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

[Garr255]

6) Sell the Cognitive BFL preorders, realize a 9 month ROI

Yes, we might be able to sell these for quite a bit.

Just as a reminder: Cognitive's BFL order is #3277 (which is extremely early on) and is for seven FPGA Single -> SC Single upgrades. Shareholders: as Investr suggested, what do you think of selling some or all of these?

[investr]

If there enough interest in selling some BFLs (for buku bitcoins), you could re-diversify your risk by purchasing Avalon (which you've already posted two motions for to gauge interest).

In other words, instead of the Cognitive portfolio being 100% BFL, 0% Avalon, you could adjust the weights of each investment (while immediately seeing an ROI as well).

[Garr255]

A motion has been raised to sell two of our seven SC Single upgrades.

See motions tab of https://btct.co/security/COGNITIVE

Be sure to note the last few posts as well: https://bitcointalk.org/index.php?topic=67547.msg2139430#msg2139430

[medicine]

The is one of the few times I don't know which of the motions to support. 

On one hand I don't think we should just sit on funds when they could be working for us, but the quickest option is buying an over priced ASICMiner blade.

Or do we purchase a relatively cheaper device with companies which have unknown and unreliable delivery schedules as the clock ticks.

Would have been nice if the fund was in ASICMiner shares though.

[TiuraZ]

I tell you what I voted with my one (1) share:

- Lets get rid of that BFL shit while we still can.
- Lets wait until there are some of those DIY Avalon miners actually available.
- Lets get one of those blades. At least they deliver and a mining company gets something to mine with. Disclaimer: I have ASICminer shares.

[Code_red]

To me is seems like the only people who benefit from buying blades are asicminer shareholders. Asics are very cheap to produce once the initial R&D is done. So buying a blade gives asicminer lots of capital which they could use to make a lot more chips. If we can get more than 60 bitcoin per bfl order I am all in favour of lessening our exposure to bfl.We need to be careful now that were late in the game not to over react and end up shooting ourselves in the foot. At this point I don't see to much reason to assume bfl won't start shipping within the next 30days.

[Code_red]

Dear fellow Cognitive shareholders,
     Please Vote against buying a Asicminer Blade. The chances of us making the 49.99 Bitcoin back ever is a hail marry long shot at best with little to no reward for the risk. They have already sold over half a TH/s that has been confirmed and is most likely much higher than that. Even if BFL and Avalon Both fail to deliver any considerable quantity of asics and the network keeps expanding at the rate is has for the last 3 months we will never break even on our purchase. There is also a lot of other projects in the wild some privately funded that are trying to build mining devices (I heard some engineers from one of the big computer chip companies are doing R&D on a mining device). So even if only a small fraction of these people succeed the network growth rate is going to grow 50 percent at least. There is also the fact that Asicminer can make these chips for a fraction of what they are selling them for and there is nothing to stop them from ramping up there own in house hashrate. If your really keen on getting the hashrate up for the same cost you could buy GPUs get a bigger hashrate and would have equipment with a resale value of at least 40percent of USD paid that could also be used for mining of script based languages. So all in all my fellow shareholders I ask of you to way your options with a sense temperance and to realize that the difficulty is only going to increase to a point of somewhere between little profit or sizeable loss.

[Garr255]

Just to provide full disclosure here, this is how I've distributed my votes:

Auction of two SC Singles  - Yes
Purchase of Avalon Chips  - Yes
Purchase of Blade            - No

[Code_red]

Good to hear Garr, did everyone see this? https://forums.butterflylabs.com/announcements/692-bfl-asic-status-3.html

[Code_red]

Seems like the BFL asic are starting to show up in the wild. BFL has pic of a single or little single hashing with a chip next to it. There is also a list of people with orders and delivery status here. http://bfl.ptz.ro/

[Garr255]

Because I'm confident that the motion for the Avalon chips will pass, I have placed an order for 581 (50BTC worth of) ASIC chips from the group-buy operated by steamboat using my own funds. I am fronting my own money because it will get us our chips faster

Just to be clear: If the motion ends up not passing then I will be out the 50btc and Cognitive suffers no loss, which is a risk I am happy to take.

Cheers,
Garrett

[Carnth]

Just to be clear: If the motion ends up not passing then I will be out the 50btc and Cognitive suffers no loss, which is a risk I am happy to take.

You won't be out 50BTC, you be knee deep in ASIC chips for your own personal use.  


Still, it's good to see that Cognitive has another option at its disposal.

[Code_red]

Garr you going to be one of those 200 5/ghs miners they are shipping tomorrow? 

[Garr255]

Garr you going to be one of those 200 5/ghs miners they are shipping tomorrow? 

I would have been, but I upgraded that personal order of mine to a SC Single, which they still aren't shipping yet :/ It should be soon!

[silverfuture]

Hi Garr, it seems that all of the COG.F shares are now sold. Any word on what you have planned with the proceeds? Avalon chips?  Edit: NM, that is what the current votes will decide.

[medicine]

Hi Garr, it seems that all of the COG.F shares are now sold. Any word on what you have planned with the proceeds? Avalon chips?  Edit: NM, that is what the current votes will decide.

Maybe we should check out 1 of these: https://cryoniks.com/#!/app/frostbit/

Make sure your sitting down when you click the link.  I am reading up on it now trying to find expected shipping dates.

What do you guys think?

EDIT: probably a scam according to every body, but still cool.

[mtrlt]

Maybe we should check out 1 of these: https://cryoniks.com/#!/app/frostbit/

EDIT: probably a scam according to every body, but still cool.

Yeah, it's extremely likely to be a scam. I vote no.

[Exocyst]

Assuming BFL delivers, I have a single SC coming I may not wish to operate. Would COGNITIVE think about setting up a hardware-for-shares scenario?

You could scale Hardware Hashrate to network difficulty to establish a fair hardware/shares exchange rate:
where a variable, k, defines the fractional hashing power acquired:

Code:

 [Hashing Power acquired]
------------------------------ = k
   [Network Difficulty]

and the constant, X, is a value which will determine the reward in shares for the fractional hashing power acquired

SO THAT:
k * X = Shares rewarded to hardware seller

This might attract other hardware-providing investors who want to ensure a profit on their hardware purchase:
They could sell their shares for one-time profit on their initial hardware investment (assuming Shares*[share value] > [hardware purchase cost])
They could hold their shares as future hardware-providing investors would likely increase the dividends and potentially share value.

Personally, I am looking to invest in a mining collaborative dedicated to aggressively bringing on new equipment.

I apologize for the Thread-SPAM as I am not a shareholder, but I am looking for a mining collaborative to invest in that possesses the proper attitude towards the future, and I thought I would seed the idea in a project that had some momentum.

Cheers,
Exo

[stabs]

There's a rumor going around that the "long boards" BFL received are being sent back.  Has anyone heard or seen evidence of this?

[Garr255]

Assuming BFL delivers, I have a single SC coming I may not wish to operate. Would COGNITIVE think about setting up a hardware-for-shares scenario?

Possibly. We have done this in the past for an x6500 board, but that was because the hardware was actually in hand before we made the trade. Ping us again after you've received the hardware.