[GLBSE] BFLS - Bitcoin Mining & Sales

[HorseRider]

how about the BFLS.Future? is there any sign of conversion?

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[Inaba]

As soon as BFL releases my remaining units, I will convert.  I sent an email this week to Sonny to see what was up, but I have yet to hear back from him.

[Inaba]

Ok, I expect to have the additional Singles units next week, so I will be converting BFLS.FUTURES shares once I have the units in hand.

If/When I upgrade the Singles to the ASIC units, I will increase the amount of shares available according to the cost involved with upgrading (if I have to pay $600 to upgrade a unit, I will allocate another 200 shares per unit) and each unit will then require 400 shares to trade in for an ASIC unit.

On another note, I am going to be opening up BFLS.RIG for sale, here's how it's going to work:

I have two mini-rigs on order right now, I expect them to be available soon.  One unit is already spoken for through previous investments, the other unit is going to be put up as BFLS.RIG shares. The previously allocated unit will also have shares allocated to it, and the parties involved may or may not be selling their shares either immediately or in the future.  6058 shares will be allocated in total for a Minirig for a total of 12116 shares in RIG. 6058 shares can be traded in for the hardware.  Similar to the Singles, I will be keeping 15% of the shares on the second unit.

Once the details of the ASIC unit orders are publicly available, I will double the shares available for the Rigs and make them available as well, at that point, it will take 6058 x 2 = 12116 shares to convert your BFLS.RIG shares into a Rig/SC.

Dividends on RIG will be paid out the same way BFLS is currently paid, on a weekly basis and the amount will be what the unit(s) generate that week. Obviously, no dividends on RIG will be paid until I actually have the units in hand and they are mining.

Initial price on RIG shares will be between .5 and .7 BTC per share.  This includes a small premium due to the funds lost while my orders are in limbo, since the money has already been allocated and spent for the units.  RIG shares purchased are for a share of the unit, not to help fund the purchase of a unit, like many other offerings.  I will also be reinvesting the funds into the ASIC orders, which means the ASIC units will be "pre" purchased already, and you will be buying into already purchased units, not funding the purchase of ASIC units.  This is an important distinction, since it means you'll start generating revenue much faster than a unit you would be "funding" the purchase of.

I plan on offering this later today, but I would like to solicit comments at this time.  Also, should I start another thread or maintain it in this one?

[Inaba]

I finally took delivery of the new BFL hardware.  Those of you wishing to convert BFLS.FUTURES, please contact me.  Include your user name on GLBSE and the number of shares you want to convert.

Then, transfer the BFLS.FUTURES shares back into the asset (or transfer them to me, GLBSE user name is, surprisingly "Inaba").  I will then issue you the appropriate BFLS shares.

[stochastic]

Will BFLS revenue also be reinvested to purchase ASICs?  If I read correctly BFLS.RIG will not pay dividends but instead reinvest the revenue into the purchase of ASICs.

I am surprised this asset does not have more demand for the BFLS asset.  The volume is pretty light.  Have you thought of just rolling the BFLS assets into each other so they are not competing with each other for volume?

[Inaba]

BFLS revenue will not be rolled into ASICs, it will continue to pay out dividends as normal.  When I upgrade BFLS to ASIC, I will issue more shares to account for the additional cost of the hardware and double the "share" cost of a unit from 200 shares to approximately 450 shares (not set in stone yet) to account for the increase in the cost of the hardware/upgrade cost.

I have a few other ideas I will be mentioning at some point in the future on the direction to go with that as far as BFLS goes as well.

For BFLS.RIG, it will pay dividends.  It's basically the same as BFLS, just with Minirigs.  Same deal on the upgrade to ASIC as well.  Rollings BFLS and BFLS.RIG was shot down by most people, which is why it's separate... read a few pages back in the thread for peoples thoughts on that.

BFLS and RIG aren't really intended to be a highly traded commodity... I think most people are investing for the dividends.  The difference between BFLS/RIG and other offerings is that all the hardware is paid for up front, out of my pocket and I pay out on what the unit earns.  You are basically buying into the hardware, not hashrate.  When you buy the BFLS and RIG shares, you are buying already purchased hardware, not paying for the purchase of future hardware (with the exception of BFLS.FUTURES of course) that may or may not materialize. 

[HorseRider]

If I understand it right, Inaba is intended to carry out a quite fair plan: the shareholders is and will be getting dividend payment until ASIC unit out ( since we all know quite well about the punctuality of BFL, this period may be longer than expected). When the ASIC out, the "company" pay Inaba shares to upgrade to ASIC. Then, the hash rate per share may be close to 10x as it is today.

[ciuciu]

If I understand it right, Inaba is intended to carry out a quite fair plan: the shareholders is and will be getting dividend payment until ASIC unit out ( since we all know quite well about the punctuality of BFL this period may be longer than expected). When the ASIC out, the "company" pay Inaba shares to upgrade to ASIC. Then, the hash rate per share maybe 10x as it is today.

Yes, this is a much better deal then GIGAMINING!

[coblee]

If I understand it right, Inaba is intended to carry out a quite fair plan: the shareholders is and will be getting dividend payment until ASIC unit out ( since we all know quite well about the punctuality of BFL this period may be longer than expected). When the ASIC out, the "company" pay Inaba shares to upgrade to ASIC. Then, the hash rate per share maybe 10x as it is today.

Yes, this is a much better deal then GIGAMINING!

This is actually an incredible deal. Inaba is fronting the prepay money to upgrade all the Singles and MiniRigs to ASIC. And Inaba is probably first in line to get the upgrades. So if you have BFLS or BFLS.RIG shares now, you will see a ~20x increase in dividends when ASIC comes out without having to put in more money. Thanks Inaba!

[DILLIGAF]

And Inaba is probably first in line to get the upgrades. So if you have BFLS or BFLS.RIG shares now, you will see a ~20x increase in dividends when ASIC comes out without having to put in more money. Thanks Inaba!

Indeed it is a welcome change who would have thought a straight forward honest proposal that continues to be so and I highly doubt he is first in line gigavps seems to have the inside track on the hardware from BFL, first with the singles he has rack full of them when everyone else has trouble getting even one then mini-rig first again I think it will be third time lucky as well...

[stochastic]

BFLS revenue will not be rolled into ASICs, it will continue to pay out dividends as normal.  When I upgrade BFLS to ASIC, I will issue more shares to account for the additional cost of the hardware and double the "share" cost of a unit from 200 shares to approximately 450 shares (not set in stone yet) to account for the increase in the cost of the hardware/upgrade cost.

I have a few other ideas I will be mentioning at some point in the future on the direction to go with that as far as BFLS goes as well.

For BFLS.RIG, it will pay dividends.  It's basically the same as BFLS, just with Minirigs.  Same deal on the upgrade to ASIC as well.  Rollings BFLS and BFLS.RIG was shot down by most people, which is why it's separate... read a few pages back in the thread for peoples thoughts on that.

BFLS and RIG aren't really intended to be a highly traded commodity... I think most people are investing for the dividends.  The difference between BFLS/RIG and other offerings is that all the hardware is paid for up front, out of my pocket and I pay out on what the unit earns.  You are basically buying into the hardware, not hashrate.  When you buy the BFLS and RIG shares, you are buying already purchased hardware, not paying for the purchase of future hardware (with the exception of BFLS.FUTURES of course) that may or may not materialize.  

OK, I understand on the upgrade now, but I must have missed the motion or asking shareholders if they want minirigs in with BFLS.  When you made the order from BFL from the BFLS.FUTURES you stated that you had enough for a minirig and singles.  So I assumed that the minirig was going to be part of BFLS.

...if anyone else wants in on BFLS.FUTURES, now is the time, before I place the order.  At least 1 rig box and more singles.. if anyone else wants in on a second rig box, speak up]if anyone else wants in on BFLS.FUTURES, now is the time, before I place the order.  At least 1 rig box and more singles.. if anyone else wants in on a second rig box, speak up

[Inaba]

Yeah, at the time, I had planned on combining them. If you want to transfer your shares from BFLS to BFLS.RIG, I am happy to do that for you.

[jamesg]

Indeed it is a welcome change who would have thought a straight forward honest proposal that continues to be so and I highly doubt he is first in line gigavps seems to have the inside track on the hardware from BFL, first with the singles he has rack full of them when everyone else has trouble getting even one then mini-rig first again I think it will be third time lucky as well...

Hi DILLIGAF,

Can I ask why you like to talk about me so much? Am I that interesting?

As for having a "rack full" of singles before everyone else, this is a blatantly false statement. Let me point you to the following links to help you get your facts straight.

Very first single I received. I only received 1 and was not the first to receive them. I was just the first to make a post about it.
https://bitcointalk.org/index.php?topic=65752.0

Here are some posts of the single farm growing, I ordered 10 after the 1, but received them in batches of three or four......
https://bitcointalk.org/index.php?topic=70611.msg813386#msg813386
https://bitcointalk.org/index.php?topic=70611.msg835294#msg835294
https://bitcointalk.org/index.php?topic=70611.msg850030#msg850030

If you are going to keep talking about me around the forums, please get your facts straight.

Best regards,
gigavps

[DILLIGAF]

Hi DILLIGAF,

Can I ask why you like to talk about me so much? Am I that interesting?

I don't like rip-off artists.

[coblee]

Inaba, can you comment on what happens when you slowly upgrade your FGPA Singles to SC Singles. I assume you won't be able to upgrade them all at once. I'm guessing since this is a pooled operation, you can share the extra hashrate with everyone.

I'm thinking it will go something like this. Let's say for example you have a total of 10 FPGA Singles. So there are 2000 shares outstanding. Come October, let's say you only get 5 SC Singles upgraded. So you immediately sell 233 shares of BFLS per device. 233 shares because each BFLS share represents $3 in equipement irrespective of hashrate and the SC upgrade is $700. So for the 5 units upgraded, you issue 1165 new shares and withhold 15% for yourself. That increases the total number of shares outstanding to 3165. You then have 5 fpga and 5 sc Singles mining for a week and the amount of BTC generated will be divided equally among the 3165 shares. Does that sound like the right way to do it?

To be fair, you should also send out a dividend right before the upgrade, so new owners do not get the benefit of the coins that were generated previously.

[Inaba]

Well, what will essentially happen is that I will front the money for the upgrade and take all the "doubled" shares for myself.  I will then sell whatever portion of the shares as I see fit.  I've already taken my 15% and if all the upgrade shares are in my account, the 15% of them are there by default.

So, even if I didn't sell any of the upgraded shares, everyone would still benefit from the upgraded hashrate.  But yes, I will be selling the upgraded shares, if there are any.  However, I am considering trading in all the singles for a portion of an additional rig.  If I do decide to do that, though, I will give plenty of notice and give people the opportunity of trading in their shares for the singles.  Got plenty of time on that front!

[Inaba]

So I have everything mostly worked out with GLBSE.  However, I screwed up and distributed shares before paying this weeks dividend for the rigs, so I have now mixed partial week shares with full week shares.  I should have paid the dividends then distributed the shares.

As such, I am going to roll the dividends into next weeks since this week was not a full week of mining and it would be a minor payment anyway.  This will allow for proper/fair dividend distribution to all share holders instead of shortchanging some people and others getting a much larger amount than they should.

This will allow me to get all the rigs mining from the same start time this week.

[yochdog]

Looking for some clarification on the dividend per share......

[Inaba]

Whatever the rigs earn that week is divided evenly.

[coblee]

Whatever the rigs earn that week is divided evenly.

The rigs dividend should be payed to BFLS.RIG and not BFLS, right? I'm not sure I understand why the payment to BFLS for last week was less than before. What did it have to do with the rigs?