ASICMINER: Entering the Future of ASIC Mining by Inventing It

[JaredR26]

Hi,

I' a BTC newbie who spent last 4-5 hours reading through 132 pages of discussions. 
A big congrats to you who bought the IPO, and applause to friedcat who has done a splendid job with this Company.

A part of me feels like the train has already left the station, and if you want on board, you get to pay an hefty price, while a part of the reward (the dividends) is just about to be lowered.
Another part is saying that I am in this for the long run. I am not interested in getting my Money back in a couple months, I want to invest in what I believe can be a real success in the future. And Reading friedcat's weekly statements, and the level of professionalism he is delivering is surely giving a lot of confidence.

I am thinking of investing in ASICMINER, and I just want to confirm that I have understood this correctly:

- Share prices of IPO was 0.1 BTC / share, now they are ~0.8 BTC, so the value have already grown by roughly 8 times?
- Dividends has so far been about BTC0.02 - BTC0.025 / share / week, but it will be cut in half by next week, giving more revenue to the Company.
  I am guessing this will go to future investments expanding the rigs and for future sales of ASIC's? Also perhaps a swimming pool for friedcat, well earned if I might say so.
- So far there have been alot of discussions regarding ASICMINER's hashing power, and rewards from that. But I have not seen much about future sale of ASIC rigs.
  Is not that also a relevant thing to take into consideration when trying to find the value of a share?

Thanx to you all for giving me an interesing read this morning!

You should evaluate it a bit differently than that.  Firstly, the original post and plan was for the company to reinvest 50% of its earnings into future growth, which has not started yet.  In addition, so far the creators of the company have not been taking their cut of the profits.  So the dividend will be cut by potentially 75%, perhaps more if the team & board determine that more aggressive reinvestment is needed in light of the butterfly labs delays and avalon shipping delays.  But that reinvestment, if successful, will ultimately surface itself in share price gains.

You should evaluate it based on two things- When asicminer is able to bring more hashing power online(Currently deployment is a bit slow), and when the competition is able to ship(and how fast).  If the competition is able to ship enough asics to bring online 1,000+ TH/s by August, Asicminer is indeed overpriced right now.  If the competition struggles to bring online under 100 TH/s by August, asicminer is actually pretty cheap in terms of ROI potential.  It is not an easy price to evaluate, which is why we have markets to try to do it for us.

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[burnside]

Great summary, thank you. I still have my shares with friedcat, but I'm pretty sure I'll be doing this soon too. DT and Ukyo have been great with my all my other requests so far. Hard to beat that they aren't taking any extra fees too!

BitFunder starts at 1% of your sale, seems like a pretty good fee.  btct.co is 1/5th of that.

Only in case you didnt notice... when you move all your asicminer shares to bitfunder then you own other shares, not real asicminer shares anymore. And you can only move this back in batches of 250 shares. So even though deadterra is highly trustworthy its still another layer of insecurity because you dont have a contract with friedcat anymore but deadterra has a contract with friedcat and you have a contract with deadterra.
Only wanted to mention because risks in bitcoin world are... um... something... And this doesnt mean that i dont trust deadterra... i hope everyone knows what i mean.

I just finished with a transition request to Friedcat for -7- shares.  If you want no minimum for transitioning back to direct ASICMINER shares try this PT:

https://btct.co/security/ASICMINER-PT

The volume there is neck and neck with volume elsewhere as well.  (see: https://bitcointalk.org/index.php?topic=148350.msg1662207#msg1662207 )

Cheers.

[JordanL]

Great summary, thank you. I still have my shares with friedcat, but I'm pretty sure I'll be doing this soon too. DT and Ukyo have been great with my all my other requests so far. Hard to beat that they aren't taking any extra fees too!

BitFunder starts at 1% of your sale, seems like a pretty good fee.  btct.co is 1/5th of that.

Only in case you didnt notice... when you move all your asicminer shares to bitfunder then you own other shares, not real asicminer shares anymore. And you can only move this back in batches of 250 shares. So even though deadterra is highly trustworthy its still another layer of insecurity because you dont have a contract with friedcat anymore but deadterra has a contract with friedcat and you have a contract with deadterra.
Only wanted to mention because risks in bitcoin world are... um... something... And this doesnt mean that i dont trust deadterra... i hope everyone knows what i mean.

I just finished with a transition request to Friedcat for -7- shares.  If you want no minimum for transitioning back to direct ASICMINER shares try this PT:

https://btct.co/security/ASICMINER-PT

The volume there is neck and neck with volume elsewhere as well.  (see: https://bitcointalk.org/index.php?topic=148350.msg1662207#msg1662207 )

Cheers.

I have transferred a few of my shares to the BTC-TC passthrough, and would definitely recommend it to anyone who wants the option of trading their shares in the short term.

[gigantic]

The original investment was paid,
What will happen now with the dividends?

[Brushan]

They will half.

[gigantic]

They will half.

ok, so they will half now,
Soon we are going to have over 50TH, so i assume they will more then Triple?

[stenkross]

You should evaluate it a bit differently than that.  Firstly, the original post and plan was for the company to reinvest 50% of its earnings into future growth, which has not started yet.  In addition, so far the creators of the company have not been taking their cut of the profits.  So the dividend will be cut by potentially 75%, perhaps more if the team & board determine that more aggressive reinvestment is needed in light of the butterfly labs delays and avalon shipping delays.  But that reinvestment, if successful, will ultimately surface itself in share price gains.

You should evaluate it based on two things- When asicminer is able to bring more hashing power online(Currently deployment is a bit slow), and when the competition is able to ship(and how fast).  If the competition is able to ship enough asics to bring online 1,000+ TH/s by August, Asicminer is indeed overpriced right now.  If the competition struggles to bring online under 100 TH/s by August, asicminer is actually pretty cheap in terms of ROI potential.  It is not an easy price to evaluate, which is why we have markets to try to do it for us.

Thanx for your reply.
I just bought 75 shares on BitFunder.

Maybe I bought while the share is on top, and end up loosing it all.
However, the reason for buying is the impression from friedcat, that he's a hard working guy with high level of professionalism, and that he succeed, when so many others failed.
With that type of guy steering the ship, chance of success is somewhat greater.

I'm in this for the long run, so I'll just cross my fingers and stay away from the sell button.

[niko]

They will half.

No. It will be less than half, because not all 200`000 ASICMINER shares were sold during the IPO.
See https://bitcointalk.org/index.php?topic=99497.msg1461466#msg1461466

[samson]

They will half.

No. It will be less than half, because not all 200`000 ASICMINER shares were sold during the IPO.
See https://bitcointalk.org/index.php?topic=99497.msg1461466#msg1461466

I believe there are still 400,000 shares in existence though, some of them weren't stold but they still exist.

Do I have this correct ?

[Ukyo]

Thanx for your reply.
I just bought 75 shares on BitFunder.

Maybe I bought while the share is on top, and end up loosing it all.
However, the reason for buying is the impression from friedcat, that he's a hard working guy with high level of professionalism, and that he succeed, when so many others failed.
With that type of guy steering the ship, chance of success is somewhat greater.

I'm in this for the long run, so I'll just cross my fingers and stay away from the sell button.

I agree 1000%. People can speculate over share price, and talk about it dropping due to FriedCat and his team getting paid what they deserve.
I think the share are worth far more, not just because of the dividends, but because of the people that have made this possible.
Sometimes it is not all about money. I forcast a normal 1BTC price per share in the near future.

I have been very impressed with Friedcat. Think of the vast amounts he could have kept, or even paid back the IPO price and said "sorry".
He could have easily funded continued expansion for himself/his group. Instead he is keeping his word, and has become one of the most honest and trusted people in bitcoinland.

I look forward to greater things from Friedcat and Asicminer.

Props and thumbs up to Friedcat and his team for this continuing great success.

[niko]

They will half.

No. It will be less than half, because not all 200`000 ASICMINER shares were sold during the IPO.
See https://bitcointalk.org/index.php?topic=99497.msg1461466#msg1461466

I believe there are still 400,000 shares in existence though, some of them weren't stold but they still exist.

Do I have this correct ?

Yes, but according to friedcat each share is always entitled to 1/400`000 of the profits. Up to this point, all profits were funneled back to investors. From now on, only 154`262/400`000 will be given to the investors - which is less than half.

[Mausini]

Thanx for your reply.
I just bought 75 shares on BitFunder.

Maybe I bought while the share is on top, and end up loosing it all.
However, the reason for buying is the impression from friedcat, that he's a hard working guy with high level of professionalism, and that he succeed, when so many others failed.
With that type of guy steering the ship, chance of success is somewhat greater.

I'm in this for the long run, so I'll just cross my fingers and stay away from the sell button.

I agree 1000%. People can speculate over share price, and talk about it dropping due to FriedCat and his team getting paid what they deserve.
I think the share are worth far more, not just because of the dividends, but because of the people that have made this possible.
Sometimes it is not all about money. I forcast a normal 1BTC price per share in the near future.

I have been very impressed with Friedcat. Think of the vast amounts he could have kept, or even paid back the IPO price and said "sorry".
He could have easily funded continued expansion for himself/his group. Instead he is keeping his word, and has become one of the most honest and trusted people in bitcoinland.

I look forward to greater things from Friedcat and Asicminer.

Props and thumbs up to Friedcat and his team for this continuing great success.

Could not agree more.

They will half.

No. It will be less than half, because not all 200`000 ASICMINER shares were sold during the IPO.
See https://bitcointalk.org/index.php?topic=99497.msg1461466#msg1461466

I believe there are still 400,000 shares in existence though, some of them weren't stold but they still exist.

Do I have this correct ?

Yes, but according to friedcat each share is always entitled to 1/400`000 of the profits. Up to this point, all profits were funneled back to investors. From now on, only 154`262/400`000 will be given to the investors - which is less than half.

One share was entitled to 1/200000 of dividends. Now it's 1/4000000. Unsold shares still exist, firedcat doesnt want to sell them, because he believes they are underpriced at the moment. It is unclear, what happend to the dividends of the unsold shares, though.

Also please note, that some reinvestment activities already took place. The second batch of 50 TH/s is already paid for in full with earlier mining profits.

[gigantic]

When the 50TH will be plugged?

[Brushan]

By mid April i think. The dividends won't triple because the difficulty will rise but i still think we will be satisfied. If you ask me Asicminer shares are really undervalued and the thing that is keeping the price down is that bitcoin is still a small market and there are alot of early investor willing to sell alot of shares. They have made alot of money and now they feel they want to take out the profits. As soon as BTC shares market becomes bigger with alot of new people jumping i predict the price will rise. Also the shares are slowly moving to stronger hands. Somebody that has bought a share at 0,1 BTC back when BTC was 5$ won't have a problem selling them for 0,7 BTC today, while someone that bought shares last week for 0,8 BTC is not going to sell them cheap.

[SebastianJu]

You should evaluate it a bit differently than that.  Firstly, the original post and plan was for the company to reinvest 50% of its earnings into future growth, which has not started yet.

Wasnt that up to 50%? And i think there isnt much room for needed investments yet. Because the next batch is paid in full, loans are paid back and so on. Power cost will be hold in but besides that i dont see that another 50% will be needed for reinvestment.

By mid April i think. The dividends won't triple because the difficulty will rise but i still think we will be satisfied. If you ask me Asicminer shares are really undervalued and the thing that is keeping the price down is that bitcoin is still a small market and there are alot of early investor willing to sell alot of shares.

I wonder what the shareprice will behave once asicminer sells asics. I mean one could decide to run asics themself or invest in asicminer to earn from it. It will be interesting to see how this will work out.

They will half.

No. It will be less than half, because not all 200`000 ASICMINER shares were sold during the IPO.
See https://bitcointalk.org/index.php?topic=99497.msg1461466#msg1461466

Isnt it possible to calculate if until now only 154000 shares got paid or all 200000. At least i think that bitfountain still owns the remaining 46000 shares and should have gotten dividends for it. Simply because they were able to run the project with less shareholders. So they theoretically it would have been harder and since they own these shares i wouldnt complain if they get dividends for it.
At the end it should be possible to calculate how it ran.

[SebastianJu]

Someone knows where the 15TH/s comes from that are added in the last days? http://blockchain.info/de/charts/hash-rate
Avalon?

[bitfair]

Wasnt that up to 50%? And i think there isnt much room for needed investments yet. Because the next batch is paid in full, loans are paid back and so on. Power cost will be hold in but besides that i dont see that another 50% will be needed for reinvestment.

Because of upcoming competition, it seems wise to reinvest a large part of the profits rather than paying out insane dividends all the time. My opinion is that for the long term interests of the company, profits should be reinvested in (1) next-gen chips, (2) developing consumer-friendly miners for sale and (3) developing industrial scale miners for sale.

Mining is about to become a very crowded space, and the advantage of ASICMINER is the fact that it they have developed their own technology - and it is important to leverage that advantage for the long-term.

Eventually the acquisitions department of some well-known entity will come around and make all ASICMINER investors rich...

[bitfair]

Someone knows where the 15TH/s comes from that are added in the last days? http://blockchain.info/de/charts/hash-rate
Avalon?

Personally, I suspect it's BFL mining with their customers gear. I mean, do you really think they could resist that temptation? Especially when their actions don't appear to have any consequences whatsoever?

[DutchBrat]

Someone knows where the 15TH/s comes from that are added in the last days? http://blockchain.info/de/charts/hash-rate
Avalon?

Personally, I suspect it's BFL mining with their customers gear. I mean, do you really think they could resist that temptation? Especially when their actions don't appear to have any consequences whatsoever?

I really don;t think they have a working ASIC yet... especially considering their actions up till now 

[JordanL]

Someone knows where the 15TH/s comes from that are added in the last days? http://blockchain.info/de/charts/hash-rate
Avalon?

Personally, I suspect it's BFL mining with their customers gear. I mean, do you really think they could resist that temptation? Especially when their actions don't appear to have any consequences whatsoever?

Their customers would love that... at least it would mean they are capable of producing a functioning ASIC.