First mention of Bitcoin on EDGAR DB - Loan documentation for a mining op

[Stephen Gornick]

Apparently Prosper.com submits each loan profile to the SEC, which causes it to end up searchable on EDGAR.

There have been several loans appearing since 2011.  Here's the most recent:

Description: INVESTMENT IN EQUIPMENT
Purpose of loan: This loan will be used to purchase 10 Butterfly Labs BitForce SHA256 singles.

These SHA256 hashers should add to my income as well. They will be used for "mining" Bitcoins, and at today's rates, they would mine around $30/day of Bitcoins ($900/month). All Bitcoins mined will be put directly back into this loan in the hopes of paying it back early (within a year is my goal).

 - http://www.sec.gov/Archives/edgar/data/1416265/000141626512000161/sales_20120307-1552.htm

This might be the transaction:

Ah, very cool.  I got my loan through prosper.com.  Looks to be very similar to lending club.  My interest was 22%, lol.

Interesting to see Bitcoin pop up in all these various places.

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[danieldaniel]

That's interesting.  That 22% interest... Isn't that a little high?  I would personally have no idea, but just seems huge.

[vite]

That's interesting.  That 22% interest... Isn't that a little high?  I would personally have no idea, but just seems huge.

danieldaniel = noob

I agree with danieldaniel and think that the mining operation will only pay interest.

[danieldaniel]

That's interesting.  That 22% interest... Isn't that a little high?  I would personally have no idea, but just seems huge.

danieldaniel = noob

I agree with danieldaniel and think that the mining operation will only pay interest.

vite == noob.

I agree with vite on the fact that he agreed with me.

Kthx.

EDIT:

Why are you willing to pay such high interest? That seems really ridiculous, but then again I've never looked into private loans like this.

Because I didn't plan to keep the loan for the entire term (3 years).  I planned to have it paid off within a year, and as it is, I'll have it paid off in a few days, which means I've only had to pay 3 months worth of interest on it.  And because, no bank wanted to give me a personal loan in that amount.

If it wasn't used to purchase assets that generate income, I would never think about taking out that much of a loan at that interest rate.

Oh, that explains it a bit.