ASICMINER: Entering the Future of ASIC Mining by Inventing It

[Jutarul]

Let me break the silence, since many have wondered about the events on the board and among major shareholders. I apologize to all who sent me messages and didn't get a reply. But the situation at ASICMINER is simply hard to diagnose without first hand information. I guess I speak for every major shareholder when I say that no one saw the current situation coming. Sure - the company has been struggling lately, in part because the window of opportunity closed quickly and ASICMINER didn't move as fast as some of the competition. However, seeing how ASICMINER got hit by a double whammy of first loosing its farm and then its CEO is quite disturbing, to say the least.

The situation surrounding Rockminer is complex. I am saddened to see such an aggressive stand of Rockminer towards ASICMINER. I can only suspect that they are getting a lot of pressure themselves. However, there are more professional ways to deal with the issue than to clutter the internet with confidential material - that alone speaks volumes. The only excuse I can see for this is that ASICMINER so far has dealt with the situation poorly - and this is inexcusable.

The contractual obligations are currently being analyzed. So far it is clear that there seems to be no real clause which defines who is liable for events like theft or fire. Obviously, there has been no insurance plan either. The general rule for situations like these is that any clear liability assignment is commercially not viable and the affected parties have to sort it out somehow. The problem is that the product AMHash theoretically involves 5 Parties (Operator, Manufacturer, HashLord, Contract Platform, Contract Holder), of which neither has the ability to absorb the damage alone.  So far the overall understanding is that ASICMINER should carry some responsibility - however, the ability of the company to deal with the current fallout is hampered. Pressuring the company to do anything which it can't deliver is not productive.

I hear that some parties are considering legal steps. Let me tell you that from experience this won't end well for anybody and only results in wasting money on the parasitic elements of our economy. What we need in the current situation is a leadership figure who seeks compromise. This crisis won't be solved overnight. If a solution is reached it's likely gonna be a 2 year plan or some form of agreeable settlement. I hope I didn't shock anybody with this assessment.

Regarding the shareholding. It has been of a lower priority. For everyone who is holding shares and has traded recently, please preserve the full trail up to the last checkpoint, which means the cryptographic signatures which are used to authorize reassignment of shares. If traded unsafely, there is no guarantee that the ownership can be confirmed. Beware of double spending vectors in OTC transactions and use escrow if possible.

I saw some claim for the board not doing its work. Unfortunately there is no job description for board members, nor do they have an official duty with the company (unless a board member decides to get actively involved with the business). The conclusion which was already drawn a long time ago is that proper assessment requires boots on the ground. But those who actually were, never developed the habit of fiduciary reporting. AM Management always enjoyed a lax handling. I am not certain whether a stronger hand would have helped though. The business is tough. One little detail though - FC was always conflicted which information to release to the board and which not - especially since some of the board members have a conflict of interest because they are working for the competition. As such we covered mostly the baseline of sticking to financial statements as required by law.

According to the latest status the BE300 is confirmed and working. However, to bring the chip to market requires FIXED COST + COST PER CHIP + BUILD OUT COST. The funding situation for this is dire and it would require a new investor or a big buyer who has to be certain that he gets what he is promised. There are two scenarios where this could be quickly achieved:
a) A bitcoin price explosion would release dormant capital instantly shifting the reward/risk ratio.
b) A new type of investor who enjoys preferred treatment over AM Shareholders for the financing of the BE300 tech. Likely implemented as a joint venture.

I will collect further questions via PM and answer them publicly. I am certain I missed a few important points in this post.

Regards

[Jayjay04]

Thx Jutarul !
Any inside on the Amhashs contracts ?

[Chris_Sabian]

So any chance that AM would be 'saved' by the BE300 chip is now gone?

That is what the last few pages seem to mean.  And if that is true, AM is good as dead.

[KarmaShark]

PM'd

[MidwestMiner]

So any chance that AM would be 'saved' by the BE300 chip is now gone?

That is what the last few pages seem to mean.  And if that is true, AM is good as dead.

I have to say that it seems odd to say that BE300 is dead. Its not 20/16 nm. Wafers shouldn't be that expensive at all and running at low volt 0.15-0.18 w/GH is still extremely competitive. A few $100k isn't "big money" in mining.

[primeminer]

So any chance that AM would be 'saved' by the BE300 chip is now gone?

That is what the last few pages seem to mean.  And if that is true, AM is good as dead.

I have to say that it seems odd to say that BE300 is dead. Its not 20/16 nm. Wafers shouldn't be that expensive at all and running at low volt 0.15-0.18 w/GH is still extremely competitive. A few $100k isn't "big money" in mining.

it is "big money" for someone who doesnt have any funds

[Silverspoon]

...
I hear that some parties are considering legal steps. Let me tell you that from experience this won't end well for anybody and only results in wasting money on the parasitic elements of our economy. ...

[RoadStress]

According to the latest status the BE300 is confirmed and working. However, to bring the chip to market requires FIXED COST + COST PER CHIP + BUILD OUT COST. The funding situation for this is dire and it would require a new investor or a big buyer who has to be certain that he gets what he is promised. There are two scenarios where this could be quickly achieved:
a) A bitcoin price explosion would release dormant capital instantly shifting the reward/risk ratio.
b) A new type of investor who enjoys preferred treatment over AM Shareholders for the financing of the BE300 tech. Likely implemented as a joint venture.

So AM is broke just as expected since there was no financial report last year. Thanks for confirming this.

[Mabsark]

In other words, AM is dead.

[RoadStress]

In other words, AM is dead.

Told you so!

Edit: That was my moment. Thank you everyone! Time to retreat to my cave.

[MidwestMiner]

So any chance that AM would be 'saved' by the BE300 chip is now gone?

That is what the last few pages seem to mean.  And if that is true, AM is good as dead.

I have to say that it seems odd to say that BE300 is dead. Its not 20/16 nm. Wafers shouldn't be that expensive at all and running at low volt 0.15-0.18 w/GH is still extremely competitive. A few $100k isn't "big money" in mining.

it is "big money" for someone who doesnt have any funds

Oh of course.

[Kipsy89]

Well thanks for the update, man. I think if there's no investor available the company should be liquidated properly! Sad to hear this go under, though. Jutarul, please do your best to not let the shareholders be left with nothing!

To the cat, wherever he may be!

(can't leave all the good pictures to lamby)

[michaelGedi]

Time for a new IPO! lambchops can you cheerlead this one??

the funding situation is dire

may refer to friedcat having the keys to all the dough, so from my reading of all this so far there is a chance if this David guy buggers off then you've got the un-dire funding situation needed. But yeah... if, maybe etc

[jdany]

According to the latest status the BE300 is confirmed and working. However, to bring the chip to market requires FIXED COST + COST PER CHIP + BUILD OUT COST. The funding situation for this is dire and it would require a new investor or a big buyer who has to be certain that he gets what he is promised. There are two scenarios where this could be quickly achieved:
a) A bitcoin price explosion would release dormant capital instantly shifting the reward/risk ratio.
b) A new type of investor who enjoys preferred treatment over AM Shareholders for the financing of the BE300 tech. Likely implemented as a joint venture.

I will collect further questions via PM and answer them publicly. I am certain I missed a few important points in this post.

Regards

Jutarul,

Thanks for the info.

Not in a million years, would my wife allow me to do any real money investing in AM, until their problems are fixed.  And, frankly, management and leadership look to be the crux of their problems.

Any insight into the likelihood that ASICMINER  starts running and acting like a real company?
No other way anyone serious would entertain a new investment into such a horribly run trainwreck.

[Blazed]

Took them a year to finally admit that this is dead    Who would be crazy enough to invest back into this disaster..they were a one hit wonder. Sorry for every ones losses...just hodl those coins stop investing in these unregulated entities.

[superduh]

Jutarul etc

how is dave involved in all this? why has he bailed? does he have anything to do in FC's disappearance?
who holds all the financials in this company? FC? any money left? any orders at all for mass production that were ordered before FC disappeared.
has dave abandoned AM and "closed it down", anyone else have a leadership role besides FC and Dave? anyone who can take the reigns and be a leader for the time being
there are too many things that don't make sense for those that don't understand the internal structure or working of AM.
is the assumption that even if FC is found the company is toast? and seriously, how can a company with so many employees just collapse and not be able to continue with their leader missing. Any statement from the kidnappers yet?

Chinese AM holders, please help everyone out

[superduh]

Took them a year to finally admit that this is dead    Who would be crazy enough to invest back into this disaster..they were a one hit wonder. Sorry for every ones losses...just hodl those coins stop investing in these unregulated entities.

original investors made 5-6x what they invested- so for them that's 500% return. just everyone after them kind of lost out

[Blazed]

Took them a year to finally admit that this is dead    Who would be crazy enough to invest back into this disaster..they were a one hit wonder. Sorry for every ones losses...just hodl those coins stop investing in these unregulated entities.

original investors made 5-6x what they invested- so for them that's 500% return. just everyone after them kind of lost out

I know, but so many people been shilling for them long after gen 1. I am sure a lot bought in @ silly prices and now lost big time.

[Kipsy89]

Jutarul etc

how is dave involved in all this? why has he bailed? does he have anything to do in FC's disappearance?
who holds all the financials in this company? FC? any money left? any orders at all for mass production that were ordered before FC disappeared.
has dave abandoned AM and "closed it down", anyone else have a leadership role besides FC and Dave? anyone who can take the reigns and be a leader for the time being
there are too many things that don't make sense for those that don't understand the internal structure or working of AM.
is the assumption that even if FC is found the company is toast? and seriously, how can a company with so many employees just collapse and not be able to continue with their leader missing. Any statement from the kidnappers yet?

Chinese AM holders, please help everyone out

Dave is still at AM, man... He co-founded AM together with friedcat. They weren't getting along too well, apparently. And now FC is gone, only Dave is left and a lot of people don't think that he's a good choice as AM's leader.

[Silverspoon]

...Any statement from the kidnappers yet?
...

Not yet, but my crew, The Bloodhound Gang, is already putting names to faces...

The information form china's bitcoin community, it seems that friedcat's family are looking for him.
it's about friedcat's safety.

The pieces are starting to fall into place, one Mongolian pirate kidnapper (the one on house right of cross-dressing d00d) d0xxed by my crew:





Almost too easy...