[GLBSE] BFLS - Bitcoin Mining & Sales

[server]

How do the IPO's on GLBSE work? Is it highest bidder get the sale? Is it all shares are sold at the IPO price or done via auction ie highest first?

Highest bids first.

[rdponticelli]

I'm not going beyond 0.76. It's a great offer, but there's always a lot of things that could go wrong...

[m_yaw]

OK, we are live!

[filharvey]

Is that all the shares released? Looks like only about 1000 were released.

Phil

[Inaba]

Ok, I released all the available shares.  Took me a few minutes to figure out how to handle it... getting the hang of GLSBE slowly.  

I will be making another offering for the MiniRig future, as well as releasing more shares for this asset as soon as I get more hardware in.

900 were released for public sale, 800 are pending at the moment to guarantee that no single entity will gain all the shares.  The other 300 are the 15%, for a total of 2000, or 10 units worth.  I wish I could see what accounts acquired the shares - I assume more than one or two people were able to acquire at least some shares?

[JWU42]

Agreed - based on the BTC volume showing 703 seems like 1000 shares...

[tgmarks]

How long will the 800 be pending for?

[stochastic]

Waiting just makes it more likely that big money gets all the shares.  They can take the time to look to see where the current bids are and bid the highest.

[Inaba]

I will be transferring the 800 manually, not through public sale to assure the same person doesn't snatch up all of the publicly available shares.

I am going to create a new asset called BFLS.FUTURES . This will be a non dividend paying asset that you can trade for BFLS shares when hardware becomes available.  You will be able to trade 1:.85 as new hardware arrives.  So 100 shares of BFLS.FUTURES will get you 85 shares of BFLS.  I will increase the number of shares available for BFLS as new hardware is added and remove shares from public circulation as hardware is removed, so share dilution should never happen as the corresponding hashrate increase will increase the per-share dividend value.  If more hardware comes online than is covered by BFLS.FUTURES, then I will offer BFLS shares for public sale, but BFLS.FUTURES holders will have priority over public sale.

The above is subject to modification as I flesh out this idea a bit more, but I wanted to get it out there to get some comments and see if anyone sees a flaw in this plan.

[coblee]

I will be transferring the 800 manually, not through public sale to assure the same person doesn't snatch up all of the publicly available shares.

I am going to create a new asset called BFLS.FUTURES . This will be a non dividend paying asset that you can trade for BFLS shares when hardware becomes available.  You will be able to trade 1:.85 as new hardware arrives.  So 100 shares of BFLS.FUTURES will get you 85 shares of BFLS.  I will increase the number of shares available for BFLS as new hardware is added and remove shares from public circulation as hardware is removed, so share dilution should never happen as the corresponding hashrate increase will increase the per-share dividend value.  If more hardware comes online than is covered by BFLS.FUTURES, then I will offer BFLS shares for public sale, but BFLS.FUTURES holders will have priority over public sale.

The above is subject to modification as I flesh out this idea a bit more, but I wanted to get it out there to get some comments and see if anyone sees a flaw in this plan.

How would you determine which of the BFLS.FUTURES shares get transfered when you get new hardware? Or will you only release BFLS.FUTURES shares for the exact number of new hardware you have or plan to get.

[Inaba]

I'm not sure I totally understand the question - I will release X number of BFLS.FUTURES shares and with the proceeds order the hardware.  Once it arrives, share holders can trade in their BFLS.FUTURES shares for BFLS shares... there will never be more BFLS.FUTURES shares than there is hardware on order (with a reasonable lag time between share sales and ordering). 

I haven't figured out the value of X yet, but it's somewhat immaterial, since they are effectively vouchers for BFLS shares and thus no dividends are paid on them.  I'm thinking maybe a total of 2 minirig and 15 singles worth is the right number, so about 13,400 shares, though I may make that a random number around that value to give an odd number of shares, so people have a chance to buy them as opposed to people buying even block numbers and snatching them all up.

[coblee]

Why not 1:1 ratio to keep things simple?

[Inaba]

Yeah, I was just thinking about that... for sanity sake, I will just do a 1:1 ratio and take the 15% off the FUTURES shares as opposed to the BFLS shares.  So BFLS.FUTURES shares can be traded for BFLS shares at a 1:1 ratio when hardware becomes available.

[Vbs]

Yeah, I was just thinking about that... for sanity sake, I will just do a 1:1 ratio and take the 15% off the FUTURES shares as opposed to the BFLS shares.  So BFLS.FUTURES shares can be traded for BFLS shares at a 1:1 ratio when hardware becomes available.

Yeah a 1:1 ratio will simplify a lot.

As for avoiding just a very few ppl snatching all shares, maybe using some kind of small batch round robin assignment would work? You'll have to do it manually, based on user forum info here (or other differentiation mechanic), since GBLSE is anonymous and anyone can create accounts at will.

[Inaba]

Yeah, that would probably be best.  If you want shares, contact me via PM with the number of shares you wish to purchase and at what price.  I will be offering a portion of the shares privately, so I can be sure that multiple people get them and then I will offer the rest on the public exchange.

[zapeta]

Yeah, that would probably be best.  If you want shares, contact me via PM with the number of shares you wish to purchase and at what price.  I will be offering a portion of the shares privately, so I can be sure that multiple people get them and then I will offer the rest on the public exchange.

What will the price for these shares be?  Will it be a 15% discount from the IPO price of BFLS, or 15% off the current market price?

[jamesg]

Yeah, that would probably be best.  If you want shares, contact me via PM with the number of shares you wish to purchase and at what price.  I will be offering a portion of the shares privately, so I can be sure that multiple people get them and then I will offer the rest on the public exchange.

Inaba, it seems (to me anyway) like you are trying to back your offer with singles, but at the same time you do not want to give them up.

[Vbs]

Inaba, it seems (to me anyway) like you are trying to back your offer with singles, but at the same time you do not want to give them up.

Until BFL starts shipping them with regularity, I think he should hold onto them. Otherwise, this asset is just a guaranteed "quick" (45 days) shortcut for buying singles, with a delivery estimate you can count on, unlike the delivery dates of BFL that we know are written in sand. So, for some people, having a definite date is worth paying premium.

Where I live, FNAC selled the iPhone 4 on its release day for 1200€ (at that time, ~$1740). It still sold out!

[Inaba]

I'm not trying to hold on to them, but I want to get a rotation going, otherwise I'm just selling shares for singles with no dividends to return to investors.  Ideally, I would like to have at least 10 singles and 1 MiniRig physically mining at a minimum (thus ~7200 shares outstanding) and I can rotate more in as hardware allows.  As VBS said, it would just be a way to get quick singles or an MR otherwise, which is not the intention.

I got a ton of PMs with regards to the shares, I want to be clear to everyone that I am going to be offering shares of BFLS.FUTURES, which is a non-dividend paying asset that you can trade, once the hardware is physically in my possession for BFLS shares.  BFLS shares will pay dividends, BFLS.FUTURES will not.  BFLS shares will be always be backed by physical hardware, BFLS.FUTURES will be 'backed' by hardware on order.

As far as the price for BFLS.FUTURES, it will be the same .7 BTC initial offering as BFLS shares, since it's a 1:1 trade when hardware arrives.

My thought is that if/when you buy BFLS.FUTURES shares, you contact me and tell me how many shares you bought and when and I will put your name on a list.  Once the hardware arrives, each share will be traded for BFLS shares in the order you bought/contacted me with your intention to trade BFLS.FUTURES for BFLS.  I realize some people may just be interested in trading both BFLS and BFLS.FUTURES, so this may be irrelevant to some of you - but the # of shares purchased is what will buy your place in line, not an individual, so if someone wants to buy BFLS.FUTURES shares and sell them later at a premium because they are "first" in line, that's fine - it's the shares that are holding the place, not any specific individual.  I hope that makes sense.  

Since GLBSE has no way for me to verify who bought how many shares when, I have to go with the contact/list route... until such time as GLBSE offers this ability, I can't see any other way to do it.  

[Inaba]

Ok, I think I've responded to all the PMs, if not, I apologize, please contact me again.

I am offering BFLS.FUTURES shares as per these conditions:

BLFS.FUTURES is a non-dividend stock that will be used to allocate BFLS parent shares as hardware comes online. BFLS.FUTURES shares may be traded for BFLS shares on a 1:1 basis when BFLS shares become available. BFLS shares will be increased as new hardware is available, and BFLS shares will be reduced as hardware is taken offline. This is to prevent share dilution of BFLS shares. If more hardware is put into service than BFLS.FUTURES shares covers, BFLS shares will be given to public sale. Purchasing BFLS.FUTURES shares will grant the bearer priority allocation of BFLS shares when they are available, before any public sales. Share allocation will be on a first come, first served basis. When you purchase BFLS.FUTURES shares, you must contact the issuer with the date of purchase and amount of shares if you wish to be allocated BFLS shares in a priority manner. Your SHARES hold the place in line for BFLS shares, not any individual. If you later sell your shares prior to allocation of BFLS shares, the new owner will then be in place for BFLS shares. You must notify the issuer of the sale and to whom the shares are being transferred.

If you wish to purchase shares prior to the IPO, please contact me with the number of shares of BFLS.FUTURES you want and at what price.  I will allocate out shares so they are as equitably distributed as possible.  Once that is done, I will offer additional shares for public sale.