announcement

[usagi]

annoucnement

[EskimoBob]

Bitcoin Mining Fund (BMF) recognizes the extreme liquidity crunch, and is prepared to take action and help out it's shareholders.

For (approximately) the next three weeks (until October 14th, 2012), we will cease purchases of new hardware and begin paying daily dividends. The strategy is simple; pay out about half our expected dividends on a daily basis (~5btc/day),  while using the other half to place aggressive buyback bids.

The why is also simple. While paying a small dividend and buying ASIC hardware is also a good plan, we feel that right now customers need their money and may even find a better use for it than we can -- including reasons we can't think of  

So, I just wanted to do this and I hope that it would make shareholders feel better. The NAV of BMF is approximately 0.50. We will be placing aggressive bids at .45 to .50. Please do not sell below this price if you can help it. Good luck.

BMF. We love you every day. We love you all the way.
http://www.youtube.com/watch?v=304_OSlTpv4

facepalm time?

[nebulus]

You guys are clearly in love.

[EskimoBob]

You guys are clearly in love.

You have no idea. He_She even accuses me of cheating now. LOL

In more serious note. To be honest, I actually hope that one day usagi hits the bulls eye and his investors win. I am sure, this day is really close. Question is, how to define "close" in this context.

[EskimoBob]

http://tsukino.ca/bmf/holdings-nav/ if this the list of your holdings and hardware, how did you arrive at your "The NAV of BMF is approximately 0.50"

It looks more like between 0.26 and 0.283 BTC.
PS! I love your hardware list. Especially that BitForce 'SC' Single 40 GH/s, you got listed as existing asset.

[Puppet]

http://tsukino.ca/bmf/holdings-nav/ if this the list of your holdings and hardware, how did you arrive at your "The NAV of BMF is approximately 0.50"

It looks more like between 0.26 and 0.283 BTC.

Its worse than that. Here is an up to date NAV:

Code:

Units	Value (Market)	Total (Market)	%	
Bitforce Single 832 MH/s	2	50	100	8.69%
BitForce Jalapeno 3.5 GH/s	2	15	30	2.61%
BitForce 'SC' Single 40 GH/s	1	108.25	108.25	9.41%
				
Assets	Units	Value (Market)		
GIGAMINING	0	0.621	0	0.00%
BITBOND	10	0.3351	3.351	0.29%
PUREMINING	0	0.124	0	0.00%
YABMC	0	0.082	0	0.00%
DMC	1291	0.003	3.873	0.34%
BTC-MINING	300	0.8102	243.06	21.12%
RSM	210	0.29	60.9	5.29%
JAH	410	0.12	49.2	4.28%
7	11	0.075	0.825	0.07%
ABM	200	0.125	25	2.17%
BMMO	3775	0.02	75.5	6.56%
MERGEDMINING	0	0.0617	0	0.00%
BTCMC	170	0.5	85	7.39%
BFLS.RIG	200	0.5	100	8.69%
UDN	1000	0	0	0.00%
LTC-MINING	50	0.415	20.75	1.80%
FPGAMINING	300	0.124	37.2	3.23%
OBSI.HRPT	1000	0.023	23	2.00%
JTME	120	0.655	78.6	6.83%
ASICMINER	0	0.1179	0	0.00%
BIF.5-10.MININGBOND	120	0.33	39.6	3.44%
NYAN	24	0.945	22.68	1.97%
BAKEWELL	330	0.05	16.5	1.43%
BTC-BOND	4800	0.0021	10.08	0.88%
			0	0.00%
BITCOINS	17.2457	1	17.2457	1.50%
				
TOTAL			1150.6147	100.00%

So a total of 1150.6147 for 5147 shares gives 0.22 BTC / share.

edit: outstanding shares are apparently 4392 now as usagi is buying his own crap, so that puts it at 0.262 BTC per share.
Advertising that as "approximately 0.50 " is plain lying.

I would advice any shareholder to take full advantage of usagi's buyback for as long as it lasts.

PS! I love your hardware list. Especially that BitForce 'SC' Single 40 GH/s, you got listed as existing asset.

I assume those FPGAs and ASICs are on order, and therefore fully paid for. Its of course reasonable to put them on your balance. Its not reasonable to put them at 20% over list price on the balance.

[bitcoinbear]

Isn't BMF supposed to be a mining fund? Why does it hold ANY of the no relation to mining whatsoever OBSI.HRPT?

[Deprived]

Isn't BMF supposed to be a mining fund? Why does it hold ANY of the no relation to mining whatsoever OBSI.HRPT?

For the same reason his/her Nyan.a (only supposed to invest in low-risk securities) does.  Having lost a large chunk of NAV of all his/her companies he/she went for double or nothing on OBSI.HRPT (it's not like what you agree to in your contract actually matters, right?).  Double isn't looking like the most likely outcome, needless to say.

I wonder if he/she gets a mangement fee for all the 'profits' being distributed through dividend (a large chunk of which gos to other usagi companies that can then dividend them back - due to the way they all hold one another's shares)?

Just run NAV down - and keep dividending back and forth taking management fees: great business model (except for investors of course).

[bitcoinbear]

Usagi, I will give you some friendly advice: only buy things that the fund is supposed to be invested in. BMF should only be investing in mining. Low risk does not include ponzi schemes. Also, untangle your funds, do not use one fund to invest in another fund, it just makes everything worthless.

[Deprived]

Usagi, I will give you some friendly advice: only buy things that the fund is supposed to be invested in. BMF should only be investing in mining. Low risk does not include ponzi schemes. Also, untangle your funds, do not use one fund to invest in another fund, it just makes everything worthless.

Actually there's no real issue with one fund investing in another - the problems arise where the investment forms a loop.

CPA holding BMF shares and Nyan/Nyan.x is fine: it's when one of them also holds CPA that it become a mess.  What it does is form a feed-back loop where changes to the price of one stock alter another which alters another which then alters the first (and so on ad infitum) - amplifying any rises or falls in any one stock price (and making it impossible to properly value any of the stocks in the loop).

[Puppet]

Usagi, I will give you some friendly advice: only buy things that the fund is supposed to be invested in. BMF should only be investing in mining. Low risk does not include ponzi schemes. Also, untangle your funds, do not use one fund to invest in another fund, it just makes everything worthless.

Actually there's no real issue with one fund investing in another - the problems arise where the investment forms a loop.

CPA holding BMF shares and Nyan/Nyan.x is fine: it's when one of them also holds CPA that it become a mess.  What it does is form a feed-back loop where changes to the price of one stock alter another which alters another which then alters the first (and so on ad infitum) - amplifying any rises or falls in any one stock price (and making it impossible to properly value any of the stocks in the loop).

Bingo, we have a winner.

CPA holdings are not disclosed AFAIK, but  if you read here:
http://www.tsukino.ca/cpa/nyan/nyancat-statements/2012-37-nyan-statement/
You will see CPA holds at least 1100 Nyan shares, so basically all of it. Nyan holds over 1000 Nyan.a/b/c shares
Nyan.b holds 6600 cpa shares.

There is also a much smaller loop with Nyan A which holds 1200 BMF shares, thats almost a third of BMF, and BMF owns a small number of Nyan shares.

There might be many more such loops that we dont know about; eg, I dont know what move.to or futurefund have in portfolio, but its quite possible it holds some usagi assets, while Nyan.B holds Moveto and futurefund shares. If any of them starts crumbling, they all start crumbling and with the fallout of obsiponzi, its hard to see how that will not happen.

[Deprived]

I'll tell you this, you'll wish you bought BMF under .50 someday!

The original investors who bought it at 1.0 are already wishing that.

[Puppet]

The plain and simple truth is that BMF has an annual return of 41%. You hate hearing that, but that's the truth. I did a good job. And nothing you say can change that.

You IPO'd at 1 BTC, paid a total of just below 0.1 BTC in dividends and you now have a NAV thats around 0.3 BTC. IOW, you lost 60% of your investors coins. How you can twist that in to doing a good job is something only Diablo can understand.

[guruvan]

The plain and simple truth is that BMF has an annual return of 41%. You hate hearing that, but that's the truth. I did a good job. And nothing you say can change that.

You IPO'd at 1 BTC, paid a total of just below 0.1 BTC in dividends and you now have a NAV thats around 0.3 BTC. IOW, you lost 60% of your investors coins. How you can twist that in to doing a good job is something only Diablo can understand.

* guruvan gets out the popcorn to wait for the creative accounting spin on this.

Oh.....right. wait. I think I remember.
at IPO 1BTC = X USD = NAV,
then later (now) 1BTC= (X USD * 2.5 ) or so = NAV = .3 BTC =NAV.....

I used oversimplified math here, but you get the jist of the idea.

yes congratulations, you've realized less profit on the USD than if you'd simply held BTC in cold storage....but you supported usagi while you did it...that's something.

Disingenuous, at best - intentionally misleading investors to move more shares at worst. Overstates the returns, understates the risks.

[Factory]

Almost anything you invested in dropped by half. Stop being such a retard. The plain and simple truth is that BMF has an annual return of 41%. You hate hearing that, but that's the truth. I did a good job. And nothing you say can change that.

You are completely incorrect.

BMF: Over 41% ROI since inception

"On another note, I was just examining the historical prices of BMF. On June 1st, 2012, Mt. Gox USD was $5.16 per bitcoin. We had 1035 shares outstanding at the time. From these humble beginnings we now have over 5,000 outstanding shares, and at current prices BMF is now worth $5.73 per share! This is an annualized, real return on investment of 41% not including dividends paid! — WOW! — Essentially, the reason why mining bonds have deprecated in BTC is because the exchange rate has gone up. Hardware, you see, has intrinsic value, and this intrinsic value is why the share price for everything from mining bonds to et cetera has gone down recently. But isn’t that cool? BMF was actually gaining in real value, all this time, even though we paid out dividends!

Additionally, BMF has clearly beaten the general market. Over the same timeframe, BMF has beaten GIGAMINING by 16.9%, counting dividends and capital gain/loss.

Is BMF the best place to put your money today? While that was true 3 months ago, what about today? After all, it’s true that “past performance does not equal future results”. In response I can tell you that I’m still doing the same thing that I started 3 months ago. I’m still working hard, I’m still wheeling and dealing, and I’m watching the money like a hawk. Ask yourself, in another 3 months, where would you have rather put your money? The choice is clear. BMF."

This post shows how misinformed Usagi is. Let me lay this out for everyone.

Snip from above quote:

"On another note, I was just examining the historical prices of BMF. On June 1st, 2012, Mt. Gox USD was $5.16 per bitcoin. We had 1035 shares outstanding at the time. From these humble beginnings we now have over 5,000 outstanding shares, and at current prices BMF is now worth $5.73 per share!"

Original cost of 1 share of BMF = 1 bitcoin.
1 bitcoin on June 1stwas worth ~$5.16
1 bitcoin on Sept 19 was worth~$12

Investor A has $5.16 on June 1st, buys a bitcoin, and decides to hold it. Today, he has ~$12 worth of bitcoin.

Investor B has $5.16 on June 1st, buys a bitcoin, and buys 1 share of BMF. Today, that 1 share (assuming a NAV of .50 btc) and total dividends (~.10 btc) would be worth ~$7.2.

This is how you claim that BMF has delivered 41%. Now here is where I explain why that claim is not true:

Investor B's gain had absolutely nothing to do with their investment in BMF, and everything to do with their investment in bitcoin. If Investor B would have bought bitcoin and not invested in BMF, they would have experienced nearly an additional 100% gain. Since Investor B's purchase of BMF is the only difference between them and Investor A, we can conclude that BMF was the cause of the lesser return. IF BMF had a positive ROI, then Investor B's return would have been higher than Investor A's.

ROI for a security is measured in the currency it is based in, so all of the blabber about USD in your post is completely irrelevant.

It goes something like this:
1 share of BMF @ IPO cost 1 bitcoin. It can now be sold for ~.50 btc and has paid ~.10 btc in dividends. That would be a ROI of -40%.

You either have nearly 0 understanding of finance or you are trying to deceive investors and the community; or both. This is not me looking to insult you; this is me stating the truth.

[Bitcoin Oz]

Almost anything you invested in dropped by half. Stop being such a retard. The plain and simple truth is that BMF has an annual return of 41%. You hate hearing that, but that's the truth. I did a good job. And nothing you say can change that.

You are completely incorrect.

BMF: Over 41% ROI since inception

"On another note, I was just examining the historical prices of BMF. On June 1st, 2012, Mt. Gox USD was $5.16 per bitcoin. We had 1035 shares outstanding at the time. From these humble beginnings we now have over 5,000 outstanding shares, and at current prices BMF is now worth $5.73 per share! This is an annualized, real return on investment of 41% not including dividends paid! — WOW! — Essentially, the reason why mining bonds have deprecated in BTC is because the exchange rate has gone up. Hardware, you see, has intrinsic value, and this intrinsic value is why the share price for everything from mining bonds to et cetera has gone down recently. But isn’t that cool? BMF was actually gaining in real value, all this time, even though we paid out dividends!

Additionally, BMF has clearly beaten the general market. Over the same timeframe, BMF has beaten GIGAMINING by 16.9%, counting dividends and capital gain/loss.

Is BMF the best place to put your money today? While that was true 3 months ago, what about today? After all, it’s true that “past performance does not equal future results”. In response I can tell you that I’m still doing the same thing that I started 3 months ago. I’m still working hard, I’m still wheeling and dealing, and I’m watching the money like a hawk. Ask yourself, in another 3 months, where would you have rather put your money? The choice is clear. BMF."

This post shows how misinformed Usagi is. Let me lay this out for everyone.

Snip from above quote:

"On another note, I was just examining the historical prices of BMF. On June 1st, 2012, Mt. Gox USD was $5.16 per bitcoin. We had 1035 shares outstanding at the time. From these humble beginnings we now have over 5,000 outstanding shares, and at current prices BMF is now worth $5.73 per share!"

Original cost of 1 share of BMF = 1 bitcoin.
1 bitcoin on June 1stwas worth ~$5.16
1 bitcoin on Sept 19 was worth~$12

Investor A has $5.16 on June 1st, buys a bitcoin, and decides to hold it. Today, he has ~$12 worth of bitcoin.

Investor B has $5.16 on June 1st, buys a bitcoin, and buys 1 share of BMF. Today, that 1 share (assuming a NAV of .50 btc) and total dividends (~.10 btc) would be worth ~$7.2.

This is how you claim that BMF has delivered 41%. Now here is where I explain why that claim is not true:

Investor B's gain had absolutely nothing to do with their investment in BMF, and everything to do with their investment in bitcoin. If Investor B would have bought bitcoin and not invested in BMF, they would have experienced nearly an additional 100% gain. Since Investor B's purchase of BMF is the only difference between them and Investor A, we can conclude that BMF was the cause of the lesser return. IF BMF had a positive ROI, then Investor B's return would have been higher than Investor A's.

ROI for a security is measured in the currency it is based in, so all of the blabber about USD in your post is completely irrelevant.

It goes something like this:
1 share of BMF @ IPO cost 1 bitcoin. It can now be sold for ~.50 btc and has paid ~.10 btc in dividends. That would be a ROI of -40%.

You either have nearly 0 understanding of finance or you are trying to deceive investors and the community; or both. This is not me looking to insult you; this is me stating the truth.

You just explained the main flaw in bitcoin. The fact we wont be able to build an economy because businesses wont be able to get investment in a depreciating currency while they still need to pay their suppliers and the tax man in fiat.

Its the reason loans and securities denominated in bitcoin have all mostly failed as a concept and why the bitcoin economy will eventually stall completely. Its the same reason a depression happened when  the economy was backed by gold. Businesses cant raise money to put on extra staff or buy more equipment to expand.

[puffn]

The solution is to peg the expansion of supply to the price, however doing so would kill the speculative value for holders. This would kill bitcoin faster than anything else.

[CJGoodings]

It goes something like this:
1 share of BMF @ IPO cost 1 bitcoin. It can now be sold for ~.50 btc and has paid ~.10 btc in dividends. That would be a ROI of -40%.

You either have nearly 0 understanding of finance or you are trying to deceive investors and the community; or both. This is not me looking to insult you; this is me stating the truth.

*SssMmmAaaSssH*
And its outta here.....

[Puppet]

The NAV of BMF is approximately 0.50.

Wrong.

Since usagi wont update and correct his faulty spreadsheet, I thought I would.
Using GLSBE API, these are up to date date numbers, feel free to point out any errors:

[nimda]

The NAV of BMF is approximately 0.50.

Wrong.

Since usagi wont update and correct his faulty spreadsheet, I thought I would
Using GLSBE API, up to date date numbers, feel free to point out any errors:

That spreadsheet is from September 20th but you've changed some of the numbers on it. You're lying again.

get caught lying much?

Care to enlighten us casual readers as to which numbers Puppet fraudulently changed?