[BitFunder] BTCINVEST - Low risk investment fund | Market cap: 2000+ BTC

[🏰 TradeFortress 🏰]

Howdy, BTC noob here.
I've invested some in your bond already, and after loosing some BTC's in other investments I see the benefit of "Low Risk" in your bond.
And maybe I'll make your bond have bigger % of my total investments.

I do however have some questions:

1) On bitfunder it says you've issued 3'831 of 10'000 shares.
Are you planning on raising the amount of shares above 10'000 if there is a demand for it?
2) How many of your own BTC's have you invested in this bond?
If you don't mind me asking.
3) What is your thoughts on how the raise of BTC value will affect investment opportunities?
I mean, let's assume that value of BTC continue to $100, $150 or $200 in a near future, do you think that will affect your current investments, like ASICMINER and SDICE for example?

Thanx for taking the time.

//Stenkross

Hi stenkross!

1. Yes, I plan on increasing the amount of shares if the current ones are sold. It's a fund, not shares of a company

2. I used to hold about 20% but I have sold it for personal investments - not part of BTCINVEST because it will always reasonably diversify.

3. When this fund was first started, bitcoin was around $20. While we don't deal with USD denominated investments, some assets like S.DICE are somewhat influenced by the btcusd price. ASICMINER on the otherhand mines bitcoin and plans to sell ASIC hashing boards, which means that BTCUSD increasing in value will help them - lower electricity costs in BTC terms for example.

What about the loans? I now choose lenders based on the likelyness of them paying back even if btc doubles - for example, people who trade bitcoins, providing stock to a bitcoin casino, and lines of credit would be what I'm willing to fund (btcinvest & coinlenders) over someone who will convert it to fiat.

Let me know if you have any more questions!

(Also, if you look back on the first page of the thread, and the latest MPOE bond payouts, you know exactly why zero coins went to MPOE bonds )

[stenkross]

Thanx for your answers.
I do however have one more question for ya.

The issuer will buy back shares by request at face value after fees.

What do you have backing up this statement above?
Let's say a security flaw is found on bitfunder.com and there's a "bank run" - situation, where many wants to withdraw their deposits at the same time.
In such scenario there won't be any buyers, so you'll have to buy them back yourself. From where will you get the funds to do this?
I assume one part is from selling the shares within the bond (ASICMINER, S.DICE, etc), but do you have some pile of cash lying around as well?

I realize the scenario above might not be very realistic, but I still find it good to know.

//Stenkross

[🏰 TradeFortress 🏰]

Thanx for your answers.
I do however have one more question for ya.

The issuer will buy back shares by request at face value after fees.

What do you have backing up this statement above?
Let's say a security flaw is found on bitfunder.com and there's a "bank run" - situation, where many wants to withdraw their deposits at the same time.
In such scenario there won't be any buyers, so you'll have to buy them back yourself. From where will you get the funds to do this?
I assume one part is from selling the shares within the bond (ASICMINER, S.DICE, etc), but do you have some pile of cash lying around as well?

I realize the scenario above might not be very realistic, but I still find it good to know.

//Stenkross

My bitcoins and assets added together is much larger than the fund, and of course there's actually liquidating the assets BTCINVEST owns. Even assuming that we lose 100%, I will still be able to buyback with my personal funds. (Not just bitcoin, but fiat too).

However, keep in mind there's always the risk of me dying in an accident. There's no dead man's switch yet, but I will consider it if this gets much larger.

[Logik]

Any comment on the drama in the Bakewell thread; has he contacted you at all or made any payments?

[🏰 TradeFortress 🏰]

Any comment on the drama in the Bakewell thread; has he contacted you at all or made any payments?

Either way I'm a lot more pissed off

As I said in the bakewell thread, Avalon might reclaim his ASIC preorders (but this is a slim chance)

Other than that, not much more to say, reclaiming the debt would be difficult as I am not located in Canada.

[🏰 TradeFortress 🏰]

If you are in the Canada through and might be interested in collecting, send me a PM to work something out.

[Deprived]

If you are in the US through and might be interested in collecting, send me a PM to work something out.

You might want to look for Canadians rather Americans.  Unless the US has recently absorbed Canada and I never noticed.

If you look back early in his thread you'll find one of his investors actually met up with him - that could be a place to start.  If it was a scam from the start then that'll be a sock-puppet account he's abandoned - but I don't think that's what happened.

[🏰 TradeFortress 🏰]

If you are in the US through and might be interested in collecting, send me a PM to work something out.

You might want to look for Canadians rather Americans.  Unless the US has recently absorbed Canada and I never noticed.

If you look back early in his thread you'll find one of his investors actually met up with him - that could be a place to start.  If it was a scam from the start then that'll be a sock-puppet account he's abandoned - but I don't think that's what happened.

Thanks Deprived, Canada* - I thought he was in the US.

Not really a good time for BTC investments in general - bitcoinrain, mpoe bonds, Ian bake well, panic over ziggap..

[🏰 TradeFortress 🏰]

Update:

I've "bailed out" btcinvest with 170 of my ASICMINER shares, which brings the NAV back up to a little over 0.1 after the Ian Bakewell default.

The structure of btcinvest has also being changed a little - please see the asset description on BitFunder. Basically, no more fixed value of 0.1 btc / bond, it will be offered at the current NAV, and we'll maintain bidwalls at 95% of NAV with profits of the spread going to the company.

Like always, a report will be published every 2 weeks (next one is in a few days). In addition, not 100% of earnings is going to get paid out as dividends.

[iCEBREAKER]

Not really a good time for BTC investments in general - bitcoinrain, mpoe bonds, Ian bake well, panic over ziggap..

"In general?"  Really?   

My ASICMINER, DMC, MININGCO, and CRYPTO-LTC have been doing fabulously.   

They more than covered my BAKEWELL and MPOE losses!   

[🏰 TradeFortress 🏰]

Report:

Dividends were lower this time because of ASICMINER's reduced dividends for expansion, and bad luck on S.DICE, so I decided to pay out some btcjam principal as dividends.

Revenue
BTCJAM loan: 3.21 BTC
ESECURITYSABTC: 0.01 BTC
ASICMINER dividends: 0.88 BTC
ATC777 loan: 0.215 BTC
scrybe line of credit interest: 0.1969 BTC
G.SDICE dividends: 0.09 BTC

TOTAL: 4.6019 BTC
Paid as dividends: 4.1417 BTC
Dividends per share:  0.0011 / share

Assets
Not traded on an exchange:
253 ASICMINER (directly) - 199.11 BTC

BitFunder
11,134 G.SDICE shares: 33.37 BTC
41 G.ASICMINER-PT shares: 32.27 BTC
64,600 btcQuick: 5.01 BTC
Coins: 10.02 btc

Bitfunder total value: 80.67 BTC

btct.co
3 ESECURITYSABTC: 1.15 BTC
Coins: 2.2 btc

btct.co total value: 3.35 BTC

ATC777 loan (remaining): 28.73 BTC
scrybe line of credit: 35 BTC
Btcjam secured loan (remaining): 3 BTC
CoinLenders 20 BTC loan: 20 BTC

Total loans / lines of credit: 86.73 BTC

Coins: 5.22 BTC

Total: 375.08 BTC
Shares outstanding: 3750
NAV/share: 0.1 BTC / share

[MikeMark]

Nice dividend, Thank you!

After I saw how you were handling what happened with Bakewell, I decided you must be my kinda guy: one who takes the knocks and stands behind what he does anyway. I'm glad to see my trust rewarded.

Just a question:

Bitfunder shows 4831 shares issued, but you claim 3750 outstanding in your latest report. Is the difference a set of shares that you use to defend your 0.095 - 0.10 share price range?

[🏰 TradeFortress 🏰]

Nice dividend, Thank you!

After I saw how you were handling what happened with Bakewell, I decided you must be my kinda guy: one who takes the knocks and stands behind what he does anyway. I'm glad to see my trust rewarded.

Just a question:

Bitfunder shows 4831 shares issued, but you claim 3750 outstanding in your latest report. Is the difference a set of shares that you use to defend your 0.095 - 0.10 share price range?

Yes, shares in btcinvest's account does not count because they haven't being sold yet.

Thanks!

[molecular]

You can trade in 1 share of btcinvest for the face value - BF fee (0.099 BTC). Just PM me

Will this offer stand in the future?

Yes, it's in the asset description!

'Buybacks
BTCINVEST will buy back each bond for their face value minus the fee BitFunder already charged us (0.099 BTC). However, as at any time the funds are mostly in fixed term investments, investors will need to schedule the buyback with BTCINVEST. "

I'd like you to buy back my 90 shares. No hurry, just fill my ask at 0.099 BTC/share whenever your situation permits it.

Thanks for all the dividends!

[MikeMark]

TradeFortress,

If you intend to have an askwall at BTC0.1, it has been taken out, congratulations!

I notice there has been at least 1 purchase at BTC0.12 (making my value seem high   ).

[🏰 TradeFortress 🏰]

It has being moved because we have a lot of shares of ASICMINER, which grew massively and increased our NAV

[MikeMark]

It has being moved because we have a lot of shares of ASICMINER, which grew massively and increased our NAV

Will you pay that as a dividend and bring the NAV back in line with your target or?

[stenkross]

It has being moved because we have a lot of shares of ASICMINER, which grew massively and increased our NAV

Umm... does that mean, if ASICMINER crash (theoretically), you will lower it?

[🏰 TradeFortress 🏰]

It has being moved because we have a lot of shares of ASICMINER, which grew massively and increased our NAV

Will you pay that as a dividend and bring the NAV back in line with your target or?

No, it now has a floating NAV

It has being moved because we have a lot of shares of ASICMINER, which grew massively and increased our NAV

Umm... does that mean, if ASICMINER crash (theoretically), you will lower it?

Yes

[🏰 TradeFortress 🏰]

Report:

Revenue
Share Buyback spread: 1.29 BTC
ASICMINER dividends: 4.1 BTC
scrybe line of credit interest: 0.1969 BTC

TOTAL: 5.5869 BTC
Paid as dividends: 5.0282 BTC
Dividends per share:  "You will be issueing [sic] (5.02820000 / 3678) = 0.00136710 per share. Final Total: 5.02819380."

Assets
Not traded on an exchange:
253 ASICMINER (directly) - 263.12 BTC

BitFunder
3115 G.SDICE shares: 8.10 BTC
44 G.ASICMINER-PT shares: 45.76 BTC
149,600 btcQuick: 11.22 BTC

Bitfunder total value: 65.08 BTC

btct.co
3 ESECURITYSABTC: 1.1 BTC

btct.co total value: 1.1 BTC

ATC777 loan (remaining): 28.73 BTC (might go the way of Ian Bakewell)
scrybe line of credit: 35 BTC
Btcjam secured loan (remaining): 3 BTC
CoinLenders 20 BTC loan: 20 BTC

Total loans / lines of credit: 86.73 BTC

Total coins: 21.6 BTC

Total: 437.63 BTC
Shares outstanding: 3678
NAV/share: 0.119 BTC / share