This is the second time in a row.
Once is an anomaly, twice is a coincidence, thrice is a pattern.
I don't like when patterns start shifting, it is worrisome.
Dividends have been acting strangely over the last few weeks without more context it is hard to tell if they are just getting a tad lazy or something else is happening though. Perhaps they are considering making it bi-weekly since the amounts are getting smaller or they just prefer Thursdays because they are busy with chips on Wednesdays time-table scheduling etc. Well, if AM is receiving engineering samples tomorrow, then it's no great leap to imagine that they may be kind of busy right now... |
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PLEASE GET OVER YOUR IDEOLOGICAL REASONING AND LOOK AT IT STRICTLY FROM A BUSINESS PERSPECTIVE
Please turn off your caps-lock, there's no need to shout and scream like that. Let's keep it civil in here. Would it be lucrative to make Scrypt ASICS? Yes, probably. Would it be more lucrative than concentrating resources on serving the bitcoin mining market? Probably not. From a business perspective, it makes more sense to specialize than to diversify: development resources are scarce and the bitcoin mining market is an order of magnitude bigger. |
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Our platform and staff are ready to go...
However, what we are currently waiting on is the exchanges to wrap up their platform to integrate with us and provide us and our customers a transparent way to verify their Crypto Currencies holdings publicly at all times through an updated API to open up their balance sheet. No Exchange should ever be insolvent, it should solely act as an escrow agent between users.
We are working hard with those exchanges to get them to implement these features. Once they are ready we will open up our platform to the General Public.
Thank you,
CFIG
Nice update, looking forward to seeing the results. Thanks! |
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On AM value assuming $0.8 per ghs profit; at 200 PH production = 0.6 Btc per share. Anything more, we will be in Btc heaven.
If we're extrapolating: 1600 PH/s production at a profit of $0.80 per GH/s gives approximately XBT 4.8 per share. Not bad, huh? |
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It's about time for an update, isn't it? The "next couple of weeks" came and went, please share the progress!
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The rumor is that batch one is already allocated. I expect sample devices, solo mining, and one or more bulk buyers. We should resume Wednesday celebrations and T-shirt offerings by the end of next month  My estimates are for an upper limit to profit from this batch of XBT 0.06 per share*. Would that be sufficient to cause celebrations? * Assumptions: 20 PH batch size, cost $0.20/GH, revenue $0.99/GH, XBT price $650, 400k shares: (20e6*(0.99-0.20)/650)/400000=0.060769 |
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I have been meaning to research the reason, but Washington state has really REALLY cheep electricity. Even with air cooling he can run those things far longer then most people could afford to.
The reason is great conditions for hydroelectric power (Grand Coulee Dam, etc.). |
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I have to laugh at how easily people talk about producing, selling or deploying up to 20 PH. That's more than ENTIRE current global hash-rate.
Not by the time march comes around...  |
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Now, let's piece together the information that we have and do a little light-weight analysis:
The first production run is expected to be from 2-20 PH, cost is $0.20/GH and price is $0.49-$0.99/GH. So the profit from this batch should be in the range of $580,000 and $15,800,000. At $900/XBT, that makes between XBT 644 and XBT 17,555. Counting 400k shares, the batch should then produce a profit of XBT 0.00161 and XBT 0.0438875 per share -- before subtracting R&D and operational costs.
Does that calculation look more or less sensible to you guys?
R&D is already paid for. And provisions were made for production and operational costs. Remember the financial statement? I was thinking more along the lines of R&D for future gen tech and other initiatives. |
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Now, let's piece together the information that we have and do a little light-weight analysis:
The first production run is expected to be from 2-20 PH, cost is $0.20/GH and price is $0.49-$0.99/GH. So the profit from this batch should be in the range of $580,000 and $15,800,000. At $900/XBT, that makes between XBT 644 and XBT 17,555. Counting 400k shares, the batch should then produce a profit of XBT 0.00161 and XBT 0.0438875 per share -- before subtracting R&D and operational costs.
Does that calculation look more or less sensible to you guys?
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Sounds like someone knew fc was about to post, and the subject of the post. Surely not ......  It's not like the news post knocked it out of the park. If someone had insider information, they sure as hell would not have bought on this news. Might have been a stupid person. Plenty of those around  Card-carrying member, bro! |
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This is an extremely great write up and posts the truth about what they have done as an amazing company in a very short period of time. Thank you for putting this into perspective for anyone who may be new or maybe just lost the reality in their mind of this amazing feat.
Thanks. It's easy to forget everything that has happened in the last year when people are so busy licking their wounds and thinking "I should have sold at 5!". One more thing: people keep repeating here that gen 1 tech is useless. However: the marginal cost of producing (i.e. electricity@$0.06/kWh) of producing 1 XBT with gen1 tech (7 J/GH) is currently $12.20. At current bitcoin price, it is profitable to keep these babies running until network hash rate is above 350 PH. So for those claiming that gen 1 is outdated, please show me how you reach that conclusion. Anyway, for those missing it, here's my pump: liquid cooling + 0.2 J/GH = $$$! |
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There's a lot of complaining in this thread lately, which is understandable, considering large swings in stock prices can cause strong emotions.
I just wanted to put this whole thing in a bit more perspective: about 16 months ago, Bitfountain collected about $100k from investors to complete some chips. Today, they have a large warchest of savings, a steady income stream, and they are working in parallel on the 3rd generation of chips, liquid cooling +++, and the company is "valued" at approximately $100 million (not to mention that investors have already collectively received payouts of about XBT 240k, almost $200 million at today's prices). In light of this, my personal opinion is that we should at least keep the discourse respectful.
From my point of view, the company has plenty of promise and is busy fulfilling the promise. Competition has grown stronger, but anybody surprised by that is a pinhead - it was obvious from the start there would be an ASIC price-war/arms race. But there will be several winners, and AM is well-positioned to be one of them: well-funded, well-located, experienced and (dare I say?) visionary.
I'm not trying to talk the price up or anything (I don't care much about the flavor of the month), I just wanted to point out that, in my humble opinion, AM has delivered magnificently so far, and has staying power for the long term.
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it's .2 W/GH, not J/GH
Actually, it's Watt per Gigahash per second. And since Watt is also known as Joule per second, you can cancel the s in the fraction, and you are left with J/GH. Clear? |
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"<0.2W per G on low power mode and <0.2$ per G on wafer cost. "
Can someone let us know how this fares against the best competition around at the moment? thx
CoinTerra announced their chip is going to hash with a power consumption of less than 0.6 W per GH. A March batch miner with 2 TH has a retail price of $5999, that's $2.9995 per GH. Though the price is probably not really comparable. BFL vaporware (28nm) also cites 0.6 J/GH. 0.2 J/GH is absolutely stunning. Imagine this, together with liquid cooling. Way to go, FC! Edit: Bitfury (55nm) is, I believe 1.25 J/GH. Hashfast is aiming for 0.65 J/GH. |
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Each human in the world (mostly) has a unique unforgable fingerprint.
Actually, most people have ten. And you can easily make a computer program that can generate endless numbers of fingerprints. In addition, you cannot "hash" a fingerprint directly, because each scan will be slightly different, which will make the hash of it very different and the hash will not match the original one. There may be a way to do this, but I doubt it will have anything to do with fingerprints! |
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FC is so far ahead of the curve he is beyond the horizon.
FC changed the game. Again. Strange to see so little excitement over this development, it is pretty significant. Being the first to create such a large ASIC farm, AM naturally encountered problems quite early that others will face eventually (or are currently facing) -- and saw the opportunity to solve it, then package the solution for others to benefit. The brilliance of this move may not be obvious at the moment -- someone running a few mining boxes in their mother's basement is unlikely to encounter these problems -- but as mining becomes more professionalized, lowering their costs with a solution like this may be the only way to be profitable. |
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An Asic that consumes 7W/GHs still generates about 6 times the btc that it will cost to power it. So there still a long way before you start mining at a loss. Long in BTC time of course By my count, at current difficulty and with a power cost of 0.06 USD/kWh, the cost of generating one BTC is about 3.80 USD. That means it earns around 36x the cost to power it. |
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