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Author Topic: Bitstamp's first annual statements  (Read 5058 times)
mayax
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January 06, 2015, 09:28:47 AM
 #41

I doubt they have $5 million of their own cash profits sitting around waiting to cover this loss.
it's no problem, indeed, the price only $260 now, 18,000BTC just $4,680,000, i think this is a piece of cake for bitstamp

How is it a piece of cake?

A financial report of Bitstamp showed they had 800k profit for a large period of time.

Not sure 4-5 million is coverable by them.
may the speak of bitstamp ceo "the bulk of our bitcoin are in cold storage, and remain completely safe"
https://twitter.com/nejc_kodric/status/552091195795845120


It doesn't matter whether there's gazillion bitcoins safe in cold storage, these are all customers' deposits. If they've lost 19,000 BTC, they have to compensate for that. So the only question is whether they can afford it.

OR if they want. The easiest way would be to close the biz, take the rest of the money and Bitcoin and done. Smiley

 a huge part of these 5 MIL are into their bank account. Who is interested to keep Bitcoin? They are interested in real cash, the one from bank. They lost some numbers on a screen but they own the money in bank.
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January 06, 2015, 09:55:51 AM
 #42

I doubt they have $5 million of their own cash profits sitting around waiting to cover this loss.
it's no problem, indeed, the price only $260 now, 18,000BTC just $4,680,000, i think this is a piece of cake for bitstamp

How is it a piece of cake?

A financial report of Bitstamp showed they had 800k profit for a large period of time.

Not sure 4-5 million is coverable by them.
may the speak of bitstamp ceo "the bulk of our bitcoin are in cold storage, and remain completely safe"
https://twitter.com/nejc_kodric/status/552091195795845120


It doesn't matter whether there's gazillion bitcoins safe in cold storage, these are all customers' deposits. If they've lost 19,000 BTC, they have to compensate for that. So the only question is whether they can afford it.

OR if they want. The easiest way would be to close the biz, take the rest of the money and Bitcoin and done. Smiley

 a huge part of these 5 MIL are into their bank account. Who is interested to keep Bitcoin? They are interested in real cash, the one from bank. They lost some numbers on a screen but they own the money in bank.


You don't have a clue how the Limited companies work, do you?

Withdrawing money/bitcoins to their personal accounts would be like robbing the bank and showing your face + your id document to the security camera.

The easiest way is not to close the biz, but to seek an emergency funding, preferably a loan from shareholders.
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January 06, 2015, 10:09:12 AM
 #43

how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) Smiley

do not mix up the things. everything is possible in the Bitcoin industry.

who will give them 5 MIL USD? it's not 500K...it's 5 MIL  Smiley

and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow.
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January 06, 2015, 11:20:30 AM
 #44

how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) Smiley

do not mix up the things. everything is possible in the Bitcoin industry.

who will give them 5 MIL USD? it's not 500K...it's 5 MIL  Smiley

and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow.


It's fair to assume that BitStamp is generating ~ $1m profit per year (after tax, salaries etc). The last thing you want is to close such business.

If any of the shareholder's (say Pantera Venture Fund LP) can afford to provide such loan - they'd likely do so. They should get it back (+ interest) in 4-5 years.

Even if later something goes wrong and BitStamp becomes insolvent, they won't lose the entire $5m, as they'd get paid proportionally along with other creditors from the remaining funds. So it's not as risky as it sounds.
mayax
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January 06, 2015, 12:14:21 PM
 #45

how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) Smiley

do not mix up the things. everything is possible in the Bitcoin industry.

who will give them 5 MIL USD? it's not 500K...it's 5 MIL  Smiley

and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow.


It's fair to assume that BitStamp is generating ~ $1m profit per year (after tax, salaries etc). The last thing you want is to close such business.

If any of the shareholder's (say Pantera Venture Fund LP) can afford to provide such loan - they'd likely do so. They should get it back (+ interest) in 4-5 years.

Even if later something goes wrong and BitStamp becomes insolvent, they won't lose the entire $5m, as they'd get paid proportionally along with other creditors from the remaining funds. So it's not as risky as it sounds.


agree with you BUT these things are happening in a normal industry not with Bitcoin.
According to Bitstamp,  Pantera Venture already gave them 10 MIL USD  (I am not sure why...why would they need a such amount???!!)

we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS Smiley
This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.

Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it).
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January 06, 2015, 12:17:25 PM
 #46

its look like mtgox
if it cant fix in a few days bitcoin prize go to deep..
darkly days wait us..
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January 06, 2015, 12:30:52 PM
 #47


agree with you BUT these things are happening in a normal industry not with Bitcoin.
According to Bitstamp,  Pantera Venture already gave them 10 MIL USD  (I am not sure why...why would they need a such amount???!!)

we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS Smiley
This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.

Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it).


Wasn't aware of that $10m from Pantera. That's indeed a lot. And if that's true, they're likely to have a lot of that left (depends on the terms of the funding), so they don't need any extra funds to cover the hacked wallet.

Also, if Pantera invested such capital, you can be sure they won't let BitStamp die.


This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.


If BitStamp goes under, the $10m will be lost forever, so it makes perfect sense for Pantera to further capitalise the business (if that's needed) and have realistic chance for ROI, even if it takes a long time.

Edit. The loans are not repaid from net profit, so it can take less than 5 years to get those $5m back.
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January 06, 2015, 12:52:54 PM
 #48


agree with you BUT these things are happening in a normal industry not with Bitcoin.
According to Bitstamp,  Pantera Venture already gave them 10 MIL USD  (I am not sure why...why would they need a such amount???!!)

we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS Smiley
This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.

Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it).


Wasn't aware of that $10m from Pantera. That's indeed a lot. And if that's true, they're likely to have a lot of that left (depends on the terms of the funding), so they don't need any extra funds to cover the hacked wallet.

Also, if Pantera invested such capital, you can be sure they won't let BitStamp die.


This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.


If BitStamp goes under, the $10m will be lost forever, so it makes perfect sense for Pantera to further capitalise the business (if that's needed) and have realistic chance for ROI, even if it takes a long time.

Edit. The loans are not repaid from net profit, so it can take less than 5 years to get those $5m back.

it is true what I am saying. BitStamp received 10 MIL from Pantera last year.

http://www.coindesk.com/bitstamp-got-10m-fortress-linked-hedge-fund-last-year-bloomberg/

The loan cannot be paid from people's deposits. Then, it must be paid from profit.

Pantera won't lend them other money. Be sure of that. Bitstamp won't be able to return 15 MIL.

Bitstamp won't have a good profit in 2015 because of these problems of credibility. Bitstamp  has a lot of expenses. Do not forget, PayPal chief compliance officer came to them too. He must paid with a BIG salary. Smiley
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January 06, 2015, 12:58:43 PM
 #49

how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) Smiley

do not mix up the things. everything is possible in the Bitcoin industry.

who will give them 5 MIL USD? it's not 500K...it's 5 MIL  Smiley

and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow.


It's fair to assume that BitStamp is generating ~ $1m profit per year (after tax, salaries etc). The last thing you want is to close such business.

If any of the shareholder's (say Pantera Venture Fund LP) can afford to provide such loan - they'd likely do so. They should get it back (+ interest) in 4-5 years.

Even if later something goes wrong and BitStamp becomes insolvent, they won't lose the entire $5m, as they'd get paid proportionally along with other creditors from the remaining funds. So it's not as risky as it sounds.


agree with you BUT these things are happening in a normal industry not with Bitcoin.
According to Bitstamp,  Pantera Venture already gave them 10 MIL USD  (I am not sure why...why would they need a such amount???!!)

we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS Smiley
This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.

Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it).


Volatility is only good for business of an exchanger.
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January 06, 2015, 01:10:00 PM
 #50

how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) Smiley

do not mix up the things. everything is possible in the Bitcoin industry.

who will give them 5 MIL USD? it's not 500K...it's 5 MIL  Smiley

and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow.


It's fair to assume that BitStamp is generating ~ $1m profit per year (after tax, salaries etc). The last thing you want is to close such business.

If any of the shareholder's (say Pantera Venture Fund LP) can afford to provide such loan - they'd likely do so. They should get it back (+ interest) in 4-5 years.

Even if later something goes wrong and BitStamp becomes insolvent, they won't lose the entire $5m, as they'd get paid proportionally along with other creditors from the remaining funds. So it's not as risky as it sounds.


agree with you BUT these things are happening in a normal industry not with Bitcoin.
According to Bitstamp,  Pantera Venture already gave them 10 MIL USD  (I am not sure why...why would they need a such amount???!!)

we are talking about 10 MIL but it's a LOT of money. 1 MIL is huge...10 MIL USD is ENORMOUS Smiley
This investor must recover these 10 MIL first...
$1m profit per year (after tax, salaries etc) = 10 years, let's say 5 years because Bitspamp will doble its profit. 5 years are too long for a Bitcoin biz.

Of course, 1 MIL per year profit is a very good business but when you are dealing with something with a huge volatility like Bitcoin....you can never know. Nobody will make an infusion of 5 MIL now, knowing that Bitstamp will need at least 6-10 months to reestablish their credibility(IF they will be able to do it).


Volatility is only good for business of an exchanger.


YES !  and these exchangers are making the market. they make the cards, setup the Bitcoin price and the fouls are paying Smiley

Look to the Bitcoin price today. It's frozen at 270 USD EVEN most of the people are selling !


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January 06, 2015, 01:52:21 PM
 #51


it is true what I am saying. BitStamp received 10 MIL from Pantera last year.

http://www.coindesk.com/bitstamp-got-10m-fortress-linked-hedge-fund-last-year-bloomberg/

The loan cannot be paid from people's deposits. Then, it must be paid from profit.

...

Thanks for the link.

I was referring to 'net profit' (assumed $1m, after tax). If I'm not mistaken, they can charge the amount of stolen bitcoins as an expense and do the same with interest on the (hypothetical) $5m loan, effectively reducing taxable profit (to a loss) and don't pay any tax (for a few years) which could speed up the loan repayment.
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January 06, 2015, 01:59:25 PM
 #52

that $10m from Pantera. That's indeed a lot.

Actually it is not that much. Considering office space, furniture, equipment, marketing, energy, internet access and other bills, etc, I would guess that it may support a 20-person company for 6 months, maybe a year.  Probably they have already spent half or more of that amount. (Investors do not give money to a company for it to keep unused in its bank account.)

Quote
If BitStamp goes under, the $10m will be lost forever, so it makes perfect sense for Pantera to further capitalise the business (if that's needed) and have realistic chance for ROI, even if it takes a long time.

I believe that is called "sending good money to chase after the bad" in finance.  

Pantera would have to choose between writing off 10 M$, or investing 20 M$ that will take 10 years to be paid back, before it can start yielding 1 M$/year profit (maybe).  Will Bitstamp survive 10 years?

Quote
The loans are not repaid from net profit, so it can take less than 5 years to get those $5m back.

The loans would be repaid from the revenue, and that extra expense would decrease their profit by the same amount.  So yes: effectively, the loan would be paid from the profits.   In that scenario the other investors may not receive any profits for the next 5 years.

Academic interest in bitcoin only. Not owner, not trader, very skeptical of its longterm success.
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January 06, 2015, 02:25:42 PM
 #53

After paying salaries, bonuses, shareholders and perks, a company doesn't just put away tons of money in the company bank account. They make sure they spend the profits.

As for finding an investor to bail them out, who is going to loan them big money when they just lost the next 5 years profit and they don't even know how it happened?
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January 06, 2015, 02:46:21 PM
 #54


Actually it is not that much. Considering office space, furniture, equipment, marketing, energy, internet access and other bills, etc, I would guess that it may support a 20-person company for 6 months, maybe a year.  Probably they have already spent half or more of that amount. (Investors do not give money to a company for it to keep unused in its bank account.)

If they're operating in Slovenia, the total annual operating costs (for 20 staff) should easily close within $1 million (excluding execs' salaries, as this could be anything). And it's probably much less. It's a straight-forward business, don't think they need 20 employees, and office space rental (with internet + electricity + basic equipment) is not that expensive.

There's no way they could make a profit (and they did in 2013) with $5-10m expenses. They've never had enough volume for that.

Quote
I believe that is called "sending good money to chase after the bad" in finance. 

Pantera would have to choose between writing off 10 M$, or investing 20 M$ that will take 10 years to be paid back, before it can start yielding 1 M$/year profit (maybe).  Will Bitstamp survive 10 years?

Why $20m? 10 (already invested) + 5 (stolen) = $15m.

The question is why they've invested $10m in the first place. It doesn't look like BitStamp ever needed that kind of money shot.
Possibly Pantera threw some money in and obliged themselves to provide further support/guarantee, all totalling $10m. Just my guess.

Anyhow, I can't imagine Pantera writing off $10m and giving up on profit-making business.

Quote
The loans would be repaid from the revenue, and that extra expense would decrease their profit by the same amount.  So yes: effectively, the loan would be paid from the profits.   In that scenario the other investors may not receive any profits for the next 5 years.

That's what I meant:


I was referring to 'net profit' (assumed $1m, after tax). If I'm not mistaken, they can charge the amount of stolen bitcoins as an expense and do the same with interest on the (hypothetical) $5m loan, effectively reducing taxable profit (to a loss) and don't pay any tax (for a few years) which could speed up the loan repayment.
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January 06, 2015, 04:15:28 PM
 #55

that $10m from Pantera. That's indeed a lot.

Actually it is not that much. Considering office space, furniture, equipment, marketing, energy, internet access and other bills, etc, I would guess that it may support a 20-person company for 6 months, maybe a year.  Probably they have already spent half or more of that amount. (Investors do not give money to a company for it to keep unused in its bank account.)

Quote
If BitStamp goes under, the $10m will be lost forever, so it makes perfect sense for Pantera to further capitalise the business (if that's needed) and have realistic chance for ROI, even if it takes a long time.

I believe that is called "sending good money to chase after the bad" in finance.  

Pantera would have to choose between writing off 10 M$, or investing 20 M$ that will take 10 years to be paid back, before it can start yielding 1 M$/year profit (maybe).  Will Bitstamp survive 10 years?

Quote
The loans are not repaid from net profit, so it can take less than 5 years to get those $5m back.

The loans would be repaid from the revenue, and that extra expense would decrease their profit by the same amount.  So yes: effectively, the loan would be paid from the profits.   In that scenario the other investors may not receive any profits for the next 5 years.



their office is supposed to be in England not in Slovenia.
The office rent is around of 3000-4000 euro/month because they are in 5 New Street Square, London.
They wanted to be "trendy". Smiley

I do not believe they have more than 2-3 employees for customer support and order processing(bank wires). They have 1 programmer + 7-8 "executives". I counted 7.

The executive salaries must be BIG(over 10K per month).
in summary, Bitstamp expenses should be around of 1 mil EURO per year due to their "executives" Smiley
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January 06, 2015, 04:46:25 PM
 #56


their office is supposed to be in England not in Slovenia.
The office rent is around of 3000-4000 euro/month because they are in 5 New Street Square, London.
They wanted to be "trendy". Smiley

I do not believe they have more than 2-3 employees for customer support and order processing(bank wires). They have 1 programmer + 7-8 "executives". I counted 7.

The executive salaries must be BIG(over 10K per month).
in summary, Bitstamp expenses should be around of 1 mil EURO per year due to their "executives" Smiley


It's the registered office (London), it doesn't have to be their operational office, and probably isn't.

Were did you get those 7 executives from? I only see 5 directors + 1 secretary (they don't have to be exec, and exec doesn't have to be official director).

Exec's salary is just a guessing game. It could be zero, or minimal wage (if the exec is also a shareholder, in such case he'll get most through dividends), it could be performance-related salary etc. They'd have to be really stupid to sign up an exec for ridiculous fixed salary without tying it to performance.
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January 06, 2015, 05:00:06 PM
 #57


their office is supposed to be in England not in Slovenia.
The office rent is around of 3000-4000 euro/month because they are in 5 New Street Square, London.
They wanted to be "trendy". Smiley

I do not believe they have more than 2-3 employees for customer support and order processing(bank wires). They have 1 programmer + 7-8 "executives". I counted 7.

The executive salaries must be BIG(over 10K per month).
in summary, Bitstamp expenses should be around of 1 mil EURO per year due to their "executives" Smiley


It's the registered office (London), it doesn't have to be their operational office, and probably isn't.

Were did you get those 7 executives from? I only see 5 directors + 1 secretary (they don't have to be exec, and exec doesn't have to be official director).

Exec's salary is just a guessing game. It could be zero, or minimal wage (if the exec is also a shareholder, in such case he'll get most through dividends), it could be performance-related salary etc. They'd have to be really stupid to sign up an exec for ridiculous fixed salary without tying it to performance.

Do not forget the former Paypal exec. who come to Bitstamp last year. I am sure he is not paid with the minimal wage.
 He didn't leave Paypal for some pennies.
Also, count the exec. trips. USA, Canada, whole Europe, Asia. These trips are not so cheap.

I am sure all the exec.(even they are shareholders) had BIG salaries and not minimal wage.

What I want to say is that a such company is hard to maintain. Nobody will use it in the near future even they pay everybody back.

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January 06, 2015, 05:05:06 PM
 #58


their office is supposed to be in England not in Slovenia.
The office rent is around of 3000-4000 euro/month because they are in 5 New Street Square, London.
They wanted to be "trendy". Smiley

I do not believe they have more than 2-3 employees for customer support and order processing(bank wires). They have 1 programmer + 7-8 "executives". I counted 7.

The executive salaries must be BIG(over 10K per month).
in summary, Bitstamp expenses should be around of 1 mil EURO per year due to their "executives" Smiley


It's the registered office (London), it doesn't have to be their operational office, and probably isn't.

Were did you get those 7 executives from? I only see 5 directors + 1 secretary (they don't have to be exec, and exec doesn't have to be official director).

Exec's salary is just a guessing game. It could be zero, or minimal wage (if the exec is also a shareholder, in such case he'll get most through dividends), it could be performance-related salary etc. They'd have to be really stupid to sign up an exec for ridiculous fixed salary without tying it to performance.

Do not forget the former Paypal exec. who come to Bitstamp last year. I am sure he is not paid with the minimal wage.
 He didn't leave Paypal for some pennies.
Also, count the exec. trips. USA, Canada, whole Europe, Asia. These trips are not so cheap.

I am sure all the exec.(even they are shareholders) had BIG salaries and not minimal wage.


I'm not sure the "too big to fail" scenario works in this case. Execs lose their jobs all the time. The only difference between them and a regular Joe is that their CV helps them land somewhere else pretty quickly.

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January 06, 2015, 05:12:54 PM
 #59


their office is supposed to be in England not in Slovenia.
The office rent is around of 3000-4000 euro/month because they are in 5 New Street Square, London.
They wanted to be "trendy". Smiley

I do not believe they have more than 2-3 employees for customer support and order processing(bank wires). They have 1 programmer + 7-8 "executives". I counted 7.

The executive salaries must be BIG(over 10K per month).
in summary, Bitstamp expenses should be around of 1 mil EURO per year due to their "executives" Smiley


It's the registered office (London), it doesn't have to be their operational office, and probably isn't.

Were did you get those 7 executives from? I only see 5 directors + 1 secretary (they don't have to be exec, and exec doesn't have to be official director).

Exec's salary is just a guessing game. It could be zero, or minimal wage (if the exec is also a shareholder, in such case he'll get most through dividends), it could be performance-related salary etc. They'd have to be really stupid to sign up an exec for ridiculous fixed salary without tying it to performance.

Do not forget the former Paypal exec. who come to Bitstamp last year. I am sure he is not paid with the minimal wage.
 He didn't leave Paypal for some pennies.
Also, count the exec. trips. USA, Canada, whole Europe, Asia. These trips are not so cheap.

I am sure all the exec.(even they are shareholders) had BIG salaries and not minimal wage.


I'm not sure the "too big to fail" scenario works in this case. Execs lose their jobs all the time. The only difference between them and a regular Joe is that their CV helps them land somewhere else pretty quickly.

correct but their exec are Arthur Britto, Daniel Wayne Morehead, Steve Waterhouse, Cto Damijan Merlak, Nejc Kodric
Arthur Britto is founder:  Ripple Labs too. So, Bistamp is related with Ripple.

 Daniel Wayne Morehead is Pantera Capital Management who lend Bistamp with 10 MIL. Same with Steve Waterhouse,  founder:  Ripple Labs ,  Pantera Capital Management.

Cto Damijan Merlak, Nejc Kodric are the owners.

Who will lose his job, the programmers? Smiley


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January 06, 2015, 05:20:28 PM
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their office is supposed to be in England not in Slovenia.
The office rent is around of 3000-4000 euro/month because they are in 5 New Street Square, London.
They wanted to be "trendy". Smiley

I do not believe they have more than 2-3 employees for customer support and order processing(bank wires). They have 1 programmer + 7-8 "executives". I counted 7.

The executive salaries must be BIG(over 10K per month).
in summary, Bitstamp expenses should be around of 1 mil EURO per year due to their "executives" Smiley


It's the registered office (London), it doesn't have to be their operational office, and probably isn't.

Were did you get those 7 executives from? I only see 5 directors + 1 secretary (they don't have to be exec, and exec doesn't have to be official director).

Exec's salary is just a guessing game. It could be zero, or minimal wage (if the exec is also a shareholder, in such case he'll get most through dividends), it could be performance-related salary etc. They'd have to be really stupid to sign up an exec for ridiculous fixed salary without tying it to performance.

Do not forget the former Paypal exec. who come to Bitstamp last year. I am sure he is not paid with the minimal wage.
 He didn't leave Paypal for some pennies.
Also, count the exec. trips. USA, Canada, whole Europe, Asia. These trips are not so cheap.

I am sure all the exec.(even they are shareholders) had BIG salaries and not minimal wage.


I'm not sure the "too big to fail" scenario works in this case. Execs lose their jobs all the time. The only difference between them and a regular Joe is that their CV helps them land somewhere else pretty quickly.

correct but their exec are Arthur Britto, Daniel Wayne Morehead, Steve Waterhouse, Cto Damijan Merlak, Nejc Kodric
Arthur Britto is founder:  Ripple Labs too. So, Bistamp is related with Ripple.

 Daniel Wayne Morehead is Pantera Capital Management who lend Bistamp with 10 MIL. Same with Steve Waterhouse,  founder:  Ripple Labs ,  Pantera Capital Management.

Cto Damijan Merlak, Nejc Kodric are the owners.

Who will lose his job, the programmers? Smiley


Big players throw their money in lots of directions hoping that one of them is the miracle investment that buys that island in the pacific they've had their eye on. Some of them fail and some of them make money. I'm not saying stamp won't bounce back. I just don't believe looking at the VC money source or employee roster matters as much as people think it does.

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