SkepsiDyne Integrated Node - The Bitcoin Mining Company

[cypherdoc]

we also need to notify Tawsix

[Tawsix]

we also need to notify Tawsix

Not to worry:

I'm really sorry about this guys.

When I started glbse I was unsure how to handle this sort of issue, should people have their buy and sell orders cancelled because the withdraw btc from their account?

So I decided that people could make any order they liked, and it would show, but only be processed if there was a matching order for it. If any order that matches doesn't have enough shares or btc in their account then the order is removed.

I though people would be civil about it but it has turned out not to be the case.

So from tomorrow I will make the change.

That to sell an asset you must have at least that number in your account, if you remove the asset from your account (using transfer) then your order will be removed, and the same will be for your bitcoin. You will be required to hold bitcoin in your account to cover all your positions.

Feedback is appreciated.

Nefario.

That's in the SkepsiDyne thread in the Mining section of the forums.

Also, the new rigs have arrived, getting on it right now.  I'll update later tonight once everything is settled, but I won't be able to respond to anything until quite late this evening.  Here we go!

[cypherdoc]

I'm really sorry about this guys.

When I started glbse I was unsure how to handle this sort of issue, should people have their buy and sell orders cancelled because the withdraw btc from their account?

So I decided that people could make any order they liked, and it would show, but only be processed if there was a matching order for it. If any order that matches doesn't have enough shares or btc in their account then the order is removed.

I though people would be civil about it but it has turned out not to be the case.

So from tomorrow I will make the change.

geez beweez!

[Tawsix]

Update: Six of the seven rigs are currently up.  I'll be fiddling with the seventh tomorrow morning, I'm pretty sure I know what the problem is but I'm exhausted!  Tomorrow I'll also be looking into a better cooling situation so we can overclock the cards to their maximum potential!

[weinerk]

 It makes no sence to buy shares with the current BTC rate:    

18	$/BTC - current rate
5,000	shares
39	rigs (lets go with this number for now )
128	shares/rig
0.75	BTC/share
1,731	$/rig
50%	%revshare (since 50% goes to the owner)
3,462	effective cost of rig

   
 VS.    
   
 1,200     $/rig - buy my own
   
 2.88     Ratio

Thats overpaying by almost 3 times
   
At the original  7USD/BTC - it was competitive,    
but now you would have to cut the share price to something like 0.25BTC/share to make it work

Please comment?

[tomcollins]

It makes no sence to buy shares with the current BTC rate:    

18	$/BTC - current rate
5,000	shares
39	rigs (lets go with this number for now )
128	shares/rig
0.75	BTC/share
1,731	$/rig
50%	%revshare (since 50% goes to the owner)
3,462	effective cost of rig

   
 VS.    
   
 1,200     $/rig - buy my own
   
 2.88     Ratio

Thats overpaying by almost 3 times
   
At the original  7USD/BTC - it was competitive,    
but now you would have to cut the share price to something like 0.25BTC/share to make it work

Please comment?

That's what happens when you run a scam, your "investors" get hosed.

[weinerk]

That's what happens when you run a scam, your "investors" get hosed.

Not necessarily a "scam" - I am not relating to that at all -
I am saying that we buy computers for USD.
Share price is fixed in BTC (and BTC appreciated almost 3 times since IPO).
So it is no longer attactive to buy through the company,
when you can buy compters in USD for a third of the cost.

To make it attractive again for investor to buy shares - need to recalc the price.

[clouds]

It makes no sence to buy shares with the current BTC rate:    

18	$/BTC - current rate
5,000	shares
39	rigs (lets go with this number for now )
128	shares/rig
0.75	BTC/share
1,731	$/rig
50%	%revshare (since 50% goes to the owner)
3,462	effective cost of rig

   
 VS.    
   
 1,200     $/rig - buy my own
   
 2.88     Ratio

Thats overpaying by almost 3 times
   
At the original  7USD/BTC - it was competitive,    
but now you would have to cut the share price to something like 0.25BTC/share to make it work

Please comment?

I don't think your analysis makes sense, because you incorrectly fixed the number of rigs at 39.  If the USD/BTC exchange rate has risen, that just means more rigs can be purchased for the same number of BTC.  That doesn't increase the cost of each rig, it increases the number of rigs that can be purchased.

The price per rig in USD stays the same.  Last I heard, Tawsix is buying rigs that cost $1160 each.  If the USD/BTC exchange rate has increased, it just means more rigs can be purchased.  So if 5000 shares were sold @ 0.75 BTC, that would be 5000*.75=3750BTC.  If BTC are $18, that's $67500 USD.  67500/1160 = 58 rigs.  These numbers are just an example since the BTC were and will be exchanged at different rates.

[weinerk]

Yeah, but the dividends are proportional to amount of shares...

[clouds]

Yeah, but the dividends are proportional to amount of shares...

Yes, dividends will be divided among shares.  The total number of IPO shares hasn't changed either.

I don't know whether or not this will eventually provide a good return on investment.  I was just responding to your original post where you were comparing the cost of rigs.  Tawsix said his rigs cost $1160, and you said you would spend $1200 to buy your own rig.  I guess that makes SIN rigs cheaper (you didn't give rig specs).

[eturnerx]

Update: Six of the seven rigs are currently up.  I'll be fiddling with the seventh tomorrow morning, I'm pretty sure I know what the problem is but I'm exhausted!  Tomorrow I'll also be looking into a better cooling situation so we can overclock the cards to their maximum potential!

Congratulations on a job well done.

Please ignore Weinerk until he gets his math right.

[Nefario]

Good news guys
http://forum.bitcoin.org/index.php?topic=13055.0

[bing]

Besides my opinion about paying out divends for expanding business, I have another questionmark...

How does the payouts work, if not all initial shares are paid?

Is it:

1.
BTCs * owned_shares / total_shares
or
2.
BTCs * owned_shares / (total_shares - left_of_initial_shares)

The second would be preferable though the divends should be based on the current investment made.

for example:
2000 shares is sold that gets us 10 rigs (example).
If the divends is calculated on 10000 shares that makes the divends based on 2 rigs instead of the 10 that the current investors have payed for. Only when all initial shares are sold, the divends can be based on 10000 shares.

I have trouble explaining this in a good way, Am I thinking all wrong here?

[bing]

BTW, is the SIN-shares taken of the market?
Haven't seen any large sale on the ticker?

[Ben Walsh (beamer)]

All orders on GLBSE (bid and ask) were cancelled by developer of GLBSE, as a necessity for adding functionality to prevent "spam" orders.

SIN asset owner will to to "re-sell" the shares they own, to get trading started again.

[eturnerx]

All shares orders were cancelled during the last GLBSE update. I guess tawsix will put the SIN ones back up for sale soon.

bing: I think it's dividend_per_share = total_dividend_payout / ownedshares

[bing]

All shares orders were cancelled during the last GLBSE update. I guess tawsix will put the SIN ones back up for sale soon.

bing: I think it's dividend_per_share = total_dividend_payout / ownedshares

With ownedshares you mean "Owned by investors"? And not total shares?

The "unsold" shares is owned by tawsix, but there's no capital backing it.
So I think it comes down to definition.

Since the whole startup is financed by external investors, "unsold" shares shouldn't get divends since they haven't really contributed yet.

[Nefario]

All shares orders were cancelled during the last GLBSE update. I guess tawsix will put the SIN ones back up for sale soon.

bing: I think it's dividend_per_share = total_dividend_payout / ownedshares

You can use the web client to make dividend payments.

The total amount paid is divided over the sold shares.

That means that shares in the issuers account get nothing(this is by system design).

[bing]

All shares orders were cancelled during the last GLBSE update. I guess tawsix will put the SIN ones back up for sale soon.

bing: I think it's dividend_per_share = total_dividend_payout / ownedshares

You can use the web client to make dividend payments.

The total amount paid is divided over the sold shares.

That means that shares in the issuers account get nothing(this is by system design).

Nice! I'm one of those who likes to find errors in systems and you already thought of everything, perfect

Oh, btw, good work with the web-thingy!

[Sukrim]

Oh, and btw: Get out of BTCMine, and get out quick! They charge now a 2% fee!

I still would suggest starting 2 miners per GPU - 1 at Eligius and the other one at BTCguild. This would equally distribute the hashrate and allow for automatic failover. If you need help for this, just tell us/me.