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

[Garr255]

Any news on the BFL or Avalon units?

Sadly I don't think anyone other than first day people have reported getting a unit.

Also Avalon has not sent out chips in bulk yet.

Please correct me if I am wrong.

That's correct, Goat.

[drewmsmith]

What about our BFL chip credits?  Also did you hear back from any of the avalon unit sellers?

[Garr255]

What about our BFL chip credits?  Also did you hear back from any of the avalon unit sellers?

From how things are looking I believe it'd be best to sell our chip credits. I'm talking to a number of Avalon resellers right now and they are all wanting between 130-160 btc for an in-hand unit. I'm going to try to get one at the low end of that range.

Is there any argument on putting our BFL chip credits for sale?

[medicine]

What about our BFL chip credits?  Also did you hear back from any of the avalon unit sellers?

From how things are looking I believe it'd be best to sell our chip credits. I'm talking to a number of Avalon resellers right now and they are all wanting between 130-160 btc for an in-hand unit. I'm going to try to get one at the low end of that range.

Is there any argument on putting or BFL chip credits for sale?

Not from me. I dont think we should send bfl more money.

I completely agree.  I believe their (BFL's) incompetence and lack of progress is almost grounds for legal action at this point.

[tehelsper]

Maybe we should wait on what the next AsicMiner product is. Aren't they supposed to announce a new mini-blade and maybe other upgrades in the next couple days?

Edit:

More like next couple hours. Anyone think these would be a good idea? ROI looks to be about 3 months.

https://bitcointalk.org/index.php?topic=99497.msg2695650#msg2695650

rockxie just announced  the  new&mini blade. Here: http://vdisk.weibo.com/s/Jk4aV

new blade: 10GH/s=18.88BTC Group buy 18.68BTC
mini blade: 5GH/s=9.88BTC     Group buy 9.68BTC

[Garr255]

Recently I have been offered the opportunity to purchase two 80+ gh/s avalon units in exchange for the shares help by cognitive. This actually is exactly what the shares that are currently held by Cognitive were intended for, so as long as there are no objections to this, I will make the transaction and we will have increased our hashrate by multiple orders of magnitude

Maybe we should wait on what the next AsicMiner product is. Aren't they supposed to announce a new mini-blade and maybe other upgrades in the next couple days?

While I will openly consider this as an option, I would rather not feed competitors directly unless it is in our absolute best interest to do so.

--Garrett

[Tafelpoot]

Garret, could you provide more details on the opportunity? When would you be able to receive these avalon units? And will you share this good news on btct ?

[Garr255]

Garret, could you provide more details on the opportunity? When would you be able to receive these avalon units? And will you share this good news on btct ?

We are currently negotiating a price (in Cognitive shares) for each unit. They are currently in possession of the seller so they would be hashing for us within a week of the purchase. I will certainly share the good news on btctc once we make the transaction

[drewmsmith]

Garret, could you provide more details on the opportunity? When would you be able to receive these avalon units? And will you share this good news on btct ?

We are currently negotiating a price (in Cognitive shares) for each unit. They are currently in possession of the seller so they would be hashing for us within a week of the purchase. I will certainly share the good news on btctc once we make the transaction

Will these shares be newly created or removed from treasury shares?  I'd prefer the latter as it wouldn't further dilute our shares and might take a dent out of that 1000 btc wall that is currently sitting at the .62 share price.

[Garr255]

Garret, could you provide more details on the opportunity? When would you be able to receive these avalon units? And will you share this good news on btct ?

We are currently negotiating a price (in Cognitive shares) for each unit. They are currently in possession of the seller so they would be hashing for us within a week of the purchase. I will certainly share the good news on btctc once we make the transaction

Will these shares be newly created or removed from treasury shares?  I'd prefer the latter as it wouldn't further dilute our shares and might take a dent out of that 1000 btc wall that is currently sitting at the .62 share price.

The latter is correct -- these are coming from the treasury shares, which will be beneficial to everyone.

The price we have agreed on is 900 shares for two avalons that hash at over 80gh/s each. I am going to send the 900 shares to JohnK to be our escrow, and the seller is going to send one of the units via 2 day expressmail. Once I recieve the first unit, JohnK will release half escrow and the next unit will be shipped.

I believe this is a great move for Cognitive, as we're actually going to be mining at a higher capacity instead of waiting around and sitting on hundreds of coins and shares!

Cheers,
Garrett

[Code_red]

So if I am understanding this correct we traded around 300btc worth of shares for 160 GH/s or around 25-30k USD. So that is like a 4-6 month recovery time at best if the network doesn't jump like crazy which it has been.

[BTCThousandaire]

I'm curious, are you considering buying active mining hardware?

[Garr255]

So if I am understanding this correct we traded around 300btc worth of shares for 160 GH/s or around 25-30k USD. So that is like a 4-6 month recovery time at best if the network doesn't jump like crazy which it has been.

It is 0.3*900=270 btc at the current rates, which is a much better deal than the 170+ per unit in-hand Avalons are selling for now.

I'm curious, are you considering buying active mining hardware?

I'm not interested in anything that isn't ready to ship at this point. As a company, Cognitive needs to get more miners online ASAP.

[drewmsmith]

We should still have the same amount of BTC funds in reserves after this transaction as it's paid for purely with stock.  Do we have any other offers on the table where we can spend some of our btc on hand to get more hashing power?

[Garr255]

We should still have the same amount of BTC funds in reserves after this transaction as it's paid for purely with stock.  Do we have any other offers on the table where we can spend some of our btc on hand to get more hashing power?

That is correct. And yes, I am currently negotiating with multiple people regarding Avalon pre-orders and physical units. It might also be worthwhile to look into KNCminer. Additionally, I am testing some BitFury chips this week, and we might want to place an order for some of their chips.

I'll keep the thread updated!

Best,
Garrett

[Garr255]

We should still have the same amount of BTC funds in reserves after this transaction as it's paid for purely with stock.  Do we have any other offers on the table where we can spend some of our btc on hand to get more hashing power?

That is correct. And yes, I am currently negotiating with multiple people regarding Avalon pre-orders and physical units. It might also be worthwhile to look into KNCminer. Additionally, I am testing some BitFury chips this week, and we might want to place an order for some of their chips.

I'll keep the thread updated!

Best,
Garrett

How much would Cog pay for an in hand BFL 60 ghs ASIC?

Thanks.

Following the pricing schedule we are paying for the Avalon, I believe 300 shares would be a fair price for this. We do have sufficient shares in the treasury account so this will not be a problem.

Are there any objections? I am all for getting our hashrate up ASAP therefore would like to take you up on this offer if you're interested and there are no disagreements

Cheers,
Garrett

[Garr255]

P.S. One of our two shiny new Avalons should arrive and be hashing on Saturday, and the other one next week!

[medicine]

Very happy that the waiting game may soon be ending.  I'm no investment expert, but I would offer that selling shares right before company ramps up mining isn't the best time to sell, yet some people are selling in front of our eyes.
Those pictures of boxes containing Avalon shipments over at thebitcoinchannel look promising as well.

[davos]

Have any of the funds raised from the COG.F issue been used yet? Is there a timeline on distributing those shares?

[stabs]

P.S. One of our two shiny new Avalons should arrive and be hashing on Saturday, and the other one next week!

Did it arrive today?