[BitFunder] IceDrill.ASIC IPO (235 Thash Mining Operation powered by HashFast)

[LordMeowMeow]

I must have missed it, my apologies. I deleted my post.

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[discobean]

Apologies if anybody pointed it out already, but it seems like the IPO is priced so that the 60% profits you get is the same as if you had invested in HashFast hardware anyway.

So if you believe HashFast will deliver, then its essentially easier/less hassle to just buy the shares, as long as you have trust in the owners.

My maths:
IceDrill
10MH per share on IPO
0.00140 BTC ea

Each hashfast baby jet is
400,000MH per box
Costs approx 56BTC

So 400,000MH in shares = 40,000 shares = 56BTC

Alternatively you could buy the hardware and resell your preorder, or both.

[Ytterbium]

Apologies if anybody pointed it out already, but it seems like the IPO is priced so that the 60% profits you get is the same as if you had invested in HashFast hardware anyway.

So if you believe HashFast will deliver, then its essentially easier/less hassle to just buy the shares, as long as you have trust in the owners.

My maths:
IceDrill
10MH per share on IPO
0.00140 BTC ea

Each hashfast baby jet is
400,000MH per box
Costs approx 56BTC

So 400,000MH in shares = 40,000 shares = 56BTC

Alternatively you could buy the hardware and resell your preorder, or both.

Only reason to do it this way is if you don't have 56btc to spend.  If you order directly, you don't have to worry about trusting the intermediary, and you can chose how much you want to reinvest, rather then being stuck at 25%.

[Dexter770221]

Each share is less than 7,5 Mh/s. You forgot 25% investment and expences like power and mangement. It will grow and someday will hit 10 Mh/s but when no one knowes. I've asked how often hardware will be added but without response.

[str4wm4n]

Honestly..I can't see 10 million shares being sold in 3 days 

[discobean]

Each share is less than 7,5 Mh/s. You forgot 25% investment and expences like power and mangement. It will grow and someday will hit 10 Mh/s but when no one knowes. I've asked how often hardware will be added but without response.

Ahh yes good point, I missed the 75% part...

[Ytterbium]

No, each share should be 10Mh/s.  They are selling 300k shares and keeping 200k for themselves.

But, 25% will be reinvested, so you won't get those dividends.

[Dexter770221]

No, each share should be 10Mh/s.  They are selling 300k shares and keeping 200k for themselves.

But, 25% will be reinvested, so you won't get those dividends.

So, it equals to <7,5 MH/s and will raise due to reinvestment.

[DeaDTerra]

FAQ #2 is now added to the original FAQ
https://bitcointalk.org/index.php?topic=269216.msg2884487#msg2884487
FAQ # 2

Q1:

Any plans to move to btct?

A:
Asked and answered @ https://bitcointalk.org/index.php?topic=269216.msg2884487#msg2884487
see question 5
“We will be looking to setup PTs or similar services on other exchanges so that you may use the service of your choice. Due to the due-diligence work required to get this up & running and time constraints, please do not expect for it to happen for this 1st batch (due date 12 August).”

That said, we may be able to start listing PTs at other funding platforms for this round. We’ll announce it when it happens.

Q2:

What will happen if the 500TH mine can't hold up with difficulty and the electricity costs become higher than 10% of the revenue of the mine?

A:
See the Last Paragraph of IPO documentation:
“However, the operators (PetaMex in this case) retains the right to stop Digimex operations if it becomes operationally unprofitable. At that point, this agreement will automatically be terminated.”




Q3:

What kind of pricing agreement do you have with HashFast? I'm wondering how you will be able to compete with other miners who are getting their chips directly from the factories at cost.

A:
We have a very attractive and flexible agreement that we have signed with HF. This would allow us to purchase chips for upgrades in the most cost effective manner.

Q4:

Well its early in a "sold shares" stage, usually you want to wait till you see that it is actually going to sell and that there is interest. Otherwise you risk wasting a lot on fees.

A:
We received confirmation from Ukyo (bitfunder founder) that buyers pay zero fees @ IPO:
These were his words:
“Buyers (currently) don't pay any fees to buy shares, only sellers pay a fee (standard on BitFunder)”.

Q5:

What is the amount of Hashing power I will get from each bond at the initial startup.

A:
Please note that you are buying a share of profit of the farm. So, the operational costs need to be deducted before any dividends are distributed or reserves are taken out. The farm will have 500 Tera Hash and there would be a total of 50 million bonds (30 million float and 20 million private).

We are aware that not all of the current outstanding questions have been answered. The answers to these will be forthcoming in the next Q&A installment as they are being finalized. We implore you to please keep your questions clear, concise and to the point as it will ensure a quicker turnaround. Direct links to these Q&As will be included in the initial post to ease navigation for newcomers and act as an FAQ reference.

Q:
It would be better if the shares had a clause where the floated shares break even first. The founders and private investors get no profit until BitFunder investors break even.
https://bitcointalk.org/index.php?topic=269216.msg2889307#msg2889307

A:

Thanks for the feedback. After negotiations with the founders and private investors, they have unanimously agreed to amend the IPO to include this clause. Everyone believes that it is in the best interest for all parties involved.
Benefits:
No dividends will be paid to the holders of private shares until holders of public shares have received an accumulated dividend of 0.0016 BitCoin per share. After which, proceeds from mining will be distributed proportionally such that there would be no difference between floating shares or private shares.
Private shares can be converted into floating shares after all public shares have received an accumulated dividend of 0.0016 BitCoin per share.

Please note the IPO wording will be amended to include this clause and clearly marked as such.

[DeaDTerra]

New clause added for the benefit of public investors.

Q:
It would be better if the shares had a clause where the floated shares break even first. The founders and private investors get no profit until BitFunder investors break even.
https://bitcointalk.org/index.php?topic=269216.msg2889307#msg2889307

A:

Thanks for the feedback. After negotiations with the founders and private investors, they have unanimously agreed to amend the IPO to include this clause. Everyone believes that it is in the best interest for all parties involved.
Benefits:
No dividends will be paid to the holders of private shares until holders of public shares have received an accumulated dividend of 0.0016 BitCoin per share. After which, proceeds from mining will be distributed proportionally such that there would be no difference between floating shares or private shares.
Private shares can be converted into floating shares after all public shares have received an accumulated dividend of 0.0016 BitCoin per share.

Please note the IPO wording will be amended to include this clause and clearly marked as such.

[klee]

I bought..

[stslimited]

only 4 more days, this doesn't look like it will be successful! adios

[evoorhees]

The problem's there's no hedging here, since there's no "reduced future risk." 
It's sort-of an anti-hedge -- HashFast fails?  The whole shebang fails, you lose. 
HashFast delivers but DeadTerra fails?  You lose too. 
It's more of a "future risk multiplier," probably fitting the catchall "derivative instrument," loosely indexed to how much people feel like paying for the things.  It's certainly an odd package, we're asked to fund *several* dubiously-symbiotic startups in a single offering.

I know right?  It's totally like building houses, and who in their right mind would put money into a house that doesn't exist yet? 

Ummmm every real estate developer in history?

thatwasthejoke.jpeg

sorryIwasbeingdense.png

[stslimited]

only 4 more days, this doesn't look like it will be successful! adios

and then all that capital can flow back into existing companies

[pedrog]

Is it possible to extend the deadline if not all shares are sold by 12th?

[DeaDTerra]

Hi!
6750 Bitcoins has been brought in through bulk purchases of public shares by private investors.
This means we are one step closer to reaching the 20k BTC.
6 million shares need to be sold additionally for the IPO to reach the first goal.
//DeaDTerra

[AM4Bitcoin]

There where 5,9 mio shares, now 6,2 mio. Are you adding shares?

[DeaDTerra]

There where 5,9 mio shares, now 6,2 mio. Are you adding shares?

It was a slight miscalculation from my part.
The amount issued and amount available on the market is still the same
//DeaDTerra

[Tamis]

I bought !

[VJain]

Hi!
6750 Bitcoins has been brought in through bulk purchases of public shares by private investors.
This means we are one step closer to reaching the 20k BTC.
6 million shares need to be sold additionally for the IPO to reach the first goal.
//DeaDTerra

Was starting to think that I'd be getting my 100 btc back and reinvesting in something else.

Great news for IceDrill! Glad to see the ASCIMINER-esque IPO Payback clause as well.