[GLBSE] BFLS - Bitcoin Mining & Sales

[yochdog]

Whatever the rigs earn that week is divided evenly.

Ahhhh, so your cut came up front, and no ongoing expenses is subtracted from mining revenue?

How many GH/s is BFLS?

[1713467920]

1713467920

[1713467920]

1713467920

[Inaba]

Rigs dividends are paid to RIG and BFLS is paid to BFLS. 

The units did not generate as much in funds last week, but it was still above PPS.  I have been turning down the GPUs that I was supplementing BLFS with slowly, but surely. 

With regards to RIG, my cut comes in the form of 10% of the shares go to me for operating costs, so there's no ongoing costs as it were for the shares you own.  I just keep 10% (or 605 shares) of a RIG if I sell all the shares.  So 5453 shares go up for sale for a rig, basically, and you need 6058 to trade in for a rig.

[yochdog]

Rigs dividends are paid to RIG and BFLS is paid to BFLS. 

The units did not generate as much in funds last week, but it was still above PPS.  I have been turning down the GPUs that I was supplementing BLFS with slowly, but surely. 

With regards to RIG, my cut comes in the form of 10% of the shares go to me for operating costs, so there's no ongoing costs as it were for the shares you own.  I just keep 10% (or 605 shares) of a RIG if I sell all the shares.  So 5453 shares go up for sale for a rig, basically, and you need 6058 to trade in for a rig.

So how many GH/s are you slinging?

[Inaba]

~50 for RIG and a bit over 25 for BFLS at the moment.

[yochdog]

~50 for RIG and a bit over 25 for BFLS at the moment.

Sweet....thanks for the info. 

[xkrikl]

Hi Inaba,
what has happend that now we pay dividends to 400 shares more?
Pajka

[Inaba]

More singles were added (2) and another one this week.

[xkrikl]

Thanks for the update.

What does this exactly mean?

The units did not generate as much in funds last week, but it was still above PPS.  I have been turning down the GPUs that I was supplementing BLFS with slowly, but surely. 

Are you just taking the GPUs out of service while they are still profitable?
Or are you about to sell them to use the funds for another BFLS purchase or ASIC upgrade?

[Inaba]

I am taking them out of service.  I am sick and tired of supporting them and RMAing fans and crap all the time.  They also take up a ton of space and generate a lot of heat.  I will probably miss the heat this winter, but I have minirigs to keep me warm.

[xkrikl]

I am taking them out of service.  I am sick and tired of supporting them and RMAing fans and crap all the time.  They also take up a ton of space and generate a lot of heat.  I will probably miss the heat this winter, but I have minirigs to keep me warm.

Ok, but then the dividends will drop even more ...
How big is the GPU part?

And you can sell them and buy us some BFLS or use the money for upgrade to ASIC anyways.
What is the plan?

[Inaba]

I'm not sure how that would change anything?  If I added more singles, I would add more shares and thus your payout would remain the same.  The plan is to upgrade the singles into a mini-rig SC when those become available.

[stochastic]

I'm not sure how that would change anything?  If I added more singles, I would add more shares and thus your payout would remain the same.  The plan is to upgrade the singles into a mini-rig SC when those become available.

Will BFLS shares then be turned into BFLS.RIG shares?

[Inaba]

Yeah, I will convert them to RIG shares at some point.

[xkrikl]

I'm not sure how that would change anything?  If I added more singles, I would add more shares and thus your payout would remain the same.  The plan is to upgrade the singles into a mini-rig SC when those become available.

So you mean that the GPU mining income was just a temporary bonus?

[Inaba]

Yeah, until all of the singles came in.  They came in a long time ago, but I didn't feel like reconfiguring all the GPUs so I left them mining on the BFLS system until I take them offline.

[Inaba]

I will post here when I have more information on the situation.  I'm afraid I don't know anything more than anyone else and I just found out about GLBSE closing for good, so I'll work through the issues and get everyone squared away ASAP. 

[Inaba]

Ok, so I'm just as in the dark as everyone else with regards to GLBSE, but here is how I am going to handle the BFLS and BFLS.RIG.  Fortunately, since BFLS and BFLS.RIG were never designed as a security, bond or anything of the sort things are fairly easy.  GLBSE was a way for me to handle payments being divided up easily among a number of owners of the BFL hardware - this means I can pretty easily make the transition away from GLBSE.  BFLS and BFLS.RIG has always been a way for us to split the costs of purchasing a single or a minirig, so it's not really a hindrance, as I made no profit on shares traded, etc... and thus have no accounting to worry about as far as that goes.

What  you need to do:

Send me an email with the subject beginning: GLBSE:

In that email include the following:

Your GLBSE user name
Number of shares you hold of both BFLS and BFLS.RIG
BTC Payment address

Obviously, I will need to verify that information with the GLBSE records, assuming they are forthcoming as potentially promised.  Once that information is verified, I will include you in the payout rotations.  I will be withholding payouts temporarily to unverified shares/shareholders until they can be verified.

BFLS and BFLS.RIG will be combined into one payment, and BFLS "shares" will be converted into BFLS.RIG "shares" at a rate of 1.21:1, so for every 1.21 "shares" of BFLS you own, you will get 1 "share" of BFLS.RIG - this is because the monetary value of BFLS.RIG is slightly more than BFLS.  This actually works out well, as I was intending to upgrade the singles to an ASIC minirig anyway, doing away with BFLS all together. 

I will continue with the Sunday night payouts, but they will be sent directly to your wallet going forwards.  I had a substantial chunk of funds in GLBSE for payouts when it went down, so here's to hoping it's recoverable. 

[RHA]

6058 shares is for 1 minirig.  (...)
On another note, I will be exchanging BFLS shares for BFLS.RIG shares for anyone that wants to convert on a 1:1 basis.

I thought the 1:1 ratio was a bit unfair for BFLS assets owners, but we could live with it.

However:

BFLS and BFLS.RIG will be combined into one payment, and BFLS "shares" will be converted into BFLS.RIG "shares" at a rate of 1.21:1, so for every 1.21 "shares" of BFLS you own, you will get 1 "share" of BFLS.RIG - this is because the monetary value of BFLS.RIG is slightly more than BFLS.

If my math is right, the above ratio is even more unfair than 1:1.

Why 1.21?  Is it ($600/200) / ($15000/6058) = 1.2116 ?  But it is in opposite direction: 1 BFLS = 1.2116 BFLS.RIG
Precisely:
1 single worth of $599 gives 200 BFLS shares. One BFLS equals to $599/200 = $2.995
1 minirig worth of $15295 gives 6058 BFLS.RIG shares. One BFLS.RIG equals to $15295/6058 = $2.52476...
So the monetary value of BFLS.RIG is slightly less than BFLS, not "more than".
In effect: 1 BFLS = 1.186251 BFLS.RIG
Or: 0.843 BFLS = 1 BFLS.RIG, so the ratio should be 0.843:1

Maybe I didn't take into account something important, so correct me, please.

[Inaba]

I'm going to have to go over the numbers again.  I was trying to factor in the administrative hold back on the shares and I may have screwed that up.

For simplicity sake, maybe we should just stick with 1:1 and I will make up the difference from my personal holdings as required. 

[repentance]

Fortunately, since BFLS and BFLS.RIG were never designed as a security, bond or anything of the sort things are fairly easy. 

Really.  That sounds like an admission that you intentionally misled people in your OP.

Initial offering of BFLS @ 0.7 BTC / share.  BFLS is a public offering for stock in an FPGA mining company with the ability to acquire the mining assets at any given time.

I love how everyone who tried to make their offerings sound legitimate by using language which has real world legal meaning now wants to have it both ways and claim that they weren't really offering shares, bonds or other securities, they just called them that.  Either you were offering stock to the public or you misled people by claiming you were making a public offering of shares.  You can't have it both ways.