[CLOSED][10TH/s Delivery: 8/29/2013][HOSTED-MINING]Alydian 10TH/s Group Buy

[KCBitcoin]

UPDATE: 8.29 02:18 EST

Trading is closed and the buyback is complete.

Thank you everyone for your support. We are sorry we were not able to make this happen.

HOSTED-MINING

263,241/1,350,000 Shares Sold.

*Background Information:
Alydian is offering 10TH/s selling and hosting service available on 8/29/2013: Alydian Targets Big Ticket Miners with Terahash Hosting

*Who is Alydian? Why do we trust them?
Alydian is a portfolio company of Coinlab, which is operated by Peter Vessenes who is the Chairman of Bitcoin Foundation.
Bitcoin Foundation is a organization that is committed to protect and promote Bitcoin. Their board members involves the CEO of Mt. Gox, Mark Karpeles, CEO of BitInstant, Charlie Shrem, and etc.

*Who are you? What is Hosted-Mining?
Hosted-Mining is a revenue sharing company listed on BTCT.co.
We help you get your share of hashpower without the worry of pre-buys, maintenance, or energy cost.
We are also committed to bring you immediately available large group buy offers to avoid a long wait time on mining equipment and give you a cheaper-than-market price/GH.
More information about our company can be found on http://hostedmining.com.

*Why group buy through Hosted-Mining? Not directly from Alydian's website?
Cheap. We have negotiated a contract with Alydian/Coinlab that offers a price a lot lower than their launching price on their website.

According to the contract, with the current Bitcoin price @ BitStamp, which is the exchange we are following, the number of coins needed is around 3,700-3,800 Bitcoins for the whole 10TH hashpower. (Figures will be available in a spreadsheet to public once the contract is signed.)

This means we can get the deal @ around 0.37btc/GH, which could be further negotiable once fully funded.

If the current price trend of Bitcoin persists, which should be expected as the difficulty skyrockets, by the time we get fully funded, we are expecting an even better price @ 0.30-0.35btc/GH for 10TH available immediately.

*Why? 0.30btc/GH is still too high, comparing to $17.5/GH from KnC or $7.8/GH from BFL.
As we can see, there has been another 30% difficulty increase for Bitcoin mining this Saturday.
i.e. You now mine 30% less coins with your rigs comparing to Friday.

For those of you who might not be following the difficulty of mining, the difficulty doubles at a rate of every 30-35 days(Source).
i.e. you can only mine half of the coins you can mine now at the end of September or 1/4 at the end of October.

A rough calculation can be the following,
If we discount the price of $17.5/GH from KnC delivering end of October back to 8/29/2013, it will be @17.5*2*2=$70/GH. i.e. 0.62btc/GH.
If we discount the price of $7.8/GH from BFL delivering end of December back to 8/29/2013, it will be @7.8*2*2*2*2=$124.8/GH. i.e. 1.13btc/GH.

A detailed return on investment calculation can be found here: https://docs.google.com/spreadsheet/ccc?key=0AgREYO5JZYrQdGxhenBBaGdEcl9vS3dha0RUYmprZHc&usp=sharing

*Note that we did not include any electric cost calculation in the spreadsheet, because it is already included in the price.
i.e. the initial investment is for the ownership of the rigs plus the fees for one-year hosting and energy cost.

*How much is your share?
Our share is priced at 0.0028btc/share.

*How do we buy your shares?
Our shares are listed on BTCT.
You can go to BTCT.co and buy our shares using your Bitcoins directly.

*But what happens if you cannot collect enough money for the group buy by 29th?
1. If the deal does not happen by August 29th, and the contract has not sold.
-We will ahead and negotiate for a lower price from the vendor according to our ROI spreadsheet. We will also do a motion on whether to keep gathering coins for the deal @ the new price or refund all coins to our investors.

2. If the deal does not happen by August 29th, and the vendor has sold the contract to someone else.
-We will do a motion on whether to keep looking for further in-hand group-buy deal, e.g. BTCGarden or refund all coins to our investors.

*I see you have 2,000,000 shares instead of 1,350,000 on the exchange. What happens to the extra shares sold?
Yes, we only need around 1,350,000 shares to be sold to complete the purchase as of the current Bitcoin price.
One major reason to have 2,000,000 shares listed for sell is to hedge the risk of sudden Bitcoin price drop.
However, once the purchase is completed, we will raise a motion on whether to give the extra coins as dividend through first-week dividend payout or keep them as growth fund to bid for future group-buy deals.

*Any future plan after this purchase is done?
Yes. We are planning to become our own supplier with a 28nm or smaller design developed in collaboration with http://www.brioconcept.com/. We will be doing bulk mining, instead of physically shipping to customers, so that you get your revenue share without the hassle of monitoring, heat issues or technical issues.

*Thank you. But who are you, KCBitcoin?
I am the CFO of Hosted-Mining and posting this group-buy thread on behave of our CEO, zif33r.
I will be maintaining this thread and answering any question you might have.

Cheers,
Hosted-Mining

[1714191390]

1714191390

[1714191390]

1714191390

[zif33rs]

Please get involved.   

[iCEBREAKER]

I have to log in to BTCT just to see the basic info about this stock?

That is asinine.  See you at Bitfunder!

[zif33rs]

I have to log in to BTCT just to see the basic info about this stock?

That is asinine.  See you at Bitfunder!

The site is ran by Burnside. I would not have put the listing up if I did not trust the site. Its very simple to create an account and purchase shares.

[iCEBREAKER]

I have to log in to BTCT just to see the basic info about this stock?

That is asinine.  See you at Bitfunder!

The site is ran by Burnside. I would not have put the listing up if I did not trust the site. Its very simple to create an account and purchase shares.

Yes I know all that, also trust Burnside, and have an account there. 

It's still asinine to expect BTCT users to open themselves up to various (cross-site, etc.) attack vectors by requiring them to remain logged in when not trading.

Typing my long-ass passphrase and using GAuth ad nauseum is a PITA.

It's very simple to scrape the database and put up a static (memcached, Cloudflared) market info page for those not logged in.

[zif33rs]

I have to log in to BTCT just to see the basic info about this stock?

That is asinine.  See you at Bitfunder!

The site is ran by Burnside. I would not have put the listing up if I did not trust the site. Its very simple to create an account and purchase shares.

Yes I know all that, also trust Burnside, and have an account there. 

It's still asinine to expect BTCT users to open themselves up to various (cross-site, etc.) attack vectors by requiring them to remain logged in when not trading.

Typing my long-ass passphrase and using GAuth ad nauseum is a PITA.

It's very simple to scrape the database and put up a static (memcached, Cloudflared) market info page for those not logged in.

Yes..I do agree..I also would love a preview ability for placing contracts and motions as well...I suck at formatting.   :/

[AussieHash]

Any update on 263k shares sold. Is this GB likely to go ahead ?

[zif33rs]

We are still just over 1 million shares short of our goal. We are discussing options now. If we do not reach it we will do a full buyback...dont worry.

[KCBitcoin]

UPDATE: 8.29 02:18 EST

Trading is closed and the buyback is complete.

Thank you everyone for your support. We are sorry we were not able to make this happen.

HOSTED-MINING