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[Lab_Rat]

Would you submit LRM financials to a third party audit paid for by contract holders?

There are no contractual obligations to do so, but if in the future we deem it necessary we will consider it.  I DO have a CPA overseeing my books, including BTC wallets.

[Flashman]

What worries me is that there doesn't appear to be any guarantee to us that the bonus might not climb to something we'd regard as respectable, like a total 1 or 2 Gigahash equivalent, and then wham, LRM sells off up to 19 times as many shares are already outstanding and we're dumped back down to the 100Mh minimum again.

[Lab_Rat]

LR -

2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?

2: For those contract holders who wish it, they can select the new contract. 

This does not answer my question. I'm not asking about choosing one kind of capped bond over another. I'm asking what options I have as an investor if I do not accept ANY capped bond in exchange for my original, proportional bond?

We are not providing legal advice, but you may chose to sell your contract at any time.

[Lab_Rat]

LR -

1) Please tell us the original reason why the bonds were capped at 100 MH/s? We've seen a lot of hand waiving, but no concrete reason.

2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?

1: To the extent that we can answer this question without supplying legal advice we have already done so.

2: For those contract holders who wish it, they can select the new contract. 

So, in order for the growing hashrate to be cleared legally it is declared as a 'bonus' for the purposes of this contract?

Essentially correct.

[hamburgerhelper]

LR -

2) This conversion to capped bonds is not optional. What recourse through LRM do investors have who do not accept capped bonds in exchange for their original proportional bonds?

2: For those contract holders who wish it, they can select the new contract. 

This does not answer my question. I'm not asking about choosing one kind of capped bond over another. I'm asking what options I have as an investor if I do not accept ANY capped bond in exchange for my original, proportional bond?

We are not providing legal advice, but you may chose to sell your contract at any time.

Thank you, that answers my question.

[smracer]

Labrat,

Are you saying that you have enough PSU's from your 65nm equipment to run all of the Monarchs you have on order?

I hope not because that would mean you don't have many Monarchs on order.

If not, is the bulk of the company funds still in BTC?

[Lab_Rat]

LR -

Would you be willing to provide an update once per week as to the state of Lab Rat Mining?

Specifically, we'd like to know:

Amount of Hashrate on-hand.
Amount of Hashrate ordered.
Expected arrival date of hashrate on-order.
Bitcoins mined this week.
Bitcoins paid out this week.
Amount paid per contract.
Number of contracts in existence.
Any other pertinent information.

Thank you.


EDIT: Corrected typos.

Most of these do not change on a week to week basis.  The important information is the hashrate which is updated instantaneously on the top of the website under Current Hashrate.  Any major developments will be posted as they occur.

So are you saying you are not willing to do this?

1: at top of webpage
2 + 3: Contractual obligations do not allow me to do so.
4 - 7: Yes
8: Will be posted as it becomes available (rather than weekly)

[Lab_Rat]

Please specify the exact differences between continuing with the old contract versus electing the new contract.
If that's too broad please offer a summarized comparison of what dividends per bond under old/new contracts will look like in the near term and future term.

This will be the last answer for this session.

Both contracts will be available for you to review and compare.  No legal or financial advice will be given.  However both contracts pay at 100 MH/s per contract.  The new contracts will carry with it the opportunity for bonuses as LRM deems the funds are available.  The old contract does not provide for any bonus.

[hamburgerhelper]

Please specify the exact differences between continuing with the old contract versus electing the new contract.
If that's too broad please offer a summarized comparison of what dividends per bond under old/new contracts will look like in the near term and future term.

This will be the last answer for this session.

Both contracts will be available for you to review and compare.  No legal or financial advice will be given.  However both contracts pay at 100 MH/s per contract.  The new contracts will carry with it the opportunity for bonuses as LRM deems the funds are available.  The old contract does not provide for any bonus.

Today's contract mentions a term but does not define it anywhere (2 people have noticed this so far). Your lawyer is a moron. This is not a question.

[mboehler]

@grnbrg,

Would you please explain the process in detail?  Thank you!

How would we move to the new contract if we wanted to?

All you have to do is tell us you agree to the new contract.  I have verified email addresses for almost all contract-holders.  Please tell us via the email address you have used in the past.  If I do not have a verified email address of yours, grnbrg will explain that process in detail upon request.

EDIT: Nevermind.  I misread the "If I do not have a verified email address of yours" part of the answer.

[daemonfox]

There needs to be a side by side, point by point comparison of current bond definitions to new bond definitions.

From what i gather in this AMA... the only difference is old contracts are not eligible for bonus payouts, and will no longer "grow" in hashrate as it was expressed they would when initially purchased?

Why does it feel like contract holders are being screwed either way? Essentially... the only reason you have MORE hashrate than bonds sold is due to the rise in the price of BTC... so why are we as contract holders not reaping any of that benefit... either we stay and do not grow anymore... or we convert and you sell the extra hashrate to new contracts... hashrate the we original holders essentially paid for.

You are getting your cake and eating it too... right in front of us... and taunting us to boot while you make out like a bandit all because we bought in prior to BTCs value rising. Your sole discresion to deem a bonus is not enough to validate how much you took in since you were still holding BTC when the value jumped... you are essentially robbing us of the extra benefit we should all be getting.

[hamburgerhelper]

There needs to be a side by side, point by point comparison of current bond definitions to new bond definitions.

From what i gather in this AMA... the only difference is old contracts are not eligible for bonus payouts, and will no longer "grow" in hashrate as it was expressed they would when initially purchased?

Why does it feel like contract holders are being screwed either way? Essentially... the only reason you have MORE hashrate than bonds sold is due to the rise in the price of BTC... so why are we as contract holders not reaping any of that benefit... either we stay and do not grow anymore... or we convert and you sell the extra hashrate to new contracts... hashrate the we original holders essentially paid for.

You are getting your cake and eating it too... right in front of us... and taunting us to boot while you make out like a bandit all because we bought in prior to BTCs value rising. Your sole discresion to deem a bonus is not enough to validate how much you took in since you were still holding BTC when the value jumped... you are essentially robbing us of the extra benefit we should all be getting.

Well said. Robbing is the operative word here.

[Mindsync Miner]

Would you submit LRM financials to a third party audit paid for by contract holders?

There are no contractual obligations to do so, but if in the future we deem it necessary we will consider it.  I DO have a CPA overseeing my books, including BTC wallets.

I understand you have closed the AMA. There is a glaring outstanding question raised by this particular answer.

The new contract specifies a discretionary (read optional) bonus payout per contract, however, that bonus payout will be completely on the honor system without any third party audits.

As was stated earlier even if there were an audit said funds could be diverted to new shares, LR's pocket etc. on a whim.

An additional question is: How has any of this restored faith in LRM or it's contracts?

The price per contract has tanked and unless bonus payouts are both plentiful and consistent I see little hope in recovering more than a fraction of initial contract costs. Additionally anybody buying existing or new contracts would be foolish to value them as worth anything more than the 100 MH/s since the bonus is completely discretionary and can become zero at any time.

[mmmerlin]

Would you submit LRM financials to a third party audit paid for by contract holders?

There are no contractual obligations to do so, but if in the future we deem it necessary we will consider it.  I DO have a CPA overseeing my books, including BTC wallets.

I understand you have closed the AMA. There is a glaring outstanding question raised by this particular answer.

The new contract specifies a discretionary (read optional) bonus payout per contract, however, that bonus payout will be completely on the honor system without any third party audits.

As was stated earlier even if there were an audit said funds could be diverted to new shares, LR's pocket etc. on a whim.

An additional question is: How has any of this restored faith in LRM or it's contracts?

The price per contract has tanked and unless bonus payouts are both plentiful and consistent I see little hope in recovering more than a fraction of initial contract costs. Additionally anybody buying existing or new contracts would be foolish to value them as worth anything more than the 100 MH/s since the bonus is completely discretionary and can become zero at any time.

That is all correct, plus we don't know how much hardware is incoming, even in the current BitFury shipment, as the AMA was closed just before my question re-asking this. It is, however, almost a moot point, as neither contract entitles bondholders to any of the proceeds from that equipment.

Many questions remain to be answered...

[daemonfox]

Would you submit LRM financials to a third party audit paid for by contract holders?

There are no contractual obligations to do so, but if in the future we deem it necessary we will consider it.  I DO have a CPA overseeing my books, including BTC wallets.

I understand you have closed the AMA. There is a glaring outstanding question raised by this particular answer.

The new contract specifies a discretionary (read optional) bonus payout per contract, however, that bonus payout will be completely on the honor system without any third party audits.

As was stated earlier even if there were an audit said funds could be diverted to new shares, LR's pocket etc. on a whim.

An additional question is: How has any of this restored faith in LRM or it's contracts?

The price per contract has tanked and unless bonus payouts are both plentiful and consistent I see little hope in recovering more than a fraction of initial contract costs. Additionally anybody buying existing or new contracts would be foolish to value them as worth anything more than the 100 MH/s since the bonus is completely discretionary and can become zero at any time.

That is all correct, plus we don't know how much hardware is incoming, even in the current BitFury shipment, as the AMA was closed just before my question re-asking this. It is, however, almost a moot point, as neither contract entitles bondholders to any of the proceeds from that equipment.

Many questions remain to be answered...

That is how i read it... the hashrate we have in equipment now is all we will ever get... all this new Bitfury equipment WE PAID FOR can only be reaped by purchasing more bonds... essetially LRM will be mining with it all for his own pocket except that portion that someone else pays for as they buy new contracts. WE PAID FOR THAT BITFURY GEAR, IT IS OUR HASHRATE AND LRM IS FORCING US TO RELINQUISH IT TO NEW CONTRACTS ONLY.

[Mindsync Miner]

Even if LR is to be honorable the contract does nothing to assure that he will act in good faith. Initial contracts were sold on the promise of growth. True it was stated that contracts would be worth a minimum of 100MH/s and that benchmark was exceeded given the 3 way split. However, there was consistent representation over time from LR that we were growing to more and more MH/s.

Going back on that representation and not contractually assuring dividends from the growth that WE paid for is a betrayal to the initial contract holders. It betrays us in that the destiny of our contracts was misrepresented over the course of several Months. Our funds are not protected under contract to be used as WE intended under the terms originally agreed upon. It's a bait and switch to lock the hash rate.

[smracer]

7a. The BitFury hardware I believe you're referring to has been in just over A month, not months.  The hardware is still in the process of being put online as there have been multiple delays.  These delays include but are not limited to, AC failure, transformer explosions, fiber cuts, etc.

For the life of me I cannot figure out why ~5-7TH of BitFury gear has been sitting in boxes for 1 month.

When the Monarchs arrive how long will it take to hook them up?

My guess is you are having heat problems.  It's going to get much much hotter this summer.

[contactmike1]

7.)a What have you been doing with the new hardware you've had for months?b When can we expect to receive those dividends?

7a. The BitFury hardware I believe you're referring to has been in just over A month, not months.  The hardware is still in the process of being put online as there have been multiple delays.  These delays include but are not limited to, AC failure, transformer explosions, fiber cuts, etc.
7b. We expect the distributions payable on the equipment to the current contract-holders in approximately two weeks from tomorrow.

[contactmike1]

Isn't it about 150TH, not ~5-7?

[daemonfox]

Even if LR is to be honorable the contract does nothing to assure that he will act in good faith. Initial contracts were sold on the promise of growth. True it was stated that contracts would be worth a minimum of 100MH/s and that benchmark was exceeded given the 3 way split. However, there was consistent representation over time from LR that we were growing to more and more MH/s.

Going back on that representation and not contractually assuring dividends from the growth that WE paid for is a betrayal to the initial contract holders. It betrays us in that the destiny of our contracts was misrepresented over the course of several Months. Our funds are not protected under contract to be used as WE intended under the terms originally agreed upon. It's a bait and switch to lock the hash rate.

Exactly.

In this new model... new contract purchases would be rewarded instantly with hashrate dividends... when we all purchased... we had to wait until hardware came in before we could get dividends.

SELLING THIS INCOMING HARDWARE TO NEW CONTRACTS AND ONLY GIVING BONUS PAY TO SAID NEW CONTRACTS IS LIKE GETTING PAID TWICE FOR THOSE CONTRACTS! YOU CAN'T SELL CONTRACTS TO THE HASHRATE WE PURCHASED A SECOND TIME.

Your only option to do this correctly, and give us the hashrate WE provided you funds to purchase, is to increase our contract count to match overall hashrate.

YOU DO NOT HAVE THE RIGHT TO SELL FUTURE CONTRACTS TO ANYONE ELSE AT ALL... THOSE ARE OUR CONTRACTS!