On the other hand if you buy Datatank shares the price may go up a lot and its cheaper to get IPO shares than it is to buy later
Please explain to me, how is appreciation of cloud mining shares possible in term of BTC, thank you
There were two types of Shares
Series A and Series B
Only one of the two series involves cloudmining I believe I'll need to recheck on that (not sure capacity isn't mining so only series A does it? although the space is still being used I presume either way)
http://www.datatank-mining.com/files/DataTank_Mining_Ops_Prospectus.pdf"A"
Unit Holders purchase capacity + mining devices.
100% of the income generated is paid out to unit holders. Funds raised via "A"
units are used to build DataTank mining systems and mining hardware, "A" units are therefore more expensive than "B" units below.
"B"
Unit Holders purchase capacity only (no mining hardware). This capacity is made available on the market and used by third party miners (mining organizations, end - users) for appropriate market prices, bidding models, or special franchising agreements with ASIC manufacturers (ie. 80/20 franchising, 20% of mining income goes to holder of "B" units), or used by unit holders for self-mining.
100% of the income generated is paid out to unit holders.
Think its sort of like a mining bond in that the market speculates on it if I interpreted it correctly if we are allowed to analyze the datatank IPO in the AM thread? If so I'll continue we can also try to guess how many chip sales this will generate for AM as well
Voluntary Reinvestment
As 100% of income is paid to unit holders, there is no fixed reinvestment percentage or schedule.
However, DataTank Mining recommends unit holders to reserve 20% of earnings for reinvestment to replace outdated /inefficient mining hardware
and fund additional capacity.
This way, investors are in control over reinvestments individually and decide autonomously if and when reinvestments are being made.
Moreover, DataTank Mining intends to establish a reinvestment program at favorable market rates for existing unit holders.
I guess Bitcoin is made depending on how shareholders interpret the market and when to go all in or do nothing in terms of reinvesting in the company.
The shares appreciate if reinvested growth is greater than the increase in difficulty as they are able to generate more Bitcoins with the hashrate
With a lag time of a few months from decision to working hash in the network allowing the market to freely interpret the price, based on their estimated hash and estimated difficulty increases.
Just a rough idea though feel free to correct me may be totally off.
A possible scenario would be
Asicminer Dividends for 2 months --> Rockminer Dividends for 2 months --> Datatank Dividends for 2 months
Now that sounds like a high risk - high reward scenario.
I may play with that on paper and see how it turns out.
Cool tell me how it goes
