btt

[miTgiB]

Wait, so it is getting split or isnt it...

It is if the motion passes.

YES: 3479 - NO: 5 - ABSTAIN: 2

Over 2500 Yes votes, unless someone makes a massive change, impossible to fail

[creativex]

EDIT: it passed

That's good news. Liquidity is rather anemic.

I have a few hours set aside today to babysit the Avalons. As they seem to be 100% stable with the latest firmware flashed, I'm going to try my hand at overclocking them a bit.

Cheers.

[creativex]

Both Avalons seem content to operate at 325Mhz with only a modest(1c) change in temps, though fan speeds are up. More testing is needed to see if we can run stable here long term, but it looks great at this point.



Note, this is approximately 33% of our Avalon mining power as they're both still balanced across three pools.

[miTgiB]

There's a growth fund built into bASIC-MINING's contract as it stands
...
The growth fund(or Reinvestment Fund) was suspended by shareholder vote on 12/29/12 after delays to the original ASIC hardware shipment
...
we have received nearly twice the hashing power it would've provided had BTCFPGA not gone south.

I would you like to raise that the Reinvestment fund be reinstated (if it isn't already).

The mining power we now have more than covers it.

This should not require a motion as the terms have been met. I'll reinstate the fund tomorrow.

Cheers.

You'll exclude the ASICMINER-PT dividends and continue to do a 100% pass through on those?

[creativex]

There's a growth fund built into bASIC-MINING's contract as it stands
...
The growth fund(or Reinvestment Fund) was suspended by shareholder vote on 12/29/12 after delays to the original ASIC hardware shipment
...
we have received nearly twice the hashing power it would've provided had BTCFPGA not gone south.

I would you like to raise that the Reinvestment fund be reinstated (if it isn't already).

The mining power we now have more than covers it.

This should not require a motion as the terms have been met. I'll reinstate the fund tomorrow.

Cheers.

You'll exclude the ASICMINER-PT dividends and continue to do a 100% pass through on those?

Absolutely.

[Carnth]

You'll exclude the ASICMINER-PT dividends and continue to do a 100% pass through on those?

Absolutely.

Do we still need the AM-PT? I admit it's very nice. At what point should we look at trading them for more hardware?
When the third Avalon is delivered?

I'm just asking for thoughts.

[creativex]

You'll exclude the ASICMINER-PT dividends and continue to do a 100% pass through on those?

Absolutely.

Do we still need the AM-PT? I admit it's very nice. At what point should we look at trading them for more hardware?
When the third Avalon is delivered?

I'm just asking for thoughts.

No we don't need the shares any longer. I'd prefer to liquidate them at a beneficial price rather than based on an event.

[creativex]

Today's dividend is paid. The breakdown is as follows:

Mining revenue: 3.82764463
Asicminer-PT: 0.25858686
Total Dividend: 4.08623149
Total Dispersed: 2.93793810
Reinvested: 1.14829339

I'm putting the finishing touches on the spreadsheet for uploading just now, so the information will be available shortly.

https://docs.google.com/spreadsheet/ccc?key=0ArTS7AD--9SWdDNfb0lRNElqS1k1eGRoWEw2TGM4NlE#gid=0

Cheers.

[miTgiB]

You'll exclude the ASICMINER-PT dividends and continue to do a 100% pass through on those?

Absolutely.

Do we still need the AM-PT? I admit it's very nice. At what point should we look at trading them for more hardware?
When the third Avalon is delivered?

I'm just asking for thoughts.

No we don't need the shares any longer. I'd prefer to liquidate them at a beneficial price rather than based on an event.

Without something on the near term horizon, they are better than holding bitcoin currently, once we are able to put a majority of bitcoin on hand to work, I agree liquidating would benefit, it's just if you liquidate now, and do what with the proceeds? 

[creativex]

Without something on the near term horizon, they are better than holding bitcoin currently, once we are able to put a majority of bitcoin on hand to work, I agree liquidating would benefit, it's just if you liquidate now, and do what with the proceeds?

While I feel no urgency to liquidate them as they have been much better than holding bitcoin, we have a respectable gain on the shares and they've fulfilled their intended purpose. If I were a wiser man I'd have written an exit strategy into the motion that saw us purchasing them.

If these were in my personal portfolio I'd either liquidate them in baskets(25*4) marked up a few percent over current ask or write a reasonably attractive call option against them with a short term expiration(10 - 14 days). This way we continue to collect dividends on all or most of the shares and if someone buys them from us they'll do so at a premium. If they do not get sold/exercised then we'll be where we are now...which is still a pretty good place to be.

Cheers.   

[miTgiB]

If these were in my personal portfolio I'd either liquidate them in baskets(25*4) marked up a few percent over current ask or write a reasonably attractive call option against them with a short term expiration(10 - 14 days). This way we continue to collect dividends on all or most of the shares and if someone buys them from us they'll do so at a premium. If they do not get sold/exercised then we'll be where we are now...which is still a pretty good place to be.

Writing calls certainly sounds like an attractive exit strategy.  I wasn't the hippest on buying these in the first place, and now that we have them, I hesitate exiting prematurely as we have nothing better to replace them with as far as available hardware, and we still have 1200+ banked looking for a home.

Just discussing, as always.

[lunarboy]

If i can chime in... i'd vote for liquidating any asci shares when we actually need the cash. i'e `the 1200 or so BTC should be used; fist once that is spent then liquidate any outstanding shares at market value.

 my vote only, not to be taken as financial advice

[creativex]

wow did the price take off...bought 3 @ .66 looking pretty good right about now...wish i could have bought more...I'm hoping the split goes through have 5 btc inbound via coinbase

Avalon really came through for us. We've reached a milestone 5000BTC market cap.

...and less than 24hrs after I posted that we've reached the 6000BTC market cap milestone. Thanks to everyone that's helped make bASIC-MINING a success!

[MilkyLep]

Could you elaborate on the timeframe of the 10:1 split. And will trading have to be "paused" as everything takes effect?

[creativex]

Could you elaborate on the timeframe of the 10:1 split. And will trading have to be "paused" as everything takes effect?

Hi MilkyLep. I can share my limited understanding of the procedure. The time frame will largely be up to burnside as he's the one that has to do all the work and he's kept pretty busy. Now that the motion is over 79% approval it's safe to say it's passed, and I'll give him the go ahead to proceed. The order book will be cleared and trading will be halted while the script runs, but it's unlikely to take very long.

Cheers.

[killerstorm]

Current market cap is 10050 BTC (5000 shares @2.1. BTC).

We can remove liquid assets out of equation (as creativex can simply sell them and pay dividends):

1247 BTC
100 ASICMINER shares @3.5 BTC each: 350 BTC

What's left is 8453 BTC, attributed to 4 GPUs, 3 avalon units and creativex's creativity

If GPU value is negigible at this scale, that's like 2800 BTC per unit.

Reality check: 360 BTC was spent on ASIC miners, they are worth 8400 BTC now.

Are you sure you aren't overpaying, people?

Or perhaps I underestimate creativity...

[matt4054]

Market will decide, but in terms of dividends, we're not bad even at 2.0+

The reinvestment fund is what makes BASIC-MINING a long term "compatible" asset, unlike PMBs and co.

[killerstorm]

If you believe that Avalon units purchased are worth 3x more than the market price they were purchased at, BASIC-MINING market cap should be 360*3+1247+350 = 2677 BTC, 0.53 BTC per share.

Anything above that means you see value in intangible assets. Brand recognition, maybe?

This is unrelated to PMB: I'm using market value as a reference.

(And situation with ASICMINER is different because it owns significant intellectual property/intangible assets: they produce their own chips and units.)

[miTgiB]

If you believe that Avalon units purchased are worth 3x more than the market price they were purchased at, BASIC-MINING market cap should be 360*3+1247+350 = 2677 BTC, 0.53 BTC per share.

Anything above that means you see value in intangible assets. Brand recognition, maybe?

This is unrelated to PMB: I'm using market value as a reference.

(And situation with ASICMINER is different because it owns significant intellectual property/intangible assets: they produce their own chips and units.)

Your logic to shake weak hands is flawed, troll better, not louder

1247+350 can and will be used to purchase mining equipment in the future, so the market has placed a value on future earnings.  Liquidity is another factor, few are willing to sell shares at any price currently.

[killerstorm]

Your logic to shake weak hands is flawed, troll better, not louder

Market value of assets BASIC-MINING has is about 2000 BTC, which means ~0.39 BTC/share. And company got ~1900 BTC from sale of shares.

So company had about 8.4% profit. It isn't bad. But market cap is bullshit-based.

1247+350 can and will be used to purchase mining equipment in the future, so the market has placed a value on future earnings.

Eh, anyone can purchase mining equipment with money.

Suppose I make my own mining stock and get 1000 BTC from investors, is it going to have 5000 BTC market cap too? Why not? I can use 1000 BTC to purchase mining equipment in future, after all.

What is more likely, some people saw tremendous increase in hashrate and thought that share price should go up too. But they have missed the fact that high hashrate was already priced in at that point. In fact, I thought it was overpriced back when shares were trading around 0.6 BTC.

Sure, I'm trolling, but can you explain why 1 BTC controlled by creativex is worth 5 BTC? What's your logic? Where does 5x factor come from?

I'd say it comes from people who can't do the math.

On the other hand, if company buys chips and boards in bulk and assembles them, it might be valued significantly above cost of assets. But that's not what creativex is doing.