SkepsiDyne Integrated Node - The Bitcoin Mining Company

[SgtSpike]

{'amount': 20500000, 'assets_paid': 2304, 'payment_per_share': 8897}

Dividends are paid!  The miniscule amount is because this was the week I switched the meter cycle to Wednesdays from Sundays, so we're paying for a week and a half of usage with one week of production.  Next week will be back to normal.  Also, got one rig up today, the others should be up before tomorrow is over, then we'll be back up to full capacity.  The electric bill was $230.74, and total mined BTC was 28.21.

Your cost of production is 230.74/28.21 = $8.18/BTC
This mean your mining operation is losing money at the current Bitcoin exchange rate of ~$7.
I am curious as to what is your plan to become profitable again?

He stated he's paying for a week and a half of usage with one week of production.  It was only unprofitable because an extra 50% was tagged on to the cost of production for this week only.

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[NetTecture]

Not that it will get a lot better this time with the rates like that Crap I hope it goes up soon.

[Tawsix]

{'amount': 224500000, 'assets_paid': 2304, 'payment_per_share': 97439}

Dividends have been paid out!  The electric bill was $162.52, and 23.9 BTC was taken out to pay for it.  A total of 28.39 BTC was generated this week.

This week I will begin collecting dividends equal to that of the payout to shareholders, so all profits from generated BTC will be paid out, and no more will be reinvested back into the company at this time.  If and when we begin to expand once more, we will then discuss how much profit should be reinvested into the company, but for now all profits will be paid out.

We do have contingency plans should the price of BTC fall.  The electricity is billed at different (higher) rates during peak hours (~10am - ~7pm), and we will only mine during off-hours if mining 24/7 becomes unprofitable. 

I would like to thank everyone once again for their patience and support, especially during these uncertain times.

[boonies4u]

{'amount': 224500000, 'assets_paid': 2304, 'payment_per_share': 97439}

Dividends have been paid out!  The electric bill was $162.52, and 23.9 BTC was taken out to pay for it.  A total of 28.39 BTC was generated this week.

This week I will begin collecting dividends equal to that of the payout to shareholders, so all profits from generated BTC will be paid out, and no more will be reinvested back into the company at this time.  If and when we begin to expand once more, we will then discuss how much profit should be reinvested into the company, but for now all profits will be paid out.

We do have contingency plans should the price of BTC fall.  The electricity is billed at different (higher) rates during peak hours (~10am - ~7pm), and we will only mine during off-hours if mining 24/7 becomes unprofitable. 

I would like to thank everyone once again for their patience and support, especially during these uncertain times.

As long as we have enough funds to get up and running at "13 rigs producing ~12.8 Ghash/sec" again... I don't think it is too much of a stretch to let you start pulling in profit from your shares.

Could you please updated Skepsidyne.com and/or the first post of this thread?

[SgtSpike]

{'amount': 224500000, 'assets_paid': 2304, 'payment_per_share': 97439}

Dividends have been paid out!  The electric bill was $162.52, and 23.9 BTC was taken out to pay for it.  A total of 28.39 BTC was generated this week.

This week I will begin collecting dividends equal to that of the payout to shareholders, so all profits from generated BTC will be paid out, and no more will be reinvested back into the company at this time.  If and when we begin to expand once more, we will then discuss how much profit should be reinvested into the company, but for now all profits will be paid out.

We do have contingency plans should the price of BTC fall.  The electricity is billed at different (higher) rates during peak hours (~10am - ~7pm), and we will only mine during off-hours if mining 24/7 becomes unprofitable. 

I would like to thank everyone once again for their patience and support, especially during these uncertain times.

How much total has been reinvested on your behalf vs the investment by everyone else?

[Nefario]

GLBSE will be down this Saturday.

[Ten98]

Lol I invested in 50 shares at .65 per share, realised what a terrible investment this company is and checked every single day on glbse for buyers, slowly managing somehow to sell my shares for the same as I bought them for. I made a grand total of about 0.1 BTC in dividends before I finally sold them all

Now I finally have my coins out of glbse I feel like I have pulled off the great escape! I doubt I will "invest" in another company, the returns are so miniscule, even on the companies that somehow manage to turn a profit, that I'd be better off just putting my money in the bank at 2% annual interest...

Best of luck to Tawsix, this was kind of a good idea handled spectacularly badly.

[boonies4u]

Lol I invested in 50 shares at .65 per share, realised what a terrible investment this company is and checked every single day on glbse for buyers, slowly managing somehow to sell my shares for the same as I bought them for. I made a grand total of about 0.1 BTC in dividends before I finally sold them all

Now I finally have my coins out of glbse I feel like I have pulled off the great escape! I doubt I will "invest" in another company, the returns are so miniscule, even on the companies that somehow manage to turn a profit, that I'd be better off just putting my money in the bank at 2% annual interest...

Best of luck to Tawsix, this was kind of a good idea handled spectacularly badly.

Given the volatility of mtgox and bitcoins in general, I feel better having X shares of powerful hardware than x bitcoins.

I am confident in bitcoins as a currency and a platform/network, but I don't blindly hoard them. I agree that Tawsix could have certainly handled this better and still has the chance to improve... I just think this is one of the worst times to withdraw your in investments into BTC.

[Tawsix]

I apologize for the delay, but the truth of the matter is that at current prices of BTC, we will have operated in the past week at a slight deficit.  I am waiting for BTC to go back up in price to at least cover the cost of operation.  I do round up when I calculate energy costs, so we won't be going into the negative financially.  I have confidence that Bitcoins will rebound from this slump.  I will update further once the situation is resolved.

[Syke]

I apologize for the delay, but the truth of the matter is that at current prices of BTC, we will have operated in the past week at a slight deficit.  I am waiting for BTC to go back up in price to at least cover the cost of operation.  I do round up when I calculate energy costs, so we won't be going into the negative financially.  I have confidence that Bitcoins will rebound from this slump.  I will update further once the situation is resolved.

Where do you live, Hawaii? Break-even is around $.20/kwh on a decent rig. The days of running a farm with electricity rates that high are over. Liquidate your hardware now.

[boonies4u]

I apologize for the delay, but the truth of the matter is that at current prices of BTC, we will have operated in the past week at a slight deficit.  I am waiting for BTC to go back up in price to at least cover the cost of operation.  I do round up when I calculate energy costs, so we won't be going into the negative financially.  I have confidence that Bitcoins will rebound from this slump.  I will update further once the situation is resolved.

Where do you live, Hawaii? Break-even is around $.20/kwh on a decent rig. The days of running a farm with electricity rates that high are over. Liquidate your hardware now.

Without consulting the shareholders?

[handburger]

I apologize for the delay, but the truth of the matter is that at current prices of BTC, we will have operated in the past week at a slight deficit.  I am waiting for BTC to go back up in price to at least cover the cost of operation.  I do round up when I calculate energy costs, so we won't be going into the negative financially.  I have confidence that Bitcoins will rebound from this slump.  I will update further once the situation is resolved.

Where do you live, Hawaii? Break-even is around $.20/kwh on a decent rig. The days of running a farm with electricity rates that high are over. Liquidate your hardware now.

Without consulting the shareholders?

I think Tawsix has no responsibility to notify us if he decides to liquidate and distribute the money to shareholders if he feels it is best for shareholders.  Personally I think he should hold off a while as difficulty is bound to plummet and it may be profitable again.

[boonies4u]

Where do you live, Hawaii? Break-even is around $.20/kwh on a decent rig. The days of running a farm with electricity rates that high are over. Liquidate your hardware now.

Without consulting the shareholders?

I think Tawsix has no responsibility to notify us if he decides to liquidate and distribute the money to shareholders if he feels it is best for shareholders.  Personally I think he should hold off a while as difficulty is bound to plummet and it may be profitable again.

While he certainly is not required to notify us of such (comparable to) "executive" decisions. It does not mean that he would not want to, or should not notify or discuss sch major decisions with us.

It was more of a reaction to Skye's blunt advice, which was apparently directed directly at Tawsix.

[clouds]

This week I will begin collecting dividends equal to that of the payout to shareholders, so all profits from generated BTC will be paid out, and no more will be reinvested back into the company at this time.  If and when we begin to expand once more, we will then discuss how much profit should be reinvested into the company, but for now all profits will be paid out.

Wait, I don't understand how it is possible for you to be collecting dividends equal to that of the payout to shareholders.  You haven't paid for that many shares yet, have you?

As far as I can tell, a total of 202.7945 BTC in dividends has been paid out to other shareholders so far.  If an equal amount has been paid out to you (and reinvested in the company to pay for your shares), then you also effectively have received 202.7945 BTC.  At 0.75 BTC per share, this means that you have paid for 202.7945 / 0.75 = 270.39 shares.  If 2304 shares have been sold so far, and you have only have 270.39 shares, you should not be collecting dividends equal to the payout of other shareholders.  You should only be collecting dividends equal to 270.39 shares, since that is the number of shares you have earned via reinvestment.  If dividends aren't going to be reinvested back in the company, you should only be collecting dividends proportional to the number of shares you have paid for, and the rest of the dividends should be split among all shareholders.

From your first post in this thread:

I hold an amount of shares equal to the number of shares sold from the IPO + 1, and receives dividends on that basis.  These shares are paid off from dividends, so all dividends paid to me are reinvested back into the company in order to pay for my shares.  I will collect dividends normally once these shares are paid for.

You said you will only "collect dividends normally once your shares are paid for," which hasn't happened yet.

And from the amended contract you posted at
https://bitcointalk.org/index.php?topic=8167.msg284966#msg284966

The issuer of the shares will reinvest all dividends recieved until such a time that all owned shares are paid for.

Here is my calculation of dividends paid out to other shareholders:
34.235 BTC on June 13, 2011 https://bitcointalk.org/index.php?topic=8167.msg212008#msg212008
35.895 BTC on June 24, 2011 https://bitcointalk.org/index.php?topic=8167.msg273039#msg273039
19.435 BTC on July 5, 2011 https://bitcointalk.org/index.php?topic=8167.msg324962#msg324962
16.235 BTC on July 11, 2011 https://bitcointalk.org/index.php?topic=8167.msg350142#msg350142
22.195 BTC on July 23, 2011 https://bitcointalk.org/index.php?topic=8167.msg390746#msg390746
16.865 BTC on July 27, 2011 https://bitcointalk.org/index.php?topic=8167.msg404918#msg404918
25.76 BTC on August 10, 2011 https://bitcointalk.org/index.php?topic=8167.msg447073#msg447073
16.39 BTC on August 17, 2011 https://bitcointalk.org/index.php?topic=8167.msg464132#msg464132
13.3345 BTC on August 25, 2011 https://bitcointalk.org/index.php?topic=8167.msg480531#msg480531
0.205 BTC on September 3, 2011 https://bitcointalk.org/index.php?topic=8167.msg500715#msg500715
2.245 BTC on September 8, 2011 https://bitcointalk.org/index.php?topic=8167.msg515533#msg515533
(Did Tawsix already start collecting on Sept 8, or were an equal 2.245 BTC reinvested to pay for his shares?)

Total paid out to other shareholders:
34.235 + 35.895 + 19.435 + 16.235 + 22.195 + 16.865 + 25.76 + 16.39 + 13.3345 + 0.205 + 2.245 = 202.7945 BTC
(202.7945 BTC is about 270 shares at 0.75 BTC per share)

Please correct me if I'm misunderstanding something, but it seems like Tawsix should be collecting dividends equal to the ~270 shares he has earned, not collecting dividends equal to the 2304 shares that have been sold on glbse.

It might be ok to stop reinvesting back in the company (although that should probably be put to a vote), however if you stop reinvesting then you should be capping yourself at 270 shares, not pretending you've paid for 2304 shares.

[mrb]

Where do you live, Hawaii? Break-even is around $.20/kwh on a decent rig. The days of running a farm with electricity rates that high are over. Liquidate your hardware now.

Tawsix said below he pays $.15/kWh during the day and $.08/kWh during the night. My guess is that he made the mistake of building a farm mostly from 5830s which have terrible power efficiency. At $.15/kWh his cost of production on a 5830 is about $5.9/BTC, clearly losing money when the exchange rate is $4.8/BTC.

**Something I didn't take into account when calculating power costs: I have a variable rate where 10am-7pm is charged at ~15 cents / kWh and 7pm-10am is charged at ~8 cents / kWh, so that drastically lowers operating costs**

Tawsix: I suggest you stop operating during the day to profit from lower night rates.

[Syke]

Where do you live, Hawaii? Break-even is around $.20/kwh on a decent rig. The days of running a farm with electricity rates that high are over. Liquidate your hardware now.

Tawsix said below he pays $.15/kWh during the day and $.08/kWh during the night. My guess is that he made the mistake of building a farm mostly from 5830s which have terrible power efficiency. At $.15/kWh his cost of production on a 5830 is about $5.9/BTC, clearly losing money when the exchange rate is $4.8/BTC.

My 4x5830 rig draws 650 watts and outputs 1112 mhps which generates .64 btc and draws 15.6 kwh.
.15 for 9 hours and .08 for 15 hours is about .11 per kwh average per day.
Cost to generate btc is $2.59 per coin.

Sounds like his efficiency is half of what it should be.

[mrb]

My 4x5830 rig draws 650 watts and outputs 1112 mhps which generates .64 btc and draws 15.6 kwh.
.15 for 9 hours and .08 for 15 hours is about .11 per kwh average per day.
Cost to generate btc is $2.59 per coin.

Your setup computes 1.71 Mhash/Joule. Although there is a lot of invalid data in https://en.bitcoin.it/wiki/Mining_hardware_comparison your claim is inconsistent with the wiki which puts the value anywhere between 1.3 and 1.6 Mhash/Joule.

How did you measure 650W? Do you under/overclock the GPU or memory? Etc.

[Syke]

Your setup computes 1.71 Mhash/Joule. Although there is a lot of invalid data in https://en.bitcoin.it/wiki/Mining_hardware_comparison your claim is inconsistent with the wiki which puts the value anywhere between 1.3 and 1.6 Mhash/Joule.

How did you measure 650W? Do you under/overclock the GPU or memory? Etc.

You mentioned 5830s so I picked that rigs as an example. 1.71 isn't even my most effecient rig.

You have a farm. Are you saying you can't pull off 1.71 Mhash/Joule on any of your systems? Who cares what the wiki says. The wiki is old and outdated.

1. Buy quality parts. 60% efficient power supplies are stupid.
2. Plug system into Killawatt meter.
3. Use latest mining software and optimize hashing parameters.
4. Overclock core speed and underclock memory speed.
5. Keep fans clean so nothing overheats.

There's no rocket science here. Just basic mining optimizations that any half-decent miner would do.

[mrb]

You mentioned 5830s so I picked that rigs as an example. 1.71 isn't even my most effecient rig.

You have a farm. Are you saying you can't pull off 1.71 Mhash/Joule on any of your systems?

  Err... I don't run inefficient 5830s.

Who cares what the wiki says. The wiki is old and outdated.

That's what I said. "invalid data". I was implicitly asking for confirmation from anyone running 5830s.

1. Buy quality parts. 60% efficient power supplies are stupid.
2. Plug system into Killawatt meter.
3. Use latest mining software and optimize hashing parameters.
4. Overclock core speed and underclock memory speed.
5. Keep fans clean so nothing overheats.

There's no rocket science here. Just basic mining optimizations that any half-decent miner would do.

So we can deduct Tawsix is not doing any of this if he claims he is losing money.

[boonies4u]

That's what I said. "invalid data". I was implicitly asking for confirmation from anyone running 5830s.

1. Buy quality parts. 60% efficient power supplies are stupid.
2. Plug system into Killawatt meter.
3. Use latest mining software and optimize hashing parameters.
4. Overclock core speed and underclock memory speed.
5. Keep fans clean so nothing overheats.

There's no rocket science here. Just basic mining optimizations that any half-decent miner would do.

So we can deduct Tawsix is not doing any of this if he claims he is losing money.

If Tawsix was running his rigs efficiently, I would not have too much trouble with him wishing to keep the specifics of the rigs secret, but if he fails to run the rigs profitably (may need to mine at night), he is failing the shareholders and needs to explain in detail why it is not profitable.

If Tawsix is unable or unwilling to operate and upkeep the rigs, he should consider hiring or contracting help. I believe that we still have possible IPO shares that could be put back on the market, invade we need more funds to be profitable again.

P.S. Tawsix needs to clarify and/or explain his actions about pulling in half of the profits, yet not matching the funds brought in by the IPO.