Starting a new FPGA mining farm/contract! Cognitive Resurrected on[Havelock]

[TheSeven]

dividends in one year will be the same as they are now, assuming a constant difficulty.

That is a rather optimistic assumption going against the trend of BTC so far..

This is purely provable maths.

[TheSeven]

I think he is talking more about income v. expense rather than what will happen relative to other companies.

Operating expense is very low with FPGA miners, and is completely covered by Garrett's shares, so he carries the whole risk of that.

[Vernon715]

So I'm curious, what are our plans for when the reward rate halves at the end of the year? Do we still expect this mining farm to be profitable? Are there any good discussions about what to expect in respect to our farm?

We will surely still be profitable! Like all miners and mining companies, our revenue will halve (which I think will cause instability with GPU bonds), but aside from that, Cognitive will remain the same.

I think he is talking more about income v. expense rather than what will happen relative to other companies.

Our income will halve, our costs will remain constant. However, because of our recent expansions, dividends in one year will be the same as they are now, assuming a constant difficulty.

Buying more FPGAs?

[Garr255]

Buying more FPGAs?

Motion Raised! Opposing what the motion page reads, and enforcing what the contract states: 70% of shareholders must vote "yes" for the motion to pass.

https://glbse.com/vote/view/24

If this motion passes, capital will be raised to purchase five Quad XC6SLX150 Boards, which are featured here: https://bitcointalk.org/index.php?topic=78239.0
1400 shares will be issued at 0.6BTC each. Remaining funds from this capital will be invested in other GLBSE companies/bonds, which will ultimately increase Cognitive's earnings. This will more than double Cognitive's current hashrate. The operator will maintain the contractually granted 10% of the company and will receive 140 shares.

[Vernon715]

Buying more FPGAs?

Motion Raised! Opposing what the motion page reads, and enforcing what the contract states: 70% of shareholders must vote "yes" for the motion to pass.

https://glbse.com/vote/view/24

If this motion passes, capital will be raised to purchase five Quad XC6SLX150 Boards, which are featured here: https://bitcointalk.org/index.php?topic=78239.0
1400 shares will be issued at 0.6BTC each. Remaining funds from this capital will be invested in other GLBSE companies/bonds, which will ultimately increase Cognitive's earnings. This will more than double Cognitive's current hashrate. The operator will maintain the contractually granted 10% of the company and will receive 140 shares.

I should have been more specific: Are you buying an more in addition to these?

[Garr255]

I should have been more specific: Are you buying an more in addition to these?

I do plan to expand more in the future, yes. I do not know whether they will be FPGAs or ASICs. This completely depends on what new technologies are available!

Cognitive will always aim to be very efficient, utilizing the best mining hardware available.

[Vernon715]

Sounds good.     Thanks

[Garr255]

A new wave of seven motions has been raised, and are as follows.

1: https://glbse.com/vote/view/29

Code:

This motion is first in a series of seven motions. The motion with the best for:against ratio will be put into effect. If two or more motions have the same for:against ratio the Operator will make the decision.
Continue with the plan as initially stated, purchasing as many Cairnsmore1 boards as we are able to with the already raised capital. This is because Enterpoint will not be able to include us in the June preorder, thus will most likely raise the price of the boards. Funds will remain dormant until Enterpoint allows payment. The expected shipping time is September 2012.

2: https://glbse.com/vote/view/30

Code:

This motion is second in a series of seven motions. The motion with the best for:against ratio will be put into effect. If two or more motions have the same for:against ratio the Operator will make the decision.
(Same as first but with CD)
Continue with the plan as initially stated, purchasing as many Cairnsmore1 boards as we are able to with the already raised capital. This is because Enterpoint will not be able to include us in the June preorder, thus will most likely raise the price of the boards. Funds will be invested in a CD earning interest until Enterpoint allows payment. The expected shipping time is September 2012.

3: https://glbse.com/vote/view/31

Code:

This motion is third in a series of seven motions. The motion with the best for:against ratio will be put into effect. If two or more motions have the same for:against ratio the Operator will make the decision.
Buy as many x6500s as possible with the funds. These will be delivered very quickly relative to other options. Remaining funds after the purchase will be put into a CD earning interest.

4: https://glbse.com/vote/view/32

Code:

This motion is fourth in a series of seven motions. The motion with the best for:against ratio will be put into effect. If two or more motions have the same for:against ratio the Operator will make the decision.
Buy as many ZTEX 1.15y boards as possible with the funds. Remaining funds after the purchase will be put into a CD earning interest.

5: https://glbse.com/vote/view/33

Code:

This motion is fifth in a series of seven motions. The motion with the best for:against ratio will be put into effect. If two or more motions have the same for:against ratio the Operator will make the decision.
Buy as many BFL Bitforce Singles as possible with the funds. This is possibly a good option because of the opportunity to trade up to BFLs ASICs in the future. Remaining funds after the purchase will be put into a CD earning interest.

6: https://glbse.com/vote/view/34

Code:

This motion is sixth in a series of seven motions. The motion with the best for:against ratio will be put into effect. If two or more motions have the same for:against ratio the Operator will make the decision.
Reinvest all funds back into Cognitive. This will ultimately increase dividends per share.

7: https://glbse.com/vote/view/35

Code:

This motion is seventh in a series of seven motions. The motion with the best for:against ratio will be put into effect. If two or more motions have the same for:against ratio the Operator will make the decision.
Pay the entirety of the funds as a single dividend. The dividend date will be announced two weeks in advance, most likely creating a large price spike and unpredictability immediately thereafter.

[TheSeven]

Hm, none of them really represents what I would be doing:

• Talk with enterpoint and fix them on a price. If they offer the preorder price, go for it. If not, reject the offer. September is quite a long time.
• ZTEX is simply too expensive, and they have made some nasty moves breaking compatibility in the past. Not a good investment.
• BFLs might be an option, however I'm not sure if their ASIC is worth the risk. And you should check whether you can actually handle the singles thermally. If this is in your bedroom, noise is gonna be a problem.
• X6500s are almost sold out, so you'll have to hurry to get some.
• I'm not in favor of paying back the raised money in full in any form. For a remainder after buying additional hardware, both paying it as a dividend and buying back shares into the growth fund sound fine to me.
• To conclude: I'd quickly check with enterpoint, if they're more expensive than anticipated, have a huge lead time, or aren't completely clear on their offer, try to grab some of the remaining X6500s. If that fails as well, check if you can go with BFLs.

[Garr255]

Enterpoint hasn't been much help. They take ~5 days to respond to a simple email, so communication with them is very tedious.

This operation is being ran in one of the cooler parts of my house, on top of my server. In the future I plan to rent space with industrial power, allowing for even further expansion.

As for the motions, I created one for all of the mentioned ideas. Some of these motions definitely do not represent what I want to do personally.

I can still add another motion to the list, so if there are any additional suggestions, let me know!

[GeoRW]

What does number 6 actually mean? You will buy Cognitive shares?

[Vernon715]

What does number 6 actually mean? You will buy Cognitive shares?

I think that is what he means.

[GeoRW]

What does number 6 actually mean? You will buy Cognitive shares?

I think that is what he means.

more specifically ... at any market price?

[Garr255]

#6 Means Cognitive will buy back Cognitive shares. Dividends from these shares will be added to the dividends paid to everyone.

[stabs]

As for the motions, I created one for all of the mentioned ideas. Some of these motions definitely do not represent what I want to do personally.

Garr, what would be your personal choice as a stock holder?

[Vernon715]

As for the motions, I created one for all of the mentioned ideas. Some of these motions definitely do not represent what I want to do personally.

Garr, what would be your personal choice as a stock holder?

Take the money and run

JK.

Good question.

[Garr255]

I voted for 2, 3, 5, and 6, and against the rest.

[Vernon715]

I voted for 2, 3, 5, and 6, and against the rest.

What were your reasons for voting for those particular motions?

[Garr255]

I voted for 2, 3, 5, and 6, and against the rest.

What were your reasons for voting for those particular motions?

I voted for those because I believe they will better the company the most.

I'm sure some will choose the dividend pay out, only because of self interest. I strongly recommend not voting for #7

[Garr255]

Two days left to vote!