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

[investr]

How do you (or anyone) feel about diverting X% of dividends to a growth account to soften the dilution of shares from previous rounds of investment?

My opinion on the asic front is that none of these "companies" deserve a "pre-order" without a working prototype, pictures, press, and/or regulation. That's how real companies work. Even "companies" on Kickstarter show more responsibility than BFL has. Generally you balance out high risk stuff with low risk stuff, right? Rather than purchasing hardware that doesn't exist yet from three different sources, I'd rather see who delivers. Hopefully it's the one we already gave our money to.

That being said, it certainly is an exciting time for Bitcoin and I'm looking forward to seeing what happens in the next few months.

[Garr255]

How do you (or anyone) feel about diverting X% of dividends to a growth account to soften the dilution of shares from previous rounds of investment?

I think this is definitely a viable option, what would you say, about 25%?

And I feel similarly regarding the below, but we must also consider the fact that the earlier you purchase the higher the short-term return is (before the difficulty hike ~1 week after asics become massively used). It is also possible that BFL or another company will use the ASICs for themselves for some time and reap the rewards.

My opinion on the asic front is that none of these "companies" deserve a "pre-order" without a working prototype, pictures, press, and/or regulation. That's how real companies work. Even "companies" on Kickstarter show more responsibility than BFL has. Generally you balance out high risk stuff with low risk stuff, right? Rather than purchasing hardware that doesn't exist yet from three different sources, I'd rather see who delivers. Hopefully it's the one we already gave our money to.

That being said, it certainly is an exciting time for Bitcoin and I'm looking forward to seeing what happens in the next few months.

[Garr255]

Ngzhang has announced his new ASIC product, and it is currently the best offering so I believe we should invest in it.

Ngzhang is a trusted FPGA producer and is fully capable of delivering his product when he promises: Q1 2013.

For more information regarding his ASIC, see the thread here: https://bitcointalk.org/index.php?topic=110090.0

I will be raising a motion today or tomorrow which will last one week.

Edit:
Here is a draft for the motion:

If this motion passes, 2550 shares will be issued at 0.62 BTC each to purchase ten Avalon ASICs, as seen here: http://avalon-asic.com/ These are currently the best priced ASICs and I believe it is the best choice at the moment. The ASICs are produced by a trusted FPGA producer known as ngzhang. Attaining ASICs from multiple sources is an excellent way to diversify and ultimately reduce risk. After this order and all other ASICs arrive, we will have a total hashrate of 880 GH/s. The operator will maintain his contractually granted 10% and receive 10% of the new shares.

[Garr255]

The motion has been raised and is as follows:

If this motion passes, 2550 shares will be issued at 0.62 BTC each to purchase ten Avalon ASICs, as seen here: http://avalon-asic.com/ These are currently the best priced ASICs and I believe it is the best choice at the moment. The ASICs are produced by a trusted FPGA producer known as ngzhang. Attaining ASICs from multiple sources is an excellent way to diversify and ultimately reduce risk. After this order and all our BFL ASICs arrive, we will have a total hashrate of 880 GH/s. The operator will maintain his contractually granted 10% and receive 10% of the new shares.

Vote at:
https://glbse.com/vote/view/143

[Garr255]

Motion awareness bump! Vote yes for even larger dividends come Q1 2013!

https://bitcointalk.org/index.php?topic=67547.msg1215516#msg1215516

[stochastic]

The motion has been raised and is as follows:

If this motion passes, 2550 shares will be issued at 0.62 BTC each to purchase ten Avalon ASICs, as seen here: http://avalon-asic.com/ These are currently the best priced ASICs and I believe it is the best choice at the moment. The ASICs are produced by a trusted FPGA producer known as ngzhang. Attaining ASICs from multiple sources is an excellent way to diversify and ultimately reduce risk. After this order and all our BFL ASICs arrive, we will have a total hashrate of 880 GH/s. The operator will maintain his contractually granted 10% and receive 10% of the new shares.

Vote at:
https://glbse.com/vote/view/143

Is there also going to be a motion to make the company more growth oriented by not paying all revenue as dividends?

[Garr255]

Is there also going to be a motion to make the company more growth oriented by not paying all revenue as dividends?

This is an issue that will fundamentally change the way the company operates, so a motion will be raised after the current ASIC motion. So by all means, buy up some shares after this motion if you want some more voting power!

I do definitely believe that keeping some revenue for growth will prove hugely beneficial in the long term.

[investr]

Wow! 5@.45 and bids at .3

I don't think I've ever seen the price that low. What happened?

[Garr255]

Wow! 5@.45 and bids at .3

I don't think I've ever seen the price that low. What happened?

Perhaps somebody lost confidence in BFL. As of now we have a significant amount of funds with them. They are supposed to be the first ASIC company to deliver, so as long as we receive the ASICs according to plan (we're one of the earlier orders) Cognitive should be doing excellently.

I'm personally looking forward to the month ahead. Once we get a nice stock of ASICs Cognitive will be doing better than ever!

[conspirosphere.tk]

Cognitive should be doing excellently.

What's the plan B in case someone else beats BFL?

[Garr255]

Cognitive should be doing excellently.

What's the plan B in case someone else beats BFL?

The only option that I see currently is to diversify the current ASIC preorders. Currently nobody publicly plans to beat BFL, but many people are accepting the wait and going with other producers. This is another reason why we should invest in some ngzhang Avalon ASICs.

[URSAY]

Dropping like a rock.  Buy orders are at .15  

[stochastic]

Cognitive should be doing excellently.

What's the plan B in case someone else beats BFL?

The only option that I see currently is to diversify the current ASIC preorders. Currently nobody publicly plans to beat BFL, but many people are accepting the wait and going with other producers. This is another reason why we should invest in some ngzhang Avalon ASICs.

What about having a futures asset like BFLS does.  That way COGNITIVE can fund its current expansion plan but not reduce the dividend return while shareholders wait for the delivery of the ASICs.

[PinkBatman]

I'm loving these low prices! 

[investr]

Damn it, I missed the party?

[Garr255]

What about having a futures asset like BFLS does.  That way COGNITIVE can fund its current expansion plan but not reduce the dividend return while shareholders wait for the delivery of the ASICs.

That is definitely a good (although slightly controversial) way of doing it. If the current motion doesn't pass then this will be considered.

[Garr255]

Dividend paid! Plus my crew team did really well at our regatta today

Thanks go out to all investors, Cognitive has been a tremendously enlightening experience for me. Looking forward to getting some ASICs online in the coming months!

[burnside]

Is there also going to be a motion to make the company more growth oriented by not paying all revenue as dividends?

This is an issue that will fundamentally change the way the company operates, so a motion will be raised after the current ASIC motion. So by all means, buy up some shares after this motion if you want some more voting power!

I do definitely believe that keeping some revenue for growth will prove hugely beneficial in the long term.

I'd support redirecting 50% (or more) of revenue toward growth.  I believe that is the only way to stay on top of the curve and keep the dividend steady.  As long as difficulty is going up there are only two paths Cognitive can take:

  A) Spend a chunk on growth, pay the remainder as a (steady and reliable) dividend.

  B) Spend nothing on growth, pay a diminishing dividend until there's not enough coming in to keep the lights on.

[Garr255]

I'd support redirecting 50% (or more) of revenue toward growth.  I believe that is the only way to stay on top of the curve and keep the dividend steady.  As long as difficulty is going up there are only two paths Cognitive can take:

  A) Spend a chunk on growth, pay the remainder as a (steady and reliable) dividend.

  B) Spend nothing on growth, pay a diminishing dividend until there's not enough coming in to keep the lights on.

I agree. This and utilizing a futures fund when and if we want to issue more shares to expand.

I will raise a motion for this after the current one ends.

As an aside, I've noticed that I agree with nearly all suggestions made on this thread. This just goes to show that intelligent people invest in Cognitive

Edit:

Now we just have to decide the percentage of the revenue to be dedicated to growth. I suppose this could be done by using multiple motions. One (that needs 70%) to determine whether we dedicate x% of revenue to growth, and the others (that need best yes:no ratio) to decide the percentage to be reinvested in growth.

I think 50% would be optimal. We will likely be able to keep up with the latest in mining technology without temporarily diluting current shares before new hardware arrives.

[stochastic]

I'd support redirecting 50% (or more) of revenue toward growth.  I believe that is the only way to stay on top of the curve and keep the dividend steady.  As long as difficulty is going up there are only two paths Cognitive can take:

  A) Spend a chunk on growth, pay the remainder as a (steady and reliable) dividend.

  B) Spend nothing on growth, pay a diminishing dividend until there's not enough coming in to keep the lights on.

I agree. This and utilizing a futures fund when and if we want to issue more shares to expand.

I will raise a motion for this after the current one ends.

As an aside, I've noticed that I agree with nearly all suggestions made on this thread. This just goes to show that intelligent people invest in Cognitive

Edit:

Now we just have to decide the percentage of the revenue to be dedicated to growth. I suppose this could be done by using multiple motions. One (that needs 70%) to determine whether we dedicate x% of revenue to growth, and the others (that need best yes:no ratio) to decide the percentage to be reinvested in growth.

I think 50% would be optimal. We will likely be able to keep up with the latest in mining technology without temporarily diluting current shares before new hardware arrives.

I think 50% to 75% is good, but you also need to think about limiting currency exchange risk while you hold the bitcoins.  Also, I would avoid putting any coins in a high interest yielding bitcoin "bank" like was passed in a previous motion.  The recent past events show that many of these were exposed to HIYP scams.