(9/11/12) BDK is ceasing operations effective immediately due to crushing negative equity. BDK-holders who did not take part of the voluntary recall will receive .02BTC/share under the negative equity provision on 11/26 or ASAP if Nef allows it.
(6/30/12) Current and prospective BDK unit-holders, please read the new contract which will go into effect on September 4th, 2012 at https://bitcointalk.org/index.php?topic=77343.msg999596#msg999596
(7/11/12) BDK suffered massive losses in July as part of a liquidity crisis. Dividends will be "suspended" until early August. Details @ https://bitcointalk.org/index.php?topic=77343.msg1024725#msg1024725What does BDK do?
The primary goal of BDK is to lend money where needed to stimulate the growth of Bitcoin-associated business. BDK additionally purchases and resells securities as well as invest in various Bitcoin-associated ventures for equity stakes. For details on BDK's finances & operations, go here: https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&output=htmlWhat is this offering, exactly?
Each share (I'm calling them shares, but this is more of a debt instrument -- it's a share of the profits, but "BDK" does not represent equity) represents .0009% of BDK weekly profit, paid every Monday. I add operating profits, deduct operating expenses, then pay out the amount due to shareholders. After that, I deduct personal expenditure from the amount my shares have earned. Everything leftover goes into BDK coffers. These "units" for sale are non-voting and do not represent equity.How many shares are being sold?
Up to 5k shares will be sold on the second day of each month (until after the offering on the second day of August, when a new scheme may be in place). 4k shares may be sold pre-IPO, while at least 1k shares will be reserved for the IPO and sold on the open GLBSE market to the highest bidders. There are 100k shares in total. Since each share represents .0009% profit, that means up to 90% of BDK profit will be sold.I still don't entirely understand how the offering works.
Until after August 2nd, I will be issuing up to 5,000 shares on the second day of each month. Up to 4,000 of those shares can be pre-purchased early. The remaining 1,000 will be sold on the open market through an ask order at the IPO price I determine before-hand. Nobody's guaranteed to get the 1k shares being offered on GLBSE - they go to the highest bidder at the time I place the ask order.Why don't you sell all the shares at once and get it over with?
Every time I offer profit shares to the public, equity and (ideally) dividends increase. Each month, this means 4.5% of BDK's profits are more valuable than the previous month's. I'm quite familiar with the effects of compound interest and believe this is the best way to move forward most profitably and fairly. While early adopters will almost certainly be rewarded the most, BDK will, by design, always be growing, and doesn't depreciate in value like mining hardware, so the way I'm doing it, everybody should win. What happens if BDK loses money?
The losses will carry over until the "profit balance" is positive. There will be no dividends until the "profit balance" is positive. The operator may choose to eat the losses and not roll over losses, just pay nothing for the week where there are losses, but that is entirely at my discretion.How much of BDK's funds are invested in Pirate?
None. I don't know if you're credible...
Then don't invest. I'm not desperate for your money. BDK is already operational and I appreciate all my investors, but there is certainly no necessity to sell BDK's profits for more funds up-front -- this only accelerates BDK's growth and ability to positively impact the economy. Eventually, I will initiate a buyback (see the provision in the contract for details) and operate without accountability to anyone but myself. Talk to enough people and I believe you'll find I've always stuck to my agreements and try to be generous while leaving very healthy margins for myself. A few people have my ID, but I'd rather not post it publicly.[/b]June 2012 Net Income Expectations
Optimistic estimate: 85BTC
Reasonable estimate: 50BTC
Pessimistic estimate: 25BTC(Guesstimated weekly dividend payouts -- June 4th: 0.0BTC/share Actual: 0.0BTC/share, June 11th - .00063BTC/share Actual: 0.00121358BTC/share, June 18th - .00014BTC/share Actual: 0.000406688BTC/share, June 25th - .00036BTC/shareActual: 0.00023112BTC/share)GLBSE page: https://glbse.com/asset/view/BDKUpdate: July 2nd IPO is next up. There will be no market order, but up to 4k units can be purchased up until the end of July 2nd @ .22/unit for anyone interested.
Ben Malec (referred to within this contract as "me," "myself," "I," and "operator") will issue 100,000 shares of "BDK Hybrid Instrument." Each share not controlled by the operator represents .0009% of BDK's monthly profit. Dividends will be paid every Monday, starting May 7th, 2012. Dividends will not be paid on the first of the month unless that happens to be on a Monday. 100,000 shares will be issued. Up to 5,000 shares are to be sold on the second day of each month for four months, starting on the month of May, 2012. After that time, shares may be issued at will of the operator.
"Operator Equity" - The operator holds all equity of BDK. Shares are not tied to equity, and represent only .0009% of BDK monthly profits.
"Shareholder Votes, Non-binding Motions" - While motions may be introduced, they are non-binding. They exist only so the operator may gauge opinion of those invested in BDK's success.
"Change of Contract" - The operator is fully permitted to change the contract at will, without consent of shareholders. However, the modified contract is not permitted to go into effect until sixty days after the changes are made public. When the contract is changed, the operator will honor the ability for shareholders to sell shares back to him at a price of .125 Bitcoins per share between the time a change is made and the time 60 days have elapsed since the change was made public.
"Buyback" - At any time, the operator is permitted to buy back shares issued. The operator will pay .64 Bitcoins per share if the operator buys back BDK shares prior to August 3rd, 2012. If August 3rd, 2012 or later, the operator will pay ((.32 Bitcoins + GLBSE 5 day weighted average of trade transaction amount per share of BDK shares)/2)
"Share Value Protection" - If shares trade for less than ฿.01 on GLBSE for at least 168 hours continuously, the operator MUST issue a bid order of ฿.05 in an amount which equals 50% of shares issued not controlled by the operator. The "168-hour timer" does not again reset for 26 weeks after the "Share Value Protection" provision was last called to action.
"Negative Equity and Operator Liability" - BDK is permitted to operate while having negative equity so long as BDK has not had negative equity for 90 consecutive days. On the 90th day of having negative equity, the operator will be held personally liable to pay shareholders $.10/share (or ฿.02/share, whichever value is lesser). In cases where BDK is unable to achieve due to reasons unrelated to BDK experiencing prolonged negative equity (operator experiencing imprisonment, debilitating illness, GLBSE being hacked and made unusable, EMP strikes, police raid, or death, for example), the operator is not liable.
"IPO Value Preservation, Operator Trading" - The operator is not permitted to ever sell shares for less than he previously sold them for. However, he may sell shares for an amount equal to or greater than the amount he previously sold them for at will.