[Cryptostocks] Bitbond 200Gh/s 105% PPS mining bond - Relaunched

[amazingrando]

Does Bitbond use GPUMAX?

totaleclipseofthebank, I think a more relevant question may be how much exposure does BITBOND have to Pirate and Pirate's service GPUMax?

The main page for the BITBOND security states:

What if you have technical issues/downtime?
I have more than 120Gh now and another 180Gh/s coming online in June.  Should there be any downtime, I will contribute hashes from my personal farm to ensure the full dividend is paid each week.

Since the bond is now for 100,000 units or 210GHs therefore I am interested in some updated statements regarding the liquidity of BITBOND. Here are three questions I asked Gigavps that I would like answers from AmazingRando.

To better judge your credit worthiness the three material pieces missing are (1) what amount of GHs is currently operational and producing, (2) what PPS% is it earning, and (3) how many unencumbered bitcoins do you have in your possession allocated for building or buying more rigs.

As a significant long investor, I would appreciate answers to assess the BITBOND liquidity and potential Pirate or other counter-party exposure.

Of course, I understand the sensitive nature of #3 and would not need an affirmative statement if there is significant (ex. 25%+ or 262.5GHs+ at 100% PPS) earning capacity in bitcoins in excess of debt service.

Apologies for a slow reply to this.  I have not been following the thread much this past week.

Let me answer each question.

1) I have never kept coins with Pirate nor pass throughs or other instruments that would expose me to risk from Pirate's HYIP.

2) Yes, I do mine on GPUMax.  After a long period were public shares were not being leased on GPUMax, it has recently been leased 100%, allowing for 130% PPS.  If GPUMax daily payouts were to stop I can easily switch to other pools.  This coming week I will be moving away from Maxbtc and Ozcoin and starting to use a combination of GPUMax, Bitminter, and 50btc.

3) In answer to the question of my general PPS earnings, it varies between 100% and 130% with the average being a narrow range around 112%

4) My total hashing capacity is 305 Gh/s.  We will be moving data centers within the next two weeks.  This will give us more power to expand.  Meanwhile, I operate at least 200 Gh/s on a continuous basis (often considerably more).  With new power, I will operate at least 300 Gh/s on a continuous basis and expand further.

5) I have significant cash reserves, enough to provide several weeks of payouts.  I also keep a modest amount of coins on hand and will accumulate more if the exchange rate is favorable.

[1715093306]

1715093306

[amazingrando]

Sorry for the delay in the weekly payout.  Having an issue with GLBSE.  Hopefully resolved soon...

Update:  Issue resolved.  Payout should be made shortly  PAID

[Bitinvestor]

Sorry for the delay in the weekly payout.  Having an issue with GLBSE.  Hopefully resolved soon...

Still waiting. You seem to have problems with GLBSE almost every week. Maybe you should start paying a bit earlier?

[amazingrando]

Sorry for the delay in the weekly payout.  Having an issue with GLBSE.  Hopefully resolved soon...

Still waiting. You seem to have problems with GLBSE almost every week. Maybe you should start paying a bit earlier?

I was having issues with GLBSE for quite a while.  Two factor authentication was the culprit.  Even if I tried to pay a day early, it was still taking a long time to resolve.  Other times GLBSE was so slow the transaction wouldn't go through or a deposit wouldn't show up.  If there was a better way to do distributions I would jump on it in a second.

I'll see if I can't try the transactions a bit earlier though, as you suggested, so that when there are problems the wait won't be as long.

[amazingrando]

Nefario mentioned in one of the threads that he plans to add the ability to schedule a payment. Sounds like when that comes it will help.

Yes, I've talked with him about that more than once.  Seems like there is always something "higher priority"    Hopefully it makes it to the top of the list soon.

[amazingrando]

Weekly coupon payment paid!   

[amazingrando]

This week's coupon has been paid.  Enjoy!

[amazingrando]

Weekly payment paid

[amazingrando]

Weekly payouts in progress - little slow at the moment.   

[Fjordbit]

This stock is an excellent example of how the market isn't pricing in the reward reduction. It's currently trading at a 125 week ROI assuming no difficulty changes. If I could short it, I would.

Note: this is nothing against your company, just your shareholders are acting very irrationally.

[amazingrando]

This stock is an excellent example of how the market isn't pricing in the reward reduction. It's currently trading at a 125 week ROI assuming no difficulty changes. If I could short it, I would.

Note: this is nothing against your company, just your shareholders are acting very irrationally.

The next few months will be quite interesting. The reward halving is only one of the major changes coming.  Given that there are three variables at work (reward, difficulty, value in fiat), it is quite difficult to have a clear sense of where things will end up.  The introduction of ASICs and upgrades to bonds will further muddy the waters.  We may only be able to determine if investors are behaving irrationally post hoc.

[Fjordbit]

The next few months will be quite interesting. The reward halving is only one of the major changes coming.  Given that there are three variables at work (reward, difficulty, value in fiat), it is quite difficult to have a clear sense of where things will end up.  The introduction of ASICs and upgrades to bonds will further muddy the waters.  We may only be able to determine if investors are behaving irrationally post hoc.

Yeah, I didn't want to muddy the water with difficulty stuff. Even if all the ASICs don't come out, there are increases in diffuculty coming from minirigs etc coming online, but the reward halving some something that known and I see so many times people say "the effect is priced in," but I don't see that happening here. I like GLBSE because there's some interesting data on investor behavior. I'm looking forward to examining the chart near the reward halving time (although ASICs may also be coming out then too, which will add noise).

[sunnankar]

I see so many times people say "the effect is priced in," but I don't see that happening here.

There are four significant variables which introduce uncertainty: ASICs, difficulty, fiat exchange rate and mining operator solvency.

One reason may be that the main post, one page one before the dividend record, has not been upgraded in a long time. Consequently, potential investors have to sift through 12 pages in order to get an accurate view of what is currently happening. As a result, they may be unaware of the ASIC upgrade plan, solvency of amazingrando relative to other mining bonds, etc.

[amazingrando]

I see so many times people say "the effect is priced in," but I don't see that happening here.

There are four significant variables which introduce uncertainty: ASICs, difficulty, fiat exchange rate and mining operator solvency.

One reason may be that the main post, one page one before the dividend record, has not been upgraded in a long time. Consequently, potential investors have to sift through 12 pages in order to get an accurate view of what is currently happening. As a result, they may be unaware of the ASIC upgrade plan, solvency of amazingrando relative to other mining bonds, etc.

This is a good point.  Bitbond was the second bond to go into operation and has been running consistently for almost 7 months now.  There's a lot that be said about out solvency by way of significant extra capacity, that we never had any investment with Pirate and thus had no losses from him, and that we have an exciting ASIC upgrade path.

I'll redo the original post to highlight these points.

[sunnankar]

I'll redo the original post to highlight these points.

It is important to remember that all Mh/s are equal; but some Mh/s are more equal than others.

[amazingrando]

Weekly payout paid.  Have a great week! 

[Bitinvestor]

BITBOND ASIC Upgrade Program Announcement
A while back I put in an ASIC order with BFL.  Today I am announcing my plans for the BITBOND ASIC upgrade.  I have shared the plan with large investors already and would like to have your feedback as well.  

Here are the broad strokes.  When the ASICs arrive, BITBONDs will be converted to BITBOND.ASIC.  BITBOND.ASIC will be a 100% PPS bond and act just as BITBOND does today, except at a higher hash rate courtesy of the ASICs.  All bondholders at the time of the conversion will receive a free upgrade.  Bondholders have the option of a paid upgrade as well, as outlined below.  

* Free:  2M/s BITBOND converts to 12.5Mh/s BITBOND.ASIC for free
* Small upgrade:  2M/s BITBOND converts to 45Mh/s BITBOND.ASIC for 0.25 btc
* Large upgrade: 2M/s BITBOND converts to 450Mh/s BITBOND.ASIC for 5.5 btc

Now that BFL has upgraded the performance of their ASICs by 50% you should be able to increase your hash rates per bond as well, right?

[amazingrando]

BITBOND ASIC Upgrade Program Announcement
A while back I put in an ASIC order with BFL.  Today I am announcing my plans for the BITBOND ASIC upgrade.  I have shared the plan with large investors already and would like to have your feedback as well.  

Here are the broad strokes.  When the ASICs arrive, BITBONDs will be converted to BITBOND.ASIC.  BITBOND.ASIC will be a 100% PPS bond and act just as BITBOND does today, except at a higher hash rate courtesy of the ASICs.  All bondholders at the time of the conversion will receive a free upgrade.  Bondholders have the option of a paid upgrade as well, as outlined below.  

* Free:  2M/s BITBOND converts to 12.5Mh/s BITBOND.ASIC for free
* Small upgrade:  2M/s BITBOND converts to 45Mh/s BITBOND.ASIC for 0.25 btc
* Large upgrade: 2M/s BITBOND converts to 450Mh/s BITBOND.ASIC for 5.5 btc

Now that BFL has upgraded the performance of their ASICs by 50% you should be able to increase your hash rates per bond as well, right?

Yes, I am in the process of revising the upgrade path based on recent information.  Once I feel comfortable with a revised plan I will circulate it for comments with investors.

[Deprived]

Upgrading your offering may well help.  As someone who day-trades and has been looking at various stocks, here's why your share price has crashed:

Compare what you offer to Gigamining.

You:

Bitbond at .21

* Free:  2M/s BITBOND converts to 12.5Mh/s BITBOND.ASIC for free
* Small upgrade:  2M/s BITBOND converts to 45Mh/s BITBOND.ASIC for 0.25 btc
* Large upgrade: 2M/s BITBOND converts to 450Mh/s BITBOND.ASIC for 5.5 btc

free = .0168 per mh/s
small = .46/45 = .01022 btc per /mh/s
large = 5.71/450 =  .01268 btc /mh/s

Now look at Gigamining's (each tera bond is 9 Mh/s):

Giga .56

Free - 36 mh/s
paid - 81 mh/s

    FREE UPGRADE: This is a one for four swap of GIGAMINING for the bond.
    PAID UPGRADE: This is a one for fifteen swap of GIGAMINING for the bond. A payment of .29 BTC per GIGAMINING bond is also required.

free = .015555 BTC per mh/s
paid = .85/(15*9) = .00629 BTC per mh/s

Two things are obvious:

1. At current market share prices you get more mh/s for your BTC with giga than with you.
2.  Now your share price has dropped your large upgrade no longer makes any sense.

You need to roughly double the mh/s your large offer gives you make it competitive with giga AT CURRENT SHARE PRICES.  More than double it if you want the share price to rise (unless giga's falls).  The free upgrade isn't all that uncompetitive - a 50% rise in that would make it better value than giga's: though who in their right mind will take the free upgrade anyway?

The sharp share-price fall was just the market revaluing your share in an entirely rational manner.  Hence why Giga's didn't fall in the same way.  Nothing to do with bad management - just bad value (at the old price).

[odolvlobo]

This stock is an excellent example of how the market isn't pricing in the reward reduction. It's currently trading at a 125 week ROI assuming no difficulty changes. If I could short it, I would.

Note: this is nothing against your company, just your shareholders are acting very irrationally.

It is naive to assume that the price of a bond is based just on its payout. If that were the case then Treasury bonds paying 0.25% per year would be practically worthless.