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

[chalbersma]

Industry Updates

Viper ASIC Update(Litecoin)

Greetings Miners!

Progress by our engineering partners has been picking up fast and a quick update for the week’s end is as follows:

Engineering Update

* ASIC design has been more optimized and frozen.
* ASIC Synthesis & Physical design is going on. Tape out target end of march.
* Provision for MBIST and boundary scan for DFT has been done.
* Architecture of Mining Board design has been finalized and design has been started.
* Sitara ARM AM335x Processor from TI for Host Board has been finalized and design has been initiated.
* Provision of power consumption & temperature on the LCD display has been incorporated.
* Eliminated switch from the enclosure. All the input and set up will be done through web pages just like a router. ### Mechanical Update
* Enclosure material will be of Aluminium.
* Universal power supply has been identified for 5mh design.
* 5Mh box will be 1u but much smaller in size ( easy for transportation, likely half of 19” rack).
* Power figures as of now are looking good
   * 5Mh<=70 watts
   * 25Mh<=300 watts

KNC Neptune Update (Bitcoin)

Neptunes are still very much in the preliminary design phase. As much as the timeline will be reduced significantly in comparison to a standard engineering project at 20nm, if such exists, because this is absolute bleeding edge we want to be absolutely sure what we commit to silicon will ensure a successful product at the end. This initial phase will not be rushed.

That said we have completely re-written and optimised the RTL code. The Jupiter project was very much focused upon safe speed to market and the window of opportunity hashing power presented in this present finite period prior to significant competition. The Neptune project whilst adhering to aspects of the aforementioned must focus upon power consumption as it's primary trait if customers (you guys) will be able to compete successfully over a longer period. We know that we are reaching limits on standard household circuits, we want you to remain competitive w.r.t. the unfolding mining landscape and we are all to well aware that electricity costs will come into focus in the not too distant future.

So where we are now is that we have a working FPGA code and are in the process of testing that and tweaking any further refinements before it's submission.

With respect to the speculation above we sold out of Neptune's last night.

Viper ASIC Timeline Released

On Monday (13/01/2014) we released an outline of our set roadmap, today as promised we will be releasing a timeline with dates on each aspect of the development process. This shows our commitment to transparency and gives a better idea on what exact stage we are on at all times. As we go through multiple developmental stages in parallel, we will be releasing regular detailed updates on our progress. Our next updates will be consistent developmental updates on what is being worked on and what has been achieved.

Timeline:

Project Start: 16/08/13
Project Finish: 15/07/14

<-- Table Snipped See Posts for table -->


Roadmap (recap):

<-- Image Snipped See Posts for Images -->

[matthewh3]

Industry Updates

Viper ASIC Update(Litecoin)

Greetings Miners!

Progress by our engineering partners has been picking up fast and a quick update for the week’s end is as follows:

Engineering Update

* ASIC design has been more optimized and frozen.
* ASIC Synthesis & Physical design is going on. Tape out target end of march.
* Provision for MBIST and boundary scan for DFT has been done.
* Architecture of Mining Board design has been finalized and design has been started.
* Sitara ARM AM335x Processor from TI for Host Board has been finalized and design has been initiated.
* Provision of power consumption & temperature on the LCD display has been incorporated.
* Eliminated switch from the enclosure. All the input and set up will be done through web pages just like a router. ### Mechanical Update
* Enclosure material will be of Aluminium.
* Universal power supply has been identified for 5mh design.
* 5Mh box will be 1u but much smaller in size ( easy for transportation, likely half of 19” rack).
* Power figures as of now are looking good
   * 5Mh<=70 watts
   * 25Mh<=300 watts

KNC Neptune Update (Bitcoin)

Neptunes are still very much in the preliminary design phase. As much as the timeline will be reduced significantly in comparison to a standard engineering project at 20nm, if such exists, because this is absolute bleeding edge we want to be absolutely sure what we commit to silicon will ensure a successful product at the end. This initial phase will not be rushed.

That said we have completely re-written and optimised the RTL code. The Jupiter project was very much focused upon safe speed to market and the window of opportunity hashing power presented in this present finite period prior to significant competition. The Neptune project whilst adhering to aspects of the aforementioned must focus upon power consumption as it's primary trait if customers (you guys) will be able to compete successfully over a longer period. We know that we are reaching limits on standard household circuits, we want you to remain competitive w.r.t. the unfolding mining landscape and we are all to well aware that electricity costs will come into focus in the not too distant future.

So where we are now is that we have a working FPGA code and are in the process of testing that and tweaking any further refinements before it's submission.

With respect to the speculation above we sold out of Neptune's last night.

Viper ASIC Timeline Released

On Monday (13/01/2014) we released an outline of our set roadmap, today as promised we will be releasing a timeline with dates on each aspect of the development process. This shows our commitment to transparency and gives a better idea on what exact stage we are on at all times. As we go through multiple developmental stages in parallel, we will be releasing regular detailed updates on our progress. Our next updates will be consistent developmental updates on what is being worked on and what has been achieved.

Timeline:

Project Start: 16/08/13
Project Finish: 15/07/14

<-- Table Snipped See Posts for table -->


Roadmap (recap):

<-- Image Snipped See Posts for Images -->

With respect to Neptune we are where we intended to be at this stage and are still contemplating aspects of the design. Understand that the approach is not the same as that of Jupiter. 28nm was extremely disruptive at the time, of which the effect can plainly be seen. Hashrate was given priority to power consumption, and safety and speed to market even more so, but going forward and acknowledging that power consumption becomes more a critical factor the Neptune has to be created as more a long term solution. We will not skimp or rush the design here. This does not mean I'm indirectly verbalising a delay, so don't go looking for hidden meanings, there aren't any to find, just rest assured I'm stressing we value the integrity of the design more which is why Q1/Q2 was given to ensure that margin is present so we commit the best foot going forward in what is uncharted waters within bleeding edge silicon. We're not rushing the design at the cost of it's ability to function, and function well. The sha-256 implementation is actually relatively simple, but there is still quite a bit we can optimise to remain competitive for you and us.

[chalbersma]

Bitmine.CH Preordered

RSM has purchased a Bitmine.CH Coincraft Rig Configured with 2.8 TH/s of hashing power. The units are expected to start shipping March 24th 2014. The Coincraft Rig was purchased for 15.98869565 BTC. Funding for which came from the Re-Investment Fund.

This brings our total expected hash rate to 19.45 TH/s (0.144 GH/s/share). See table below for summary of our hardware.

(See Blogpost for Table)

[chalbersma]

January Dividends Out

January Dividends have been released on 796.com. Summary table of dividend below:

Item	Amount
Divs Total	1.44888437
Shares	135,000
Divs Per Share	0.00001073

[lunarboy]

Really appreciate the way you guys have just very quietly and professionally carried on through all the crap of bitfunder and BTC-TC. looks like your building a nice little business up. keep up the good work. 

[chalbersma]

Really appreciate the way you guys have just very quietly and professionally carried on through all the crap of bitfunder and BTC-TC. looks like your building a nice little business up. keep up the good work. 

Thanks lunarboy!

[chalbersma]

RSM Moving to Quarterly Financial Statements

RSM has decided to move from monthly financial statements to quarterly financial statements with monthly financial summaries. The reason being that there simply isn't enough info to merit the creation of a monthly statement. We reserve the right to move back to monthly statements in the future because of demand or large movements in the bitcoin space.

January Financial Summary

As expected our revenues fell again this month as difficulty continues to rise and we wait on new orders. We spent more from re-investment this month as we invested in Litecoin ASICs and a Bitmine.ch pre-order (29.08 BTC together). We also invested 1 BTC (+Miner Fee) from the Re-investment fund to fund the BTC in space project.

<See Post for Table>

Jupiter Sold

One of our KNC Jupiter's has been sold via eBay for $6,000 dollars. At recent rates we expect it to give us 8 XBT after fees. We estimate that this amount is more than the miner would produce mining making the asset sale profitable for RSM.

10% of the profits from this sale will go into the dividend fund with 5% each going to the buyback and salary funds. We expect approximately 6 XBT to head back into the Re-Investment fund for additional expansion.

RSM is interested in selling our other two KNC Jupiter for a good price.

[chalbersma]

New Motion up on Loomio

There's a motion up on Loomio on weather or not to allocate funds to angel investments. Text of motion below:

We may put $5k into bitcoin venture capitalist Brock Pierce bitcoin investment fund - http://www.coindesk.com/bitcoin-investor-syndicate-angellist-top-10/
We’d be helping the bitcoin eco-system grow and profiting off that growth too.

Please be sure to vote and please comment.

[lunarboy]

New Motion up on Loomio

There's a motion up on Loomio on weather or not to allocate funds to angel investments. Text of motion below:

We may put $5k into bitcoin venture capitalist Brock Pierce bitcoin investment fund - http://www.coindesk.com/bitcoin-investor-syndicate-angellist-top-10/
We’d be helping the bitcoin eco-system grow and profiting off that growth too.

Please be sure to vote and please comment.

Quite a divergence away from mining? Any further info on the reasoning behind this?

[chalbersma]

New Motion up on Loomio

There's a motion up on Loomio on weather or not to allocate funds to angel investments. Text of motion below:

We may put $5k into bitcoin venture capitalist Brock Pierce bitcoin investment fund - http://www.coindesk.com/bitcoin-investor-syndicate-angellist-top-10/
We’d be helping the bitcoin eco-system grow and profiting off that growth too.

Please be sure to vote and please comment.

Quite a divergence away from mining? Any further info on the reasoning behind this?

RSM has committed almost $100k to hardware pre-orders in the last three months.  A 5% diversification into Brock Pierce's Angel syndicate seems like a good move as we approach the upper limit on our mining returns.  We remain committed to mining but, this opportunity is a potential revenue stream for RSM that additionally supports the bitcoin-ecosystem.

[lunarboy]

Interesting Idea. Would RSM be looking to get more funding in the future as a startup from the syndicate?

It might be nice to get a solar power plant for a lifetime of free electricity or some fancy cooling system that could heat houses.
That would cut costs.... just daydreaming  

[chalbersma]

Interesting Idea. Would RSM be looking to get more funding in the future as a startup from the syndicate?

It might be nice to get a solar power plant for a lifetime of free electricity or some fancy cooling system that could heat houses.
That would cut costs.... just daydreaming  

I guess it's an option. Being a publicly traded company though if the syndicate thinks we're valuable they can always purchase shares on the open market. And it would be nice to have our own power plant . I guess we'll have to play the future by ear on this one.

[matthewh3]

https://www.kncminer.com/news/news-78

KnC Announce ‘Tape out’ of the World’s first 20nm ASIC for Bitcoin Mining
 
STOCKHOLM, SWEDEN — March 5, 2014 –– KnC, the most trusted brand in Bitcoin Mining is announcing they
have completed ‘tape out’ of their new ASIC. This is the world’s first Bitcoin Mining Application Specific
Integrated Circuit (ASIC) designed using ground breaking 20 nanometer engineering. This important
milestone was achieved only 3 months after starting the project, during February 2014.
 
KnC partnered with Alchip and its representative, Advanced Semiconductors Technology (AST), to deliver
this advanced 20nm technology ASIC. This tapeout is the 2nd generation of the bitcoin mining ASIC following
the success of the 1st, which was delivered in a record time of 3.5 months.
 
This new KnC20nm chip will reduce power consumption of Bitcoin Mining by 43% when compared with the
previous generation. In addition, innovations in the design of the communications circuitry allow for 1440
cores, in a 55x55mm package.
 
Marcus Erlandson, KnC CTO, is immensely proud of the teams performance, “The combined efforts of KnC
and our partners Alchip means that once again we are bringing to market a world first silicon design and in
record time.”
 
Johnny Shen, President of Alchip. “KnC and Alchip have been working together on Bitcoin ASIC design for
less than 12 months and in that time we’ve already delivered 2 world-first projects. Collaboration is the key
here and the close working relationship between our teams is the secret to our success”

It usually takes about seven weeks after tape-out for mass production.  So they may even ship in April 

With the new "tape out" information that KNC has provided, it gives everyone a clearer view of what we can expect. Below is an updated idea on what I think we can expect from the Neptune.

Hash rate: 4,875GH/s
Power: 2,237W (A couple 1,200W PSUs will probably do the trick. We'll need either a 220V line or two circuits at 110v. DON'T BUY THE PSUs YET! I have no idea if my projections are even close to correct in the end!)

Here's how I figured out the above numbers.

Jupiter has 192 cores. (http://forum.kncminer.com/forum/rese...than-3000-gh-s)
Jupiter needs at least 850W.
Jupiter hashes at 650GH/s for the November batch.

Neptune has 1440 cores. (https://www.kncminer.com/news/news-78)
Jupiter has a 40% power reduction per core than that of Jupiter.

Using these quick facts I gathered, we can figure out Neptune's potential specs.

(Jupiter's hash / Jupiter's cores) * Neptune's cores = Neptune's GH/s
(650/192) * 1440 = 4875 GH/s

((Jupiter's hash / Jupiter's power) * Neptune's hash) - 40% reduction in power per core
((650/850) * 4875) - 40% = 2237 W


Beautiful, yes? Well I think you're really going to like this next bit. It seems like people were scared for nothing and might feel like crap now that they refunded their orders, especially because they could have sold their place in line on eBay and made ~$25,000 from it. Anyway, here goes.

Using my formulas from my thread at: http://forum.kncminer.com/forum/rese...ity-assessment
We can see the following.

7.6PH/s - KNC DC (More hash than both Neptune batches combined)
5.85PH/s - First batch Neptunes
5.85PH/s - Second batch Neptunes

Notice that the KNC DC is now going to be putting out 4.1PH/s less than both Neptune batches combined. (11.7PH/s for both Neptune batches combined)

~19.3PH/s - Total KNC hash being added by (presumably) the end of Q2.
~28PH/s - Total current BTC network hash (http://bitcoincharts.com/bitcoin/)

(19.3 / 28) * 100 = ~69% (Percent of the current hash rate)

3,815,723,799 (Current difficulty) + 69% (Amount of hash being added) = 2,632,849,421 (Difficulty increase)

Now for the good part.

Formula:
Let A = PH/s being added to the network

(A / 28) * 100 = B% (Percent of new hash being added)
3,815,723,799 + B% = C (Projected difficulty)

April after first batch Neptunes come online without DC: 4,617,025,797 (A = 5.85PH/s - ~15.93 BTC per 30 days)
April after first batch Neptunes come online with DC: 5,647,271,223 (A = 13.45PH/s - ~13.023 BTC per 30 days)

May after second batch Neptunes come online without DC: 5,418,327,795 (A = 11.7PH/s- ~13.575 BTC per 30 days)
May after second batch Neptunes come online with DC: 6,448,573,220 (A = 19.3PH/s- ~11.406 BTC per 30 days)

I used the profit calculator at: http://www.bitcoinx.com/profit/

Also, remember that I have no way of accounting for how much difficulty increase will happen this month accurately and so I based things off of the current difficulty. We also don't know anything in this post to be completely true or when the Neptunes will be shipping, so this whole post might be completely wrong. In other words, don't go off of what I say alone. Do your homework and see if you find this to be accurate enough for you.

~ReworkedScripts @ KnC forum

If those estimates I quoted are correct, then we should be at over 26TH/s in April/May.  Which would mean ~0.20GH/s per share value.

[chalbersma]

Hardware Status

Hardware Sales

So a lot has happened over the last month when it comes to hardware. We've sold off our Jupiters. Not just Jupiter #1 but also Jupiter's #2 & #3 also. The first two were sold for approximately $6k apiece and the third sold for $5.2k (Do keep in mind Paypal fees). Of the purchases, after transferring USD to BTC we have added 10% of the coins to the dividend fund (to be dispersed over the next few months), 5% of the coins to the buyback fund, 5% of the coins to the salary fund and the remainder (80%) to the re-investment fund.

Do keep in mind there is approximately $5k that still needs to be traded for BTC and it will be traded as quickly as the government currencies allow.

Jupiter Sale Table

<Table Snipped see Post for Table>

   
Future Hardware

Bitcoin

So at the moment we have no hashing power online. With the latest news from KNC not specifying any new targets for hashing performance from their Neptune line of products we have the 17.8 TH/s of equipment on order following Bitcoin Mining hardware on order (See Below For Bitcoin hardware). This could change in the future are they're are napkin calculations that this hardware will have a higher hashrate per unit than 3TH/s.

Bitcoin Hardware Recievable

<Table Snipped see Post for Table>

Growth Analysis

Assuming that the Network hasrate rises 50% month over month for the next two months we should Leave us with 0.03% of the network hashrate which is right at our historical average.

RSM vs. Bitcoin Network Hashrate Growth Chart

Litecoin

In addition we have 4 Alpha Vipers on Order for a total of 100MH/s of Scrypt Mining power.

Litecoin Hardware Recievable

<Table Snipped see Post for Table>

P2Pool Node

RSM is investigating the possibility of building a P2Pool node. We would mine using this and have access to all the merge mined alt coins we could handle. Funds for such a project would come out of the Re-Investment Fund.

Alt-Coin GPU Rig

RSM is also considering the possibility of building a GPU Rig specifically for altcoins like Etherium and Mastercoin which aim to add valuable market features to the cyptocurrency paradigm, Primecoin which adds a mathematically relevant calculation to mining or Datacoin which attempts to add general storage features to the blockchain.

[lunarboy]

Great update

Thanks guys. 

[tekke]

Good update, the gpu rig is a good idea

[chalbersma]

Good update, the gpu rig is a good idea

Great update

Thanks guys. 

Thanks! Work has been hectic so I haven't go them out as much as I should have but it looks like I'll have a bit of a lul coming up so hopefully I can buckle down and get out some good content.

[chalbersma]

March 1^st Dividends

Dividends

Dividends for the Month of February (March 1^st dividends) are out. Summary of Divs below:

<Table Snipped See Post for Details>

Buyback

You may have noticed that the total Share amount is lower than it was last month. That's because another 2,000 shares have been bought back off the market through our share buyback policy. All together our buyback policy has removed 5% of the total shares available on the market. Effectively making our shareholder position more valuable.

Unclaimed

There are still unclaimed shares from Burnside's Exchange shutting down. If you haven't claimed your shares please do so.

FEB Financial Summary

In accordance with our new policy we will now be releasing Financial Summaries and quarterly statements. Our next full financial statement is due next month as our first quarterly statement.

Our revenues are down as we have sold off our Jupiter's in preparation for taking delivery of our Bitmine.ch machines and our Neptunes.

<Table Snipped See Post for Details>

In accordance with the Jupiter sales we have exercised our an additional 0.45106 BTC for this dividend with the expectation that we will pay the remainder out over the next few months with the ultimate goal of maintaining a dividend between 0.5 BTC and 1.0 BTC.

In addition we had approximately 7 Bitcoin worth of Mining revenue this month as 3 Bitcoins were mined last month on Bitparking and then transferred in at the end of that month.

[chalbersma]

Share Deletion

In accordance with our buyback policy 1,000 shares have been bought and destroyed off the market. This bring the total number of shares from 133,000 shares to 132,000 shares.

[matthewh3]

Unfortunately due to ongoing health problems that I have been suffering for over a decade now I am unable to continue an active role at RSM for the time being.  Investors and shareholders please don't worry though as it's been a team of seven staff and directors at RSM for a good while now.  So I really believe that things can continue doing well into the future.  As i originally founded RSM I am still going to hold the veto rights to the three prohibited motions.  Although in the case I was in hospital and unreachable for a prolong period of time then evolvex will hold those veto rights to the three prohibited motions in my absence.  I've been told the Q1 financial statement should be issued maybe as early as next week.  I'll try to edit this post to include a link to a new thread which will be opened by one of the other seven board and staff members.  Where a link to the Q1 statement will be posted by maybe as early as next week.

It was a big struggle founding RSM even with all the help I received and the first two years was very tough going.  Although since last September after increasing the board and staff members RSM has done very well.  Long may it continue doing well in my absence.