ASICMINER: Entering the Future of ASIC Mining by Inventing It

[S. Omega]

Funny thing. BitFunder seems to have an "unbreakable" wall of 19 shares. Trying to sell into that position leads to a fatal error...

Good or bad? Pick your poison...

[lophie]

The next few weeks sounds like a great time to pick up shares

In my opinion it is THIS week.

[freedomno1]

The next few weeks sounds like a great time to pick up shares

In my opinion it is THIS week.

Expecting lower end projections myself for people adjusting to the current yield
But I agree with you it is THIS Week and Next

[Jutarul]

Wow, worst divend in a long time? 0.05832576

..
The amount is even lower....

Just as a reminder. ASICMINER didn't pay any dividends for about 7 months while the project was incubating. So it really depends on what you consider " a long time". On a few occasions friedcat already indicated that the company is securing funds for the long haul. This is perfectly reasonable if you want to stay in the mining business for the forseeable future, and the environment for raising funds becomes increasingly regulated and fractured. Unless a mining competitor finds a way to burn investor money (ala BFL) to stay competitive, we're looking at an industry with tight economic constrains. As such having a low cost structure for mining, R&D and production/distribution is essential and ASICMINER is certainly on the right track. Please keep that in mind when you try to establish your own company valuation for AM.

[huhai0978]

Wow, worst divend in a long time? 0.05832576

..
The amount is even lower....

Just as a reminder. ASICMINER didn't pay any dividends for about 7 months while the project was incubating. So it really depends on what you consider " a long time". On a few occasions friedcat already indicated that the company is securing funds for the long haul. This is perfectly reasonable if you want to stay in the mining business for the forseeable future, and the environment for raising funds becomes increasingly regulated and fractured. Unless a mining competitor finds a way to burn investor money (ala BFL) to stay competitive, we're looking at an industry with tight economic constrains. As such having a low cost structure for mining, R&D and production/distribution is essential and ASICMINER is certainly on the right track. Please keep that in mind when you try to establish your own company valuation for AM.

What are you talking about? AM is only worth 0.2B/share right now. Dec. will see AM @ 0.1B/share. The other 0.1B/share is paid via dividend.

[huhai0978]

The whole mining industry is plummeting, not just AM. 25% hashing rate increase/cycle means the mining co must pay 25% more to keep up with the trend. The profit margin goes to zero!!!

[puck2]

What are you talking about? AM is only worth 0.2B/share right now. Dec. will see AM @ 0.1B/share. The other 0.1B/share is paid via dividend.

What are you talking about?

Asicminer is worth far more than 0.2B/share. Recent auctions (https://bitcointalk.org/index.php?topic=306865.msg3309448#new) are selling shares for well over 1B.

[huhai0978]

What are you talking about? AM is only worth 0.2B/share right now. Dec. will see AM @ 0.1B/share. The other 0.1B/share is paid via dividend.

What are you talking about?

Asicminer is worth far more than 0.2B/share. Recent auctions (https://bitcointalk.org/index.php?topic=306865.msg3309448#new) are selling shares for well over 1B.

OK. Buy AM share for 1B and keep it for 3 months. You will find out what I mean.

[puck2]

What are you talking about? AM is only worth 0.2B/share right now. Dec. will see AM @ 0.1B/share. The other 0.1B/share is paid via dividend.

What are you talking about?

Asicminer is worth far more than 0.2B/share. Recent auctions (https://bitcointalk.org/index.php?topic=306865.msg3309448#new) are selling shares for well over 1B.

OK. Buy AM share for 1B and keep it for 3 months. You will find out what I mean.

Oh I bought for far less and have held for far longer. I am here for the long haul. Thanks for the suggestion, though.

[Jutarul]

What are you talking about? AM is only worth 0.2B/share right now. Dec. will see AM @ 0.1B/share. The other 0.1B/share is paid via dividend.

new bitcoins till 2020 are about 5 million. Assuming that profit margins from mining are >50% on an average basis (i.e. the purchasing power growth of the bitcoin correlates to hash power growth ) we're looking at about 2.5 million bitcoin net profit. Since IT industries are usually dominated by a handful of players, the expected long term profit per player is around 0.5 million, which puts AM well above 1.

And that ignores potential armsrace, defensive mining, escalation of fees, hardware replacement and cryptographic mining tech taking over other industries, like notary services or stock/ownership tracking.

If all you do is own bitcoin, you don't get any exposure to these potential outcomes.

[huhai0978]

What are you talking about? AM is only worth 0.2B/share right now. Dec. will see AM @ 0.1B/share. The other 0.1B/share is paid via dividend.

What are you talking about?

Asicminer is worth far more than 0.2B/share. Recent auctions (https://bitcointalk.org/index.php?topic=306865.msg3309448#new) are selling shares for well over 1B.

OK. Buy AM share for 1B and keep it for 3 months. You will find out what I mean.

Oh I bought for far less and have held for far longer. I am here for the long haul. Thanks for the suggestion, though.

See u in 3 months then.

[puck2]

Quick Update

We are still on track of accumulating reinvestment funds, continuing from last month, so please expect less-than-raw-income dividends in the next few weeks. The financials will be given out in October 20s, as mentioned in the last update.

Self-retained (not sold) Hashrate distribution:

Air cooling datacenter - 47TH/s
Under franchising - 19TH/s
Immersion cooling - 5TH/s with 3-5TH/s per day towards 60TH/s in total.

Thanks! The fact that there are dividends at all during this accumulation and reinvestment is astounding! I appreciate all that ASICMINER (friedcat + the board) is doing to advance the Bitcoin project as well as distribution of mining income.

[Jutarul]

The hash rate increasees 25%/cycle. A cycle is about 12 daya. Moors' law is 2x in 18 months. U r living in ur own dream.

Learn about the sigmoid function and combine that with a sub-exponential growth of the asymptotic value over the long term. Have a nice day.

[ninjarobot]

The whole mining industry is plummeting, not just AM. 25% hashing rate increase/cycle means the mining co must pay 25% more to keep up with the trend. The profit margin goes to zero!!!

Nature abhors a vacuum so mining will quickly become a 0-sum or very low margin business. At least when it comes to mining. There appears to be a constant supply of fools to sell hardware to. So I'm not worried about low AM mining hashrates - Selling hardware is the name of the game now.

[VolanicEruptor]

lol I love how the trading on BF has come to a complete standstill since the FC update.  Obviously nobody knows how they should be trading this right now..

I guess we're all just sitting tight until something happens lol

[BitThink]

lol I love how the trading on BF has come to a complete standstill since the FC update.  Obviously nobody knows how they should be trading this right now..

I guess we're all just sitting tight until something happens lol

They are waiting for Ukyo to confirm shares can be converted to direct.

[BitThink]

The whole mining industry is plummeting, not just AM. 25% hashing rate increase/cycle means the mining co must pay 25% more to keep up with the trend. The profit margin goes to zero!!!

Nature abhors a vacuum so mining will quickly become a 0-sum or very low margin business. At least when it comes to mining. There appears to be a constant supply of fools to sell hardware to. So I'm not worried about low AM mining hashrates - Selling hardware is the name of the game now.

There are more choices to buy mining hardwares, and the price drops exponentially.

[VolanicEruptor]

lol I love how the trading on BF has come to a complete standstill since the FC update.  Obviously nobody knows how they should be trading this right now..

I guess we're all just sitting tight until something happens lol

They are waiting for Ukyo to confirm shares can be converted to direct.

Right, so if he says yes, then the price will likely come back up, as US investors won't be scared away from AM?

[BitThink]

There are more choices to buy mining hardwares

Unless it's non-exploding hardware.

The main problem of KnC is not exploding, but their production rate. People are not complaining about asking refund, but the long queue waiting for delivery. Currently the main advantage of AM is a reliable product line that can finish mass order in time. But sooner or later, the competitors will secure their product line too.

It seems the new data center in Hong Kong is ready, but the capacity is only 60TH (fully deployed after 20 days, with 2-3Th added daily), maybe due to the limit of power supply. So around 400TH needs to be sold as soon as possible, and friedcat has increased the Ad spending. So in short term, the profit of AM mostly depends on how hardware sale goes well. Moreover, with Bitfury and KnC as the competetors now, I think the price will decrease to around $16-$20/GH, around 1/4 of previous price.

In long term, gen2 chips cannot be postponed any more, or AM has to be converted to non-mining company totally. If currently the design and testing of gen2 has been finished, then there's no reason not to mass produce it. Even they are not sold well, self mining with them are still profitable. Suppose the watt/G reduce to 1/3 of gen-1, the self-mining capacity can increase to 300TH (from current 100TH), with the same power supply limit.

[VolanicEruptor]

We made an order of another brand of power chips which are about two weeks late. In October this will provide another 500TH/s (Gen1).

This was in his second last update (September 29th).. those power chips must still be late, as he didn't mention them in his last update..