What do you want to see in a mining company

[Dalkore]

Hello  BT Board,

I have some ideas that I have been researching and crunching the numbers.    I wanted to get some opinions.   I will be doing a follow-up post once I am elevated from "newbie" status.


What do you want to see in a mining company?   I know quite a bit about how a corporations, stock securities and bonds work. so my pre-IPO listing will be detailed, clear and concise.


What I would like to know is that are the expectations that potential investors want to see met for them to be compelled to invest.  It will be a multi-phase project.   Dividends will be instituted within 30 (changed from 45) days of the first BTC mined.  I am a real person in Seattle, WA and I will be very forthcoming to all our shareholders.   I want to make an offer that will generate interest and be equitable to all parties.

Comments on what you want to see from me and what has and has not worked.

Update:

From the initial post in a different section here is feedback I agree with implementing and reviewing for implementation:

"Strategy, specifically what advantages this mining endeavor has over others (e.g., below average electric rates, low costs for network and facilities, rate charged to business by operator for labor, level of related experience in business and technical.)"

"I would like a weekly payment of dividends and share price to rise"

The offering will be done soon so please give me feedback if your a potential investor.   We are moving ahead on the listing and we are setting as much up in our favor to make it profitable for our investors.    Please contact me directly if you want to vet me further and create communication and a relationship.  I am here for the long-haul and support this community and am proud on what you have done.  Now its time to take it to the next level and bring more legitimacy and trust into our network.

-Dalkore - Seattle, Wa.

[highlevelminer]

The foundation of any mining company (or enterprise in general) is a sound business model, product, or service.

So in your case this would translate to cutting edge technology, in abundance, as well as quality programs and configs backing your enterprise.

With mining you absolutely need to dominate the competition and with some of the high end mining ops and high member mining pools, cornering the market in such a popular sector will be difficult.

[Dalkore]

The foundation of any mining company (or enterprise in general) is a sound business model, product, or service.

So in your case this would translate to cutting edge technology, in abundance, as well as quality programs and configs backing your enterprise.

With mining you absolutely need to dominate the competition and with some of the high end mining ops and high member mining pools, cornering the market in such a popular sector will be difficult.

Thank you for the wise and kind words.     

We have burned the proverbial "midnight oil" and have developed a strategy with will bring us into existence competitive with a plan to scale and be one of the few large mining houses as difficulty and rewards drop.   We are located in a "cheap power" district and we initially will be in an arbitrage situation to increase shareholder value then we will be increasing driving power cost lower.  Once we get to a certain capacity, we will be moving to a location that has a power cost that is one of the lowest in the country. 

Dalkore - Seattle, Wa

[BinaryMage]

I would look for something with constant or close to constant dividends, i.e. enough reinvested to increase mining capacity proportionate to difficulty increases.

[Dalkore]

I would look for something with constant or close to constant dividends, i.e. enough reinvested to increase mining capacity proportionate to difficulty increases.

Glad to see we are on the same page.  Our thoughts exactly.  We are in the for the long-term.   Consistent BTC dividends is a core piece of value.  Thank you for the feedback.  It has all been very helpful and fits with why we saw this opportunity not only to provide value but also a valuable service to the network. 

D   

[Gomeler]

I'm not sure what others look for in a mining company but I'm considering diverting some of my hashing power towards a mining company to fund expansion in to more efficient devices. Was hoping there'd be more discussion on this.

One question I have is what are the thoughts on holding back part of the profits for future expansion versus releasing more shares to fund expansions. For example, here are two different company types.

Company A - Issues 100 shares, currently has 100 MH/s. Withholds a percentage of profits, perhaps 30%, to fund future expansion. At the start the 100 shares are each worth 1 MH/s. With new hardware acquisitions, the shares become worth more and in theory increase in price.

Company B - Issues 100 shares, currently has 100 MH?s. Withholds just enough profit to cover power. Funds future expansion by releasing more shares at 1 share per 1 MH/s. Each share is forever worth only 1 MH/s and only increases in price when the average cost per MH/s on GLBSE increases.

Thoughts? I'd say the first company would benefit those that bought in early. However since it doesn't pull in additional funding with more rounds of fund raising it is limited on its growth rate. The second company can aggressively grow if the market is willing to invest BTC into the company. It doesn't really matter when the investor invests in the company if it continues to release shares to fund growth.

Thoughts?

[Meni Rosenfeld]

Company A - Issues 100 shares, currently has 100 MH/s. Withholds a percentage of profits, perhaps 30%, to fund future expansion. At the start the 100 shares are each worth 1 MH/s. With new hardware acquisitions, the shares become worth more and in theory increase in price.

Company B - Issues 100 shares, currently has 100 MH?s. Withholds just enough profit to cover power. Funds future expansion by releasing more shares at 1 share per 1 MH/s. Each share is forever worth only 1 MH/s and only increases in price when the average cost per MH/s on GLBSE increases.

Thoughts? I'd say the first company would benefit those that bought in early. However since it doesn't pull in additional funding with more rounds of fund raising it is limited on its growth rate. The second company can aggressively grow if the market is willing to invest BTC into the company. It doesn't really matter when the investor invests in the company if it continues to release shares to fund growth.

Your description of a B-type company is problematic, and is much more suitable for a mining bond than for a company. In a company, the issuer will begin with some stake as the entrepreneur above and beyond the funds he put in. This means that the total value of all shares is higher than the cost of the hardware purchased. When new shares are issued, the money raised is equal to the additional money available to purchase new hardware, which means that the ratio of hardware per share must increase (or that shares will be split if we want to keep a round number for the ratio). A successful new issue will thus result in a valuation increase for existing shareholders.

Other than that, the two types are fundamentally equivalent, up to some granularity. Investors in a B-type company can, if they so wish, reinvest their dividends in more shares to increase the worth of their stake in the company (and equivalently, A-type investors can sell some shares to maintain a given stake worth).

There's also a middle ground between the two extremes. A company can keep some of the profits for incremental growth, while issuing new shares when it's time for a significant change.

It ultimately boils down to personal preference of both the issuer and investors.

[Dalkore]

I'm not sure what others look for in a mining company but I'm considering diverting some of my hashing power towards a mining company to fund expansion in to more efficient devices. Was hoping there'd be more discussion on this.

One question I have is what are the thoughts on holding back part of the profits for future expansion versus releasing more shares to fund expansions. For example, here are two different company types.

Company A - Issues 100 shares, currently has 100 MH/s. Withholds a percentage of profits, perhaps 30%, to fund future expansion. At the start the 100 shares are each worth 1 MH/s. With new hardware acquisitions, the shares become worth more and in theory increase in price.

Company B - Issues 100 shares, currently has 100 MH?s. Withholds just enough profit to cover power. Funds future expansion by releasing more shares at 1 share per 1 MH/s. Each share is forever worth only 1 MH/s and only increases in price when the average cost per MH/s on GLBSE increases.

Thoughts? I'd say the first company would benefit those that bought in early. However since it doesn't pull in additional funding with more rounds of fund raising it is limited on its growth rate. The second company can aggressively grow if the market is willing to invest BTC into the company. It doesn't really matter when the investor invests in the company if it continues to release shares to fund growth.

Thoughts?

We are basically going to do it like this:

When we launch, we will already have mining capacity online.   Anyone who invests will get a proportional share of the BTC dividend stream.   The value we bring is accountability to our investors, continual pushes for more efficiency in our operation so that we send maximum BTC dividends, financial acumen, physical security of hardware (secure access building (commercial grade) with 24/7 video surveillance in building and office) and long term commitment.   Also once this gets to our initial goal then we will be setting up another BTC business (financial service) and our investors will be the first to be invited to join us.    We will be doing a pre-IPO roadshow via video conference so you can meet up and ask us all the hard questions, after that I am confident you will be impressed and realize we are the real deal.

Dal