[GLBSE] BDK -- LIQUIDATING UNDER NEGATIVE EQUITY PROVISION --

[Kluge]

My wife now has instructions on how to do a forced recall in the event of my death or incapacity. I will put together a plan in the event of the both of us dying within a few months as I decide who to trust with it.

-snip-

"Operator Incapacity" - In an event where the operator of BDK is incapacitated due to death, kidnapping, imprisonment, or something else along those lines (arbiter & lawyers can hash it out over what's "along those lines"), the operator's wife is to initiate a buyback as instructed in the "Buyback" provision. If this is not done within 90 days of the operator's incapacitance, shareholders are entitled to sue the estate of the operator for the amount they're due under the "Buyback" provision. In case where James McCarthy ("Nefario") is presented a death certificate by the operator's wife and she is able to provide login details for the operator's GLBSE account, James McCarthy is authorized to instruct the operator's wife on how to proceed with disbursement of due funds. It is also authorized that James McCarthey receive the amount due by the operator and disburse the funds himself according to this provision. Shareholders should be permitted to see the death certificate of the operator.

I think my wife would be pretty upset about my death, probably not thinking about paying out my bitcoin peeps right away.

... Well.  ... 

Anyway -- good idea. I'll check into it and make changes within a couple hours. Thanks.

ETA: Changed "wife" to "executor of estate." However, only my wife has the password to the instructions. I really don't trust anyone else with it right now, but things change.

[Kluge]

Last Valuation on 5/3 -- today is 5/17

GLBSE Securities Re-valuation (reconciliation between BDK sheets & GLBSE):
TyGrr: BDK - 2.08BTC/share, GLBSE - 1.9BTC/share -- total loss of 44.46BTC on paper
Cognitive: BDK - .58BTC/share, GLBSE - .59001BTC/share -- total gain of 14.28BTC on paper
Gigamining: BDK - 1.509BTC/share, GLBSE - 1.519BTC/share -- total gain of 8.47BTC on paper
BitcoinTorrentz: BDK - .931BTC/share, GLBSE - 1.19BTC/share -- total gain of 1.04BTC on paper

Total equity FMV change since last valuation -- loss of 20.67BTC

[Kluge]

There's a minor issue with the Icarus boards causing them to reset once every 2 days or so. I'm guessing it's related to the USB hub or cables. Simply disconnecting the hub from the PC and reconnecting it solves the problem. Will get it sorted out by end of tomorrow.

If any investors or potential investors (either in BDK or BDK.BND) have questions, comments, whatever - feel free to hit me up on Skype (Name: Ben Malec -- Skype Name: bdk_kluge -- add a note so I can recognize you as someone from here and not a rando commando). I also hang out in #bitcoin-assets. I'm almost always logged in, but not always on. Probably not snubbing you if it takes me a day to respond. 


For those interested in CDs and don't have interest in receiving bonds on GLBSE, feel free to PM me and we can work something out. I was hoping to do everything on GLBSE, but liquidity on BDK.BND is terrible right now and completely understand if someone'd rather do CDs. As well, I'm willing to convert BDK.BND to a CD if you'd like.

Cheers!

[Kluge]

There's a minor issue with the Icarus boards causing them to reset once every 2 days or so. I'm guessing it's related to the USB hub or cables. Simply disconnecting the hub from the PC and reconnecting it solves the problem. Will get it sorted out by end of tomorrow.

This situation might be resolved now. They no longer pass through a USB hub. If they both still go down around the same time, my second guess is that it may be a networking issue. My connection goes through three different routers and hiccups once a day or so.


ETA: Ozco.in image is delayed by ~10m, I believe, so just give it a few minutes to update if you're really interested. BDK.BND also received a 2000BTC buy this morning. BDK.BND now pays ~105BTC/month for 2630BTC, which is unprecedented and fantastic -- I'm really pleased. BDK has recently greatly increased its position in Cognitive, and I'm glad to be a part of it. I should be able to point to a Hermes announcement within a couple weeks. All the proceeds of the Pirate withdrawal will be going toward that project, and BDK is also investing in another yet-to-be-announced project as well as YABMC bonds under market price. So - exciting stuff.

ETA2: I'll make another announcement when I have the funds from the Pirate withdrawal today.

[Kluge]

Pleased to announce I've successfully withdrawn all funds from Pirate today. BDK now has no exposure at all to Pirate. I don't even lend to 100% insured pass-throughs. 

It seems the issue with Cutesy Puff 1&2 are resolved, and I've updated the OP to provide more information in a hopefully-more-coherent way. I'll get around to clearing it up even more in the next couple days. If anyone still has questions, please ask.

I'm also considering offering bonds which, over-simplified, pay face value + a partial % of BDK's %RoE. This should allow people to invest in BDK bonds which are "usually" higher than 1% but also insulates BDK from risk of over-paying. This would be kind of a hybrid between BDK & BDK.BND... likely lower return than BDK, likely higher return than BDK.BND, but higher risk than BDK.BND, with the spread between true %RoE and partial %RoE paid to bondholders used to boost BDK profits. However, they'd have a clear face value I'd try to maintain with walls on both sides, which I don't do at all with BDK (though I do with BDK.BND to provide a marginal amount of liquidity). Dunno, still thinking of how exactly to work it out.

[Kluge]

id like more information and would like to see how this will effect the bdk share price and dividends.

thanks

Being out of Pirate was a contingency of the 2k BDK.BND buy, and I've been turned down for CDs before for being exposed to Pirate. I believe I'll be able to consistently get more money at relatively low rates by having no exposure. The money investing in pre-IPO GLBSE securities has been far better than I expected, too.

That said, it's worth noting ~507.6 of ~807.6 of profits this month came from Pirate interest. I don't think I'll have trouble earning 6-15% monthly on the funds which were in Pirate, and the additional 2k BTC from being out of Pirate should bring profits pretty close to what they were, without worry of BDK one day losing 3k BTC on an extremely high-interest gamble. I had 3k in Pirate earning 28%. That'd be 840BTC/month revenues. Let's assume I can get 10% consistently, and I have the extra 2k from being out of Pirate. 1% of 2k paid weekly = a bit over 80BTC in interest on the bond per month. 10% of 5k = 500. So, I should get ~420BTC instead of 2x that keeping it all in an uninsured Pirate account, and I'll never have to answer "Why would you risk >3k of BDK's money with someone who's never presented ID, who you've never met, who won't even tell you where he lives, and refuses to disclose what he's doing while taking in tens of thousands of BTC each month?"

I still think it's very possible Pirate's doing something which could bring in what he's claiming, but I'd never loan to someone just because it's plausible they could pay back what they promise.

In total, BDK is extremely close to reaching the milestone of 10k BTC in assets. I think we can beat this month's profits in July (I don't have high expectations for June, and this month has been unprecedented as far as the profit margin [>15% %RoE this month, and we're just a bit over halfway through]), and it should only be up from there.

[bitdragon]

This sure is interesting times:)
Would love for 100 shares at 0.20 as my debut with GLBSE if anyone is up for that?

[Kluge]

I'll be paying dividends in ~6h. ETA: Sorry for being a jerk -- I'll be paying dividends when I wake up tomorrow (going to sleep right now). Dividends will be a bit lower than expected -- ~.00249/share instead of .0027/share due to the huge influx of new deposits which will benefit dividends longer-term. I pay BDK.BND dividends before BDK dividends.

Additionally, fwiw, I plan on awarding myself a salary starting in July. While the earnings from "my shares" are currently almost entirely reinvested in BDK, I plan to award myself a salary of 40% of non-public earnings (fwiw, that's currently 95.5% of BDK earnings). For instance, this month, I'd be paid ~$1600. I think that's an amount shareholders will find quite reasonable while allowing me to buy tampons, diapers, ramen, and other luxury items demanded of a cyber-lender. These will be counted as "personal expenditure" and not affect shareholder dividends except to reduce company growth.


Cheers,

Ben

[Kluge]

Dividends will go out in ~1h. Some small trades executed while I slept and I haven't reconciled fees from GLBSE's .csv with Google Docs sheet in a few days.

[Kluge]

MAY 21 UPDATE
Dividend/share paid: .002496BTC/share
Total dividend paid: 12.48BTC
Running total dividends paid in May: 35.45101BTC

May 2012 Net Income Expectations
Optimistic estimate: 840BTC
Reasonable estimate: 820BTC
Pessimistic estimate: 800BTC
(Guesstimated weekly dividend payouts -- May 7th: .0021BTC/share Actual: .0021331436BTC/share -- May 14th: .0028BTC/share Actual: .00246BTC/share-- May 21st: .0027BTC/share Actual: .002496BTC/share-- May 28th: .000135BTC/share)

Spreadsheet has been updated to show loans by due date. They mess up when I try to auto-sort now and since a lot of them have USD->BTC conversions going of the latest price I have in the sheet, they get very screwy, so I have to do it all by hand, now, which really isn't that much work -- but anyway, it's fixed now.

ETA: IBB & BTC100 donations will henceforth be counted as "personal expenditure."

[Kluge]

Full $20k investment made to the Hermes project this morning. Project leader is heading over to Iceland soon to ensure we're free of regulation Hell. Before he does that, he'll be meeting with the ex-CEO (he spent 8 years as CEO) of a major web-based company whose work's niche is quite similar to our own. Additionally, an exciting person who's known in the community and has a solid, proven understanding of what we're doing has been brought on-board. There are so many exciting possibilities. The end result should not only empower those who hold Bitcoin to better-spend their money, but act as a powerful catalyst for the global economy, Bitcoin and beyond. Even if the mundane vision I originally imagined is all which comes true (I can be a bit of a pessimist  ), BDK stock-holders should be quite pleased. This isn't going to be some anon garage-hobby project, but part of the second generation of cryptocurrency infrastructure.

More info on that will be released in ~3 weeks.  There are semi-competing services, which is why I'd like to keep a balance between informing investors and not informing competitors about everything we're doing.   

[Kluge]

There's about a week and a half left until the June 2nd public offering. The IPO price will be at .185BTC/share. However, there are already bids @ .2/share (well... alright - the bid volume at that price is only $25). I'll have profit guesstimates posted for the month of June on June 1st.

The OP has been cleaned up a bit more. I'm almost certain the USB cable on one of the Icarus boards is faulty, which is fine - I have spare mini-usb->usb cables.... somewhere in the stacks and stacks of moving boxes. :x -- Anyway, now they're each connected to a PC individually (instead of through a hub), only one of them is failing, though there's no error message - it just stops submitting shares after 4-48h.

[Kluge]

Pleased to announce a partnership in underwriting with ineededausername. Tomorrow, a full announcement with a new offering within a couple days. I expect this to be a mutually-beneficial, longer-term relationship. Just a few months ago, I was looking at 10BTC loans with intense scrutiny. Now, we're taking on tens of thousands of BTC worth of challenge, establishing relationships with the leaders of cryptocurrency infrastructure progression, and becoming a moving force in the community. June will be a good month after all. I am very content with the pace of progress.

As well, Bitcoin is truly entering its toddler years. No longer a newborn, no longer an infant, we now have something to offer other than novelty value, potential, and cute smiles. It's becoming a two-way street where you don't need to ask only what you can do for Bitcoin's success, but what Bitcoin can do for your success.

(no, I'm not sure where Silk Road fits into that analogy)

[Kluge]

Pleased to announce a partnership in underwriting with ineededausername. Tomorrow, a full announcement with a new offering within a couple days. I expect this to be a mutually-beneficial, longer-term relationship. Just a few months ago, I was looking at 10BTC loans with intense scrutiny. Now, we're taking on tens of thousands of BTC worth of challenge, establishing relationships with the leaders of cryptocurrency infrastructure progression, and becoming a moving force in the community. June will be a good month after all. I am very content with the pace of progress.

As well, Bitcoin is truly entering its toddler years. No longer a newborn, no longer an infant, we now have something to offer other than novelty value, potential, and cute smiles. It's becoming a two-way street where you don't need to ask only what you can do for Bitcoin's success, but what Bitcoin can do for your success.

(no, I'm not sure where Silk Road fits into that analogy)

Here's the promised announcement on that: https://bitcointalk.org/index.php?topic=83557

Additionally. I'm revising this week's dividend guesstimate to .0004BTC/share instead of .000135BTC/share, so there's another small bit of good news. 

The new monthly profit guesstimate is as follows:
May 2012 Net Income Expectations
Optimistic estimate: 845BTC
Reasonable estimate: 835BTC
Pessimistic estimate: 825BTC

BDK price has been odd on GLBSE. There was a large sell (accidental?) which brought the price down to one satoshi for a few minutes, and now the last trade is @ ~.24 -- next open-market offering will be in less than 10 days, now. 5pm Eastern, again. If there are any questions, feel free to open up a dialogue with me - here or privately.

[Kluge]

Fwiw, IOU gains and losses will be reported in the BDK spreadsheet, and IOU profits will be shared with BDK shareholders (really, BDK is more of a floating bond. I can see how "BDK" and "BDK.BND" could be very confusing). This will likely result in June having a monthly profit somewhere between 2k BTC and 5k even though equities and loans aren't expected to match revenues of this month. So, the exponential growth should continue, which is nice to look at. However, I will be awarding myself a % profit (this does not come out of shareholders' cut, but from the dividends due to the % of profit I hold) in June instead of July. I've settled on 40%. So, monthly growth will be ((profits minus shareholder dividends) minus 40% remaining profits). As-is, everything I don't pay to shareholders is reinvested in the company. After this month, only 60% of everything I don't pay to shareholders goes toward monthly growth.

I do not believe this requires a change of contract because I am the sole owner of all BDK's equity as well as profits not allotted to shareholders. While I should have made it more clear that everything I'm due wouldn't necessarily be reinvested in BDK, I do not believe this should be controversial, but I'm preparing to be surprised. 



Dividends tomorrow, next public offering in less than a week (Saturday). Cheers,

Ben

[Kluge]

Valuations will now use 24h weighted avg instead of last price. If no trades in last 24h, last will still be used.

Last Valuation on 5/17 -- today is 5/28

GLBSE Securities Re-valuation (reconciliation between BDK sheets & GLBSE):
TyGrr: BDK - 1.9BTC/share, GLBSE - 1.91BTC/share -- total gain of 2.47BTC on paper
Cognitive: BDK - .59001BTC/share, GLBSE - .611BTC/share -- total gain of 38.92BTC on paper
Gigamining: BDK - 1.519BTC/share, GLBSE - 1.487BTC/share -- total loss of 16.86BTC on paper
BitcoinTorrentz: BDK - 1.19BTC/share, GLBSE - 1.01BTC/share -- total loss of .72BTC on paper
YABMC: BDK - .3BTC/share, GLBSE - .3BTC/share -- no change
REBATE: BDK .2BTC/share, GLBSE - .201BTC/share -- total gain of 1.77BTC on paper

Total securities FMV change since last valuation -- gain of 25.58BTC.

[Kluge]

Dividends for BDK.BND already paid. Dividend payment for BDK will be delayed until dividends are paid by YABMC at 12:00 UTC. (It's 05:45 UTC as of this post)

ETA: Heading to sleep. I should be awake and have dividends paid before 18:00 UTC, hopefully before 14:00 UTC.

ETA2: Heh. Little frazzled. Giga pays today, not YABMC. Dividends being calculated, then sent.

[Kluge]

MAY 28 UPDATE
Dividend/share paid: .000276BTC/share
Total dividend paid: 1.38BTC
Running total dividends paid in May: 36.83101BTC

May 2012 Net Income Expectations
Optimistic estimate: 835BTC
Reasonable estimate: 825BTC
Pessimistic estimate: 820BTC
(Guesstimated weekly dividend payouts -- May 7th: .0021BTC/share Actual: .0021331436BTC/share -- May 14th: .0028BTC/share Actual: .00246BTC/share-- May 21st: .0027BTC/share Actual: .002496BTC/share-- May 28th: .0004BTC/shareActual: 0.000276BTC/share)


Profit estimates for June and full May report will be posted on June 1st.

[Kluge]

A meaningful motion has been created for BDK. I will abide by the majority's will on this.

Motion created to separate IOU & BDK. If done, gains, losses, assets, and liabilities of IOU will not affect BDK. If something goes terribly wrong with IOU, BDK security holders will not be liable. If things go smoothly, BDK security holders will not receive any profits from it.

Holders of BDK can vote @ https://glbse.com/vote/view/28 -- it wil expire in 72 hours from ~15:00 UTC on 5/28

[Kluge]

A meaningful motion has been created for BDK. I will abide by the majority's will on this.

Motion created to separate IOU & BDK. If done, gains, losses, assets, and liabilities of IOU will not affect BDK. If something goes terribly wrong with IOU, BDK security holders will not be liable. If things go smoothly, BDK security holders will not receive any profits from it.

Holders of BDK can vote @ https://glbse.com/vote/view/28 -- it wil expire in 72 hours from ~15:00 UTC on 5/28

I have no idea what is going on:(  I lack the information needed to respond responsibly.

Here's the promised announcement on that: https://bitcointalk.org/index.php?topic=83557

What, specifically, do you need to know? I won't disclose details of the private contracts, and perhaps just for that, IOU should not be part of BDK. I'd be fine with that.