Thanks.

We keep transparency as our first priority. At this moment the only issue is our unconventional calculation method of net gains. We hope we could use a more traditional NAV-based calculation when NAV makes more sense on GLBSE (less spreads, less price swings).

I'm sorry. It's a sequence of payments initiated by a typo.

The span is less than an hour (41-25=16 minutes in my record). The third payment is a (1 satoshi/share) payment to cover the rounding error. I hadn't noticed this difference until I recalled the satoshi-based integer representation of Bitcoin amounts in the GLBSE system 10 minutes later, therefore it's sixteen minutes instead of two.

7th Payment

Calculation time: July 25, 03:14:26 forum time

Number of difficulty change: 0
Number of block reward change: 0

Time interval:

  Starting from: July 18, 04:17:09
  Ending at: July 25, 03:14:26
  Total time: 601037s
  Difficulty: 1,866,391.31

Hashrate of this week: 1.23696MH/s

coupon/share = (1.23696*10^6)/(2^32)*(601037*50/1,866,391.31)=0.0046373

Number of Shares: 5696

Total Payment: 26.4140608

Weekly Financial Disclosure

Time: 10:03 AM, Beijing time
Date: July 25, 2012

Funds of Last Week: 129.288BTC
Number of Total Shares in Circulation: 5000

Assets:

JLP-BMD
Original: 1569shares 393.819BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.251BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 1569+0-0=1569shares 393.819BTC
Net Gain: 0.000BTC
Dividends Paid: 1.440BTC

YABMC
Original: 1450shares 377.000BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.260BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 1450+0-0=1450shares 377.000BTC
Net Gain: 0.000BTC
Dividends Paid: 5.476BTC

PIMP
Original: 1000shares 198.000BTC
Bought in: 382shares 57.782BTC
Average Holding Price: (198.000+57.782)/(1000+382)=0.185BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 1000+382-0=1382shares 255.782BTC
Net Gain: 0.000BTC
Dividends Paid: 5.318BTC

MOVETO.FUND
Original: 150shares 150.000BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 1.000BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 150+0-0=150shares 150.000BTC
Net Gain: 0.000BTC
Dividends Paid: 0.000BTC

BFLS
Original: 59shares 59.000BTC
Bought in: 30shares 30.000BTC
Average Holding Price: (59.000+30.000)/(59+30)=1.000BTC
Sold: 5shares 5.500BTC
Average Selling Price: 1.100BTC
Holding: 59+30-5=84shares 84.000BTC
Net Gain: (1.100-1.000)*5=0.500BTC
Dividends Paid: 1.458BTC

Cognitive
Original: 209shares 131.690BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.630BTC
Sold: 6shares 4.740BTC
Average Selling Price: 0.790BTC
Holding: 209+0-6=203shares 127.890BTC
Net Gain: (0.790-0.630)*6=0.960BTC
Dividends Paid: 0.503BTC

Holding Funds=
129.288-0.000+0.000+1.440-0.000+0.000+5.476-57.782+0.000+5.318-0.000+0.000+0.000-
30.000+5.500+1.458-0.000+4.740+0.503=65.691BTC

Total Net Gain=
0.000+1.440+0.000+5.476+0.000+5.318+0.000+0.000+0.500+1.458+0.960+0.503=15.655BTC

Calculated Dividends: 15.655*35%=5.479BTC

Usable Funds: 65.691-5.479=60.212BTC

Actual Dividends: 5.479BTC

NAV: 65.691+1569*0.159+1450*0.162+1382*0.215+150*1.116+203*0.789+54*1.09=1233.619BTC
Weekly NAV Growth: (1233.619-1151.589)/1151.589=7.123%

Then my spoken English will probably disappoint you someday.

I indeed didn't know. It is truer and truer to me that learning phrases takes a lifetime.

If I reply to this then my whole reply is innocent (not hijacking the thread). I'm not in the right position to comment our competitors, but we cannot rely on a small sample space of two events to make our plans and decisions, so we have to presume that there might be at least another brand of ASICs out in the network, or we will be over-optimistic.

Don't boost us too much, or I will be under too much pressure.

Seriously, we don't want to beat any one down. We just want to make our chips taped out nicely and work well.

Update

Just for entertainment, have you guys noticed that the price chart of MU is a little similar to that of Bitcoin?

By "my name", I guess you mean my forum id instead of our company name, because the latter is quite normal. My forum id is indeed kinda weird but shouldn't be read literally. It has been my nickname for many many years in the real world.

There's another alternate translation of "hobbits", that is 哈比人(hābǐrén). Both are transliterations.

Update

We have had our IC design company registered at Shenzhen, China.

We also have signed the confidential contract with the IC manufacturer and got the process library necessary for correct DC synthesis.

Update

As everyone knows and mentioned several times before, the releasing date of Lancelot FPGAs is still unknown. And it is believed by me that at least one brand of dedicated mining ASICs will be in the market within this year. So I probably won't buy any kind of current generation's mining devices.

Therefore we have two choices now. One is to empower MOORE with my own ASIC project when it succeeds (estimated deploying time at October-November this year), the other is to buy BFL ASICs. In both cases I will continue to pay coupons and increase the hashrate steadily by 0.89% per week before suddenly pulling the hashrate up with the help of new mining rigs with a new execution of the new Liquid Helium plan.

The estimation of the first choice is about 200-300MH/(second*share).
The estimation of the second choice is about 50-100MH/(second*share).

Both are based on the current price level of Bitcoin. The 0.89% growth will still be maintained after the upgrade.

Considering the second choice, which is (in my opinion) worse, I will buy SC Singles or SC Mini Rigs after there's solid proof that they are already there. But I hope that our own ASICs will be manufactured and deployed smoothly so that both the upgrading date and the target hashrates will be much better.

Of course, some of the investors do oppose to both of the choices, or do not like the status quo. I'm buying back at 0.5BTC/s, which is the same as the historical highest market price. Don't panic sell at the price below 0.5 when the bid wall is taken down, if you don't need the money immediately. Because I will always buy back at 0.5, even if I discover that everyone is against the plan and wants to be out.

Thanks. I believe they will be dominating earlier than 2013 though.

Update

The unexpected sudden huge drop in price of JLP-BMD caused the shrink of NAV. But since the dividends of JLP-BMD is still steady paid out although not very timely, and the issuer also considered his upgrade path to ASIC miners, we believe it's way undervalued at this moment.

Weekly Financial Disclosure

Time: 12:28 PM, Beijing time
Date: July 18, 2012

Funds of Last Week: 304.714BTC
Number of Total Shares in Circulation: 5000

Assets:

JLP-BMD
Original: 1569shares 393.819BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.251BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 1569+0-0=1569shares 393.819BTC
Net Gain: 0.000BTC
Dividends Paid: 2.185BTC

YABMC
Original: 1505shares 390.925BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.260BTC
Sold: 55shares 9.471BTC
Average Selling Price: 0.172BTC
Holding: 1505+0-55=1450shares 377.000BTC
Net Gain: (0.172-0.260)*55=-4.840BTC
Dividends Paid: 5.829BTC

PIMP
Original: 1219shares 241.362BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.198BTC
Sold: 219shares 51.465BTC
Average Selling Price: 0.235BTC
Holding: 1219+0-219=1000shares 198.000BTC
Net Gain: (0.235-0.198)*219=8.103BTC
Dividends Paid: 4.021BTC

MOVETO.FUND
Original: 150shares 150.000BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 1.000BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 150+0-0=150shares 150.000BTC
Net Gain: 0.000BTC
Dividends Paid: 0.000BTC

BFLS
Original: 0shares 0.000BTC
Bought in: 80shares 80.000BTC
Average Holding Price: 1.000BTC
Sold: 21shares 23.100BTC
Average Selling Price: 1.100BTC
Holding: 80+0-21=59shares 59.000BTC
Net Gain: (1.100-1.000)*21=2.100BTC
Dividends Paid: 1.439BTC

Cognitive
Original: 0shares 0.000BTC
Bought in: 209shares 131.690BTC
Average Holding Price: 0.630BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 209+0-0=209shares 131.690BTC
Net Gain: 0.000BTC
Dividends Paid: 1.281BTC

Holding Funds=
304.714-0.000+0.000+2.185-0.000+9.471+5.829-0.000+0.000+0.000-80.000+23.100+1.439-131.690+0.000+1.281=136.329BTC

Total Net Gain=
0.000+2.185-4.840+5.829+8.103+4.021+0.000+0.000+2.100+1.439+0.000+1.281=20.118BTC

Calculated Dividends: 20.118*35%=7.041BTC

Usable Funds: 136.329-7.041=129.288BTC

Actual Dividends: 7.041BTC

NAV: 129.288+1569*0.129+1450*0.172+1000*0.244+150*1.055+209*0.774+59*1.099=1151.589BTC
Weekly NAV Growth: (1151.589-1291.644)/1291.644=-10.843%

6th Payment

Calculation time: July 18, 04:17:09 forum time

Number of difficulty change: 1
Number of block reward change: 0

Time interval:

  Starting from: July 11, 03:27:20
  Ending at: July 17, 14:55:05
  Total time: 559665s
  Difficulty: 1,751,454.54

  Starting from: July 17, 14:55:05
  Ending at: July 18, 04:17:09
  Total time: 48124s
  Difficulty: 1,866,391.31

Hashrate of this week: 1.22605MH/s

coupon/share = (1.22605*10^6)/(2^32)*(559665*50/1751454.54+48124*50/1,866,391.31)=0.0049289

Number of Shares: 8404

Total Payment: 41.4224756

This was the mining farm of (finway) we original planned to use to pay the coupons while waiting for the expansion to Lancelot (https://bitcointalk.org/index.php?topic=79835.0). But since the Lancelot delivery was delayed indefinitely, and the ASICs are imminent, he sold the farm with half of the original price to buy BFL ASICs. I started my own ASIC project at roughly the same time, so we also suspended our deal.



I am now supporting about a half of the coupons with normal mining bonds of which the issuers plan to upgrade, and the other half with my own coins. This is also why I reduced the supply. Therefore in a word we are now still at stage-1 in the OP with "other assets" clause, and due to no appropriate hardware choice, we haven't switched to stage-2 yet.

If you consider this as a big problem, I am now placing the bid wall at 0.5BTC to buy back. But if you believe that my ASIC project will finally work out, or I will get the BFL ASICs after they really delivered something and increase the hashrate proportionally, you could hold MOORE for a little longer.

Thanks for your advice. Our first generation will be customized for mining only (bitcoin-specific constants baked in, only information about nounces being passed out), but in the future we will make generic SHA256 ASICs if there's indeed much other use.

I guess your "put two of them nut-to-butt and there's 90% of your miner" means two hashing units. Because both "two hashing units in one chip" and "one hashing units, two rounds for a double SHA256" are much more technical viable than separating two hashing units into two chips then using outside circuits to make them communicate.


The technology of our first batch products will not be as good as, say, 45nm. Therefore, we believe they will be small, but not crazily small.

I believe they are covered by the Civil Law in most of the countries.

Furthermore there are quantitative differences: while it is hard to ensure the contracts of mining bonds and stocks, it is even harder to guarantee ours.


It is indeed a very good future direction. But as a small startup, we have to bootstrap well first and control our cost. So we have to admit that the options of mining ourselves and selling hashing power are not excluded in our first stage.

It is more complicated than that.

1. Other projects larger than $150k are all incremental, and investors could see their steady flows of return almost immediately. While our project is kind of "$150k or we could do nothing at all". The long waiting time is also a concern.

2. It is technically very hard to execute an actual shareholder ownership. For example, how could the shareholders prevent us from secretly produce a bunch of extra chips and mine and don't report to them? In normal mining companies, the shareholders have at least an estimation of how many mining devices are bought, then complain if the return doesn't match the capability of devices. But for our company, how could the shareholders watch and inspect us without a lot of energy?


It is possible. But I really have no idea how much could the bitcoin fund could raise, and whether our fiat investors will give us the approval. I will think more about it.

To complement

the best scenario will be: our ASICs arrive early, then our MH/$ and return becomes very attractive. In this case, I will boost MOORE with it, then sell part of our initial products' hashing power as MOORE before we are ready to sell physical devices.

The not-so-good condition is: our ASICs are late and the whole network is already dominated by other ASICs. In this case, I will also upgrade MOORE via Liquid Helium or MOORE will be devaluated.

The worst case will be that we fail to deliver our own ASICs. In this case, MOORE will also be upgraded, but via buying other people's ASICs.

No. MOORE is a bond, not a stock, so I have to take all the responsibility. Investing MOORE funds to ASIC manufacture is too risky.

ASIC building is costly, although not so crazy as I thought before. It has a long waiting time (several months of producing masks), and needs a large-ish fund (150k$ in total with our current estimation). Crowdfunding of such a project has not been done before, and is hard to do. Seeking real-world investors is put on a higher priority.