SCAM IPO [Bakewell] - Finally, a 'transparent' investment that will 'grow'!

[kokojie]

This is why people offer shares in increments, instead of all at once. That's how you reward early investors.

For example, first 50k shares 0.3
second 50k shares 0.32
3rd 50k shares 0.35
etc...

[Carnth]

Here is that liquidity crunch I was concerned about.

This is a new development that has occurred over the last couple of days. I only mentioned Starfish because I trust him, have my own personal BTC on deposit with him, and COGNITIVE has as well (precedent).  During "Normal operation" Starfish would be able to handle withdraws of a couple hundred BTC in one day--more than enough to withdraw and purchase some new equipment.

Starfish may longer be an option but there are others out there, if you still would choose to do so.

[Carnth]

This is why people offer shares in increments, instead of all at once. That's how you reward early investors.

I think receiving 10% extra shares for free is a pretty damn good deal, don't you?

[Carnth]

I think receiving 10% extra shares for free is a pretty damn good deal, don't you?

I do!

Me too!  (I'm sorry, I couldn't resist starting a recursive loop).

Today I will finish up the new contract and update the op / get it off to the GLBSE
Just want to clarify the plan of action and have it setup so that with the funds from the first 25k shares sold, we are enabled to roll out the gpu rigs as funding becomes available.
Going to edit that "out clause" so that winding down the company = pure liquidation of hardware with proceeds distributed as a final dividend. Remove that buyout option.

Sounds good. Once you finalize the plan, you'll be getting a pm from me. 

[Carnth]

I have questions about how you plan to handle GPU mining:
GPUs suck energy, get hot, and loud.

• How are you going to handle the electricity requirements? 
• How/who pays for it?
• What about cooling?

[Carnth]

Electricity is charged to my entire building in one go, the condo board pays the bill out of the collected condo fees.
As such, my electricity is included in my condo fees, so as I mentioned in my OP, its on me (doubt ill be moving anytime soon either, definitely not before we go asic)

Lucky... no cost utility for you.

Cooling - lol are you kidding, I live in Edmonton and we are going into a winter - ill just open the window

I was just getting the questions out of the way. And I'm sure once you have 10+ GPUs, you will not need to turn on central heating. 

[Carnth]

And here is the updated contract. [snip]

This is looking really good!

Looks like CPA is having some difficulties
[snip]
Not sure what to do about this.

I don't think there is anything you can do. You got CPA insurance to build shareholder trust, which was a good move.
But at this time, the whole Pirate fiasco is the worst economic blow to Bitcoin in its history. Unfortunately CPA is right in the middle of it.
The outlook of CPA is grim and again there is nothing you can do. You have already paid for insurance for BAKEWELL but if CPA goes out of business (in the USA, we call this Chapter 7 bankruptcy) it will mean BAKEWELL is uninsured. And that's all there is to it.
CPA was the only reputable insurance issuer that I know about.
After things from the Pirate fiasco settle down, I'm sure you will be able to find a reputable person/company/entity to get insurance from if you still want to go that route.

[fourd00rgtz]

Cooling - lol are you kidding, I live in Edmonton and we are going into a winter - ill just open the window
--- Really tho, we are looking at about 10 mid range gaming rigs. Each rig shouldn't be putting out that much heat, not any more than I am used to dealing with running a regular multi card pc.
I can always pick up a few localized air conditioners / fans to point at them. I also have central air.  

I run 5 rigs with 21cards in my 900sqft condo in Calgary, have 2 12000btu A/C units and it still gets up to 32c if I have everything running. My one crutch is that my unit faces south so I get a lot of sun heat. I too have "shared" utility costs but have come to a limit with my power panel, you got quite the setup to avoid that problem.

[Bitcoin Oz]

And here is the updated contract. [snip]

This is looking really good!

Looks like CPA is having some difficulties
[snip]
Not sure what to do about this.

I don't think there is anything you can do. You got CPA insurance to build shareholder trust, which was a good move.
But at this time, the whole Pirate fiasco is the worst economic blow to Bitcoin in its history. Unfortunately CPA is right in the middle of it.
The outlook of CPA is grim and again there is nothing you can do. You have already paid for insurance for BAKEWELL but if CPA goes out of business (in the USA, we call this Chapter 7 bankruptcy) it will mean BAKEWELL is uninsured. And that's all there is to it.
CPA was the only reputable insurance issuer that I know about.
After things from the Pirate fiasco settle down, I'm sure you will be able to find a reputable person/company/entity to get insurance from if you still want to go that route.

Im trying to find out what collateral CPA still has to back the contracts its signed. A lot of their funds are tied up in deposit takers that are in default and wont pay back for 3 years or more.

[Carnth]

CPA still seems up in the air.

None the less, I will keep up my side of the agreement
Second payment is out now.

This is a good move.
Even though CPA is in question, you should not deviate from your contract until you have definite response (one way or the other) from CPA.
It shows you are willing to keep your side of the bargain, and reflects positively on BAKEWELL.

[sp0rus]

Keeping an eye on this.  Looks promising, and I like how much trouble you're going to to try and be as open as possible and do what your investors feel would be best to optimize the bond.

[Carnth]

The new contract for BAKEWELL has been pushed live & I have updated this threads op.

The whole contract looks good. You now have a clear plan on what you intend to do:

• There is a plan to raise capital (With a bouns for early investors)
• There is a plan to utilize that capital with a growth and maintenance plan
• There is a fair exit strategy.

The only thing I would change in the entire contract is the naming of specific mining equipment. For instance, you specifically mention 7970 GPUs and BFL ASIC mini rigs. And you don't need to. Who knows what equipment will be best in the future. Maybe a competitor to BFL will come out and have better performance.
I would have kept this more generic saying:

I will be withdrawing BTC to purchase GPU mining rigs every 2500 shares sold

the remaining 25,000 will be used to place an order for a 1TH/s mining rig (for example: a BFL ASIC Mini Rig)

When using more generic terms, you get more freedom to choose from the best available mining technology--a phrase that you used when describing the maintenance shares:

The dividends received on the 30,000 growth and maintenance shares, after covering monthly expenses,
will be put toward expanding our mining operation with the best available technology.

One more thing you should consider doing for transparency, is starting a share-able spreadsheet (Google Docs/Drive) and specifically list how many shares are sold, how many maintenance shares and Founder shares and in existence, etc.
You can also use this spreadsheet to list equipment that BAKEWELL currently owns, if it's in use, how much BTC was earned, dividends paid, etc., etc., et cetera.

[btharper]

Hello Carnth,

Thank you for raising your concerns. I specifically mentioned using 7970's because I want people to know that I am not investing in fpga
I wanted to be sure to mention the 7970's as they will retain the resale value much more than fpga and other gpu (5970/6990's) once asic hit the market
This is a competitive advantage BAKEWELL has over other mining offerings and I wanted to hilight it.

I don't think Carnth is disagreeing with your use of 7970's, just that there's no reason to force yourself into using those in contract. You could just say GPU and for as long as 7970's are the best option keep using them.

[niko]

It turns out Ian and I are neighbours, so we met over a drink and had a chat about lots of things, including his business and Bitcoin in general. I feel it's a good idea to share my impressions and thoughts, so here they are:

• Ian looks exactly like the guy from the picture above, minus the sock on his head. Not even a tinfoil hat. Make of it what you will.
• He knows what he is talking about, and he does his homework. Specifically, we discussed in some detail the mining rigs and software, pools, networking, digital commodities, and legal aspects of his operation.
• His operation has a significant competitive advantage in terms of cost of electricity - right now it is absorbed by a huge apartment complex, and even if he decides to start a stand-alone farm, the price in Alberta is presently $0.05-$0.09 per kWh.

Disclaimer: I have no conflict of interest to declare at this moment, as I do not own any shares yet. However, I am considering an investment.

[Carnth]

I will begin reaching out to the fund managers this week, see how I can go about getting them involved.

Another good move. If you are successful with some fund managers, I expect our first purchase of mining equipment in the very near future.

Can you throw around some funds you intend to talk with?

  https://glbse.com/api/quantity_trading/BAKEWELL
631 shares in the wild

[snip]

Currently 24941 shares are on ask with 69 having been sold to the public.

Again, I love the transparency.

[Charles Bass]

Hey Guys!
I am also in with a small amount!
i think it is important to push transparancy, ian shows the community a new way of company leading!

best wishes

Chuck

[Carnth]

I noticed that you are still not verified on GLBSE. I would check with Nefario on this.
Some investors will not purchase if there is no verification.

[sp0rus]

Just put a little investment into this, looking to get more later.

[Carnth]

Just put a little investment into this, looking to get more later.

If you are looking to get 100+ shares, send a PM to Ian and you can get 10% additional shares for FREE!*

*Limited time only.

[johnjay3000]

Looks like we also had a market buy of 40 shares last night, we are coming along well, a little more than 1/3 of the first rig has been raised now.

That was me!