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

[a2offrb]

It seems odd to me that the note on the cash flow statement for payment on the Sierras says:

"As per sales contract"

Cash flow is always done from actual payments.  Why did the accountant need to refer to the contract rather than either Bitcoin transactions or dollar payment receipts?  

Because of BTC/USD has gone up from moment of IPO

[jimbobway]

+1 I am also I interested in this discrepancy.  ID, please update.  Thx.

We've collected 24400 BTC from public share sales in total.

Document says:
Public shares: 19 237 745
Private shares: 2 803 262
23 023.68 BTC Raised from IPO.

By my calculations there is missing 1376.32 btc from public shares sales.

Hi!
Here are the updated numbers.
The reason why the other one showed some weird numbers is because it had some faulty assumptions based on old data which I had missed.
This one has been triple checked and is updated for the current numbers.
The table starts at the current raised amount of 23910 BTC and the current amount of sold public shares.
It then increases by 5000 BTC/3.125 Mill public shares.
The reason why we are currently not at 18 mill planned but instead at 18.5 is due to that we had an one batch of public shares open for sale at the same time as we closed a private deal.
The public to private shares scales up due the minimum requirement of 10 Mhash per share, to honor this the amount of private shares scales down at lower levels.
We also reduced batch three from 7 million to 6.25 million shares, this is due to the BTC price increase, we need less amount of Bitcoins for the budget for the data center.

We also added the % of private shares compared to the total amount of shares, we also included the mhash per share (with the investor protection clause).
Hopefully this will give you a better picture of how the distribution of shares will look once the IPO is complete.

//DeaDTerra

Still missing about 900 BTC from PDF.

Hi guys!
We have now cancelled the last batch and we can hence start finalizing the numbers surrounding the mine.



Each IceDrill share is currently worth 10 mhash at startup (public+private), calculating in the public investor protection clause each public share reaches 12.72 mhash (only public). One share is equal to (1/23,529,411) of the profit this is  roughly 4.25/10^6 % of the farms profit per share. One share will generate 9,54 Mhash in dividend at the farms start and 3.18 mhash of reinvestments, to bring each share to a total of 12.72 Mhash.
Please note that all these numbers are made with assumptions we have been given by HashFast, these should be taken as estimates and not exact number.

18,500,452 shares are public and will receive 75% (the other 25% will be kept for further reinvestment) of the farms profit until 0.0015 BTC has been paid to each share. Each share will at this stage receive 1/18,500,452 *0.75 of the farms profit and 25% will be reinvested.

We’ve decided to lower the investor protection clause from 0.0016 BTC payback to 0.0015 BTC payback as no share has ever been sold (from anyone) for higher than 0.0015 BTC. This is a 6.25% decrease. We believe this remains within the spirit of the clause: to provide 100% principal investment ROI in dividends, before private shares attain value upon entering the market.

When each public share has been paid 0.0015 BTC, the public protection clause naturally expires and the private shares will start receiving dividend (The private shares will become public shares). Once this stage is initiated the private shares will be converted into public shares and start receiving dividends accordingly. An announcement will be made when this happens. The owners of these private shares may then do as they wish with them, sell them, keep them etc. At this stage each share will be worth 1/23,529,411 of the farms profit (75% in dividend and 25% reinvested), for the exact way the farms profit is calculated please look back into the main information sheet.
//DeaDTerra

23910btc/18500452shares= 0.0012924008559358/Share (sounds very realistic)
0.0012924008559358*(19 237 745(public shares in doc)+2 803 262(private shares in doc))=28485.81 BTC

OR lets just take this 0.0012 price for public share: 0.0012*19 237 745=23085.294 BTC
It will make 2 308 500$ @BTC/USD100$.
Costs are 398 396$ for everything except sierras. 2 M$ Sierras. So
2 398 396$ are all costs to Feb 3 2014.
2 308 500-2 398 396$ = (89 896$) Our debt to someone. Also some part can be payed from mined coins so debt is only 66 022$ and by this date it must be payed.

6 120 000 shares * 0.0012 = 7344 BTC "GOT" from sold sierras that costs to IceDrill 520 404$. So by this change IceDrill got about 20 "bonus" sierra units and still 145 sierras that will be @ the end will be just 9MH/share

I dont understand what is "Invest in Cointerra", but i think that after this message someone will tell me about it. Didnt found any info of it.
Also because of everything i did not understand how much and WHERE have been invested private investors money and was there any?

Because of my "not-so-good" english i cannot sort out of some things, but my opinion is that in this PDF document some calculations have been made terrible wrong.

[Entropy-uc]

It seems odd to me that the note on the cash flow statement for payment on the Sierras says:

"As per sales contract"

Cash flow is always done from actual payments.  Why did the accountant need to refer to the contract rather than either Bitcoin transactions or dollar payment receipts?  

Because of BTC/USD has gone up from moment of IPO

In which case you show the ACTUAL BTC paid and the exchange rate at the time.

As was done with the Cointerra investment, where a Bitpay invoice was used.

Was the Hashfast contract actually paid, or is there still outstanding amounts?  As you note BTC/USD has changed a lot since the IPO.  If BTC were held, they represent a significant gain for INVESTORS, not for a back room deal where Icedrill backdates a sale to themselves.

[a2offrb]

It seems odd to me that the note on the cash flow statement for payment on the Sierras says:

"As per sales contract"

Cash flow is always done from actual payments.  Why did the accountant need to refer to the contract rather than either Bitcoin transactions or dollar payment receipts?  

Because of BTC/USD has gone up from moment of IPO

In which case you show the ACTUAL BTC paid and the exchange rate at the time.

As was done with the Cointerra investment, where a Bitpay invoice was used.

Was the Hashfast contract actually paid, or is there still outstanding amounts?  As you note BTC/USD has changed a lot since the IPO.  If BTC were held, they represent a significant gain for INVESTORS, not for a back room deal where Icedrill backdates a sale to themselves.

I know, in my answer was littlebit of sarcasm and joke.
If bitcoin price would be lower at payment moment it would be bitpay invoice, but now its only "Transaction to HashFast".

About 20 000 btc transaction to hashfast, is there transaction id?

I would like to see receipt with amount of sierra units and price in bitcoin.<- Is it possible, DeadTerra?

The bitcoin transactions for the units have been posted here before they amount to 20 000 BTC which was locked at 100 USD per BTC, giving us 2 mill USD for the 235 Thash worth of equipment.
The full trail and math will be in the audit so you can look at them yourself
We also have the receipts from HF if you don't believe me.
//DeaDTerra

[kevin911]

ok, id just like to ask, how many more sierra units is icedrill still waiting for? or have they had all their units now?

[will]

I've asked Eric (the independent accountant who compiled the financial report) to answer any relevant questions regarding it as it is his direct work-product.

If you ask a question on-topic, it will be answered. I've asked Eric to ignore obvious trolls (common, current practice).

You will have access to him this week, so please feel free to ask away.

[DeaDTerra]

Here is the transaction IDs for the HashFast payment:
88704e47ea9efb730fbfd456f43f856fdd0dc063f0a132bd27fc99c49f4fec32
b2889b6e0dea50082e3dd1783dca8fdcbd83957755c612332dc55c8da7c7443b

//DeaDTerra

[jimmothy]

Financial statement up @ http://www.icedrill.io/download/IceDrill-FS-20140203.pdf

Seems a bit deceptive to use a rate of $20/gh. Considering bitmain is shipping devices now for $4/gh.

And how many units are hashing now? The statement says feb 3 so it has been a month now.

Another thing, why is icedrill trading btc on bitstamp? I thought this was a mining operation, not a gambling on bitcoin exchanges fund.

[a2offrb]

Here is the transaction IDs for the HashFast payment:
88704e47ea9efb730fbfd456f43f856fdd0dc063f0a132bd27fc99c49f4fec32
b2889b6e0dea50082e3dd1783dca8fdcbd83957755c612332dc55c8da7c7443b

//DeaDTerra

Thx

Financial statement up @ http://www.icedrill.io/download/IceDrill-FS-20140203.pdf

Seems a bit deceptive to use a rate of $20/gh. Considering bitmain is shipping devices now for $4/gh.

And how many units are hashing now? The statement says feb 3 so it has been a month now.

Another thing, why is icedrill trading btc on bitstamp? I thought this was a mining operation, not a gambling on bitcoin exchanges fund.

Current total hashrate is 55.08 TH by https://www.icedrill.io/minestate

Can u set MineState page to show also total hashrate?

[Flashman]

Yarrr, $20/gh is almost dead on what I paid for BFL 65nm* considering I have it tuned up and running a few percent over nominal spec.



(*pre-release pre-order pricing from Feb 2013, not discount off the shelf pricing from late '13 early '14)

[Entropy-uc]

Here is the transaction IDs for the HashFast payment:
88704e47ea9efb730fbfd456f43f856fdd0dc063f0a132bd27fc99c49f4fec32
b2889b6e0dea50082e3dd1783dca8fdcbd83957755c612332dc55c8da7c7443b

//DeaDTerra

Thx

Financial statement up @ http://www.icedrill.io/download/IceDrill-FS-20140203.pdf

Seems a bit deceptive to use a rate of $20/gh. Considering bitmain is shipping devices now for $4/gh.

And how many units are hashing now? The statement says feb 3 so it has been a month now.

Another thing, why is icedrill trading btc on bitstamp? I thought this was a mining operation, not a gambling on bitcoin exchanges fund.

Current total hashrate is 55.08 TH by https://www.icedrill.io/minestate

Can u set MineState page to show also total hashrate?

Ozcoin is showing 162 Th/s.  They must be getting close to having everything online.

http://ozco.in/content/user-top-20

[stevenroose]

Current total hashrate is 55.08 TH by https://www.icedrill.io/minestate

Can u set MineState page to show also total hashrate?

Ozcoin is showing 162 Th/s.  They must be getting close to having everything online.

http://ozco.in/content/user-top-20

162 Th/s is still less than a third of what we should have, right? We were promised 500 Th/s...

[DeaDTerra]

Current total hashrate is 55.08 TH by https://www.icedrill.io/minestate

Can u set MineState page to show also total hashrate?

Ozcoin is showing 162 Th/s.  They must be getting close to having everything online.

http://ozco.in/content/user-top-20

162 Th/s is still less than a third of what we should have, right? We were promised 500 Th/s...

Original order was for 500 Thash, we did not raise enough Bitcoins and the order was decreased to 235 Thash.
//DeaDTerra

[pedrog]

Current total hashrate is 55.08 TH by https://www.icedrill.io/minestate

Can u set MineState page to show also total hashrate?

Ozcoin is showing 162 Th/s.  They must be getting close to having everything online.

http://ozco.in/content/user-top-20

162 Th/s is still less than a third of what we should have, right? We were promised 500 Th/s...

Original order was for 500 Thash, we did not raise enough Bitcoins and the order was decreased to 235 Thash.
//DeaDTerra

There is no compensation from Hashfast for the delivery delay?

[DeaDTerra]

Current total hashrate is 55.08 TH by https://www.icedrill.io/minestate

Can u set MineState page to show also total hashrate?

Ozcoin is showing 162 Th/s.  They must be getting close to having everything online.

http://ozco.in/content/user-top-20

162 Th/s is still less than a third of what we should have, right? We were promised 500 Th/s...

Original order was for 500 Thash, we did not raise enough Bitcoins and the order was decreased to 235 Thash.
//DeaDTerra

There is no compensation from Hashfast for the delivery delay?

It is currently in negotiations, 235 Th was the amount of the original order.
//DeaDTerra

[zebroid]

Any news on progress with the share trade and dividend platforms? 

[Wayne_Chang]

The updated hash power target gives me an impression that Icedrill and PETAMine exchanged with each other.

[burbankcartel]

Hi guys,

My name is Eric and I'm the guy who prepared the financial statements that Will posted a few days ago. I've taken a bit of time to read through some of the questions that have come up because of the statements and I am providing some answers below.

If anyone has any other questions, post them in the thread and I will answer the next round when I am able to.

wow you guys must travel first class... 15k for travel and accommodation...

It's worth noting that the financial statements cover the period from the IPO in August until February 3rd, so the amount is not unreasonable. I've taken a look at the various receipts and there is nothing unscrupulous related to travel and accommodation expenses. A large percentage of the expenses are flights to Montreal in order to manage operations and lodging in Montreal for said visits.

---

285k in DC costs?  For 8 active Sierras?  Each one is 4U, so 32U.  How much of this is lining your pockets.  What a joke.

Perhaps I should clarify as to what is included in the DC costs line item.

IceDrill has an agreement with the DC that requires a minimum monthly commitment even if there are no units being hosted - this means that the minimum commitment was being paid since October. Now that there are active units, the monthly DC costs will increase slightly. So a portion of the $285K is made up of all the monthly minimum payments that were made even though no equipment was hosted.

In addition to monthly payments to the DC, there were a significant amount of one-time setup costs ($100K+) to have everything setup and prepared for the units.

The combination of set-up costs + monthly DC payments add up to this amount and match up with invoices.

---

I dont understand what is "Invest in Cointerra", but i think that after this message someone will tell me about it. Didnt found any info of it.

Investment in Cointerra are shares in the Cointerra company that IceDrill owns.

---

It seems odd to me that the note on the cash flow statement for payment on the Sierras says:

"As per sales contract"

Cash flow is always done from actual payments.  Why did the accountant need to refer to the contract rather than either Bitcoin transactions or dollar payment receipts?  

You are correct - cash flow statements are always prepared based on actual cash (or BTC in this case) that has been disbursed or received.

I referred to the contract in order to determine the $USD amount that needed to be included in the cash flow statement - the payment itself was verified with the Bitcoin transaction ID that Ludvig has already posted. The contract did not serve as a proof of payment or anything like that - simply as a means of verifying:

a) the USD/BTC rate that was quoted for the sale
b) that the Bitcoin transaction in questions was indeed to HashFast for the equipment

---

Was the Hashfast contract actually paid, or is there still outstanding amounts?  As you note BTC/USD has changed a lot since the IPO.  If BTC were held, they represent a significant gain for INVESTORS, not for a back room deal where Icedrill backdates a sale to themselves.

There are no outstanding amounts owed to HashFast, and the BTC were paid out immediately to buy the equipment - they were not held and the gains were not realized by IceDrill because of this fact.

---

Seems a bit deceptive to use a rate of $20/gh. Considering bitmain is shipping devices now for $4/gh.

And how many units are hashing now? The statement says feb 3 so it has been a month now.

Another thing, why is icedrill trading btc on bitstamp? I thought this was a mining operation, not a gambling on bitcoin exchanges fund.

I don't disagree that the CEX.io prices may not be the most accurate, however using a market-based price like that is consistent with what I've been doing for the exchange rate from USD/BTC and is still a relevant price for selling GHs. It was not chosen to deceive anyone, which is why I have been transparent with the rates that I've used.

As for trading on Bitstamp, there were times that Bitcoins needed to be sold for USD and at this point, IceDrill often recognized gains on these trades because the price of Bitcoin appreciated significantly since the IPO. All that the trading revenue means is that once Bitcoins were sold on Bitstamp, the operation recognized some gains because of the price increases. Trading ≠ gambling in this case.

[will]

Hi All

Just a quick update from my side:

Minestate is back up & running @ https://www.icedrill.io/minestate. Apologies for the downtime on this, it was as a direct result of needing to consume the latest cgminer (4.1.0) changes, which are still coming through very often. Although not 100% yet, stack stability has now become viable enough to start clock work (e.g. see https://github.com/ckolivas/cgminer/commit/804d3eed7f696cb19026ec23ab6fdd34f9f40b11). For the moment, we've OP_NAME'd everything that is up & running (to the HF chassis serial, which enables more efficient quality reporting back into the HF production line), and recording everything in preparation for fine-tuning that process.

In short, if you're running two or more hashfast miners, you want to be doing it on f/w 0.4 and cgminer 4.1.0+.

New payout address: 14qwTVT7wo83bgivmewtafNp46aQ2qnf8j - mining proceeds from icedrillio@ozco.in

The decision to mine @ ozcoin was due to requiring higher visibility into pool operations during this stability workstream.

The RMA-process has been kicked off (salvaging faulty/non-working units) so we should be able to bring up more hashrate in the coming days as a result.

I'll leave the minestate software development as-is for now and switch over to focusing on cryptomex integration (shares/dividend handling), business-, revenue- and operations expansion for the time being.

As always, if there are any questions/comments, feel free to post them here.

Will

[pedrog]

Will, are we merge mining other coins?