[796.com] RedStarMining.com - the oldest public mining security [15.0(TH/s)]

[matthewh3]

So another 1700 shares are going to be issued to take us to 40MH/s a share (1GH/s for BTC10BTC).  I will be taking 5% (85 shares) as payment for being CEO although I won't receive the full payment until the 1615 shares on offer have been sold (I'll probably take 5 shares as payment for every 100 new shares from that issue sold).  If we don't sell the shares offered fast enough for expansion all profits will be saved from mining to buy more hardware.  Until we are operating at 40MH/s a share or 1GH/s for BTC10 then at least 50% - 90% of profits will be saved towards expansion and growth.   The higher the percentage we save for expansion the faster our dividends will grow.

What would be the dividend rate say if I bought 50 shares?

Hi all dividends are at the moment being reinvested until we have made enough through either mining profits or share sales to buy 40MH/s a share or 1GH/s for 10btc of ASIC mining power.  After that time 50% - 90% of all profits (will be decided by motion) will be withheld from the dividend to pay for more hardware to increase the dividend.  I can't tell you at the moment how much of a dividend that will pay post ASIC due to the difficulty change being unknown.  Although it works out like buying and running your own BFL-Jalapeño-ASIC or much cheaper than that if you live outside of the states and have to pay import taxes but with someone else running it for you reinvesting some of the profits and paying you the rest.   Please remember we are not a mining bond but a mining stock meaning your shares buy you an actual share ownership of all our hardware.  They are few shares on offer below our 0.40btc offer if you would like a discount or you can buy privately from the company to help speed up expansion.  Thanks. 

[matthewh3]

It looks like we should have enough coin saved from the FPGA mining to pay the import tax of the 40GH/s ASIC and purchase RSM its own cheap PC (with warranty) within nine to ten weeks at current mining difficulty and exchange rates.  That's at least three weeks before the 40GH/s ASIC will ship.  We have currently sold ~1800 shares so excluding the FPGA we will be at 22.2MH/s a share.  So all profits will be saved from the ASIC to quickly purchase another as I expect the first three months of ASIC to be the most profitable and we paid for ours within two weeks of pre-orders starting.  That would take us to 80GH/s over ~1800 shares or 44.4MH/s a share.  Once we reach that figure a decision will have to be made on what on what amount of profits should be saved towards more ASIC's.  The more profit that is saved the faster the dividend will grow and secure RSM future.  As according to Moore's Law the ASIC speeds should double every eighteen months.
The other plan was to issue 1700 new shares selling 2150 in total from RSM holdings to purchase four more 40GH/s ASIC which would take us 50MH/s a share.  Tho the investment doesn't look like its coming.  If we'd have stuck with the original plan of buying GPU's and paying all profits out in dividends then RSM probably would have had to shut down in October.  With us managing to get a refund on one of our long awaited FPGA's we were able to make the inital purchase of our first ASIC.  Now with us saving everything we've got until we are operating at >40MH/s a share post ASIC RSM has a secure future.  If the BTC/$ value keeps rising then we will have to increase the 40MH/s a share offer.
So while we are not currently paying a dividend all profits are going toward more hardware.  The current wallet is about ~BTC26 and I will update the public spreadsheet tomorrow. 

[matthewh3]

update ?

The last update was four days ago.  Wallet BTC27.27

Company accounts - https://docs.google.com/spreadsheet/ccc?key=0Ap02rO_j4NLvdDB2cFRTS0ctVGRHRE5yQ2RfNUZFcUE

[matthewh3]

BTC3.00 raised this week BTC30.277 now in wallet - https://docs.google.com/spreadsheet/ccc?key=0Ap02rO_j4NLvdDB2cFRTS0ctVGRHRE5yQ2RfNUZFcUE#gid=0 BTC53.00 needs to be raised for ASIC import tax and company's own PC to run the miners.  Will take 8 weeks at current mining difficulty then we can start saving for ASIC #2.

[matthewh3]

I received an email the board has shipped and the supplier has now stopped mining for us.  My PC died but I've fixed it so RSM could do with its own dedicated PC soon.  I've seen an ATOM PC with three years warranty for £225 that will save us over £3 a week in electricity.  So that would mean nearly £500 of electricity savings within it's three year warranty.  So if I put half that means it will have paid for itself over four times within its warranty through electrical power costs savings.  If it is not suitable for me to use as well as USB mine then RSM will have to pay me back but below the £3 electricity saving a week so it is still profitable for RSM.  I will try to get my £112.50 by next week but if I can't get it all I will have to owe some to RSM.  As we currently have BTC30.00 = £180 and if we have no PC we can't mine but mine is fixed again so we could hold off until I have managed to save my half if we are prepared to take the risk and pay the extra electricity cost.  Also my DSL connection and phone line are down so I'm getting online by tethering 3G I am waiting for an engineer to come out and fix the line.

[matthewh3]

The MisNomer is due any day now.  My personal PC has broke and I'm waiting for a part for a new one.  About buying RSM its own PC well someone has offered us a better lower power Atom for £80 of shares which is a very good deal.  So rather than pay £225 for the other one we will pay £80 of shares.  We also need a modified PSU to power the FPGA's and  I've seen one for $60 but am going to see if I can find a cheaper one first.

[matthewh3]

The MisNomer is due any day now.  My personal PC has broke and I'm waiting for a part for a new one.  About buying RSM its own PC well someone has offered us a better lower power Atom for £80 of shares which is a very good deal.  So rather than pay £225 for the other one we will pay £80 of shares.  We also need a modified PSU to power the FPGA's and  I've seen one for $60 but am going to see if I can find a cheaper one first.

Hi, I'm still following this. RSM was one of the first mining "companies" vs. "bonds". In a market that was dominated by bonds, RSM stood up for shareholder value and I appreciate that. I've upped my bid recently and will be looking at buying more.

Disclosure: BMF owns 200 shares.

Thanks.

I've checked the tracking code for the ModMiner and it is in UK customs.  I'm trying to salvage the PSU out of my old broke PC to power the ModMiner to save RSM some money.  The Atom PC has arrived and is well worth paying £80 of shares for.  It's the latest generation Atom cpu and the power supply can only give 60w max.  So it should save RSM a lot in electricity charges.

[matthewh3]

The MisNomer is due any day now.  My personal PC has broke and I'm waiting for a part for a new one.  About buying RSM its own PC well someone has offered us a better lower power Atom for £80 of shares which is a very good deal.  So rather than pay £225 for the other one we will pay £80 of shares.  We also need a modified PSU to power the FPGA's and  I've seen one for $60 but am going to see if I can find a cheaper one first.

Hi, I'm still following this. RSM was one of the first mining "companies" vs. "bonds". In a market that was dominated by bonds, RSM stood up for shareholder value and I appreciate that. I've upped my bid recently and will be looking at buying more.

Disclosure: BMF owns 200 shares.

Thanks.  I bought over 260 shares myself and own around 340.  I'm searious about this company that's why I'm pumping my own money into it. 

[matthewh3]

RSM offer is being lowered to BTC0.20 in light of bitcoins increase in value.  So 2650 new shares need to be created to take us to 200GH/s post ASIC and 40MH/s a share or 1GH/s for BTC5.00.  This will takes us to 4950 shares in total over five*40GH/s ASIC.  I'm only going to create the new shares in rounded numbers as needed per unit.  So 500 new shares created meaning we now have 2,800 shares in total.  We have 1969 issued with 939 on offer at BTC0.20 which is more than enough at current exchange rates for the 40GH/s ASIC plus 20% import tax with the rest saved to ASIC #3.

Update on our ModMiner FPGA delivery tracking info

Date           Time           Location                   Tracking Event
16-08-2012  21:42   International Hub   Awaiting Customs Charging
07-08-2012   10:27   International Hub   Awaiting Customs clearance
07-08-2012   10:24   International Hub   Received in destination country
03-08-2012   05:35   Delivery Agent -        CHICAGO   Forwarded for export
01-08-2012   15:26   Delivery Agent -        UNITED STATES AMERICA   Collected from customer


With the Atom board and ModMiner electricty costs should be under £4.00/£6.28/€5.09 a week.  With the board making around BTC2.57@800MH/s.  Tho the boards firmware should be upgraded soon to 840MH/s meaning BTC2.70 a week at current difficulty.  Then ET's new bitstream should come on board taking the ModMiner to over 1GH/s or over BTC3.21 a week at current difficulty.  Tho all profits are being saved for the ASIC import import tax at the moment which could be up to $300/£180/€230.  Tho we do have over BTC31.00 saved but this depends on customs charges on the ModMiner.  Once we have enough to cover the import taxers 90% of profits will be saved until we are operating at or over 40GH/s a share.  When a motion will be held to lower it to possibly as low as 50% of profits.  With the other 50% being kept for perpetual growth and expansion of RSM's portfolio of mining hardware.  

[matthewh3]

I've updated the accounts spreedsheet to make it a bit easier to read and added some new sections - https://docs.google.com/spreadsheet/ccc?key=0Ap02rO_j4NLvdDB2cFRTS0ctVGRHRE5yQ2RfNUZFcUE

[matthewh3]

I've updated the accounts spreedsheet to make it a bit easier to read and added some new sections - https://docs.google.com/spreadsheet/ccc?key=0Ap02rO_j4NLvdDB2cFRTS0ctVGRHRE5yQ2RfNUZFcUE

Total hardware and wallet assets = ~$2,500+~BTC32.00  | Total shares distributed 1836

[matthewh3]

RSM offer changed to BTC0.30 in light of bitcoins price drop.

[matthewh3]

Hi our supplier has someone in the UK who will buy our ModMiner FPGA which is due to be delivered tomorrow for full price and all fees included.  We could get another ASIC ordered then but we'd have to be fast.  We'd have to sell about another 200 shares to fully pay for the ASIC plus tax but then we'd be on the magic 40GH/s a share.  Meaning each share in terms of cost would be more profitable and more value then buying your own 3.5GH/s Jalapeño ASIC.  I think we should do it.  We'd be very profitable post ASIC then at 40GH/s a share.  We'd be able to pay a dividend as soon as we receive them just having to decided by motion what percentage to hold onto for growth and expansion 90%, 85%, 80%, 75% 70%, 65%, 60%, 55% or 50%. 
I think we should do it what do you think we'll have to be fast.

[322i0n]

We'd have to sell about another 200 shares to fully pay for the ASIC plus tax but then we'd be on the magic 40GH/s a share.  Meaning each share in terms of cost would be more profitable and more value then buying your own 3.5GH/s Jalapeño ASIC.

is this a mistake?? 1 share (price of 5day average is 0.235btc) is equal to 1 bitforce single SC (currently priced at $1299?)

[matthewh3]

We'd have to sell about another 200 shares to fully pay for the ASIC plus tax but then we'd be on the magic 40GH/s a share.  Meaning each share in terms of cost would be more profitable and more value then buying your own 3.5GH/s Jalapeño ASIC.

is this a mistake?? 1 share (price of 5day average is 0.235btc) is equal to 1 bitforce single SC (currently priced at $1299?)

What I meant is it works out cheaper to buy our shares than purchasing your own 3.5GH/s Jalapeños ASIC's.  We will soon be purchasing our second BFL Single ASIC@40GH/s meaning we will have 80GH/s over ~2000 shares post ASIC or 40MH/s per share.  We currently have 1850 shares in the wild and need to sell about ~200 shares to cover the import duty of the two 40GH/s ASIC's.

[matthewh3]

Sold the ModMiner FPGA we are getting BTC113.794 on its delivery which should be this Friday or Saturday.  Although I had to pay £20.53VAT and £16.34postage out of my own pocket.  So I will pay myself £36.87 of shares rather than take it from our BTC35.00 wallet.  So RSM's wallet should be BTC148.794 this weekend and I'll purchase the second BFL-Single 40GH/s ASIC then.  So now we will be 80GH/s over less than 1,900 shares but we need to sell 150 new shares at BTC0.30 to pay the import VAT on the boards.  So (80GH/s)/(2050shares)=(39.02439024MH/s)per share post ASIC we just need to decide now on whether to save 90% - 50% of weekly profits for more hardware assets to increase our (MH/s)per share and profits.  The more we save the faster dividends will grow.

[matthewh3]

550 new shares at BTC0.30 on offer for purchase of our third 40GH/s ASIC.  Taking us to 120GH/s over 2600 shares.  Which will take us to 46MH/s a share or 1GH/s for BTC6.50

[matthewh3]

What do our investors think of this statement?

We have to reinvest the profits of the hardware otherwise if were just selling more shares to purchase new hardware when the old hardware brakes or becomes obsolete then we would be diluting the shares value and lowering the MH/s a share rate.  We are not a bond but a stock most of the shares value comes from ownership of the hardware so saving up to 90% of profits if needed to purchase more hardware assets is the only way for the company to progress.  So if the boards turn out to be very profitable we may only need to be saving 50% of profits to purchase new ASIC's or maybe even less.  If the two (possibly three) boards turn out to be making less than £100 a month of coin then up to 90% of profits would be needed to be saved to purchase new hardware assets.  To keep us operating long into the future after our current ASIC's become obsolete or brake.

[matthewh3]

i think pay dividends , sell more shares to buy new ASIC

We will be paying dividends.  Paying out 100% of profits into dividends with no room to grow doesn't make well for RSM's long term future at all.  In fact I think the company would have to shut down due to running at a loss within three years if we didn't reinvest in our future.  I'll hold a motion on it if you require but I'm not running it for a second time again if it goes against your idea.

We will be saving between 50% to 90% of profits to purchase more ASIC's to increase the MH/s a share rate and keep the company afloat and growing against the long term trend in increasing network difficulty.  This rate will be adaptive meaning the more fiat the boards make to purchase new ASIC's the lower the rate.  Remeber ASIC hashing speed will be doubling every eighteen months according to Moore's Law.  So we need to follow the wave with purchasing new ASIC's as old hardware hashing power becomes obsolete and/or brakes down due to old age.

[matthewh3]

RSM's current wallet is BTC48.804 with us expecting BTC113.303 on delivery of the ModMiner we sold.  So with the BTC162.107 we will purchase our second BFL SC Single 40GH/s ASIC and save the rest for import VAT.  Meaning we will be at 80GH/s over ~1900 shares or over 42MH/s per share.  If we can sell the 654 shares on offer at BTC0.30 we can purchase our third BFL SC Single 40GH/s ASIC.  Taking us to 120GH/s over 2600 shares or over 46MH/s per share.  We have purchased a Atom N2800 low wattage PC to cut our electricity running costs.  The CPU only uses 6.5W.  I think we need to purchase a Kill-O-Watt meter to properly account for electricity costs.