μ - Bitcoin Venture Capital (Collecting Shareholders Data)

[friedcat]

The performance is fantastic. for the IPO investor, this week the MU gain a more than 4% return on investment. If someone buy all the shares at IPO with 300 BTC, MU earns 12.2 BTC for him this week. 4.3BTC is paid as dividend and rest of it will add to growth fund.

It's really fantastic.

In fact it's a result of a major dumping and market making this week.

[1713521795]

1713521795

[BurtW]

Great job.  Thanks!

[JWU42]

Nice work recently..

[friedcat]

Update

The "Investment Opportunity Study" has been modified to "Market Watch".

It will include some investment-neutral market information. Specifically, an index of GLBSE will be provided weekly!

The index will be calculated as the sum of the total market value of each asset, which belongs to a set chosen from all GLBSE assets. We are now considering this list:

FPGA.contract
BMMO
PureMining
Gigamining
TyGrr-Bot
MU

Of course the index is and could be only used purely for reference and fun.

Q: Why isn't my favorite asset on this list?
A: The list hasn't been determined yet. Plus, it's just our way of calculating a stock index and you could invent yours.

Q: Why are you doing this?
A: It's fun, and it might provoke a real professional stock index of Bitcoin stocks in the future.

Q: Why don't you open a new thread for the index?
A: We consider the index as a form of advertisement for MU.

Q: What if there are a bunch of new assets suddenly blooming and you have to contain them in your list?
A: We will work out a way to normalize the index calculation to make the index stable.

[S3052]

this is a great project. well done so far

[friedcat]

Great job.  Thanks!

Nice work recently..

this is a great project. well done so far

Thank you.

As you could see from our financial report, besides catching IPOs, we are doing arbitraging and market making as well. They are in principle just buying undervalued stocks and selling them when price rises, therefore already included in the contract of MU. But it would be better and more motivated for us if you guys could provide some further approval. (We assume all of you as major shareholders currently. )

[friedcat]

Will you invest in the BDK IPO? Thanks.

Maybe, but I checked through the BDK thread and found that the pre-IPO shares are all sold out.

[Kluge]

Will you invest in the BDK IPO? Thanks.

Maybe, but I checked through the BDK thread and found that the pre-IPO shares are all sold out.

Right. 1k shares are reserved for the IPO on May 2nd (I'll be placing an order to sell them @ .055BTC each). However, there are >200 shares already "reserved" through bid orders placed, which requires those potential buyers' commit to having BTC in their GLBSE account for over a week, which I believe indicates fairly high demand, and expect there to be a kind of "auction" at the IPO. Whoever bids the most at time of IPO receives the shares.

The way I've decided to sell BDK profits works a bit like a pyramid. All funds raised through the public offerings, which will occur in small amounts on the second day of each month for at least four months, will boost BDK's equity and thus (ideally) dividends paid out. As the amount "IPO" shares are sold for will likely increase significantly every month, early adopters are greatly rewarded, both in a lower price for shares than later buyers, and also in that they stand to see dividends (and presumably, aftermarket share value) increase significantly each month as more funds are raised through public offerings since future public offerings do not devalue shares already held.

However, if there is an "auction-style" IPO, I honestly have no idea how much BDK IPO shares will sell for. Already at a 10% markup over pre-IPO shares, there appears to still be quite a bit of interest. Potential investors should be very careful not to screw themselves over, as next month, I may sell IPO shares @ .055BTC again, even if people bought @ .08 on May 2nd. Or maybe I'll sell IPO shares @ .075BTC next month -- who knows? Lots of risk -- should be plenty of meat on the bone for investors, though. I purposefully sold the initial IPO shares at a loss for me with regards to income I'll receive each month.


I don't mean to be a hype-peddler, but this should put everything in perspective for those who already did the math and figured the initial IPO shares are being sold at a loss for me: in the first month's IPO, I'm expecting to sell 5% of total shares for ~275BTC, but once all the shares are sold in 2-3 years, I want no less than 40k BTC raised through public offerings. I have no idea if I'll grow BDK to the size I want, but I do enjoy challenges.

[friedcat]

Will you invest in the BDK IPO? Thanks.

Maybe, but I checked through the BDK thread and found that the pre-IPO shares are all sold out.

Right. 1k shares are reserved for the IPO on May 2nd (I'll be placing an order to sell them @ .055BTC each). However, there are >200 shares already "reserved" through bid orders placed, which requires those potential buyers' commit to having BTC in their GLBSE account for over a week, which I believe indicates fairly high demand, and expect there to be a kind of "auction" at the IPO. Whoever bids the most at time of IPO receives the shares.

The way I've decided to sell BDK profits works a bit like a pyramid. All funds raised through the public offerings, which will occur in small amounts on the second day of each month for at least four months, will boost BDK's equity and thus (ideally) dividends paid out. As the amount "IPO" shares are sold for will likely increase significantly every month, early adopters are greatly rewarded, both in a lower price for shares than later buyers, and also in that they stand to see dividends (and presumably, aftermarket share value) increase significantly each month as more funds are raised through public offerings since future public offerings do not devalue shares already held.

However, if there is an "auction-style" IPO, I honestly have no idea how much BDK IPO shares will sell for. Already at a 10% markup over pre-IPO shares, there appears to still be quite a bit of interest. Potential investors should be very careful not to screw themselves over, as next month, I may sell IPO shares @ .055BTC again, even if people bought @ .08 on May 2nd. Or maybe I'll sell IPO shares @ .075BTC next month -- who knows? Lots of risk -- should be plenty of meat on the bone for investors, though. I purposefully sold the initial IPO shares at a loss for me with regards to income I'll receive each month.


I don't mean to be a hype-peddler, but this should put everything in perspective for those who already did the math and figured the initial IPO shares are being sold at a loss for me: in the first month's IPO, I'm expecting to sell 5% of total shares for ~275BTC, but once all the shares are sold in 2-3 years, I want no less than 40k BTC raised through public offerings. I have no idea if I'll grow BDK to the size I want, but I do enjoy challenges.

Thanks for your reply.

In fact, we ourselves don't believe much in the prediction of the profits in the next month, let alone the month after that. A large spike in Bitcoin price would easily make some of your borrowers unable to repay. Bad loans may happen all the time even if there are no scammers.

But still, we might watch the market reaction and then decide whether to join in your IPO carnival.

[friedcat]

Weekly Financial Disclosure

Time: 10:06 AM, Beijing time
Date: Apri. 25, 2012

Funds of Last Week: 52.725 BTC

Assets:

Cognitive
Original: 130shares 73.580BTC
Bought in: 23shares 12.880BTC
Average Holding price: (73.580+12.880)/(130+23)=0.565BTC
Sold: 153shares 93.980*(1-0.5%)=93.510BTC
Average Selling Price: 0.611BTC
Holding: 130+23-153=0shares 0.000BTC
Net Gain: 93.510-73.580-12.880=7.050BTC
Dividends Paid: 0.632BTC

BitBond
Original: 155shares 92.250BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 0.595BTC
Sold: 21shares 13.177*(1-0.5%)=13.111BTC
Average Selling Price: 0.624BTC
Holding: 155+0-21=134shares 79.730BTC
Net Gain: (0.624-0.595)*21=0.609BTC
Dividends Paid: 1.522BTC

Gigamining
Original: 70shares 91.700BTC
Bought in: 0shares 0.000BTC
Average Holding Price: 1.310BTC
Sold: 30shares 46.010*(1-0.5%)=45.780BTC
Average Selling Price: 1.526BTC
Holding: 70+0-30=40shares 52.400BTC
Net Gain: (1.526-1.310)*30=6.480BTC
Dividends Paid: 0.892BTC

Holding Funds=
52.725-12.880+93.510+0.632-0.000+13.111+1.522-0.000+45.780+0.892=195.292BTC

Total Net Gain=
7.050+0.632+0.609+1.522+6.480+0.892=17.185BTC

Calculated Dividends: 17.185*35%=6.015BTC

Usable Funds: 195.292-6.015=189.277BTC (The CEO does not take any fee this week)

Actual Dividends: 6.01479BTC (For Adjusting the rounding errors)

[friedcat]

The MU Index for GLBSE

30.85 (kBTC)
157.87 (kDollar)

BTC Price: 5.117$

TyGrr-Bot
  Category: Long Term Bond
  Business: Arbitraging
  Shares in Circulation: 7122
  Closing Price: 1.110BTC
  Total Value: 7905.420BTC
  Total Value in Dollar: 40452.034$

PureMining
  Category: Perpetual Bond
  Business: Mining
  Shares in Circulation: 10000
  Closing Price: 0.370BTC
  Total Value: 3700.000BTC
  Total Value in Dollar: 18932.900$

GigaMining
  Category: Perpetual Bond
  Business: Mining
  Shares in Circulation: 5000
  Closing Price: 1.490BTC
  Total Value: 7450.000BTC
  Total Value in Dollar: 38121.650$

Cognitive
  Category: Stock
  Business: Mining
  Shares in Circulation: 5000
  Closing Price: 0.580BTC
  Total Value: 2900.000BTC
  Total Value in Dollar: 14839.300$

FPGA.contract
  Category: Stock
  Business: Mining
  Shares in Circulation: 6000
  Closing Price: 0.440BTC
  Total Value: 2640.000BTC
  Total Value in Dollar: 13508.880$

BFLS
  Category: Stock
  Business: Mining
  Shares in Circulation: 2000
  Closing Price: 1.100BTC
  Total Value: 2200.000BTC
  Total Value in Dollar: 11257.400$

BMMO
  Category: Stock
  Business: Mining
  Shares in Circulation: 6620
  Closing Price: 0.350BTC
  Total Value: 2317.000BTC
  Total Value in Dollar: 11856.089$

SS
  Category: Stock
  Business: Fund
  Shares in Circulation: 610
  Closing Price: 1.500BTC
  Total Value: 915.000BTC
  Total Value in Dollar: 4682.055$

MU
  Category: Stock
  Business: Fund
  Shares in Circulation: 3000
  Closing Price: 0.275BTC
  Total Value: 825.000BTC
  Total Value in Dollar: 4221.525$

[friedcat]

The Normalization Method

If new asset(s) are included in the list, the result will be normalized using this coefficient:

O/(O+N)

If asset(s) are removed from the list, the result will be normalized using this coefficient:

(O+N)/O

O: The Index of the old assets in the last week
N: The Total Value of the specific asset(s) in the last week

[highlevelminer]

Excellent.

Its nice to know investors and businesses can have an exact formula where they can estimate and account for future growth.

[friedcat]

Update

Our fund's name is shortened from the awkward "muBit" to a single Greek letter "μ", since it is already called so by most of people, including ourselves.

[BurtW]

Update

Our fund's name is shortened from the awkward "muBit" to a single Greek letter "μ", since it is already called so by most of people, including ourselves.

That it!  I am pulling all my money out!  You can't just change the name all willy-nilly

[exahash]

Update

Our fund's name is shortened from the awkward "muBit" to a single Greek letter "μ", since it is already called so by most of people, including ourselves.

That is!  I am pulling all my money out!  -snip-

I would, but not because of the name change.

First, a suggestion to friedcat and anyone else with a fund or etf: use mark to market and publish your NAV (Net Asset Value) and NAV/share as frequently as possible.

Let's compute the NAV based on last night's financial report:

Cash: 189.277
Bitbond: 134 @.6319 = 84.6746
Gigamining: 40 @1.48 = 59.2

Those prices are the lesser of last trade or ask right now (2:15 PM Eastern US time).  I didn't use bid prices (which would be lower) so as not to unfairly bias my math.

NAV = 333.1516
Shares issued and outstanding: 3000
NAV/share = .11105 BTC

Last trade for MU was @.275 current best ask is @.269 - that's more than double the NAV/share!

The premium to NAV/share is .269 - .11105 = .15795  WOW!

But it pays a dividend you say?!  About .002/share yesterday.  Let's pretend it will be that profitable for many many weeks.  .15795 / .002 = 78.975  So it will take 79 weeks (about 1.5 years) to recover that premium using the dividend.

Not knocking you, friedcat, but someone's got a lot of faith in you, congrats!  :-)

I can buy "regular" ETF's near or even below NAV on US stock markets.  Either the folks trading MU are bad at math, or must think MU will be accelerating its revenue big time.

[N12]

I haven’t done the research on this asset, but perhaps it is a case of the Greater Fool Theory.

Some people may be aware of it and just expect there to be new people who are bad at math to buy them later on, or even new people who expect new people who are bad at math.

[friedcat]

Update

Our fund's name is shortened from the awkward "muBit" to a single Greek letter "μ", since it is already called so by most of people, including ourselves.

That it!  I am pulling all my money out!  You can't just change the name all willy-nilly

Well, I think that "MU" or "μ" was already the de-facto name used more widely than the long and cumbersome "muBit".

[friedcat]

Update

Our fund's name is shortened from the awkward "muBit" to a single Greek letter "μ", since it is already called so by most of people, including ourselves.

That is!  I am pulling all my money out!  -snip-

I would, but not because of the name change.

First, a suggestion to friedcat and anyone else with a fund or etf: use mark to market and publish your NAV (Net Asset Value) and NAV/share as frequently as possible.

Let's compute the NAV based on last night's financial report:

Cash: 189.277
Bitbond: 134 @.6319 = 84.6746
Gigamining: 40 @1.48 = 59.2

Those prices are the lesser of last trade or ask right now (2:15 PM Eastern US time).  I didn't use bid prices (which would be lower) so as not to unfairly bias my math.

NAV = 333.1516
Shares issued and outstanding: 3000
NAV/share = .11105 BTC

Last trade for MU was @.275 current best ask is @.269 - that's more than double the NAV/share!

The premium to NAV/share is .269 - .11105 = .15795  WOW!

But it pays a dividend you say?!  About .002/share yesterday.  Let's pretend it will be that profitable for many many weeks.  .15795 / .002 = 78.975  So it will take 79 weeks (about 1.5 years) to recover that premium using the dividend.

Not knocking you, friedcat, but someone's got a lot of faith in you, congrats!  :-)

I can buy "regular" ETF's near or even below NAV on US stock markets.  Either the folks trading MU are bad at math, or must think MU will be accelerating its revenue big time.

Thank you very much. I like your criticism. We will calculate the NAV out in future financial reports. But we have to explain some of my points here:

1. It is common that an asset is traded at a price far above (NAV/number of shares). If you liquidate a company of great performance, the money you get could be comparative to the NAV, and I believe that it will usually be much less than the market value. Just take GLBSE mining stocks as examples, if you use 1000BTC to buy GPUs, the NAV automatically shrinks to less than 600BTC after the first minute they are plugged onto motherboards, and if you buy FPGAs, I believe the NAV will be less than 200BTC after they are used for the first time. How long should shareholder wait to fully recover the price difference?

2. Yes, it will take 1.5 years to recover that premium. But even at this price level, the time is still shorter than some of the mining companies on GLBSE.

3. We are not an ETF, we are a venture capital fund, and besides hunting IPOs and startups, we are also doing arbitraging, market making, and anything that could bring our shareholders greater returns.

4. I myself, as many folks do, think MU will be accelerating its revenue in all scales of time. This is why I started MU in the first place.

[friedcat]

I haven’t done the research on this asset, but perhaps it is a case of the Greater Fool Theory.

Some people may be aware of it and just expect there to be new people who are bad at math to buy them later on, or even new people who expect new people who are bad at math.

I think the Greater Fool Theory does apply to many circumstances. But a large price increase does not necessarily mean that the Greater Fool Effect is a dominant factor. While the rise of Bitcoin price from 2010's 0$ to last June's 20$ might be mainly caused by the Fools, the rise from 2010's 0$ to today's 5$ is probably not.