The goal of this fund is to create some diversity in the bitcoin stock market. This fund will invest all of the BTC raised from this project into dividend paying stocks that are listed on the US stock market.
The bitcoins will be sent to mt.gox, then sent to a brokerage account. From there, when dividends are paid, the money will be sent to mt.gox, converted immediately, then transferred to Cryptostocks to be paid out as a dividend too all of the shareholders.
Here's a simple flowchart:
Invested BTC -> MT.GOX -> Brokerage -> Invested in Div stocks -> Dividends paid -> 35% of dividends sent to MT.GOX -> dividends converted immediately at market price -> BTC paid out to Cryptostock share holders
What fees are involved?
Taxation! I will be taxed at a rate of 15% by the US government. There is no way around this. Taxes are expected to go back up next year! I will link to tax information as it arises.
http://en.wikipedia.org/wiki/Dividend_taxHow do you plan to grow the fund?
I want to reinvest 50% of the dividends.
(This will not happen until we achieve full funding)We can also vote to sell more shares.
Here is a breakdown of what I will do with the dividends as they're paid:
50% of the dividends gets put back into the stock.
(This will not happen until we achieve full funding)35% of the dividends comes back to BTC land where its converted and paid back to you!
15% gets held back for taxes that I will owe.
Fractional shares will not be purchased.
For example:
If stock A pays $100 in dividends and is trading at $8.00 per share, $50 will be reinvested into it at $8 per share with $2.00 left over. $15 will be set aside for taxes and the remaining $37 (35% + $2 leftover) will be sent to mt.gox, converted, and distributed.
What's the benefit of all of this?
**Diversity. There are no other funds out there like this.
**Growth. Every time I send the dividends to MT.GOX, BTC will be purchased at market price. Thus injecting money into the BTC economy that was not there prior!
**Love. I invest money in my spare time. I want to help us all out by donating those skills to the BTC community.
In the case of any shut down, all US stock shares will be sold and the BTC will be used to buy back all outstanding shares.
How to contact me:
PM me here
E-Mail me:
DividendCrazy@tormail.orgI'll look into getting an IRC going.
Feel free to post questions and I'll do my best to answer them.
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