I'm actually quite surprised no one is talking more about this.  I mentioned undercap as a reason to pierce the corporate veil MONTHS ago (and have talked about it in a lot of different manufactures threads as all the pre-order schemes seem to have undercap'd their start ups.)

Has HF surrendered their books to the court?  Has an independent auditor looked at them yet?  Has this request been made by the creditors, is that type of request even an option?  There seems to be a lot of unaccounted for monies, I am curious why more people are not actively asking WHERE THE FUCK did the money go and how much of it can the estate get back.  Seems to me something that should be done early on.

What public assets do the owners have, anyone do any digging on that yet?

Does the LB proposal let Simon and Edaurdo "off the hook" in terms of liabilities?  If it does then why are they willing to do this?

I'm simply trying to understand where this $9mm figure came from and if there is a buyer offering it today.

From my calculations, I can buy in stock equipment from Bitmain at $1/Gh + power supply. This equipment can be air cooled and doesn't require any fancy water cooled solution to work.

I can buy AM chips at $0.35/Gh which would be equivalent to purchasing HF chips except for the fact that the boards for HF chips are more complicated than for Bitmain or AM chips. I'll be overly fair and say the HF chips are worth the same.

27,000 chips * 500Gh per chip * .35 == $4,725,000 USD

This price is only relevant if you actually have a buyer who has 20mW of data center space and enough capital to build boards, coolers, PDUs, PSUs, cabling, etc.

Seems to me that there aren't very many people who have all of these pieces ready to go. It takes months of work and planning to build even a 350Th/s mine.

So it seems you are valuing the IP at $4,275,000. Again, who is going to purchase the IP at this price? Do you have a buyer?

If that is a dumb question, I'll happily leave the thread.

Do you have a buyer at $9mm for the inventory and IP?

How did you come to believe that the inventory and IP is worth $9mm?

Isn't $6mm better than nothing?

The problem is that you don't know if the assets are really worth $9M, do you? I have to prefer $6M "guaranteed" (if they spent $10M into the mine they would probably be "guaranteed") rather than 3-9M maybe.

Possibly the most incredible thing of my day is that LB's strategy confused myself as well. They acted like they were trying to fix the self defined confusion, but they simply used the fog machine to their own interests. Lacking to reply to the last legitimate questions they left a cloud of confusion into undecided minds like mine. Now what should you believe? The terms and lb promises of spending $10M or the terms and a probable upcoming selfish interest from lb, where they try not to spend a dollar more than what they have to?

I've emailed him, just in case he is not reading the thread. Let's see his exhaustive answer.

Does anyone have a small amount (5-10) of golden nonce chips to sell?

A guy I know has some technicians at hand who could design an asic board.

Good idea, if we don't express our opinion on this they will get want they want and stuff the rest of us, the committee could use our petition to support the case! I suggest we put a simple form on Dropbox and every one should sign in and upload it again?

What do you think?

Hushen: "I hired an accountant, I've had four turn over in the last two months."  (@~2:52:30)

If the average tenure of employment of a new accountant at Hashfast is two weeks, it sounds to me like these guys take a look at the books and say "Get me out of here!"

But, man that's a long exchange between Igor and Monica.  Both of them make me want to cringe.  Igor for being such a pedant (although I'm on his side!), and Monica for being a condescending jerk.

And who was it, one of the women, who said (earlier), "He's from Europe, he has a different east."  It didn't sound like a joke.

Please tell me it was their lawyer, and not ours, who thinks that the cardinal directions vary from continent to continent!  

This Guido Ochoa.... $500k... a Venezuelan Socialist politician?

Someone help me? How can i ask my money back?? someone please reply or send me pm please?

I received a mail from the court telling me that case no. 14-30725 (proposed to be) jointly administered with case no. 14-30866.

I log in to pacer and found I am listed as a creditor under 14-30725, not in 14-30866. Do I need to file another claim as a creditor in 14-30866?

+1 that would be nice. when you get back you should make a simple weekly newsletter to all hashfast creditors that just tells them the latest info.

AM franchised mining: an insight


Shareholders, miners, and bitcoiners,

catching up the last few pages of this thread I realise that there is a growing interest for franchised operations - along with a bunch of inaccuracy and speculation. To reduce that noise and add some facts to the topic, I herein want to give some insight into my past franchised mining operation.

About
When AM rolled out its mining farm and quickly surpassed 30% network share, in the board we discussed options on how to resolve the existing fear of AM approaching majority power. At that times I already had some experience with lending mining rig for a shared mining profit and proposed that model that later became AM's franchised mining. The idea was pretty simple: instead of growing own mines to disruptive powers, we lend rig to self-managed entities for a pre-defined share of mining income.

As one of the initial testers of blade based franchised mining I want to share some of my experience with those interested in franchising, or shareholders just wondering how that component contributed to dividend payments in the past.

Please note that all the information provided here is about past mining operations and not about those planned for BE200 and later franchising. Also, basically everything described is information publicly available (from blockchain) which I am only connecting the dots to.

The AM franchised mining model
The established model aims to get large volumes of hashing power operational out of AM's direct control but with a guaranteed and high share of mining income at zero risk. Zero risk is achieved by requesting for collateral that covers the manufacturing and shipping costs - which can be either as a deposit of BTC at escrow, or with direct AM shares.

High share of mining income was defined as 80/20. Income is accounted at nominal values, e.g. one blade is assumed to hash with 10GHps and to consume 100W. Furthermore, it is accounted based on theoretical values, that is: for one blade AM receives the mining income of 8GHps mining 24/7 (80%PPS), remainder goes to franchisee. This gives the franchisee full control over risk/reward balancing, i.e. he could try to squeeze out the most of the blades through over-clocking to get a higher share for himself - at the same time he is in charge for loss of income of any kind, e.g. pool DDOSed, power outage, theft, whatever. Failure to pay the regular franchising fees will ultimately result in the forfeiture of your collateral and termination of franchising agreement.

Use case: AM rev1 blades franchised mining
My first installation were 30 blades that during the first difficulty cycle mined as follows:
No, you are not dreaming: it is less than a year that 300GHps mined you 80BTC in one difficulty cycle

Four months later, I had my full capacity of 292 blades up and running. Notice how the 10x higher hashrate earned only 57% of what the first 30 blades made over a difficulty cycle.
Another fun fact: setting up those blades in a 80qm facility took 6 weeks installation time (customising shelves, power distribution, networking, blade set-up) and required a 30kW facility - which today is available at a desktop PC sized plug-and-mine product at 3kW.

Initially, electricity costs were negligible, but after 4 months became significant and were added to the fee calculation formula. The above output is generated by this script I wrote that calculates the franchising payments based on the agreed formula.


Finally, rev1 blade franchising became unprofitable in April 2014:

Bottom line

• mining 292 blades generated 762.138 BTC mining income for AM
• blades were mining profitable for 10 months
• franchisee made less than 160BTC in mining, which were sold to pay operation costs for an average BTCUSD rate of ~$300 and hardly covered expenses

Future
Franchised mining will remain a core strategy for AM. Alas, with the mining profitability marginalizing down, it became restricted to those who
a) do it on large scale
b) have enough funds / shares to provide collateral
c) have access to cheap electricity


Hope this retrospective gave you some insight and a better idea on AM's franchising model.

http://hashfast.org/14-30725.112.mp3

When will we mere mortals have access to those documents provided to the committee at 5pm the day before the hearing?

Historically speaking, what other scams offered and processed refunds?

Edit: Scams in the bitcoin space, that is.

HOLY TOLEDO guys!

Ken actually already refunded my order in BTC.
I can't believe it. Are you sure bitcoin transactions aren't reversible?

I will need at least one week to recover from this totally unexpected event.

Finally I can close this chapter full of horror.

Creditor Committee:

1. Hamilton Hee 761 Irwindale Ave.
Las Vegas, NV 89123
2. Sistemas Operativos Sanitarios ca
Calle 35 entre Av. 2 y 3 #2-34 Merida, Venezuela 5101 Attn: Guido Ochoa
3. Uniquify, Inc.
2030 Fortune Drive #200 San Jose, CA 95131 Attn: Robert Smith
4. Antony Vo
319 S. Mitchell St. Bloomington, IN 47401
5. Koi Systems Ltd
1191 Center Point Drive Suite A
Henderson, NV 89074 Attn: Robert Edgeworth
6. Digimex Ltd.
Bel Air on the Peak, Phase 4 Tower 7, Unit 19A
Pok Fu Lam, Hong Kong Attn: Willem van Rooyen
7. Peter Morici
1430 Patapsco St. Baltimore, MD 21230

It looks like that I can take a holiday.

A question out of usual fu*k HashFu&k topic :-)

There's going to be a jump of almost 30 Petahash in 6 days.
Does anyone know the reasons why there is so large difficulty jump (around 25%) this time?
Some new mines being started somewhere? The hardware being replaced in established mines?
If so, do you know which mines and what is their Petahash input?
KNC Neptune is defo contributing to it but not £30 Petahash. It's like 3 massive mines have joined :-)

Been lurking for awhile (been mining since march)

While the bad/luck good/luck statistics are all find and good i tend to agree with Entropy-uc.  while it sucks to lose 200TH even with my limited experience mining i felt much better today when i logged on and didnt see multipool.  A week ago i was looking at the solved blocks and thought to myself how the hell is multipool not solving any of these?  KOI has the same power and hes solving a bunch.  Then i came to the forums and found all this.

I am barely in the top 50 (3.8TH) but even at that investment level i was getting worried last week at how the numbers were working out.

My 2 cents.

BTW the bad gear conversation is very interesting.  I have all Antminer S1's oced to 393.75 and they all run +/- 3% of eachother at 200GH.  I have not solved a block yet how long should it take with average luck 3.8TH to pick a winner?  Just curious.

-Thanks
Sns