We had no NDA with Ken and so no privileged information could change hands. Ken likes to keep things close to his chest anyway and some things he has to legally.

One thing we did know before you is that an eASIC press release was in the works but that was only told to us verbally by Ken when we kept pressing the point so we still didn't -know- for sure until eASIC posted a release up on their site.

In my case, I've quit this week over what I see as sales & marketing issues which I have not hidden from Ken, you, or anyone else. Ken and I disagree on those but it's all public info (website, direct marketing to miners, lack of PR coverage, sales).

Edit: As for advice, he took some and left some. I've been open about that too. It's his company, it's up to him what he chooses to do, not you or I. That's not to say he wouldn't benefit from additional board members IMHO (not advisory - people still forget that we were essentially just members of the public who had the opportunity to give him feedback).

Is there no other way to fund the bulk chips? If the chips are expensive, the units aren't profitable and mining isn't profitable.


I was more asking about timing and planned capacity.

Don't get me wrong, the chips are good and a mining farm/chip sales are the way to go IMHO (as you know from our previous discussions). However, getting the chips manufactured in bulk isn't optional, it's a necessity - at least for shareholder dividends to be paid.

Sorry, my point was manufacturing time != design time.

As for profit, a look at the public figures for previous profit at previous prices and a calculation based on the new prices doesn't indicate good news.

So we're back to about mining and chip sales really.

Just a note to say that vbs' spreadsheet is very out of date. The hardware profits (not revenues) are unlikely to come anywhere close (given profits pre price cut). Things have changed too much.

Ken, what's the mining plan?

And I know you can't discuss batch sizes, but what is the plan if the minimum workable batch size isn't met from sales?

No, dividends are paid from a proportion of profit, which means sales need to be some way into 7 figures ($$$), which we're way off. Simple maths. Besides, at these prices I'm dubious about profitability until very large chip orders can be made of easic. If VMC can sell lots of chips to eg ex Avalon people then this is totally doable, but there we hit my bug bear which is marketing failures (IMHO). If ActiveMining fails, that's going to be why.

Mining income is different but that's a while away afaik (no insider info but it can't be done until December earliest given the schedule).

Also, eASIC don't make chips. They have a wonderfully fast design system but the fab will be external.

We are. The btc issue and high friction check out process were some of the problems we have with the store. We checked the other stores and 'bought' from them too. They weren't without issues either it has to be said. At one point I couldn't buy from cointerra because it couldn't handle a non US address despite having a country drop down. However, generally all were much lower friction than vmc's store and clearer on Btc purchases.

BTC is accepted but it's not obvious until you check out.

Ken is doing sales, marketing, business, some r&d, and I'm unsure how much of the web is him and how much his web guy. That's too much and there is a lack of balance which leads to some of the public mistakes seen.

Sales and marketing is the big one. Beyond that, operations manager most likely - someone to keep things all working, help ensure there is planned decision making, fulfilment, project management, etc.

And despite ken defending him, a new web guy for certain. For whatever reason, the current guy is being defended but his poor work is damaging to the company's interests in our opinion. We got shown some other work of his and it was similarly terrible. He may be lovely  but he's rubbish and has no technical or design skills. Sorry, but this is a business and he isn't good enough.

I know ken disagrees but it's obvious to everyone else. That's part of the problem, ken doesn't see it and that's why he needs an op manager and/or sales and marketing guy who he will listen to.

September 16, 2013

Subject: ActiveMining’s virtual “Board of Advisors” Stand Down

It is with deep regret that we wish to announce that the current ActiveMining’s virtual “Board of Advisors” is standing down, effective immediately.

The reasons for our resignation are threefold:

1) Some members of the board wish to pursue other avenues within the Bitcoin world that are tied to potential conflicts of time and interest, so the ethical choice is to step-down.

2) The board was originally convened primarily to improve upon pressing communication issues and the initial setup of the internal structure of ActiveMining. Despite our best efforts, some issues still remain in these areas, especially Marketing/PR. As such, we have recommended and facilitated the hiring of professional PR services which Ken has agreed to do.

3) Various strategies being undertaken by ActiveMining are contrary to those being advised and incompatible to the beliefs of current advisors to what would be the best overall outcome. At this time, we feel ActiveMining would be better serviced by a new board with a line of thought more in-line with the CEO vision and/or the hiring of key internal staff, such as a Director of Sales and Marketing.

We have made a number of diligences and recommendations, including:

- Engaging professional PR services to resolve what we see as significant PR and marketing issues.
- Creating a high quality website incorporating a new web store (for which we prepared a template).
- Revamping of the product line-up to reduce costs and to increase clarity for customers (for which we provided specifications) from the consumer to the professional market.
- A more strategic approach to the business as a whole, emphasising profitability and stability (for which we provided detailed guidance).
- Reduced emphasis on the CEO being the key decision maker across all areas of the business. In particular, we strongly recommend that ActiveMining hires new staff in key areas.
- Increased communication and clarity for shareholders.
- Increased information for customers.

We are grateful for the opportunity to serve as virtual advisors for ActiveMining since the 20th August 2013, and we offer our best wishes for its success.

Well I think Ken answered that one...  

He has 15 million!

First thing I asked. When I know I'll say.

I didn't know about any of this, so a couple of things.

- I've asked someone who does know their shit to post how it works with regular IPOs because those running around shouting illegal/insider trading are apparently not quite right. It's also not unusual within Bitcoin to say the least (I'm not saying it's right).

- I'm awaiting a response from Ken BUT I know it would be a very typical thing for him to do & post because he wanted to show that he does have confidence in the company, and he thinks that is how people will see it.

I'm 99.99% certain this wasn't a scammy move. I've been dealing with Ken long enough to know how his mind works and it isn't like this.

The real problem here is the share price, lack of communication, etc etc. This was a match for a lot of dry wood.

Yes. No. Maybe!

And agree with all the above.

I really need to remind all of you - Ken does not want a new logo or a new website. It's nothing to do with money.

He didn't have to pay and it was nothing to do with it. Lewicki paid for the logo, that was the only paid part of it.

This is nothing to do with VMC, just to point that out. They don't want anything, they haven't asked for anything.

Outside of ActiveMining...

The $5 argument you give there doesn't work.

If people pay $5 and get what they need, that's the market. It's up to you to make yourself stand out, but you can't judge people for paying less, particularly if they are getting what they want.

You may not agree with this form of commoditisation but that's the global world we live in. Design agencies, app developers, software developers - we all have to deal with someone across the world doing it for a pittance, and sometimes really well.

Firstly, logos. Please don't run off and create your own. Ken can probably have the original one people liked or he can use what he has. He definitely doesn't want to have to waste time on people creating a ton of logos when he didn't even ask for one.


I have to remove you from my ignore list as you've made some sensible posts apparently! Hat. Eaten

As a board we can only advise. When shareholders and the board agree it's kind of natural that sometimes the ball will be picked up and pushed harder. However, when Ken doesn't change something he does give reasons. Like with the website, he has his reasons and he has said he'll gradually improve it.

He does listen, he just doesn't always agree - or agree 100%. The reason the web site gets picked on is because it's such an iconic part of a company and everyone has an 'opinion'. In fact, the core site is less of a problem than the store, which I find confusing and muddled.

All said and done, the important thing is getting those chips and boards finished ASAP, then doing mining and sales, since that's what the company was set up to do. It's probably not going to have a flashy image or a great website. Meanwhile, perhaps we just have to work on improving what VMC has got on the web.

Because on Bitfunder a lot of people had shares bought for 0.0005 or so. They're now taking their profit.

On BTCT they started at 0.0025 and the price is a more fair reflection of things.

Lewicki has the rights and will transfer it across for what he'd pay for it.

The problem was Ken's web guy screwed up and initially tried using it when he didn't have the rights instead of using the newer one now on there. That made it look like Ken was using it without paying Lewicki which caused some friction. And as you can tell, lewicki and Ken's web guy, not best pals.