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

[davecoin]

Garrett, are you still considering an Avalon purchase after reading today's news?

Thanks,
Dave

[Garr255]

Garrett, are you still considering an Avalon purchase after reading today's news?

Thanks,
Dave

Hi Dave,

I haven't seen any formal confirmation from Avalon regarding the price adjustment for the Avalon ($5000 USD). If I'm missing something please send me a link!

I believe that, at the $5000 price point, an Avalon would still be worth it if we didn't expect BFL to ship a significant sum of ASICs for another few months.

Keeping this in mind, our decision will be based on the coming updates from BFL, and what the actual price for the Avalon comes down to.

Currently we have 28btc in Cognitive's growth fund (and we will have over 30 after the dividend Saturday), and 50BTC raised via COG.F. At the current exchange rate of $60 this gets us almost all the way to the $5000 we need. I'd be happy to spot Cognitive whatever remaining funds we need (~$200). So we will have the funds to purchase an Avalon if it does end up costing $5000.

So shareholders, what are your opinions regarding this? I see the three options being purchasing the Avalon, purchasing more from BFL, or waiting it out.

Best,
Garrett

[davecoin]

http://bbs.btcman.com/forum.php?mod=viewthread&tid=1550&extra=page%3D1

Looks like they are done associating with USD. BTC pricing is now tied to RMB.

While I understand that BFL will deliver a product that is more efficient, an Avalon unit will still be profitable in your area for a long time.  I would rather invest money now in something that is proven than dumping more into a wishing well. 

Disclaimer: I have a summer 2012 bfl pre-order

[Logik]

It's a tough call on assessing the Avalon purchase, but if anything is certain it's that you would have to be insane to give any more money to BFL before they prove to have shipped/working units.

[davecoin]

Then the real difficulty hike will start.  Imagine the number of orders they will see on a daily basis.

[Logik]

Garrett, have you tried logging into BFL's new order tracking page yet?

[Garr255]

It's a tough call on assessing the Avalon purchase, but if anything is certain it's that you would have to be insane to give any more money to BFL before they prove to have shipped/working units.

I agree. I also want to see a working product before purchasing more from them. I'd rater us have control of the funds than BFL while we're waiting for the product!

Garrett, have you tried logging into BFL's new order tracking page yet?

Yes. Although It's not very helpful; it just says "pending".

[stochastic]

So shareholders, what are your opinions regarding this? I see the three options being purchasing the Avalon, purchasing more from BFL, or waiting it out.

Best,
Garrett

At this level of deflationary pressure of the bitcoin exchange rate there is a good argument to just sit on coins.  Although, I do believe we should have some ASICs first.

[davos]

Obviously there's no real merit to turning the fund into an ASICMINER-PT or investment fund, but if no decision has been made on the issue of what/if to buy hardware it might be worth considering parking the fund in ASICMINER Shares (probably could get a decent pps with a 250BTC reverse dutch auction).

Just a thought.

[Garr255]

I have to agree with stochastic here, in that waiting is going to be a good choice for two reasons:

• Avalon ASICs are going to be sold for 75btc each in the coming weeks (http://launch.avalon-asics.com/#tab-03), which is because they aren't aiming to sell a ton, but rather keep them for themselves and mine away.
• By the time an opportunity to purchase reasonably priced ASICs rolls around, bitcoins might be worth more than they are now.

I do believe that it is wise to have these funds on standby, so when the opportunity comes about we can quickly take advantage of it.

[davos]

How many paid pre-orders and from whom does the main security currently hold?

[Garr255]

How many paid pre-orders and from whom does the main security currently hold?

Currently Cognitive has an order paid in full for seven BFL SC Singles.

I'd certainly feel more comfortable sending BFL additional preorder funds after we see a working product shipping from them.

[Logik]

Maybe use some of the funds to place bets against BFL shipping? I'm half serious . Unless it's actually a good idea, then I'm completely serious.

[davos]

How many paid pre-orders and from whom does the main security currently hold?

Currently Cognitive has an order paid in full for seven BFL SC Singles.

I'd certainly feel more comfortable sending BFL additional preorder funds after we see a working product shipping from them.

When were the BFL pre-orders placed? (Apologies - I'm sure this is something I'd learn if I deep-read the whole thread)

I agree that prudence is key in dealing with BFL.

Also - are the 2000 COGNITIVE shares to be delivered pending the completion of the COG.F sub-asset contract current treasury shares or will they be new issue?

[_mr_e]

Why have the value of my shares and dividend payments decreased so much? I've lost a lot of money on this fund now, not pleased with the directions it's taken since the exchange switch and now you are taking more money for another fund? What has come of the original one? Will it be receiving any dividends from these asics?

[Code_red]

lol your unhappy with the way cognitive is being run? Then sell it don't complain here if you don't know what your referring to. Do you see something Garr could be doing that he is not? If so we would all love to here it. If not please don't fill the thread with unfounded complaints.
On the other hand anyone who invested in Cognitive should know how many pre-orders we have and when we ordered them. Also if you spent your own money investing in cognitive you should know that half of the divs are being held in a growth fund now to purchase more equipment at a future date. As for Cog.f can you not read its not another fund, its a way of raising capital for cognitive to buy more equipment all of which leads to higher cognitive value and div.  

[Garr255]

How many paid pre-orders and from whom does the main security currently hold?

Currently Cognitive has an order paid in full for seven BFL SC Singles.

I'd certainly feel more comfortable sending BFL additional preorder funds after we see a working product shipping from them.

When were the BFL pre-orders placed? (Apologies - I'm sure this is something I'd learn if I deep-read the whole thread)

I agree that prudence is key in dealing with BFL.

Also - are the 2000 COGNITIVE shares to be delivered pending the completion of the COG.F sub-asset contract current treasury shares or will they be new issue?

The BFL orders were placed in the middle of last year. I'd give you the exact date and order number but Bit-Pay's invoice system is down right now so I can't check at the moment. Scratch that -- I just remembered BFL has a new invoice system of their own

The order was placed on 7/14/12 and it is # 3277. I just checked and the order numbers are up to above 10,000 now so it's safe to say we got in fairly early!

The shares to be delivered to COG.F holders will first come from the Cognitive holdings originally intended to be sold for Avalons (as per the final GLBSE motion) and then new shares will have to be issued to meet the COG.F demands. The Cognitive portfoio is public and can be viewed at https://btct.co/portfolio/frc2

Why have the value of my shares and dividend payments decreased so much? I've lost a lot of money on this fund now, not pleased with the directions it's taken since the exchange switch and now you are taking more money for another fund? What has come of the original one? Will it be receiving any dividends from these asics?

lol your unhappy with the way cognitive is being run? Then sell it don't complain here if you don't know what your referring to. Do you see something Garr could be doing that he is not? If so we would all love to here it. If not please don't fill the thread with unfounded complaints.
On the other hand anyone who invested in Cognitive should know how many pre-orders we have and when we ordered them. Also if you spent your own money investing in cognitive you should know that half of the divs are being held in a growth fund now to purchase more equipment at a future date. As for Cog.f can you not read its not another fund, its a way of raising capital for cognitive to buy more equipment all of which leads to higher cognitive value and div.  

Well said, Code_red.

I'll cover what he missed. COG.F contracts will be converted to COGNITIVE shares upon arrival of hardware purchased with the COG.F funds. Because of this, your dividends will be higher while hardware delivery is pending, and ultimately your shares will be worth more, because of the newly acquired hardware.

For more specifics, please refer to the motions and contracts (as Code_red and others have done) here and here.

If you have any other questions, I'm always happy to answer.

--Garrett

[pandalone]

I'd also like to point out that the value of BTC has gone up substantially in the last few weeks. Even though Cognitive shares are worth less BTC now than when I bought in, they actually have a higher USD value.

[silverfuture]

I'd also like to point out that the value of BTC has gone up substantially in the last few weeks. Even though Cognitive shares are worth less BTC now than when I bought in, they actually have a higher USD value.

Although that is true and worth considering, we need to get to a point where btc denominated investments do (at least slightly) better than just holding bitcoin.  We're not there yet by my rough estimations. 

[Code_red]

If bitcoin doubles in value compared to the usd how can any legal investment do better than bitcoin? If you want companies to straight outperform bitcoin that may never happen for more than a few months at the very least we will need to see 500+ per coin.