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Author Topic: why mining co choose to offer stock or bond?  (Read 586 times)
wolverine.ks (OP)
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July 18, 2013, 05:49:20 AM
 #1

why would a mining company choose to offer stock vs bonds? and vise versa?
Kluge
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July 18, 2013, 05:56:43 AM
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Initial funding and the ability to collect fees on management of the hardware. (Most offer something like 90% of the profits on what you're buying, while keeping a 10% or whatever cut for themselves)

ASICMINER makes the case for an IPO very well. They were able to use the funds extremely effectively (through a high-risk, super-ambitious venture), but couldn't have done it without that initial funding. No bank would've funded them.

Maybe more than all that, it creates jobs. Running 75 self-contained rigs isn't much of a job (I mean - you'll be taking a fair chunk of time each day to ensure they're running smoothly, diagnose and repair problems, all while keeping up on the news, but it's not going to take even 4h/day). Managing a company running 75 self-contained rigs is.
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