are probably fucked, too. So - could indicate someone's operating a ponzi, but that's no reason for Shit-Brush to get all worked up because his ponzi predictions have almost all come true.

BMF -- CPA -- NYAN
October Special Letter to Shareholders
by: Usagi

Dear Investor;

  My name is usagi, and as you know I run three separate companies on the GLBSE:

1. BMF -- Bitcoin Mining Fund -- a sector fund which only invests in mining securities and mining hardware.
2. CPA -- The Bitcoin Insurance Company
3. NYAN -- Nyancat Financial, a CDO-like general market fund.

In this letter I would like to address many of the concerns people have raised recently about the businesses I run and reassure investors of my plan for the future.

The first and most obvious question is, "what the hell is going on!" but I think to understand that, you will need to know what happened. So I'll start there.

First, BMF.
Back in may/june, I launched BMF as my flagship business. We raised around 1500 bitcoins. However, we were fighting an uphill battle as a sector fund investing in mining. The difficulty was rising by solid percentage points each week, and the USD/BTC price kept rising.. and rising.. and rising. BMF did well considering the value of our hardware. When BMF IPO'd, we started at 1 BTC a share. 1 BTC was worth $5 and a single was worth $599. In other words, one share of BMF was worth 1/120 of a Bitforce FPGA single. If one bitforce single was 832 mh/s, that means one share of BMF produced income valued at around 6.9 mhash/share. GIGAMINING, to compare, produced income corresponding to 5mhash/share.

As the weeks turned into months, the bitcoin price steadily rose. Today, one bitcoin is worth $12.70 and as a result the price of BMF has fallen. It's true that BMF has lost money in terms of bitcoins, but look at the reality of the company's operation: At 0.48/share today, 1 share of BMF is now worth $6.10 -- this means one share of BMF is now worth 1/100 of a single. By careful trading and expansion, we increased the intrinsic value of BMF -- we increased our effective hardware under management (via ownership in funds).

In other words, while bonds like GIGAMINING are still worth 5mhash/share today, BMF went from 6.9mHash/share to 8.47mHash/share. We gained. I know it doesn't look like it, but we did a LOT better than mining bonds. We did what any normal company would do.

But the exchange rate placed BMF in a difficult situation. Many people believed we lost tons of money -- this was not true. We were simply exposed to exchange rate risk because we invested entirely in mining. ALL mining stocks went down. GIGAMINING went from 1.50 to .55. We went down from 1 to .50. So yes, from the standpoint of bitcoins, we did in fact lose money, just like everyone else. And I'm sorry, but that does not make me a scammer.

If the USD/BTC price stays the same or goes down, BMF will go up in bitcoins. The BTC price cannot rise forever.

So, what the hell is going on with BMF? It's simple. Nothing. We're plugging along, paying divs and reinvesting. BMF has a bright future ahead of it. And, what's more, I have a very special suprise for BMF investors going forward, which I will tell you later on in this article. But first, let's talk CPA.

CPA
After I launched BMF, I was excited at the prospect of launching a "real business" on the GLBSE. So I got together with some of my investor buddies online and I launched CPA. CPA was a great idea, it really was. We sold about 2,500 BTC worth of shares. Maybe 3,500 -- somewhere in that range. The problem with CPA is that no one would trust us. After a couple of weeks it became apparent that we couldn't sign any contracts because everyone thought I was a scammer. Here I was, the new kid on the block, with BMF and CPA and 5,000 coins of other people's money. So I spoke with the members of CPA's round table and we came up with a plan. First, we would invest into the community.

We put the money into the following areas:
1,000 bitcoins into BMF
500 bitcoins with Patrick harnett (Starfish Bank)
500 bitcoins into Gamma Bitcoin Fund
500 bitcoins with Hashking
500 bitcoins with Imsaguy's EIEIO fund.

It looked something like that.

Magically, as soon as we did that, we started signing contracts -- a lot of contracts! We signed a few thousand (bitcoins worth of) contracts for Pirate. One particular contract with ciuciu was valued at over 2,000 coins. Another with kakobrekla was worth over 1,100 coins. We had many smaller contracts as well. Due to the extreme popularity of pirate insurance, we decided to cancel all existing contracts (except Kakobrekla's) and start YARR.

First, why we didn't cancel kakobrekla's contract. The idea was that we would risk 1,000 bitcoins on insuring pirate. If pirate blew up, we were planning to pay, and come out as the heroes of the day. I truly believed that if I paid that money, everyone would love CPA and sign contracts with us. It was a calculated risk. I told myself that it would be the best free advertising we could ever buy.

ok, so YARR. We sold 2,800 shares of YARR at 1.5 bitcoins per share.

Then about a month later pirate collapsed. What did we get out of YARR? We lost 100 bitcoins. not a huge amount. We basically bought back all the shares. There's still 30 or 40 out I think, some small number. People are holding out trying to sell at 1.20 and up. Well, what can I say. A contract is a contract, they will be bought out at 1. So overall YARR was another way that CPA proved we could be trusted. We bought back 2,800 bitcoins worth of YARR shares.

And we paid out 1100 to Kakobrekla as well.

We saved asses, there is no doubt. We saved people's ass big time. BIG TIME.

But then something terrible happened. Gamma bitcoin fund was in trouble because of JRO. DeadTerra shut down withdrawls for 2 weeks. During this time, GBF started to lose more and more money. When we finally got back the funds, there wasn't even 400 left in CPA's account, and we had to trade for assets. We were hurt but it wasn't major.

Then Hashking blew up.

Then Imsaguy blew up.

We managed to get 400 out of Starfish Bank, bless Patrick's immortal soul, but the last 100 (which is the last 100 we owe, to Kakobrekla) cannot be repaid (until who knows when?)

All of the people I just mentioned, incidentally, are doing their best to pay us back. We have recieved payments (some recent, some not) from all of them. The point is that CPA does not have the money NOW. As a result we have set ALL of the money we held with them to zero.

So what's left? CPA has less than 40,000 shares outstanding, and here are our assets:

1,213 shares of BMF
1 share of YARR
283 shares of NYAN.C
604 shartes of OBSI.HRPT

In the end, the only thing we have of value in CPA is the mining fund I run myself. So all in all, CPA is worth about 0.02 per share right now.

Now let's talk NYAN briefly, before I explain to you what my plan is for the future.

Nyancat Financial. Ahh, the magic of a CDO. NYAN.A is fully insured and guaranteed by CPA. When investots demanded OUT, I sold assets and bought back over 450 shares of NYAN.A and over 700 shares of NYAN.B in just 2 weeks. But I am not superman. And many NYAN investors want to know what is going on. It's simple, the market is crashing, and while we do our best nothing can stop a general market fund from tanking when the general market is tanking.

That being said, the NYAN funds are doing suprisingly well. Except for NYAN.C, which was basically 50% pirate and 50% OBSI.HRPT. Both of them crashed, so NYAN.C is worth zero. In almost every NYAN letter to shareholders I cautioned people against investing too much into NYAN.C -- let's hope they listened. What does the NYAN.C contract say?

Investments are chosen entirely based on their interest rate without regard to the risk profile.

Well, I am sorry that pirate and obsi and V.HRL and BIF.LOANS and god knows what all crashed. I provided you the chance to invest in a diversified portfolio of risky-risky securities. Nothing like that existed on the market. Unfortunately it turned out to be a bad investment choice, however there is hope. Hope for NYAN as well as for CPA, which I will explain in a moment, in my plan for the future.

So, what about NYAN.B? Well when FPGAMINING and JRO's ventures (BDT, REBATE, and ZIP.A) all crashed, we lost over 100 bitcoins. So I transferred assets from .C into .B and tried to sell them down. I also transferred some of .C's assets to .A. I was luckily able to sell all the high risk assets in A, and now A has no high risk assets. But .B had to take risky assets from .C, and there simply was no time to deal with the situation. I was faced with multiple defaults, all at the same time:

1. BDK.BND crashed
2. FPGAMINING crashed
3. UDN went to zero (BMF went down from .60 to .50)
4. Goat's assets were delisted (we had 25 BTC of goat's TYGRR.BOND-A in NYAN.A)
5. OBSI.HRPT started crashing
6. The market crashed in general and stuff got sold down

There was almost nothing I could do -- nowhere I could invest that was not blowing up. NYAN.B is mandated as follows:

Investments are chosen entirely based on sector; we seek to invest in the bitcoin community at large; but again, no mining, and no pirate.

Basically, NYAN.B is the middle of the road, company fund. We invest in Satoshidice, we invest in BitVPS. We invest in Bitcoin Racing Syndicate. Feedzebirds advertising agency. We invest in lots of stuff like that. A lot of these companies are doing OK but for some reason the market is trashing them. FZB for example, IPO'd at 0.1 -- today it is worth 0.02, much like CPA. But there's nothing wrong with FeedZeBirds. One of the guys who runs it (Erik) also runs SatoshiDice. On September 27th just 5 days ago there was news that Ira was hiring a developer to work on a new webpage, and that FZB would partner or be integrated with coinapult. So why did the market sell them down? We really don't know. But that is why NYAB.B is having trouble -- because honest, good companies are being sold down and we are suffering the consequences.

Many people are upset that "usagi is stealing money" or "scamming". Nothing could be further from the truth. We invested good money in companies like Feed Ze Birds -- we invested over 100 bitcoins in them. And now they are being sold down. It's not our fault, and we honestly believe there is value in Feed Ze birds and many of our other investments. We are simply caught in a crashing market, and there is nothing we can do. Or is there?

Usagi's Plan for the Future

This is the part you have been waiting for. This is what is going to make everything right -- even the stuff that isn't our fault.

Right now, it should be obvious that I have staked everything on one cental point -- BMF.

CPA owns over 1,200 BMF.

NYAN.A owns over 1,000 BMF.

I also own, personally, 800 shares of BMF (250 of which are non-saleable management fee shares). My personal ownership is being mentioned because it will play a part in my plan.

So here's the plan. CPA is still in operation. Based on our NAV of 0.02, we are making around 2% a week on our BMF holdings. I know that CPA has lost a lot of money but it has a FUTURE. We are in talks now for some major contracts, and we still have contracts with Luceo's VPS, and several other customers. CPA has a future. CPA is making money, and although it would be foolish for us to pay a dividend in this situation CPA is by no means out of the picture. We will FIGHT. We will WIN. We will persevere. That is that. News of CPA's demise is laughably premature.

CPA is going to be a big company someday. Mark my words.

And what of NYAN? NYAN.C is worthless now, isn't it? No, not really. Notice how NYAN.A holds over 1,000 BMF shares. That provides an income of 10 BTC a week or more. This alone is about enough to pay the dividend on NYAN.A and have funds overflow into NYAN.B. And it isn't like NYAN.B doesn't make any money. Slowly but surely, we will rebuild NYAN.B, and overflow into NYAN.C. Those shares which were worthless? They'll still pay dividends. It won't be easy, but I am staking NYAN's future, as well as CPA's on BMF. I just can't trust the money with anyone else.

What about NYAN.B? Now is the time to close NYAN.B. Let's agree to quit while we're ahead. NYAN.B has assets which are very close to 1-- hopefully close enough to allow investors to get out cleanly. Since inception, NYAN has paid more than .13 bitcoins of interest per share. That is substantial. Investors might not get 1 bitcoin if OBSI.HRPT goes to zero, but if we can sell out at current prices .95 is not out of the question. So NYAN.B is under aggressive buyback right now. It's NOT expanding. Please don't sell your NYAN.B too cheaply! Remember, it recieves income from NYAN.A beyond the 1% NYAN.A makes.

Now, NYAN.A. NYAN.A is the KEY to ALL of Nyan. Read this NEXT part VERY carefully because it is VERY VERY IMPORTANT.

Right now, as of right now, NYAN.A has 956 shares outstanding and owns (among other assets) 1026 shares of BMF. These BMF shares pay about 0.01 per share per week.

That means NYAN.A does not actually need any other asset to support it's dividend, just the extant shares of BMF. For the record however, BMF is only about 50% of the portfolio of NYAN.A. So NYAN.A generates considerable overflow into NYAN.B and NYAN.C. Our plan for NYAN is to use this overflow to buy back shares of NYAN.B and support NYAN.C shareholders. This plan will work, but it may take up to 3 or 4 months.

Now, BMF.

BMF is really the key, isn't it? Everything now depends on BMF.

In order to make this work I have to make an effort to defend the share price of BMF at .50 per share. This will be difficult as the price of bitcoins is continuing to rise and ALL ASSETS. ALL BUSINESSES will decline in price. But I will try. I will make one last effort, one great, giant last stand.

The first act I will perform is to voluntarily return the 250 management shares of BMF that I own. This will raise the value of BMF to over .50 bitcoins and encourage people to invest in BMF.

Seconly, tomorrow morning I will buy 200 bitcoins on mtgox (well, I will buy them on friday, tomorrow I will wire the money). I control via personal account and funds:

1026 BMF in NYAN.A
1213 BMF in CPA
 963 BMF in my personal account (250 of which are management shares).

There are currently 5,132 outstanding shares of BMF. This means that I control 3202/5132 of the fund. After I return my management fee shares I will 'control' 2952 shares of 4882. In other words, /other people/ own 1,930 shares of BMF. 200 bitcoins will currently buy 400+ shares of BMF; just over 20% of what other people besides myself have.

These 200 bitcoins will be used in 2 ways:

1. I will order two Bitforce FPGA singles for BMF;
2. I will defend the price of BMF at .50 per share (or .49 until BMF starts selling shares to buy hardware).
3. I will loan the rest of my current personal stake in BMF (~750 shares) to NYAN to defend the price of NYAN.A and NYAN.B along with CPA.

I believe this push will encourage people to invest in BMF. As BMF gets more and more hardware, it will increase in value and in cashflow and it will help NYAN to buy back NYAN.B and support NYAN in general; it will also help CPA grow.

I have staked everything on BMF. I'm pouring my heart into this. I am transferring my management fee shares back as we speak.

The value of BMF is now decidenly over .50 per share. NYAN.A, B and C have a future. CPA has a furture. BMF has a very bright future.

I hope you are with me on this. I will defend BMF because it is the right thing to do. Please recognize I am doing my best here and that a crashing mining market really is not my fault.

If you buy shares of BMF or NYAN.A it will help me. I will do my best for you as my shareholder. If you have any questions or comments, please e-mail me at bmf@tsukino.ca.

If you are a large investor I will give you 10% off shares of NYAN.A or BMF. I am desperate to make this work and I think that you can see that with the way I am backing this with my own personal money. I have absolutely no intention of giving up and I will fight for my companies till  the very end.

BMF: CAMELOT LIVES! We will get thru this! One way or another!

---

one last thing. It's 4:12 AM right now. 4am, 5am every night. I don't know how this keeps happening but my schedule is ruined. I'm really tired from all this. I've been working and communicating with people a lot on here recently. Please stop calling me a scammer ok? I really don't make much money for the work I do, and now that I have given up my management fees I make nothing. If it is really not obvious to you that I'm not a scammer then anything is a scammer. milk is a scammer. Ok? So i'm not a scammer. I have a job too, so I need to go to sleep. This letter is going to have to last you quite a while. I need to focus on my work now because this has been draining me. And after all who do you think is going to pay for the 200 bitcoins I am buying tomorrow. So give it a rest please.

You find nothing wrong with selling a service and then not fully doing it?

You find nothing wrong with selling a service and then not fully doing it?

If I have moderate-poor luck, repayment will rely on my employment income,