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

[BitCsByBit]

Interesting point from HashFast:

Simon has indicated that due to the logistics of the European import situation that it's possible that the Babyjet owners might get their units before Icedrill.   something you need to factor in but certainly not a guarantee. 

And the BabyJet's are scheduled for the end of October.

[trout]

A question about BTC price changes.

AFAIR, HashFast chips and devices are priced in USD, so if BTC
price rises, then you'll be able to buy more hashpower.
Will the Megahash per share ration rise in this case or shall it stay fixed?

[drawingthesun]

Is it likely that round 3 will sell at all? Some shares going cheap are already lining up below 0.0016

[drawingthesun]

A question about BTC price changes.

AFAIR, HashFast chips and devices are priced in USD, so if BTC
price rises, then you'll be able to buy more hashpower.
Will the Megahash per share ration rise in this case or shall it stay fixed?

Yeah it would make sense that an increasing Bitcoin price would result in better hash returns per share. This is only because HashFast prices in USD like you have stated. Its good for people to consider this when making a long term decision.

[iCEBREAKER]

Interesting point from HashFast:

Simon has indicated that due to the logistics of the European import situation that it's possible that the Babyjet owners might get their units before Icedrill.   something you need to factor in but certainly not a guarantee. 

And the BabyJet's are scheduled for the end of October.

AFAIK, the first 550 BJs and ice.drill's chips are both being cut from the same initial batch of wafers.

There is no way to determine BJ assembly time plus end-user shipping vs Swedish shipping/customs plus iD assembly time.

It's a toss up.  But speaking of BJs, DT should blow, bribe, or blackmail whoever necessary to prevent a repeat of Avalon's latest disaster. 

[DeaDTerra]

Given the risks involved with non-completion of batch 3 of the original IPO, we negotiated a new deal with Hashfast which allows us to raise funds in a more realistic timeframe while getting enough capacity for a smaller sized farm (less risk) as an entry-point for this project.  The objective is to scale from a smaller size using the 25% reinvestment component to grow the assets to a more sizable state.

With this new deal, as we take less bulk capacity, the pricing was slightly less favorable.  However, this is the cost of mitigating the capital risk of going big.  Subsequently, with a bleaker pricing situation, we do not want this to affect the public shareholders.  Hence, the private shareholders sacrificed a part of their share to pay for this price change hence the change in the ratio of public and private shares.

To make sure we keep the 10/Mhash, we are scaling up the percentage of ownership and in accordance with the deal change with Hashfast, we no longer need to sell all of batch 3. If batch 3 does not fully sell we will rebalance the private to public shares and decrease the private shares even more so that we can keep the 10/Mhash per share starting point.

Lastly, with the new deal with Hashfast the new maximum amount of shares within the structure is 36.3 million (363 Thash @ nominal clock speeds). We would like to sell a total of 25.5 million shares while reducing the private shares to approximately 30% (down from 40%).  This ultimately means we increase the percent owned to keep the shares at 10/Mhash (equivalent starting mining power for comparison) each and we would then subsequently reduce the amount of privately held shares to pay for the bulk purchases and price changes with Hashfast.



//DeaDTerra

[Minor Miner]

Are you going to change the first post of the thread to summarize the various changes you have made?

[drawingthesun]

To make sure we keep the 10/Mhash, we are scaling up the percentage of ownership and in accordance with the deal change with Hashfast, we no longer need to sell all of batch 3. If batch 3 does not fully sell we will rebalance the private to public shares and decrease the private shares even more so that we can keep the 10/Mhash per share starting point.

This is good news, so if batch 3 does not sell our shares become slightly more valuable (Bigger amount of the profits?)

Is this correct?

[molecular]

To make sure we keep the 10/Mhash, we are scaling up the percentage of ownership and in accordance with the deal change with Hashfast, we no longer need to sell all of batch 3. If batch 3 does not fully sell we will rebalance the private to public shares and decrease the private shares even more so that we can keep the 10/Mhash per share starting point.

This is good news, so if batch 3 does not sell our shares become slightly more valuable (Bigger amount of the profits?)

Is this correct?

The third batch is of 12,000,000 (12 million) shares and will be sold at the price of 0.0016 BTC per share. These shares have to be sold by the 4th of November (00:00:00 UTC, 4 November 2013)  for the IPO to be deemed a success. At the opening of the mine, this equates to a price of 0.16 BTC per Gh.s.

Don't know what happens then the IPO is not a success. Also don't know why it's so hard to fix the info in the first 2 posts and on bitfunder.

[evoorhees]

Are you going to change the first post of the thread to summarize the various changes you have made?

Yeah DT you should do this...

[iCEBREAKER]

How about setting up passthroughs at MPEX and Havelock?

The weenies at BTCT are afraid ice.drill will be too competitive with their beloved "$2/GH" Chinese scam IPOs, so lets give the other exchanges a chance.   

[DeaDTerra]

I am working on the changes of the first pages
Sorry for taking a while, I wanted to finalize the changes before fixing anything.
Any chances made has been marked red in the document below
https://docs.google.com/document/d/1_uecYI2qlr_I3vj0VVG0E5F9_x_V0mBebeYpAvNZnl0/edit

I tried to keep it short and simple, if you think a extensive explanation is needed just ask and I will try to explain it in more detail in the document.
//DeaDTerra

[Kushedout]

Nice, you found a block! 

[ADgordo]

Nice, you found a block! 

When?

[Kushedout]

Nice, you found a block!  

When?

That's Primecoin btw (XPM)

[molecular]

I am working on the changes of the first pages
Sorry for taking a while, I wanted to finalize the changes before fixing anything.
Any chances made has been marked red in the document below
https://docs.google.com/document/d/1_uecYI2qlr_I3vj0VVG0E5F9_x_V0mBebeYpAvNZnl0/edit

I tried to keep it short and simple, if you think a extensive explanation is needed just ask and I will try to explain it in more detail in the document.
//DeaDTerra

thank you!

[Vbs]

I'm still wrapping my head at why someone would want to pay 0.0016 for 10MH/s starting at best in November. It is a HUGE gamble for that price point, investors are taking a big risk.

At 0.0016 for 10MH/s, 1GH/s/W:

• Mining starts in November: http://mining.thegenesisblock.com/a/6ac6bcc5b6 (Break Even Period: 78 days, Max Profit: 0.000739 (Sep-14) - 46.2%)
• Mining starts in December: http://mining.thegenesisblock.com/a/779736272d (No break-even!)

Even when buying at 0.0014, the risk is very big:

• Mining starts in November: http://mining.thegenesisblock.com/a/b0c610062c (Break Even Period: 62 days, Max Profit: 0.000939 (Sep-14) - 67.1%)
• Mining starts in December: http://mining.thegenesisblock.com/a/029bdce47a (Break Even Period: 160 days, Max Profit: 0.000103 (Sep-14) - 7.37%)

This is assuming optimal conditions where: (1) The chips are able to get no worse than 1GH/s/W (imho this is still the biggest gamble of HF chips) and (2) the only operational expenses needed to be paid are the energy consumption, it's neck to neck. Factoring all the extra costs (cooling, maintenance, personnel, ...) and the "growth" cut, just makes it overboard as it hardly will be enough to compensate for the network growth rate expected during Q3 2013 and Q1 2014.

[Ytterbium]

I'm still wrapping my head at why someone would want to pay 0.0016 for 10MH/s starting at best in November. It is a HUGE gamble for that price point, investors are taking a big risk.

At 0.0016 for 10MH/s, 1GH/s/W:

• Mining starts in November: http://mining.thegenesisblock.com/a/6ac6bcc5b6 (Break Even Period: 78 days, Max Profit: 0.000739 (Sep-14) - 46.2%)
• Mining starts in December: http://mining.thegenesisblock.com/a/779736272d (No break-even!)

Even when buying at 0.0014, the risk is very big:

• Mining starts in November: http://mining.thegenesisblock.com/a/b0c610062c (Break Even Period: 62 days, Max Profit: 0.000939 (Sep-14) - 67.1%)
• Mining starts in December: http://mining.thegenesisblock.com/a/029bdce47a (Break Even Period: 160 days, Max Profit: 0.000103 (Sep-14) - 7.37%)

This is assuming optimal conditions where: (1) The chips are able to get no worse than 1GH/s/W (imho this is still the biggest gamble of HF chips) and (2) the only operational expenses needed to be paid are the energy consumption, it's neck to neck. Factoring all the extra costs (cooling, maintenance, personnel, ...) and the "growth" cut, just makes it overboard as it hardly will be enough to compensate for the network growth rate expected during Q3 2013 and Q1 2014.

If HF's power efficiency is worse then 0.875Gh/j then they're boned, because the chips are already at 350W, and increasing that past 1Gh/j would mean pushing more then 400W through a single IC.

Does HF's "Miner protection plan" apply to IceDrill?   If so, that may help, since 10Mh/s could end up about 50Mh/s if the ROI is bad.

[Vbs]

(...)
Does HF's "Miner protection plan" apply to IceDrill?   If so, that may help, since 10Mh/s could end up about 50Mh/s if the ROI is bad.

Good question. Even if it did, what's the time-frame on receiving those extra chips? Weeks? Months?

[Vbs]

I believe IceDrill has Miner Protection.

If they don't make 100% ROI within 3 months. November - December - January, then they will give them up to double or four times as many chips as originally purchased in order to make their ROI. It will only be chips though.

That combined with shareholders getting paid 0.0016/share before private investors should make this a fairly safe bet (If you trust DeaDTerra and HashFast)

It's going to be a long wait though!

Only the chips? That's like 1/3 to 1/4 of the total system cost. What about the rest?

Are they releasing the PCB specs? PCBs are +/- cheap to manufacture, but the cooling solution can be even pricier than the chip itself (waterblock? vapour chamber/heatpipe air cooler?) plus adequate power-supplies.