Now seeking investors for BitCorp Mining Company [Now pushing 40 GH/s!]

[yochdog]

Here are some photos of the first office location:

Here are some more empty GPU boxes.  I know ya'all love GPU porn:  https://i.imgur.com/hgVAn.jpg

There are 6 workstations that are identical, and look like this:  https://i.imgur.com/04xr3.jpg

Here is the side panel removed from a workstation:  https://i.imgur.com/yAnf7.jpg

and another:  https://i.imgur.com/RjTga.jpg

and a third:  https://i.imgur.com/dIlgt.jpg

my pride and joy, matching poweredge servers.  2 6-core xeons each.  Unreal power:  https://i.imgur.com/YjyLc.jpg

a custome build stuffed in a back room, alongside another dell box:  https://i.imgur.com/1GqRQ.jpg

did not bother taking the side panel off this one:  https://i.imgur.com/x1F9n.jpg


Am I getting close to convincing some of you we are for real?

[Brian DeLoach]

Photos are a good start, but they don't address the "walking away with everyone's money" problem. I think your company will definitively attract some people who are willing to put up with the risk, but the more details you can reveal about yourself the more people will be willing to do business with you. Are you able to identify yourself? Have your incorporated your company or organized it in any legal sense? Do you have an address, perhaps a P.O. box? The more we know about you and your company, the less likely it is for you to walk away with peoples money (being able to track you down and prosecute if necessary), which will result in a much larger business clientele.

[joeyjoe]

You really dont understand how shares work do you? You cant set the price of the shares as you wish, by saying 0.1btc per share with 1000 shares, your automatically valueing your "company" at 100btc... for what exactly? you dont have anything.

[yochdog]

You really dont understand how shares work do you? You cant set the price of the shares as you wish, by saying 0.1btc per share with 1000 shares, your automatically valueing your "company" at 100btc... for what exactly? you dont have anything.

Since Alfalfa pointed out that I can be fairly condescending is my responses, I will go easy on this one.  Really though, your post is silly.

To say I don't understand how shares work, considering what I do for a living outside of Bitcoin, is stupid.  If you would take the time to read the proposal, or had any knowledge of how share sales actually work, you would see how off-base you are.

When a company offers shares to the public for the first time, they absolutely set an acceptable range for pricing.  In terms if valuing the company, you really did not read a bit of the proposal did you?  .1 BTC is what the monthly dividend will be set at, not what we are willing to sell shares for. 

Finally, we don't have anyting?  What in God's name are you talking about?  We have a hardware investment of over $7,000 and monthly BTC production in excess of 150 BTC.  How exactly is that having nothing?

Seriously, if you don't take the time to educate yourself on the matter, just don't post.   

[repentance]

You really dont understand how shares work do you? You cant set the price of the shares as you wish, by saying 0.1btc per share with 1000 shares, your automatically valueing your "company" at 100btc... for what exactly? you dont have anything.

Since Alfalfa pointed out that I can be fairly condescending is my responses, I will go easy on this one.  Really though, your post is silly.

To say I don't understand how shares work, considering what I do for a living outside of Bitcoin, is stupid.  If you would take the time to read the proposal, or had any knowledge of how share sales actually work, you would see how off-base you are.

When a company offers shares to the public for the first time, they absolutely set an acceptable range for pricing.  In terms if valuing the company, you really did not read a bit of the proposal did you?  .1 BTC is what the monthly dividend will be set at, not what we are willing to sell shares for. 

Finally, we don't have anyting?  What in God's name are you talking about?  We have a hardware investment of over $7,000 and monthly BTC production in excess of 150 BTC.  How exactly is that having nothing?

Seriously, if you don't take the time to educate yourself on the matter, just don't post.   

I think the point that the other poster was trying to make is that you seem to have valued your company at $42,800 (based on the current BTC of 5.35) without offering support for that figure.  Based on your numbers, monthly revenue from mining would be ~ $802 with 10% of that amount being returned to shareholders.  Projected earnings don't justify the $40,000+ valuation and neither does your capital investment to date, so the question  of how you arrived at that figure is not an unreasonable one.

[yochdog]

You really dont understand how shares work do you? You cant set the price of the shares as you wish, by saying 0.1btc per share with 1000 shares, your automatically valueing your "company" at 100btc... for what exactly? you dont have anything.

Since Alfalfa pointed out that I can be fairly condescending is my responses, I will go easy on this one.  Really though, your post is silly.

To say I don't understand how shares work, considering what I do for a living outside of Bitcoin, is stupid.  If you would take the time to read the proposal, or had any knowledge of how share sales actually work, you would see how off-base you are.

When a company offers shares to the public for the first time, they absolutely set an acceptable range for pricing.  In terms if valuing the company, you really did not read a bit of the proposal did you?  .1 BTC is what the monthly dividend will be set at, not what we are willing to sell shares for.  

Finally, we don't have anyting?  What in God's name are you talking about?  We have a hardware investment of over $7,000 and monthly BTC production in excess of 150 BTC.  How exactly is that having nothing?

Seriously, if you don't take the time to educate yourself on the matter, just don't post.    

I think the point that the other poster was trying to make is that you seem to have valued your company at $42,800 (based on the current BTC of 5.35) without offering support for that figure.  Based on your numbers, monthly revenue from mining would be ~ $802 with 10% of that amount being returned to shareholders.  Projected earnings don't justify the $40,000+ valuation and neither does your capital investment to date, so the question  of how you arrived at that figure is not an unreasonable one.

I completely agree valuation is a legitimate conversation to have, I just would like the person asking to have the figures correct first.

lets talk about it for a second.  Again, I think even you are a mis-interpreting what we are proposing.

Lets talk exclusively in terms of BTC, as that is what we are truly interested in.  We are not trying to get rich here, we simply want to create a truly legitimate BTC investment.  

Our monthly production will exceed 150 BTC.  By paying out .1 BTC per share, PER MONTH, we are in reality paying out roughly 66% (100 BTC) of monthly revenue, not 10% as you claim.  Right there, any valuation analysis you present subsequent to that assumption will be deeply flawed.

If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year.  That is a 15% yield per annum.  Any serious investor will tell you that type of yield is very high.  However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield.  We feel it will be beneficial to the Bitcoin community.  

Does that help?

PS, just as a follow up, we figure we are offering shares in the company at roughly 6x earnings....hardly an outlandish multiple.  

[joeyjoe]

tbh i didnt read

[yochdog]

tbh i didnt read

LOL....well see, there ya go! 

[joeyjoe]

tbh i didnt read

LOL....well see, there ya go! 

didnt read your replys i meant. goes on and on and on... but seriously learn about shares

[GimmeDemBitz]

The office buildings we are in have pooled utility expense, so our increase in cost is barely perceptible.

Welp, there's the sleaziness every bitcoin operation has to have.  Most miners have 50-75% of their revenue eaten up by their power bills, but you've managed to negate this problem by spreading the cost to others without their consent.  I'm sure the other businesses in your building(s) would love to know you're running a dozen computers at full power drain 24 hours a day.

Have you projected how long it will take you to get solvent? (remember, revenue =/= profit, common bitcoin mistake) How will you handle the price of bitcoins going down, and the difficulty going up?

[johnj]

Our monthly production will exceed 150 BTC.

But the mining reward gets cut in half in ~1yr. I'm guessing the dividends will be cut in half as well..?

[yochdog]

tbh i didnt read

LOL....well see, there ya go! 

didnt read your replys i meant. goes on and on and on... but seriously learn about shares

ROFLMAO.  Once again, your initial post shows you have no clue what you are talking about.  Move on loser. 

[yochdog]

The office buildings we are in have pooled utility expense, so our increase in cost is barely perceptible.

Welp, there's the sleaziness every bitcoin operation has to have.  Most miners have 50-75% of their revenue eaten up by their power bills, but you've managed to negate this problem by spreading the cost to others without their consent.  I'm sure the other businesses in your building(s) would love to know you're running a dozen computers at full power drain 24 hours a day.

Have you projected how long it will take you to get solvent? (remember, revenue =/= profit, common bitcoin mistake) How will you handle the price of bitcoins going down, and the difficulty going up?

How is it sleazy at all?  I have a 5 year lease agreement that very clearly lays out what is allowed.  We are absolutely in compliance with that agreement.
 
I love how people just assume to know everything. 

We are already solvent, so I am not sure what your question is.  Are you asking how long it will take us to pay off our capital investment? 

Like we have said a few times already, the price of BTC/USD is not a primary focus for us.  We seek to mine BTC, take investment in BTC, and pay dividends in BTC.  The obsession with the exchange rate by some people is completely missing the point of what we are trying to accomplish here. 

Finally, last time I checked the difficulty has dropped 3 or 4 times in a row.  It is our belief that we have hit a ceiling in terms of difficulty increases. 

[yochdog]

Our monthly production will exceed 150 BTC.

But the mining reward gets cut in half in ~1yr. I'm guessing the dividends will be cut in half as well..?

It is a concern, but we (like many people), are hoping that transaction fees will make up some of the shortfall.

Also, we hope to have expanded the operation enough to offset some of the 50% drop in rewards. 

[NetTecture]

If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year.  That is a 15% yield per annum.  Any serious investor will tell you that type of yield is very high.  However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield.  We feel it will be beneficial to the Bitcoin community.  

No, it is too low. SERIOUSLY too low.

This is a high risk investment with a high risk of loosing the value after half or one year of return. THis is not a guaranteed bond by someone with a balance sheet. This i not an investment into a significantly growing business. I wont touch that with my investment side, sorry. Not for a yearly 15% yield. Make that 150% and w can talk - then after half a year I recouped most of my investment.

[yochdog]

If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year.  That is a 15% yield per annum.  Any serious investor will tell you that type of yield is very high.  However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield.  We feel it will be beneficial to the Bitcoin community.  

No, it is too low. SERIOUSLY too low.

This is a high risk investment with a high risk of loosing the value after half or one year of return. THis is not a guaranteed bond by someone with a balance sheet. This i not an investment into a significantly growing business. I wont touch that with my investment side, sorry. Not for a yearly 15% yield. Make that 150% and w can talk - then after half a year I recouped most of my investment.

Why would we give away the company like that?  If we are going to pay a 150% yield, we will keep the shares to ourselves. 

Strange people who come out to comment indeed. 

[johnj]

If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year.  That is a 15% yield per annum.  Any serious investor will tell you that type of yield is very high.  However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield.  We feel it will be beneficial to the Bitcoin community.  

No, it is too low. SERIOUSLY too low.

This is a high risk investment with a high risk of loosing the value after half or one year of return. THis is not a guaranteed bond by someone with a balance sheet. This i not an investment into a significantly growing business. I wont touch that with my investment side, sorry. Not for a yearly 15% yield. Make that 150% and w can talk - then after half a year I recouped most of my investment.

Why would we give away the company like that?  If we are going to pay a 150% yield, we will keep the shares to ourselves.  

Strange people who come out to comment indeed.  

At current rewards/hardware, it'd take 6.6yrs to recoup the initial investment.  During these 6.6yrs, the mining reward is expected to half itself twice.  The main 'oomph' from the next-gen 7x AMD is a massive reduction in power consumption, with little predicted mh/s increase.  But as your power is already not included, the next-gen hardware upgrades won't increase yield (as much).

If transaction fees -don't- recoup the lost mining rewards, after 1 yr my expected break-even time becomes 11.2yrs. 5yrs into that it halves again, leaving me still at ~12yrs.

All this based on an idea (Bitcoin) which hasn't been around along as the initial investment return period.

I'm not fancy at math or nothin, but I don't see how I this current proposal would be a good investment.  Maybe I'll end up with egg on my face, who knows.

[yochdog]

If you buy 1 share of BitCO for 8 BTC, you will be entitled to .1 BTC per month in dividends, or 1.2 BTC per year.  That is a 15% yield per annum.  Any serious investor will tell you that type of yield is very high.  However, since this is a brand new concept, we are comfortable pricing the shares at 8 and offering such an attractive yield.  We feel it will be beneficial to the Bitcoin community.  

No, it is too low. SERIOUSLY too low.

This is a high risk investment with a high risk of loosing the value after half or one year of return. THis is not a guaranteed bond by someone with a balance sheet. This i not an investment into a significantly growing business. I wont touch that with my investment side, sorry. Not for a yearly 15% yield. Make that 150% and w can talk - then after half a year I recouped most of my investment.

Why would we give away the company like that?  If we are going to pay a 150% yield, we will keep the shares to ourselves.  

Strange people who come out to comment indeed.  

At current rewards/hardware, it'd take 6.6yrs to recoup the initial investment.  During these 6.6yrs, the mining reward is expected to half itself twice.  The main 'oomph' from the next-gen 7x AMD is a massive reduction in power consumption, with little predicted mh/s increase.  But as your power is already not included, the next-gen hardware upgrades won't increase yield (as much).

If transaction fees -don't- recoup the lost mining rewards, after 1 yr my expected break-even time becomes 11.2yrs. 5yrs into that it halves again, leaving me still at ~12yrs.

All this based on an idea (Bitcoin) which hasn't been around along as the initial investment return period.

I'm not fancy at math or nothin, but I don't see how I this current proposal would be a good investment.  Maybe I'll end up with egg on my face, who knows.

You make some great points.  We think we are positioned well to make our company a success.....however, like any investment, there are risks. 

One thing you don't consider is difficulty.  What if it keeps falling?  Suddenly our production numbers go way up and we can aggresively raise the dividend.  Nothing is static with Bitcoin.....both to the negative AND positive. 

Thanks for the insightful and well thought out post....we could use a few more like yours. 

[DeathAndTaxes]

JohnJ brings up some good points.

A 15% return is not an acceptable risk to reward ratio for an investment with this level of risk.

Average return on an angel investor or venture capital deal is usually >200% over 3-4 year incubation period.  No VC don't achieve those kinds of returns because ... most deals fail.  The few deals which are highly profitable offset the majority of deals which are a total loss.

A 15% return simply doesn't justify the risk of capital especially for a first round offering from an unknown entity.

[yochdog]

JohnJ brings up some good points.

A 15% return is not an acceptable risk to reward ratio for an investment with this level of risk.

Average return on an angel investor or venture capital deal is usually >200% over 3-4 year incubation period.  No VC don't achieve those kinds of returns because ... most deals fail.  The few deals which are highly profitable offset the majority of deals which are a total loss.

A 15% return simply doesn't justify the risk of capital especially for a first round offering from an unknown entity.

You are assuming no capital appreciation.  VC's hit their home runs with wildly successful IPO's, not steady dividends.

Also, please (this aimed to everyone), be fair in your presentation.  It is priced for a 15% return PER YEAR.  Not total return.  I love how you cite a 1 year dividend yield and compare it to a 4 year total return for a VC investor.  Not really an apples to apple comparison.