Thanks. Maximization of our shareholders' dividends and NAV in a long run with an acceptable risk level is the only purpose of MU.

We are also OK with it.

Thank you very much for your appreciation.

We think till now the biggest advantage of choosing our fund, is that we provide a nice option for people who want nice return rates without directly or indirectly involved in Pirate -- In spite of being away from Pirate, our return rates are not bad at all.

We did buy some PPT.x bonds before, but we just quickly sold them off within hours and reduced the risk to a very low level. We are even less unlikely to do that again in the future. So we are moving from "almost-Pirate-free" to "totally-Pirate-free".

So we suggest people to buy our shares if they want diversity. We probably could never make 7% a week as Pirate does, but our financials are public, and we only invest in businesses of which the business models are open.

Weekly Financial Disclosure

Time: 13:31 AM, Beijing time
Date: May 30, 2012

Funds of Last Week: 104.036BTC
Number of Total Shares in Circulation: 5000

Assets:

BitBond
Original: 401shares 243.808BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.608BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 401+0-0=401shares 243.808BTC
Net Gain: 0.000BTC
Dividends Paid: 3.524BTC

BDK
Original: 10shares 0.660BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.066BTC
Sold: 10shares 1.850BTC
Average Selling Price: 0.185BTC
Holding: 10+0-10=0shares 0.000BTC
Net Gain: 1.850-0.660=1.190BTC
Dividends Paid: 0.000BTC

JLP-BMD
Original: 1618shares 405.530BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.251BTC
Sold: 48shares 14.400BTC
Average Selling Price: 0.3BTC
Holding: 1618+0-48=1570shares 394.070BTC
Net Gain: (0.3-0.251)*48=2.352BTC
Dividends Paid: 11.452BTC

Cognitive
Original: 300shares 155.700BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.519BTC
Sold: 200shares 119.800BTC
Average Selling Price: 0.599BTC
Holding: 300+0-200=100shares 51.900BTC
Net Gain: (0.599-0.519)*200=16.000BTC
Dividends Paid: 0.277BTC

TEEK.B
Original: 70shares 66.500BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.950BTC
Sold: 70shares 72.660BTC
Average Selling Price: 1.038BTC
Holding: 70+0-70=0shares 0.000BTC
Net Gain: (1.038-0.950)*70=6.160BTC
Dividends Paid: 0.000BTC

YABMC
Original: 1149shares 329.763BTC
Bought in: 200shares 54.108BTC
Average Holding Price: (329.763+54.108)/(1149+200)=0.285BTC
Sold: 10shares 3.200BTC
Average Selling Price: 0.320BTC
Holding: 1149+200-10=1339shares 381.615BTC
Net Gain: (0.320-0.285)*10=0.350BTC
Dividends Paid: 15.867BTC

Holding Funds=
104.036-0.000+0.000+3.524-0.000+1.850+0.000-0.000+14.400+11.452-0.000+119.800+0.277-
0.000+72.600+0.000-54.108+0.320+15.867=290.018BTC

Total Net Gain=
0.000+3.524+1.190+0.000+2.352+11.452+16.000+0.277+6.160+0.000+0.350+15.867=57.172BTC

Calculated Dividends: 53.735*35%=20.010BTC

Usable Funds: 290.018-20.010=270.008BTC

Actual Dividends: 20.010BTC

NAV: 270.008+100*0.593+401*0.625+1570*0.267+1339*0.299=1399.484BTC
Weekly NAV Growth: (1399.484-1355.138)/1355.138=3.272%

1st Payment

Calculation time: May 30, 05:07:33 forum time

For compensation of my delay of IPO, the first coupon is calculated with a full week instead of six days.

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

Time interval before difficulty change:
  Starting from: May 23, 05:07:33
  Ending at: May 24, 18:10:29
  Total time: 133754s
  Difficulty: 1,733,207.51

Time interval after difficulty change:
  Starting from: May 24, 18:10:29
  Ending at: May 30, 05:07:32
  Total time: 471046s
  Difficulty: 1,591,074.96

Hashrate of this week: 1MH/s

coupon/share = (1*10^6)/(2^32)*(133754*50/1733207.51+471046*50/1591074.96)=0.0043449

Number of Shares: 5437

Total Payment: 23.6232213

In fact I'm enjoy your timely and regular reply more.

Hope you could keep being more active than the last several weeks.

There are two 20.153453 BTC payments today. Could anyone explain it?

Assume the average coupon/face rate of mining bonds at this moment is 1.4% per week. Then MOVETO.FUND could have the expected return rate of 1.4%*2-0.75%=2.05% per week by just holding a bunch of mining bonds and do no trading at all. If you decide to be more risk tolerated and do some trading, it could be much more.

However, it all depends on how MOVETO.BOND sells. BDK.BND pays 1% per week and is issued by a forum member who already established his fame. Its current market cap has not exceeded 3,000 BTC. If I were you, I will consider 1,000 BTC by selling MOVETO.BOND to be very very lucky, because both the interest rates and existing credits of BDK.BND are better than MOVETO.BOND.

So: Are you OK with starting small? Could you still operate well without a fully deployed 2x leverage? If MOVETO.BOND doesn't sell well, then MOVETO.FUND will probably also not, because investors know that your fund relies on leverages.

I guess you have considered them all already. But I still hope my questions could help you with a something like a plan-B if things don't turn out to be perfect.

Update

The MU index is a hobby-like project at this moment. Its frequency and authority is not guaranteed.

We will evolve it to a much regular and professional index based on a fixed formula to evaluate performance and decide which assets to contain, when we have enough time.

The MU Index for GLBSE

60.32 (kBTC)
309.31 (kDollar)

BTC Price: 5.128$

TyGrr-Bot
  Category: Long Term Bond
  Business: Arbitraging
  Shares in Circulation: 7326
  Avg Price: 0.971BTC
  Total Value: 7113.546BTC
  Total Value in Dollar: 36478.264$

PureMining
  Category: Perpetual Bond
  Business: Mining
  Shares in Circulation: 10000
  Avg Price: 0.438BTC
  Total Value: 4380.000BTC
  Total Value in Dollar: 22460.640$

GigaMining
  Category: Perpetual Bond
  Business: Mining
  Shares in Circulation: 20000
  Avg Price: 1.504BTC
  Total Value: 30080.000BTC
  Total Value in Dollar: 154250.240$

Cognitive
  Category: Stock
  Business: Mining
  Shares in Circulation: 5000
  Avg Price: 0.583BTC
  Total Value: 2915.000BTC
  Total Value in Dollar: 14948.120$

FPGA.contract
  Category: Stock
  Business: Mining
  Shares in Circulation: 6000
  Avg Price: 0.373BTC
  Total Value: 2238.000BTC
  Total Value in Dollar: 11476.464$

BFLS
  Category: Stock
  Business: Mining
  Shares in Circulation: 4210
  Avg Price: 1.600BTC
  Total Value: 6736.000BTC
  Total Value in Dollar: 34532.208$

BMMO
  Category: Stock
  Business: Mining
  Shares in Circulation: 6931
  Avg Price: 0.326BTC
  Total Value: 2259.506BTC
  Total Value in Dollar: 11586.747$

SS
  Category: Stock
  Business: Fund
  Shares in Circulation: 610
  Avg Price: 2.172BTC
  Total Value: 1324.920BTC
  Total Value in Dollar: 6794.190$

MU
  Category: Stock
  Business: Fund
  Shares in Circulation: 5000
  Avg Price: 0.650BTC
  Total Value: 3250.000BTC
  Total Value in Dollar: 16666.000$

Some offtopic questions:

What does TyGrr mean? How is it pronounced?

I have processed in total of more than 5,000 shares of bulk purchase till now. That's about 1/4 of the total IPO size.

But I agree with you. The amount of invested BTC so far is still far away from the capability I could handle. And I will need more investments to get enough funds to enjoy the wholesale price of FPGAs.

Thanks for your interest.

Well in fact it's not. It makes difference in risks, therefore the difference in the return rates.

One of the reasons why mining bonds (of which the return rate is lower than lending) are still interesting at this moment at all, is that the investors know that there are real hardware always working to produce Bitcoins and therefore more confident about investing.

When I replied the question of BrightAnarchist, what "utilize the funds directly" in my mind was "using the funds to buy hardware", because the context was "a mining company". This is also our OP implied. Unfortunately it could also be read as "paying out from deposits", which I didn't realize before, and I will never do this.

So what I said "do both at the start" means that the coupons will initially come from the current hardware in my control, and the coupons from other mining bonds. But the portion of the latter will decrease as we get new hardware. Relying on too much other mining assets for too long a time increases my risks and reduces my potential profits.

Therefore the direct answers to your questions are:

1. What fraction of initial deposits are we talking about?
Answer: 0%. We will not pay the capital.

2. How "quickly" will you start real mining with at least the hash rate you are paying out?
Answer: I will start real mining immediately (in fact the current hardware already mined for a long time), but if the mining power in my control (10GH/s) at this moment couldn't support the coupons, I will invest on some other mining bonds. The expansion will be done in 4-6 weeks. After that, most capital from other mining assets will be switched to real hardware.

Thank you for your question and hope my answers could help clarify. Very sorry for the confusion I brought.

I would suggest 1-2 additional GPUs, or collect a little more BTC to buy another FPGA board.

Great to know this. Thank you.


We disclose that we are behind both of these. In fact everybody could see from our financials about the first one.


It's OK. But could find some trustworthy guy when you are absent. She/he doesn't need to do too much. Just paying out the dividends in time would be a very good thing to us.

I checked the main thread of TyGrr Tech again. I guess you are right.

We used the fee structure before, though we never really took any fee during that time. Later we passed a motion to give the CEO 5% of the new shares whenever we do expansion (https://glbse.com/vote/view/21).

As said in the OP, we will do both at the start, but quickly turn to a portfolio composed mainly by real hardware to reduce both my cost and my risk. Thanks.

The IPO has already been started. I'm very sorry for the delay.

Well I think it's quite a standard way of compensation for managers. Cognitive, FPGA.contract and TyGrr did that long before.

Update

I sincerely apologize for the confusion of time I made. I am online each day for a long time, but not from day to night. I couldn't get access to internet within a certain time interval every day. Very sorry for the late.

There are 20,000 shares for sale at the first round. 5,000 are for IPO sale and the rest are for bulk purchase.

I will be in no way hauled away by the Chinese government in a foreseeable time. It likes to intervene with everything, but there are much more things other than Bitcoin-related stuff that are interesting to them. Maybe 5 years later, the market cap of Bitcoin exceeds Apple and we finally catche its eyes, but not now.