BTCGarden Overview & Speculation Thread

[Franktank]

Speculation, project developments, rumors.

Discuss

[str4wm4n]

plz double me up again 

[Franktank]

Key Steps in the Coming Months (via IPO)

1) Deploy 200 TH/s in at Shenzhen/Beijing/Xian/Suzhou simultaneously once the chips are finished.

2) Receive the 300 TH/s while finishing the deployment of the initial 200 TH/s

3) Consider outsourcing sales of mining hardware

4) Finish LAYOUT, start TAPEOUT of the 2nd-gen chips within 2013

[vlaoou321]

Chinese stocks do you know? Want to know the purchase BTCGarden

[julz]

I previously saw the 'share dilution' thing as a strong disincentive to invest - but with the promise not to dilute before 0.032BTC paid in dividends each share, and the promise to limit the rate to 1Million per year (10%) - I now think it's a smart move to make sure they can raise capital for future generation chips as necessary.

Clearly, with the sheer size of this IPO, there's not as much opportunity for speculators to pump and make quick gains - but the large amount of capital puts the company in a strong position to be a serious player - so overall I think this will probably develop into a solid Bitcoin stock with a fair prospect for respectable profit.

[Franktank]

To protect the interest of early investors, share dilution CANNOT occur until the all three following conditions have been fulfilled: 




1.   Total cumulative dividends paid/share equaling 0.032BTC/share; i.e., twice the IPO priced paid in dividends
2.   Share Dilution will not occur until after August 1, 2014 if the situation would arise


3.   Major developments/events that would lead to/maintain BTCGarden's targeted network portion.

That said, there would be an announcement before any further shares are sold, with existing shareholders have priority to purchase more. From what aiwill said, it's to be used as a last resort only.

[really]

To protect the interest of early investors, share dilution CANNOT occur until the all three following conditions have been fulfilled: 




1.   Total cumulative dividends paid/share equaling 0.032BTC/share; i.e., twice the IPO priced paid in dividends
2.   Share Dilution will not occur until after August 1, 2014 if the situation would arise


3.   Major developments/events that would lead to/maintain BTCGarden's targeted network portion.

That said, there would be an announcement before any further shares are sold, with existing shareholders have priority to purchase more. From what aiwill said, it's to be used as a last resort only.

Do not say Share Dilution。Can they sell the first 200w shares？It is still a problem。

[julz]

To protect the interest of early investors, share dilution CANNOT occur until the all three following conditions have been fulfilled: 




1.   Total cumulative dividends paid/share equaling 0.032BTC/share; i.e., twice the IPO priced paid in dividends
2.   Share Dilution will not occur until after August 1, 2014 if the situation would arise


3.   Major developments/events that would lead to/maintain BTCGarden's targeted network portion.

That said, there would be an announcement before any further shares are sold, with existing shareholders have priority to purchase more. From what aiwill said, it's to be used as a last resort only.

I think there is one more protection that shareholders should be pushing for. (Or should have pushed for before the IPO)
That is - that all newly issued shares should be in exchange for more capital only... ie not as 'rewards' to staff/management.
There is nothing I can see in the statements above that would stop them issuing 'free' (or cheap) shares to insiders at the same time as they issue more for capital.

I have no problem with the share dilution if it's done purely to grow the company and the shares are issued at a fair market price.

[aiwill]

I like such a thread~~~

I think there is one more protection that shareholders should be pushing for. (Or should have pushed for before the IPO)
That is - that all newly issued shares should be in exchange for more capital only... ie not as 'rewards' to staff/management.
There is nothing I can see in the statements above that would stop them issuing 'free' (or cheap) shares to insiders at the same time as they issue more for capital.

I have no problem with the share dilution if it's done purely to grow the company and the shares are issued at a fair market price.

thankyou for ur advices.

Some of our staffs did buyin a lot of public shares from BTCT personally (with same treatments as others -- big confidence on this project pushed them to do so). It is not big but since your advice really make sense, We ll think about adding some terms relating to this later.

[TMAN]

Hi,

Im tempted to invest - but not pushing the button as yet due to the massive valuation. Can anyone justify it to me?

thanks

[Franktank]

Hi,

Im tempted to invest - but not pushing the button as yet due to the massive valuation. Can anyone justify it to me?

thanks

Due to the troubles from both english and functions of the platform, many chinese BTCers and members of btcman.com are still learning how to use btct.co at the moment.

I would like to emphasize the usage of the IPO funds again:

1. Second batch with a huge amount of wafers.
2. Deployment costs for at least several hundreds TH.
3. 2ed-gen chips, 80% odds to 40nm and 20% to 55nm.(BTW: again, 28nm is unrealistic due to the capacity of Fab and the cost )
4. We run this project as a long-term biz, so we need to reserve a part of funds with RMB (CNY,chinese legal money). We need to hold an amount of funds in order to meet probable demands or possible risks.
5. At least currently, our stock is probably not that good for pure speculators.

[Streets 2.0]

Where is the overview???

[Luckybit]

To protect the interest of early investors, share dilution CANNOT occur until the all three following conditions have been fulfilled: 




1.   Total cumulative dividends paid/share equaling 0.032BTC/share; i.e., twice the IPO priced paid in dividends
2.   Share Dilution will not occur until after August 1, 2014 if the situation would arise


3.   Major developments/events that would lead to/maintain BTCGarden's targeted network portion.

That said, there would be an announcement before any further shares are sold, with existing shareholders have priority to purchase more. From what aiwill said, it's to be used as a last resort only.

Why not simply use shareholders dividends to purchase more shares and then give the empty shares?

[PeterB]

I would like to invest but I have some concerns, so if anyone could help me out that would be much appreciated:

1.  It seems very reckless to produce such a large amount of chips without first testing a prototype.  How big is the risk that the chips will not work or will have short lives?  I am not a chip engineer so I don’t really know if this approach is common, how reliable virtual testing environments are, or how much risk it really is.

2.  Does the same parent company also operate a BTC exchange in China?  It seems that it could add a substantial amount of risk to the operation.  Friedcat has mentioned in the past that most of the regulatory risk in China seems to be related to running exchanges.

[str4wm4n]

someone just bought 80,000 shares in 1 bite, nice!

[Franktank]

BTC Garden Update

Update:

an video of our FPGA  prototype :  http://www.btcgarden.com/videos.jsp  

We had finished this in May although the video was just made 2 hours ago by our engineers at Xi`An

BTW : YOUTUBE is blocked in mainland china for a long long time,so all chinese shareholders please wait for a youku version later at btcman ,sry

Here s a pic of it




some pictures of our deploment methods have been uploaded to http://www.btcgarden.com/deployment.jsp

We dont want to give out the chinese-writing part because it maybe useful to our potential opponents.

BTW: this method is based on water-cooling ,which is expensive , we also have a blower method as cheap as ASICMINER`s, we will try both of them at beginning to see which one is better.

Infos of our 1st-batch with 12+300（Engineering Sample &Mass Production） wafers: 312 wafers * 2000chips/wafer*400MH/chip = 249TH/s ,any overclock will let the estimate even higher. The contract
will not be shown out because so many infos included, which are not proper to show out and make no sense if we hide them all.



I ll reply other questions later ,too busy to do it now.

[yuchuanzhen]

BTC Garden Update

Thankx so much for the translation although in my side its more or less inaccurate.

Here re lines about the 2ed-batch.

1. Please notice that: All of you 1st batch of shareholders ,without whom neither this IPO nor our big project would be possible , are our most precious capital. We are  in the same boat and we promise to do our best to line your pockets.

2. Please notice that the 2ed batch of BTCGARDEN will

    *be impossible to issue before we reach a significant milestone in the development of our project.
 
    *a portion of 2nd batch shares will be used for "protecting the interests" of our shareholders,which means that there is a possibility that we will not issue all of the 2nd batch of 2,000,000 shares in future. I cannot expand this at the moment but I d like to say this could be a very good deal/offer to all our shareholders.

    *Certainly , the price of 2ed will be higher than the 1st.


Update :

We have received our sample-PCB and it is being tested in every aspect. Everything s running well so far. ( Mass production of PCBs will start later and can be finished within one week in Shenzhen)
We also dealed with an acquaintances packaging factory to shorten the Package period from 10days to 3days. I.E. we will get our chips in hand only 3-4 days later after out of  Fab.
We will hold a meeting next weekend in Beijing to discuz our future plans incl.: 2nd gen chips, deployment plans for 1st gen chips, application of analog circuit  in our project , a lot of experts both on R and D have been invited.

[culexevilman]

Going Up.

[Moebius327]

Chinese won't sell, and they are representing the larger part of the investors.

[ronaldlee0917]

Hi,

Im tempted to invest - but not pushing the button as yet due to the massive valuation. Can anyone justify it to me?

thanks

They are planning to deploy 500TH by Nov, that is one half of what Asicminer plan to deploy(800-1000TH) by the end of this year.
Market Cap of Asicminer = 4 * 400,000 = BTC1,600,000
So, if everything goes smooth for BtcGarden, they deserve a market cap of BTC800,000 and it gives the price of BTC0.08 per share which is 5 times of IPO price.
Hope my calculation makes sense.