With Bitcoin constantly reaching new highs against fiat and showing no signs of slowing down, how do you predict this will affect your business and more importantly the value of your stock for your shareholders? The securities market currently seems to be reacting in a bearish way as Bitcoin surges in value. What makes CBTC a positive-risk investment and not a negative-risk and what are the numbers that led you to the valuation of the most recent IPO at 0.00014? Will you be having another IPO at a lower price?
Hey, Amy!
No doubt, there are a lot of factors in play right now. Fortunately, our company btc bankroll has appreciated in-line with the price of btc increase.
CBTC's fate is tied, in large part, to BTC:
Pros for BTC price increase:
-Tied to increased bitcoin usage & number of users
-Increased disposable income for current btc users
-Corresponding "book" value increase
Con for BTC price increase:
-New players can only afford less btc to play with
One thought was price volatility may cause some players to wait for the market to settle, and be a psychological barrier to entry. (I haven't extensively analyzed the effect of this, but it's worth researching. This image seems to indicate Satoshi Dice has continued to grow volume, despite increasing competition:
http://lsvp.com/wp-content/uploads/2013/08/wager-volume.png)
It's a double-edged sword, CBTC is a "play" on bitcoin, as adoption will increase our player base and # of bets - however, price increases in btc will undoubtedly reduce the average bet size.
We valued the offering at .00014 based on our book value and a ratio of price to projected earnings in the near term. As far as CBTC being a positive risk investment - all depends on our ability to earn btc, and show a return and pay a dividend. The market price will always be the main determining factor in pricing.
As a positive, we've seen a HUGE influx of traffic this month due to the btc popularity boost. We're having a great month, current trading price represents a solid buying opportunity to me, at roughly only a 2x price/book ratio.