Diablo Mining Company

[P4man]

Lets see if I understand all this right.

You are offering to swap DMC shares for other mining bonds; I assume those DMC shares come from the almost infinite pool of unsold shares ? And the ratio you use is  some arbitrary exchange rate? How is that different from selling those shares at 0.01BTC or whatever (and buying some other turds with the proceeds)  thereby further screwing over your investors by lowering DMC share value arbitrarily?  Now in practice I guess it doesnt matter, because no one in their right minds is going to swap bonds (let alone asicminer shares) that still have some resale value for DMC shares that pretty much have none. The ratio you put forward is almost as laughable as the 1BTC price for your shares.

Next point; you thought it was a good idea to buy back your shares when they were trading at 0.5 or 0.6 BTC because you thought that was under priced. Now only 2 weeks later they trade 10x lower, but you dont seem to think its wise to buy back?  What exactly changed in those 2 weeks?

[1715041729]

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[1715041729]

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[DiabloD3]

Lets see if I understand all this right.

You are offering to swap DMC shares for other mining bonds; I assume those DMC shares come from the almost infinite pool of unsold shares ? And the ratio you use is  some arbitrary exchange rate? How is that different from selling those shares at 0.01BTC or whatever (and buying some other turds with the proceeds)  thereby further screwing over your investors by lowering DMC share value arbitrarily?  Now in practice I guess it doesnt matter, because no one in their right minds is going to swap bonds (let alone asicminer shares) that still have some resale value for DMC shares that pretty much have none. The ratio you put forward is almost as laughable as the 1BTC price for your shares.

Next point; you thought it was a good idea to buy back your shares when they were trading at 0.5 or 0.6 BTC because you thought that was under priced. Now only 2 weeks later they trade 10x lower, but you dont seem to think its wise to buy back?  What exactly changed in those 2 weeks?

Not near infinite. There is 200k, and thats all there ever will be unless there is large majority vote by shareholders to issue more.

The ratio is based on the near term projected growth. Due to asicminer destroying the bond market and setting a new high water mark in mh per btc, DMC has jumped to 15mh per share for trade.

I have not thought it is unwise to buy them back, I just haven't done it yet.

[yochdog]

Hey Diablo.....what is your projected dividend for next month? 

[DiabloD3]

Hey Diablo.....what is your projected dividend for next month? 

Well, thats an interesting question.

In a couple minutes I'm putting up a motion up for vote on if we should end dividends until NAV has been sufficiently repaired (3 month maximum, we can vote on it again then). The market is giving us some great deals that we should not pass up.

The largest shareholder in DMC has already said he will vote yes with his shares, so unless there is a large vote against it, I'm just going to assume right now the vote is yes with a large margin.

So, assuming that the vote will indeed be yes, the next 3 months will pay zero dividend, but will accelerate in mhash/share greatly. If I play my cards right, we could be looking at 25 or more mh/share at the end of these 3 months.

[yochdog]

Hey Diablo.....what is your projected dividend for next month? 

Well, thats an interesting question.

In a couple minutes I'm putting up a motion up for vote on if we should end dividends until NAV has been sufficiently repaired (3 month maximum, we can vote on it again then). The market is giving us some great deals that we should not pass up.

The largest shareholder in DMC has already said he will vote yes with his shares, so unless there is a large vote against it, I'm just going to assume right now the vote is yes with a large margin.

So, assuming that the vote will indeed be yes, the next 3 months will pay zero dividend, but will accelerate in mhash/share greatly. If I play my cards right, we could be looking at 25 or more mh/share at the end of these 3 months.

I would advise you not suspend the dividend.....but that is just me.  I think you will anger an already frustrated shareholder base. 

[DiabloD3]

New (and our first) motion:

https://glbse.com/vote/view/104

Diablo Mining Company wishes to suspend dividend payment for a maximum of 3 months until net asset value has been sufficiently restored. Vote yes if you want to restore NAV, vote no if you want to continue dividend payments.

You must vote in the next 24 hours.

Edit: Bitcoin Mining Fund and Nyancat Financial have voted yes on this motion, thus 7k out of 20.5k shares have voted yes. Unless another 10.6k vote no, the motion will most likely pass.

[DiabloD3]

Hey Diablo.....what is your projected dividend for next month? 

Well, thats an interesting question.

In a couple minutes I'm putting up a motion up for vote on if we should end dividends until NAV has been sufficiently repaired (3 month maximum, we can vote on it again then). The market is giving us some great deals that we should not pass up.

The largest shareholder in DMC has already said he will vote yes with his shares, so unless there is a large vote against it, I'm just going to assume right now the vote is yes with a large margin.

So, assuming that the vote will indeed be yes, the next 3 months will pay zero dividend, but will accelerate in mhash/share greatly. If I play my cards right, we could be looking at 25 or more mh/share at the end of these 3 months.

I would advise you not suspend the dividend.....but that is just me.  I think you will anger an already frustrated shareholder base. 

They should be frustrated, but not at me. asicminer came in and basically obliterated the market. DMC sits in a good position to end up with a large chunk of the market because of what asicminer did.

We need to take advantage of this. 25mh is the new 1 mh.

[EskimoBob]

Because of the current situation, can you publish DMC portfolio more often that once a month?
Actually, why not make it available "live" on your web site? Update once in 24h is fine by me.

[P4man]

A motion to withhold dividends? With an estimated 2/3 of your assets burnt, a share price that already lost 97% of its value since IPO, and now you propose 3 months without dividend payments ?  Shareholders that bought this stock at 1BTC expecting this to become a mining company, instead of one of the worst managed hedge funds ever should sharpen their pitchforks and file a motion to replace the current CEO. THen who knows,  at least something might still be salvaged. In another 3 months there wont be anything left.

[EskimoBob]

Good idea.
I do not want to see the DMC burn and looks like you need help to get this show on the road.

[P4man]

Good idea.
I do not want to see the DMC burn

Hate to break it to you, but it already has. Investors have clearly lost all confidence, since the current price is actually substantially lower than just the resale value of DMC's holdings, low as those might be. So yeah, I actually bought some DMC shares lol. But to get new funds, ie sell currently unsold shares at 1BTC would require nothing less than a miracle. It just cant happen, whatever DMC holds will become worth less, not more over the next months, and it will never in a million years become so valuable again that previously unsold shares will sell again. All diablo can do is swap shares at market rates, but that just means he steals from current investors and further devalues their holdings.

Since apparently DMC's current stated goal is to somehow become a datacenter  operator, something which costs millions of dollars, the game is up. Not that there ever was one.

The only sensible thing left to to do: sell all those damn fixed mining bonds right NOW (*), for as long as there are suckers willing to pay for them. Return whatever is salvaged to the shareholders, and call it a day. Start over with a sensible business plan and a sensible IPO strategy.

(*) I might make an exception for some shares in mining companies like yochdog's, because even if I think the future looks bleak for all miners, at least  those are shares backed by assets and not bonds that will devalue faster than a Zimbabwean dollar,  and there is a slim possibility asic mining might be worthwhile for a while.

[DiabloD3]

Because of the current situation, can you publish DMC portfolio more often that once a month?
Actually, why not make it available "live" on your web site? Update once in 24h is fine by me.

Total shares: 20709

BTC-Mining (370 mhash): 10 (3700 mhash)
BTCMC (6 mhash): 951 (5706 mhash)
OBSI.1MHS (1 mhash): 5113 (5113 mhash)
ASICMINER (30 mhash): 1980 (59400 mhash)

Total mhash: 73919 mhash
Approximately 3.569 mhash per share

[P4man]

Because of the current situation, can you publish DMC portfolio more often that once a month?
Actually, why not make it available "live" on your web site? Update once in 24h is fine by me.

Total shares: 20709

BTC-Mining (370 mhash): 10 (3700 mhash)
BTCMC (6 mhash): 951 (5706 mhash)
OBSI.1MHS (1 mhash): 5113 (5113 mhash)
ASICMINER (30 mhash): 1980 (59400 mhash)

Total mhash: 73919 mhash
Approximately 3.569 mhash per share

Stop hiding and distorting the truth! You cant express stocks as if they are perpetual mining bonds. Here are the actual numbers:

BTC-Mining: 10x0.99991 = 9.999
BTCMC 915x0.55 =503.25
OBSI.1MHS 5113x0.09989=511
ASICMINER 1980x0.105=207

total worth of 1231 BTC ignoring market depth or at most 0.059 BTC per share.

How much is in your "growth fund"?

[P4man]

BTW, if those really are your only tangible assets, I think its time to consider giving you a scammer tag.
There is no frigging way you could have lost 94% of your shareholders investment just by making stupid purchases. Sure, mining bond prices have plummeted, something anyone with a brain could have predicted,  but even a monkey throwing darts at glsbe and picking the worst buys would have retained more of the original sum. Where did all the money go? sure as heck not to dividend payments.

[Bitcoin Oz]

BTW, if those really are your only tangible assets, I think its time to consider giving you a scammer tag.
There is no frigging way you could have lost 94% of your shareholders investment just by making stupid purchases. Sure, mining bond prices have plummeted, something anyone with a brain could have predicted,  but even a monkey throwing darts at glsbe and picking the worst buys would have retained more of the original sum. Where did all the money go? sure as heck not to dividend payments.

The warnings have been there for months he just chose to ignore them and bury his head in the sand. The only way he could have changed the outcome here is to find actual mining companies with growth plans as that is the only thing that can save you from ever increasing difficulty. If he doesnt sell off all the fixed bonds now and reinvest in growth assets the company will be worth 0.

[DiabloD3]

The motion to suspend dividends for three months has passed.

8253 shares voted yea.
914 shares voted nay.

The dividends for August (paid September 1st), September (paid October 1st), and October (paid November 1st) will be recycled to increase NAV.

Unless another motion to continue further suspension of dividends passes, the next dividend will be December 1st for November.

[DiabloD3]

The warnings have been there for months he just chose to ignore them and bury his head in the sand. The only way he could have changed the outcome here is to find actual mining companies with growth plans as that is the only thing that can save you from ever increasing difficulty. If he doesnt sell off all the fixed bonds now and reinvest in growth assets the company will be worth 0.

Fixed mh bonds in our possession represent 5 ghash out of 73. BTC-MINING, BTCMC, and ASICMINER already represent what you have suggested.

[DiabloD3]

And now I don't have to worry about those 5113 shares of OBSI.1MHS, Obsi has put up a motion for OBSI.ABMO to convert my OBSI.1MHS to 5113 shares of OBSI.ABMO, which I am valuing at 7mh each due to Obsi's planned BFL upgrade. Nether of us think the motion will fail.

This upgrade will bring mh/share up to 5 mh/share.

[EskimoBob]

I still do not see a clear answer from you to a question "where is the rest of the BTC evaporated to"?
We are not talking about 20-30% drop. It's more like 90% has just evaporated to nothingness.



 

[DiabloD3]

I still do not see a clear answer from you to a question "where is the rest of the BTC evaporated to"?
We are not talking about 20-30% drop. It's more like 90% has just evaporated to nothingness.

It didn't evaporate anywhere. It never existed.