[Havelock] Bitcoin Difficulty Derivative (BDD)

[twentyseventy]

Period 13, Day 1 Report - June 19, 2014

Balance Post Divs: BTC 341.94537885

Total Units: 9245

NAV/U: BTC 0.03698706

[twentyseventy]

Period 13, Day 2 Report - June 20, 2014

Balance Post Divs: BTC 332.59407863

Total Units: 9029

NAV/U: BTC 0.03683620

[twentyseventy]

Period 13, Day 3 Report - June 21, 2014

Balance Post Divs: BTC 344.32706308

Total Units: 9388

NAV/U: BTC 0.03667736

I will be on vacation this week, so updates will likely come later than normal in the day. Dividends are pre-scheduled and will not be affected.

In the case that I don't issue a report for a day, it will be issued the following day along with that following day's report. I'll be on email and checking in from time to time, so PM me or email me as you normally would if you need me.

[twentyseventy]

Period 13, Day 4 Report - June 22, 2014

Balance Post Divs: BTC 346.94537416

Total Units: 9505

NAV/U: BTC 0.03650135

[twentyseventy]

Period 13, Day 5 Report - June 23, 2014

Balance Post Divs: BTC 347.18646027

Total Units: 9559

NAV/U: BTC 0.03632037

[twentyseventy]

Period 13, Day 6 Report - June 24, 2014

Balance Post Divs: BTC 345.62289097

Total Units: 9565

NAV/U: BTC 0.03613412

[twentyseventy]

Period 13, Day 7 Report - June 25, 2014

Balance Post Divs: BTC 346.45096083

Total Units: 9635

NAV/U: BTC 0.03595754

Important note: As of right now, it looks like the Difficulty increase will happen on Saturday after Noon, meaning that the SELL div will be issued on Sunday. I'll be traveling all day Sunday, so I won't be able to issue the dividends at 12PM as normally planned. Right now, assuming that the divs do need to be paid on Sunday, I will tentatively schedule the div payment for 10PM Eastern Time.

There will be no difference in payment amount or any other effects besides a later payment time. For now, I'll plan to have the EXCH ask up until 9PM ET and allow buy-backs until that time as well. I may decide to change this in the future, but I'll be sure to issue any updates here.

[twentyseventy]

Period 13, Day 8 Report - June 26, 2014

Balance Post Divs: BTC 344.64887579

Total Units: 9635

NAV/U: BTC 0.03577051

Important note: As of right now, it looks like the Difficulty increase will happen on Saturday after Noon, meaning that the SELL div will be issued on Sunday. I'll be traveling all day Sunday, so I won't be able to issue the dividends at 12PM as normally planned. Right now, assuming that the divs do need to be paid on Sunday, I will tentatively schedule the div payment for 10PM Eastern Time on Sunday.

There will be no difference in payment amount or any other effects besides a later payment time. For now, I'll plan to have the EXCH ask up until 9PM ET and allow buy-backs until that time as well. I may decide to change this in the future, but I'll be sure to issue any updates here.

[twentyseventy]

Period 13, Day 9 Report - June 27, 2014

Balance Post Divs: BTC 343.89362316

Total Units: 9663

NAV/U: BTC 0.03558870

Important note: As of right now, it looks like the Difficulty increase will happen on Saturday after Noon, meaning that the SELL div will be issued on Sunday. I'll be traveling all day Sunday, so I won't be able to issue the dividends at 12PM as normally planned. Right now, assuming that the divs do need to be paid on Sunday, I will tentatively schedule the div payment for 10PM Eastern Time on Sunday.

There will be no difference in payment amount or any other effects besides a later payment time. For now, I'll plan to have the EXCH ask up until 9PM ET and allow buy-backs until that time as well. I may decide to change this in the future, but I'll be sure to issue any updates here.

[twentyseventy]

Period 13, Day 10 Report - June 28, 2014

Balance Post Divs: BTC 342.79665911

Total Units: 9682

NAV/U: BTC 0.03540556

Important note: I'll be traveling all day Sunday, so I won't be able to issue the dividends at 12PM as normally planned. Right now, assuming that the divs do need to be paid on Sunday, I will tentatively schedule the div payment for 10PM Eastern Time on Sunday.

There will be no difference in payment amount or any other effects besides a later payment time. For now, I'll plan to have the EXCH ask up until 9PM ET and allow buy-backs until that time as well. I may decide to change this in the future, but I'll be sure to issue any updates here.

[ZephramC]

If you buy B.SELL today (price now is 0.02438990 BTC),
you shall receive today a divident of more than 0.0052 BTC
i.e. +21.32% for a day

then you can send me some mBTC at: 1NUYC1Yn6D5QnbdJhrnfggrgMr9MxvZeHV

Nice idea. However you will end with B.SELL valued about 0,01919 BTC (0.02439-0.0052) tomorrow.

[jjdub7]

If you buy B.SELL today (price now is 0.02438990 BTC),
you shall receive today a divident of more than 0.0052 BTC
i.e. +21.32% for a day

then you can send me some mBTC at: 1NUYC1Yn6D5QnbdJhrnfggrgMr9MxvZeHV

You do realize that you're only making money on this asset when you take a position at the beginning of the period right?  Other than trading on variance.

[twentyseventy]

Will get home a little earlier than expected, divs will be issued at 8PM ET and EXCH ask will be removed at 7PM. This is just shy of 12 hours notice, so everyone should have time to adjust if needed.

[twentyseventy]

If you buy B.SELL today (price now is 0.02438990 BTC),
you shall receive today a divident of more than 0.0052 BTC
i.e. +21.32% for a day

then you can send me some mBTC at: 1NUYC1Yn6D5QnbdJhrnfggrgMr9MxvZeHV

Nice idea. However you will end with B.SELL valued about 0,01919 BTC (0.02439-0.0052) tomorrow.

The value of SELL decreases by exactly the amount of dividends paid out; it's hard for some to break the thought that dividends equal profit.

You'll have the BTC in hand, but, yes, your SELL will be less valuable.

[ZephramC]

If you buy B.SELL today (price now is 0.02438990 BTC),
you shall receive today a divident of more than 0.0052 BTC
i.e. +21.32% for a day
then you can send me some mBTC at: 1NUYC1Yn6D5QnbdJhrnfggrgMr9MxvZeHV

Nice idea. However you will end with B.SELL valued about 0,01919 BTC (0.02439-0.0052) tomorrow.

No, I shall end with B.SELL valued more than 0.035 tomorrow

Hmm, (more than) 0.035 per share tomorrow, you say. So, will you buy 10 B.SELL shares for mere 0.30 (0.030 BTC/share) from me tomorrow? You will make (more than) +16.66% profit!

...OK, we should probably end this conversation. It is becoming slightly offtopic.
This (from twentyseventy) is important:
Will get home a little earlier than expected, divs will be issued at 8PM ET and EXCH ask will be removed at 7PM. This is just shy of 12 hours notice, so everyone should have time to adjust if needed.

[twentyseventy]

Thanks, Zephram. Divs are scheduled to go out on the hour; hopefully it will go off without a hitch like normal.

Period 13 End Report - June 29, 2014


Previous Units              9095
EXCH Sold                   1196
Less Buybacks              340
New Total Units            9951

Previous Balance          339.73469439
Price per EXCH             0.03847462
Gross Sales of EXCH      46.01564552

Less Fees                    0.18406268
Less Dividends              19.42426677
Less Buybacks              12.32408540
Less Mgmt Fee              0.91906858
Net Balance                  352.89885648

End of Period NAV/U     0.03546365

New Difficulty                  16,818,461,371
New Daily Dividend         0.00014951
New Reserve per Unit        0.02990200

NAV/U Less New Reserve = 0.03546365 - 0.02990200 = 0.00556165

SELL Dividend                 0.00556165

You'll notice that I calculate the new Dividend to eight digits and multiply that times 200 Days to get the new Reserve. Those of you that did your own calculations may come up with a slightly different number if you chose not to round or to round elsewhere.

New EXCH Sales Price          0.03079906

[twentyseventy]

Period 14, Day 0 Report - June 29, 2014

Balance Post Divs: BTC 296.06454723

Total Units: 9951

NAV/U: BTC 0.02975224

[jjdub7]

If you buy B.SELL today (price now is 0.02438990 BTC),
you shall receive today a divident of more than 0.0052 BTC
i.e. +21.32% for a day
then you can send me some mBTC at: 1NUYC1Yn6D5QnbdJhrnfggrgMr9MxvZeHV

Nice idea. However you will end with B.SELL valued about 0,01919 BTC (0.02439-0.0052) tomorrow.

No, I shall end with B.SELL valued more than tomorrow

P.S. Edited 21:34 GMT

Read the prospectus.

[jjdub7]

If you buy B.SELL today (price now is 0.02438990 BTC),
you shall receive today a divident of more than 0.0052 BTC
i.e. +21.32% for a day
then you can send me some mBTC at: 1NUYC1Yn6D5QnbdJhrnfggrgMr9MxvZeHV

Nice idea. However you will end with B.SELL valued about 0,01919 BTC (0.02439-0.0052) tomorrow.

Read the prospectus.

I read much, so my book price for all my B.SELL is 0.02

So, essentially, you're anticipating that all else equal, difficulty will rise >67% over the life of the asset?

[twentyseventy]

Forgot to schedule the div for today, but it's up now and have scheduled for the rest of the week as well. Still catching up from vacation  

MINE dividend will be issued at 1PM most likely, the next time that the script runs.

Period 14, Day 1 Report - June 30, 2014

Balance Post Divs: BTC 319.47968634

Total Units: 10783

NAV/U: BTC 0.02962808

EDIT:

I have removed the EXCH ask for now, as any new units of EXCH would receive MINE units that will now be paid the dividend (which they should not be).

Only one has been sold in the last few minutes, so I'll cover the dividend payment for that one share. EXCH ask will be put back up once the MINE dividend is issued.