It's ok, I'm not afraid of death or speaking about it.  I'm having measures put in place that will cover the company in the event of this happening.  I know a few people who would have the ability to take over the company if this event were to occur.

To anyone looking at the graph on Eligius, that little hiccup in the graph was not the miner going down, it was Eligius going down.  LRM has many back-up pools in place for such an occasion.  The pool it failed over to is private, but you will still be receiving dividends for that time.

I will not be tearing down the company unless certain circumstances are met and one of the only real reasons I could ever see myself tearing down this company is if the government decided to rip the equipment from my cold dead arms.

I believe in Bitcoin and in the event of a serious legal battle I will defend Bitcoin and all related businesses to the bitter end.

As mmmerlin stated, the more I grow this business the more I will make in the long run.  Why would I sell the hardware?

Want to follow LRM's progress in securing hashrate and generating dividends for investors?

There will be 2 pools that provide public stats involved in LRM's mining operation. Eligius and Eclipse Mining Consortium. I will be using DGM on Eclipse Mining Consortium and the standard CPPSRB on Eligius to provide short term and long term stability in dividend payouts. Once there is at least 200GH secured I will be load balancing the pools, but as for now you can view the Eligius stats here and the Eclipse Mining Consortium stats will show up here once enough hashrate is secured.

There are some big deals in the works so these numbers should be climbing rapidly.

Dave and I just finalized a portion of our deal that I find to be significant.  Dave has agreed to, with his own personal hardware, mine for LabRatMining for a minimum of 14 days once the hardware is received.  There is a guaranteed hashrate of 400GH/s (one rig), with an additional 100GH/s per $50,000 pledged to his company.  As of this time that is in the range of ~3900 bonds.  From here on out, every (approximately) 3900 bonds sold will increase this hashrate by 100GH/s that he is mining for the company up to 2TH.

***To clarify, Dave is doing this with personal hardware, therefore it will not affect shipment to any of his customers.***

The terms of this deal that have been discussed can be considered to be "minimums."  Dave has proposed that if this deal works out well for the both of us, we may extend the deal past 14 days worth of contracted mining.  As of this time it is unclear as to how the mining will take place.  We will be discussing whether it will be easier for him to mine and issue the BTC for that hashrate, or whether he can easily point that specific hashrate at an LRM public account for open viewing.  Either way the payout will be the same.

There are additional aspects of the deal being worked on, unrelated to the contracted mining, that will sweeten the investment that much more.

Additionally, and unrelated, there is a Single 60GH/s unit on it's way to me at this time with other private deals with individuals in the works (some in the range of 2.3TH.)  Dividends will be paid out next Saturday Aug. 10th accordingly on the terms I receive the unit before this weekend.  I am under the impression it was over-nighted or next day shipped so this should not be an issue.

Another big announcement is that the first large order has been placed with Butterfly Labs.  3TH has been ordered securing LRM's place in line with them, while the place in line with BitFury is held regardless of paydate.

There are many different ways to secure hashpower, and LRM is taking every one of them to ensure dividends be paid out in the largest amount possible to not only benefit the investors, but the company as a whole.

I was referring to Dave at BitFury rather than Dave "The Knife" at BFL.

I would consider that a misappropriation of funds. Far less than $10k, but most people are requesting a payment in bonds rather than BTC or fiat.

The particular deal I was referring to in that instance does not appear to be going through, but there should be multiple other individuals shipping me Singles in the next week or so.  I believe I should be getting one Thursday, although if it reached me Friday or Monday I would not be surprised.

There has even been an offer to purchase an Avalon.

It appears LRM may be mining with equipment from all manufacturers at some point.

I am expecting to hear back from Dave later this week to finalize a part of our deal so I may make the announcement.

I believe I may have some hashrate coming online far before new orders are received.  I can't give specifics as to how as of this time, but I will say that I am working on something that is quite a big deal.

I spoke with Dave today and one of the major parts of the deal he is making with LabRatMining is in the process of being finalized.  Once it is confirmed I will be delivering specifics regarding this part of the deal.

From what we discussed he should be able to confirm this within the next couple days without a problem.

Updated estimates:
354MH/s per bond
10.5TH/s total hashrate
http://www.labratmining.com/currentHashrate.html

That's truly sad that that's 5x better than other mining bonds due to the fact that if 100k sold you could expect roughly 50TH with LabRatMining, therefore you would receive your ROI 25x as fast truly...

See my calculator as the 10TH was a minimum original estimate, this calculator shows how the money is actually being spent: http://www.labratmining.com/Bonds/bondCalculator.html

I would like to clear up a lot in this post right now... The market cap is not 15 Million... Check your 0's, it's only 1.5M.

The next thing to clear up is my guaranteed minimum hashrate is once all hardware is received, so in the event I were to get 250GH in the next 10 days as I see happening, it will not work out to 100MH/s per bond although the hardware has been ordered and is being ordered.  I'm sure everyone would rather me pay out the ~25 BTC/wk that 250GH/s would pull in than wait until I can pay out 100MH/s per bond am I correct?

Another thing is that I have provided a calculator of how I am spending money for company.  This shows a likely range of 300-400MH/s per bond after all hardware on order or being ordered has been delivered.  This will start much lower and ramp up over the weeks ahead, but you should expect something close to that range by the time all hardware for current bond purchases are in hand.

Additionally I plan on keeping up with network growth which will allow my bonds to maintain value if not increase over time.

Finally, as mmmerlin stated, I am not claiming dividends for the unsold bonds.  I am still only claiming 25% of all dividends paid out to reinvest in additional hardware for the company and cover costs associated with running this hardware.

I sincerely hope this clears up everything that is being discussed.

The contract on BitFunder has been updated to cover everything discussed in this thread that should have been added from the start, but it does mention BitFury...

I have 240GH that should be on it's way to me this week or next, the source doesn't matter, but it's already in hand.  Following that will likely be 2.3-2.8 TH in June/July 2012 BFL orders and August shipdate BitFury orders.  4-8 weeks later will likely be 9+TH split between BFL and BitFury.

There are a few other individuals I have been in contact with to secure early orders or orders already in hand, but I have a deal I'm working out with Dave at the moment that is huge.  I would like to share it, but the details are still being ironed out...

Just trying to paint a picture that there are 4 or 5 different paths being taken to get hardware as soon as possible and LabRatMining has the power to get them done.

If you read a couple posts up from yours you'll notice I updated my contract.

As per the SEC issue. I discussed this with my lawyer over a month ago and I believe that due to these securities being offered to a limited amount of people and/or institutions, as well as being limited in size, they do not have to comply with the SEC unless they are falsely representing their business.


Found here:  http://www.sec.gov/about/laws.shtml

I can't give an exact portion for the fact that the dividends are variable while the hosting costs are fixed resulting in an ever changing portion of dividends remaining.  I can guarantee that at no time will I not reinvest if the funds are there, meaning the dividends remaining are over the cost of at least one rig.

This value is dependent upon the USD/BTC exchange rate and the dividends brought in over the course of that week.  I am not going to make any promises at this time for the fact that in 6 months this could cause the company to be operating in the red.

I will give full disclosure at the time of these events, but can't and won't put the company in jeopardy because you want to know in advance.  I am already operating at an extremely low margin that is 21:1 as profitable as some other PMBs on the market.  I feel as though I have promised enough.

This is not a mistake and yes I have disclosed all numbers.  I have stated that 80% of funds invested by bond purchasers is going directly into hardware, while the remaining 20% will be used for start-up costs associated with a project of this scale.

Of that hardware that is purchased, 75% is paid out directly to investors, while the remaining 25% is used to re-invest, giving the company a higher total hashrate which will in turn increase the bondholders hashrate.  A portion of this 25% will be used for running expenses and a small management fee.

These numbers are already amended to the contract:

These numbers have always been the intention of LabRatMining and I have made public statements declaring such.  I understand that some individuals want a guaranteed minimum as well as a "best guess" and I have now provided both.  

Thank you for clarifying that even faster than I could get to it.

From what you're stating, my bonds at a current minimum value of 300MH/s per bond would pull in at least 0.0766 * 3 = 0.2298 BTC on an investment that costs 0.15 BTC.  If the quantity of bonds sold increases, the hashrate per bond follows, but the later purchasers pay slightly more.  This would allow for early investors to make more profit, but also increase the company's hashrate maintaining that same profitability through new purchases of bonds.  There will also be a sizable re-investment made regularly by LabRatMining further increasing your hashrate.  This will in turn increase profitability.  So on a worse case scenario according to you, you would make a minimum of your money back +50% and still have the bond in hand to sell at a later date.

I don't see anything negative in what you just said.  Bitcoin is not a sprint to get rich, it's a marathon to make a profit.

Yes, and if you read the README and my previous posts, 8 weeks from now will likely be the start of dividend payouts in a sizable quantity (mid to late Sept.)

I will likely have some hardware within a couple weeks, but it will be small compared to that of the hardware being purchased.

Disclaimer: these values are subject to change with the market price of BTC/USD, but will likely be very close given current estimates.

As previously announced, I have been working on a series of spreadsheets that will allow investors to view all information pertaining to LabRatMining and how the Bitcoin network and exchange rates affect the company.

This spreadsheet was developed to add some clarity to the previously vague "Minimum of 100MH/s per bond."

I have taken into account all variables involved except reinvestment by the company as this quantity will vary over time.  There are fixed costs involved in hosting the equipment as well as variable costs that will determine the amount that will be reinvested.

Below is some data that has been calculated given a scenario based around the following assumptions:
-BTC/USD = $90.00
-Expected Difficulty at the time of hardware deployment = 45,000,000
-The period of time you wish to measure in weeks = 26
-The percent increase in difficulty per adjustment = 14

Total hashrate in TH for LabRatMining given bond sales
6.9 @16,500 bonds sold
8.4 @20,000 bonds sold
13.5 @30,000 bonds sold
18.6 @40,000 bonds sold
24.1 @50,000 bonds sold
29.5 @60,000 bonds sold
35.3 @70,000 bonds sold
41.2 @80,000 bonds sold
47.3 @90,000 bonds sold
53.5 @100,000 bonds sold

Individuals hashrate per bond based on bond sales
313.86 @16,500 bonds sold
314.34 @20,000 bonds sold
337.22 @30,000 bonds sold
348.65 @40,000 bonds sold
360.86 @50,000 bonds sold
369.05 @60,000 bonds sold
378.71 @70,000 bonds sold
385.96 @80,000 bonds sold
394.57 @90,000 bonds sold
401.48 @100,000 bonds sold

Price per GH at given bond purchase price according to bond sales
Average of $42/GH/s (hosting and electric included.)

Profitability
Average returns to be expected are likely to be in the range of 70-90% above and beyond the initial investment over 26 weeks.

Difficulty Projections
In this calculator I have included the ability to use differing assumptions to estimate difficulty over 26 weeks.  These values are included in formulas that may be used to estimate returns.

This calculator is complex and therefore comes with a README that can be used to explain the data and formulas.

This spreadsheet was made using Excel.  You may download the spreadsheet to allow for input of your own assumptions.  The fact that these were produced using Excel may cause some individuals to not have access to using the full potential of this calculator, but Google Docs has a built in spreadsheet viewer that will give you the full information based on the assumptions above.

Here is the link to access the complete spreadsheet and README: https://drive.google.com/folderview?id=0BwZCh0jtSZkwR1A4RS04TkNUcVU&usp=sharing

I have finished the spreadsheets as well as the readme to go along with them.  This readme explains not only what each value actually means, but also how to use each function to evaluate different possibilities.

I will be posting these for download tomorrow.

The spreadsheets were developed with great care to show every variable taken into account in calculating profitability and hashrate per bond.  I will not only be posting them for download, but also posting snapshots of these spreadsheets given likely values for the starting point.

The spreadsheets were made using Excel and the README is a simple txt file, therefore anyone without the ability to view an Excel book will have to take the word of others as well as the snapshots posted until I have this function built into the website at some point in the future.  I am not making any promises at this point as to when this will be completed as it is not high on my priorities list.