Update

The price is adjusted. The bulk purchase price is unchanged, but the IPO price is increased to 0.50 BTC/share.

Since the IPO hasn't started, I hope this will not provoke too much confusion.

I am very sorry but the first round is priced at the lowest bound in our profit-risk estimation, therefore after some consideration, we decided to re-price them.

You are welcome. I wish it was higher too, and tempted to do larger investment on new pirate-related assets, but we finally decided to always stick to a conservative investment policy, and don't hold higher-risk assets for too long.


Of course. And after the ask wall is eaten over, I hope there will be some considerable increasing in price.

Update

The price of IPO is set at 0.480.50 BTC/s.

The price of bulk purchase is 0.45 BTC/s(6.6710.00% discount), but each trade has to involve larger than 500 shares(225 BTC). Please PM me for trades, and find witnesses/make records on replies if necessary.

The total amount of our initial release will be less than or equal to 20,000 shares.
It depends on how the bulk purchase goes on.

Thanks to everyone who's interested.

Still a consolation prize of 50BTC this week.
Would you consider attaching your bot to more smaller exchanges, since their price might be more volatile? Thanks.
Also, any news on other currencies than USD/BTC?

I wrote a little script to generate the data, then using Excel to plot them.
It's the standard and most painless way for me.

The price is now finally determined at 0.48BTC/s. The amount is to be announced yet.

The following are two pictures showing that if the difficulty increases according to Moore's Law, how our bonds will perform compared to normal bonds.

Normal Mining Bonds are assumed to have a price of 0.3BTC/share, plotted in blue.
Moore Bonds are assumed to have a price of 0.48BTC/share, plotted in red.

X-axis is the number of weeks, Y-axis is the expected total return rate from coupons.

The difficulty is initially set at 1,733,208, and increases by 0.89% each week.
The date when block reward reduces to 25 is set at 30 weeks later.

The first picture assumes that the difficulty always smoothly increases:



The second picture assumes that when the block rewards turns to 25, the difficulty also turns to a half, as some miners will close their operations:

Thanks for your advice, we will include the actual number of shares in our financial report from now on.

The other 5,000 are still reserved for future sale. We started from 3,000 shares, and expanded to 5,000 two weeks ago, with the releasing date and price of the rest shares undecided yet. Our fund is highly shareholders-controlled, and any expansion plans need to be passes as motions first.

In the next 2 years:

1. Supersonic airlines will not revive.
2. There will not be any serious breakthrough in fusion power.
3. Cellphone-like devices will not be widely implanted into human bodies.

As a fund manager of MU, I have some questions. Hopefully they could help you elaborate a more detailed proposal.

1. Will the dividends of BMF solely come from the dividends of mining assets you receive? For example, if you buy 10,000 shares of Gigaming at 1.5BTC/s, and sell them at 1.6BTC/s after a month. Will the profits all be used for re-investing, or will you pay some of them as dividends?

2. Will you actively contact asset issuers for cheaper bulk purchase of shares? If so, have you already started at least getting them known?

3. There is already a GLBSE listed fund solely on mining investments called M.ETF. It has already existed for a long time. It's not an ETF though, it's a mutual fund as yours. The fund manager (JL421) made a very impressive summary of mining assets before he did the IPO (https://bitcointalk.org/index.php?topic=66610.0). If you do something similar, your fund will be more attractive to investors.

Well there are only 5,000 shares in circulation now. Therefore it's just 1.94 times.

It's not so crazy. Even when the last two weeks are a little cloudy, both our dividends and growth rates are still quite sweet so far.

Weekly Financial Disclosure

Time: 11:04 AM, Beijing time
Date: May 23, 2012

Funds of Last Week: 361.332BTC
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: 3.421BTC

BDK
Original: 10shares 0.660BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.066BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 10+0-0=10shares 0.660BTC
Net Gain: 0.000BTC
Dividends Paid: 0.025BTC

JLP-BMD
Original: 708shares 176.892BTC
Bought in: 910shares 228.638BTC
Average Holding Price: (176.892+228.638)/(708+910)=0.251BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 708+910-0=1618shares 405.530BTC
Net Gain: 0.000BTC
Dividends Paid: 0.000BTC

Cognitive
Original: 300shares 155.700BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.519BTC
Sold: 0shares 0.000BTC
Average Selling Price: N/A
Holding: 300+0-0=300shares 155.700BTC
Net Gain: 0.000BTC
Dividends Paid: 1.372BTC

TEEK.B
Original: 200shares 190.000BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.950BTC
Sold: 130shares 135.470BTC
Average Selling Price: 1.042BTC
Holding: 200+0-130=70shares 66.500BTC
Net Gain: (1.042-0.950)*130=11.960BTC
Dividends Paid: 3.024BTC

YABMC
Original: 500shares 150.000BTC
Bought in: 1000shares 280.000BTC
Average Holding Price: (150.000+280.000)/(500+1000)=0.287BTC
Sold: 351shares 109.020BTC
Average Selling Price: 0.311BTC
Holding: 500+1000-351=1149shares 329.763BTC
Net Gain: (0.311-0.287)*351=8.424BTC
Dividends Paid: 0.000BTC

PPT.E
Original: 0shares 0.000BTC
Bought in: 250shares 278.750BTC
Average Holding Price: (0.000+278.750)/(0+250)=1.115BTC
Sold: 250shares 285.642BTC
Average Selling Price: 1.143BTC
Holding: 0+250-250=0shares 0.000BTC
Net Gain: 285.642-278.750=6.892BTC
Dividends Paid: 0.000BTC

REBATE
Original: 0shares 0.000BTC
Bought in: 100shares 19.000BTC
Average Holding Price: (0.000+19.000)/(0+100)=0.190BTC
Sold: 100shares 24.900BTC
Average Selling Price: 0.249BTC
Holding: 0+100-100=0shares 0.000BTC
Net Gain: 24.900-19.000=5.900BTC
Dividends Paid: 0.000BTC

Holding Funds=
361.332-0.000+0.000+3.421-0.000+0.000+0.025-228.638+0.000+0.000-0.000+0.000+1.372-
0.000+135.470+3.024-280.000+109.020+0.000-278.750+285.642+0.000-19.000+24.900+0.000=117.818BTC

Total Net Gain=
0.000+3.421+0.000+0.025+0.000+0.000+11.960+3.024+8.424+0.000+6.892+0.000+5.900+0.000=39.376BTC

Calculated Dividends: 39.376*35%=13.782BTC

Usable Funds: 117.818-13.782=104.036BTC

Actual Dividends: 13.782BTC

NAV: 104.036+300*0.570+401*0.655+10*0.239+1618*0.249+70*1.046+1149*0.295=1355.138BTC
Weekly NAV Growth: (1355.138-1325.056)/1325.056-1=2.270%

Estimated Returns vs Normal Mining Bonds

Normal Mining Bonds are assumed to have a price of 0.3BTC/share, plotted in blue.
Moore Bonds are assumed to have a price of 0.48BTC/share, plotted in red.

X-axis is the number of weeks, Y-axis is the expected total return rate from coupons.

The difficulty is set at 1,733,208.
The date when block reward reduces to 25 is set at 30 weeks later.

The first picture assumes that the difficulty does not change:



The second picture assumes that when the block rewards turns to 25, the difficulty also turns to a half, as some miners will close their operations:

I'm now actively working on it, besides the planning of the initial portfolio, and the coordinating jobs of miners and mining operations.
Expect a detailed estimation soon.

Fixed. Thanks for informing.


I think a more faithful connection to real mining process is more important than easier coupon calculation. So I may just stick to my new calculation formula.


Glad to know this. Thank you very much.

Revision of Coupon Payments

Definitions
Financial Week: Starting from 16:00:00(GMT Time) each Tuesday, ending at 16:00:00(GMT Time) the succeeding Tuesday.

Coupon Unit: The quantity of Bitcoins paid each share each financial week.

Payment Time
We assume T(0) is the IPO starting time, T(i) is the time of i-th coupon payment, and it should satisfy:

16:00:00(GMT Time) Tuesday of the i-th financial week <= T(i) < 16:00:00(GMT Time) Wednesday of the i-th financial week

The substraction on T(i) is defined in seconds, which means that (T(i)-T(i-1)) represents "how many seconds elapse between T(i) and T(i-1)".

Amount of Payments
The coupon unit of the i-th financial week is:

10^6 * (1.0089)^(i-1) * f(i) / 2^32

in which f(i) is calculated as follows:
  f(i) = (t(1)-t(0))*B(0)/D(0) + ... + (t(n)-t(n-1))*B(n-1)/D(n-1)
     where:
        the number of the changes of difficulty and block reward between T(i-1) and T(i) is (n-1).
        t(0) equals to T(i-1).
        t(j) (when 0<j<n and n>1) means the time of the j-th change of either the difficulty or the block reward during T(i-1) and T(i).
        t(n) equals to T(i).
        B(j) means the last block reward before t(j+1).
        D(j) means the last difficulty number before t(j+1).
        The substraction on t(j) is also defined in seconds.

This matches real mining process most accurately. Thanks for figuring out for me. I think I fell into the pitfall of assuming that the difficulty change will always be mild so that I chose the over-simplified model. You are right. Extreme cases should be taken into account.


Thanks for your criticism. I won't "feel free". I will do my best to revise my plan. I'm sorry for the informality and flaws of the OP, and will make a more detailed appendix to it.

Yes, they only make sense when we pre-make an assumption on future difficulty evolution.


It seems you are concerned with my dividends calculation formula, and some other people too.
Would it be better to change it to:
R*(N*600*B*10^6)/(D*2^32)
in which R, B and D keep the original meaning, and N means the number of actual blocks between the time of two payments?

Thank you very much.

Update

MOORE is already listed on the IPO page of GLBSE.

The number of shares for selling, the IPO price, and the price for bulk purchase are to be determined.

Update

The asset is in verification. I made the contract more detailed and submitted again. I hope it will be listed on the IPO page soon.

Thanks for your patience.

What I was suggesting is that the pros and cons of our bonds, compared to normal ones, are multi-dimensional. Some will prefer growth, and some will prefer more immediate returns so they could use it elsewhere. The difficulty/price uncertainty of the future further complicates the choice.

But you are right. We could make the calculation to give buyers more indication. "How much time it would take to be more profitable" would make a good indicator, and I believe so as "How long it will break even" and "How long the total dividends will exceed 10x of normal mining bonds", etc.

Thank you very much.