[GLBSE] BFLS - Bitcoin Mining & Sales

[Inaba]

Sorry I haven't gotten the new stats page up yet.  Things keep getting in the way of my time!

I paid out dividends today, you all should have them in your accounts for BFLS share holders.  Still waiting on the rest of the hardware.

[1715250993]

1715250993

[Epoch]

Thanks for the updates, Inaba.

[Inaba]

Dividends paid out just now.  Continuing to bring new hardware online...

Been swamped with the new server deployment and haven't had a chance to work on the stats page.  I hope to get to that this week.

[Inaba]

Since it looks like I will be hanging on to at least some GPUs for the near term future, I would like to ask what you guys think of me rolling some of my GPU power into BFLS offerings.  In the unlikely event someone wanted a GPU, I'd be willing to trade BFLS shares for GPU hardware as well - but I wanted to get the shareholders thoughts on rolling GPU power into the offering.

Since my GPU farm is/was so large, I always have at least a couple cards down/in for RMA, which is one of the primary reasons I  want to migrate to primarily FPGA mining, so income from the GPU based shares would be slightly reduced depending on hardware luck/failure, though I don't imagine it would be drastically reduced.

What's everyone thoughts on that?

[Epoch]

What's everyone thoughts on that?

As long as this does not reduce the existing expected dividend/share payout (i.e. one BFLS share being equivalent to 1/200th of the net profit from a BFL Single), it doesn't matter.

However this may not be possible to achieve because the profit from an 800Mhps FPGA is much greater than that from an 800Mhps GPU; I wouldn't want the addition of GPUs to reduce net shareholder profit.

Remember that currently, depending on electricity rates, anywhere from 1/4 to 1/2 of the profit from GPU mining goes to paying electricity. FPGAs don't have that problem. If an 800Mhps FPGA earns 10BTC, 9.5BTC of that is profit. If an 800Mhps GPU earns 10BTC, only 5-7BTC of that is profit.

The situation gets even worse in December when the block reward drops to 25BTC: GPU profitability, again depending on local electricity rates, will be hit much harder than FPGA profitability.

So what are the options?

One way is to reduce the # of shares allocated to a GPU. For example, 200 BFLS shares currently represent a BFL Single (~800Mhps). You wouldn't want to make 200 shares represent a 5970 (also 800Mhps) because a 5970 is much less profitable even though it has the same hashrate. So you might want to allocate only, say, 120 shares for a 5970 to account for its lowered 'net' hashrate (gross hashrate minus its running cost in electricity). That's just an example.

But even this breaks down when the block reward drops in December. Continuing to operate the GPUs will drag down overall profits per megahash; something that should be avoided.

A better way (perhaps the only fair way) of handling this is to create a new GLBSE offering strictly for GPU mining. That way you can keep the high-efficiency FPGA mining separate from GPU mining. They each have a different income/expense/profit profile, and should be best treated separately.

Those are my thoughts for now.

[xkrikl]

I'd also say keep it separate.
Pajka

[Inaba]

Seems 2 factor authentication has gotten screwed up on GLBSE, and I am unable to login to issue dividend payments.  I will issue them as soon as I am able to login - probably tomorrow sometime.

[Inaba]

I am still unable to login to GLBSE and Nefario has not responded to my support request as of yet...

[Inaba]

Ok, got access and dividends have been paid.

[coblee]

I assume your dividend payment is calculated after electricity cost, right? Your dividend payment for this week is equivalent to about 880 mhash/s per bfl single without even counting electricity cost. Are you using something like GPUMAX to get higher than PPS?

[Inaba]

Yes, BFLS is utilizing a number of different methods to get better than PPS rate when possible.  I'm not guaranteeing anything better than the flat PPS rate, but when fortune is good everyone gets a cut!

[nathanghart]

Any updates on futures equipment?

[Inaba]

Very soon, waiting on a last batch of units now.  Hoping by the end of the week.

[Vbs]

*crossing fingers*

[Inaba]

Apparently I managed to break GLBSE again, it's trying to charge me 265,795,000 BTC to transfer some shares that were issued erroneously.  Needless to say, the funds in my account are woefully short of 265 million BTC.  I can't issue dividend payments until those shares are reclaimed into the asset account so it won't dilute the dividend payments.

As soon as GLBSE support gets back to me and the issue is straightened out, I will issue dividend payments.

PS - if I ever do have 265 million BTC @ 5 USD or more per share, ya'll are on your own cause I'm out!

[BinaryMage]

Very soon, waiting on a last batch of units now.  Hoping by the end of the week.

Any update on this? Those of us with futures shares are on the edge of our seats.

[Inaba]

Dividends for last week have been paid.

This week should see the last of the hardware, I hope.

[Bitcoin Oz]

I was searching for mining companies that are mostly invested in BFL singles and found yours.

[DiabloD3]

Inaba, whats the exact number of mh per bond?

[Inaba]

Roughly 4 MH per share net.  Though dividends have been paying out a bit more than that.