ASICMINER: Entering the Future of ASIC Mining by Inventing It

[velacreations]

Because there's an issue at mtgox that flushed out weak sellers.

people still use mtgox?
 

[freedomno1]

I'm not sure why the price took a dip today.  Who would sell at these prices on the eve of a very exciting dividend (could be the biggest one, yet)?

I wish I had more btc to buy more shares!

Because there's an issue at mtgox that flushed out weak sellers. The speculators have discovered AM. Those weak sellers could be feeling a bit sheepish in 24 hours. Shafted on the way in, shafted on the way out. We'll see.

Ah well full disclosure I bought up a lot at 1.5-1.6 so guess I'm double dipping the dividend and the share price when it goes back up which it will given time

Also sorry if I sound a bit noobish but never heard of dwolla who are they

To vela I don't use gox ha-ha lots of people do but what surprises me more is people still use mpex.co
50 bitcoins to join if I made like 5 accounts a year ago and resold them :p lol

[stripykitteh]

The small number of PTs available for trade meant that volatility was always going to come to AM. It must be annoying for IPO folk who now have a decent chunk of their net worth in AM watching thousands of dollars of fiat appear and disappear. For we little buggers trying to build a position volatility provides opportunity.

I sincerely hope that friedcat and his team manage the business to maximize return, not to "massage the numbers". I worked for a company that did some truly stupid things to itself to look better in the eyes of shareholders. It didn't end well.

[furuknap]

I worked for a company that did some truly stupid things to itself to appear to look better in the eyes of shareholders. It didn't end well.

FTFY

I don't think friedcat has a need to 'look good' in that sense, but I do think he needs to look good by providing the information that shareholders need to evaluate a share. After my previous request, he did provide answers to my most pressing questions and promised periodical financial updates. If he holds this promise, and he has demonstrated before his commitment to holding promises he makes, then shareholders will suddenly have a much better chance to evaluate the real value of AM and not just throw numbers out based on a few numbers like current hash rate or dividend projections.

Keep in mind, folks, that if AM had not paid a single ฿dime in dividends, all those dividends would now be part of the company book value. You haven't earned a dime in value by withdrawing dividends from the company; in fact, dividends reduce AMs ability to handle unforeseen circumstances, invest in next-gen or next-next-gen technology, and so on.

Are you better at optimizing mining production with ฿ than friedcat? If not, then share value has probably suffered from the high dividends, not gained from it.

.b

[mithrandi]

I'm not sure why the price took a dip today.  Who would sell at these prices on the eve of a very exciting dividend (could be the biggest one, yet)?

I wish I had more btc to buy more shares!

If you look at the volumes, there's basically not enough liquidity in the market; any attempt to sell or buy non-trivial amounts of shares will have quite a big effect on the PTs. A forum auction less so, I think, since you're not sharing an order book with other buyers / sellers.

[statdude]

A slightly larger chart than you see on the BTC-TC homepage, displaying the stock performance over the past month.  I hope you like it.

You may want to update that now, prices at BTCT just shot up about 10% to 1.69 with highest bids at or above 1.6.

.b

EDIT: Very nice job, btw. I wish burnside would add something more flexible on his site, albeit hopefully not as horrible as the Bitfunder thing.

It seems cheap shares are still available on Bitfunder (G.ASICMINER-PT and TAT-ASICMINER), Havelock (TAT-ASICM), and even BTCT.CO (TAT-Asicminer).  (Too bad I'm all in.)

-helixone

Very nice app Helix.
Anyone have other cool apps they'd like to share to help with ASICMiner?

[philipma1957]

I worked for a company that did some truly stupid things to itself to appear to look better in the eyes of shareholders. It didn't end well.

FTFY

I don't think friedcat has a need to 'look good' in that sense, but I do think he needs to look good by providing the information that shareholders need to evaluate a share. After my previous request, he did provide answers to my most pressing questions and promised periodical financial updates. If he holds this promise, and he has demonstrated before his commitment to holding promises he makes, then shareholders will suddenly have a much better chance to evaluate the real value of AM and not just throw numbers out based on a few numbers like current hash rate or dividend projections.

Keep in mind, folks, that if AM had not paid a single ฿dime in dividends, all those dividends would now be part of the company book value. You haven't earned a dime in value by withdrawing dividends from the company; in fact, dividends reduce AMs ability to handle unforeseen circumstances, invest in next-gen or next-next-gen technology, and so on.

Are you better at optimizing mining production with ฿ than friedcat? If not, then share value has probably suffered from the high dividends, not gained from it.

.b

 Well here is another way to look at dividends.

Good dividends  allow one to sit back and collect.
Share price has no real importance.
Number of  Shares do.

 A .010btc  per share means you need  100 shares to earn a coin a week.

  So 100 shares at .016btc  would allow you to buy a share each week.(rough estimate)

 If you add a  share at a time and never focus on share price just allow  dividends to buy more shares. Do this for a year then think about share price.

 AM has a large lead today but  they need to balance a few things I like the dividend high as I would buy more shares with a high dividend.

[Jutarul]

Keep in mind, folks, that if AM had not paid a single ฿dime in dividends, all those dividends would now be part of the company book value. You haven't earned a dime in value by withdrawing dividends from the company; in fact, dividends reduce AMs ability to handle unforeseen circumstances, invest in next-gen or next-next-gen technology, and so on.

As stated elsewhere, the current cash-flow per week is enough to cover all foreseeable expenses. It may be interesting to know the exact numbers for the operational savings account (e.g. for covering operational costs during BTC price depression), but they'll certainly be part of the next financial report.

It is generally better to hand out earnings if the company doesn't have any use for it. This allows shareholders to re-invest that money as they see fit. Also dividends are a mechanism to reward the founders without the need to pay high salaries. And rewards help to keep the bitfountain staff motivated.

Lastly, having a huge pile of cash lying around is also very risky. By distributing that cash to the holders of the equity you reduce the risk of total loss of funds, while maintaing your ability to fund future projects by calling for new financing rounds.

[kokojie]

Because there's an issue at mtgox that flushed out weak sellers.

people still use mtgox?
 

it's only the biggest exchange with over 70% of market share.

[stripykitteh]

Are you better at optimizing mining production with ฿ than friedcat? If not, then share value has probably suffered from the high dividends, not gained from it.

.b

No, of course not. That's why I want to reinvest my dividends. 

I think the high dividends are a mix of everyone who's been in mining for a while expecting to see dividends, after all, it is a mining operation. Seeing the dividends builds trust. It's also maybe partly the result of there being only so much reinvestment needed in the short term for mining.

If friedcat has an idea to start another line of business (possibly outside Bitcoin) that could be a better avenue for reinvestment.

[furuknap]

Keep in mind, folks, that if AM had not paid a single ฿dime in dividends, all those dividends would now be part of the company book value. You haven't earned a dime in value by withdrawing dividends from the company; in fact, dividends reduce AMs ability to handle unforeseen circumstances, invest in next-gen or next-next-gen technology, and so on.

As stated elsewhere, the current cash-flow per week is enough to cover all foreseeable expenses. It may be interesting to know the exact numbers for the operational savings account (e.g. for covering operational costs during BTC price depression), but they'll certainly be part of the next financial report.

It is generally better to hand out earnings if the company doesn't have any use for it.

This is true, but as we saw a while back the company does not have cash-at-hand to cover investments and thus had to 'hold back' ฿2000 from dividend payouts. Further, until we know how the capital management is, we don't know what effect a crash in BTC prices will do to cost levels. 90% dividend payout sounds nice, but are those remaining 10% set aside enough to cover the costs if the DHS stuff causes BTC to crash to $1?

It's not bad for a share's price to withold dividends. Just ask Berkshire Hathaway or Apple.

.b

[dan9575]

lol wow 1.6 share value. I think i might buy a gun and shoot myself in the foot with the shares i sold at 1.3.

[freedomno1]

lol wow 1.6 share value. I think i might buy a gun and shoot myself in the foot with the shares i sold at 1.3.

Still a pretty good price in my humble opinion for a long run short run speculator 1.5
But I see 2 sometime in the next little while A month or two maybe less

[stripykitteh]

lol wow 1.6 share value. I think i might buy a gun and shoot myself in the foot with the shares i sold at 1.3.

Still a pretty good price in my humble opinion for a long run short run speculator 1.5
But I see 2 sometime in the next little while A month or two maybe less

Yep. If most of the equipment sales are passed on as high dividends, more interest and speculation will see some higher prices. Those speculators will turn tail and flee though if a high dividend is not maintained indefinitely, which I don't think can be (nor does it need to be).

[punkideas]

If friedcat has an idea to start another line of business (possibly outside Bitcoin) that could be a better avenue for reinvestment.

I think that's what the point of Bitfountain is.  I think he will use that as a mechanism to provide some capital to new ventures for a controlling interest in a venture.  He may publically offer the other part (a la ASICMINER) or not.  Either way, I think Bitfountain will be one of the big players in Bitcoin down the road, probably moreso than ASICMINER will be.

[dan9575]

I hope ASICMINER prospers but honestly I hope the share price dwindles when BFL ships to balance the difficulty lol, I wish i didn't sell my shares 

[arklan]

I hope ASICMINER prospers but honestly I hope the share price dwindles when BFL ships to balance the difficulty lol, I wish i didn't sell my shares 

i know that feel. bought 5 at ipo, some when they doubled about a month prior to the glbse collapse, then recently bought 1 at .9... really wish i had the lot still.

[muyuu]

I hope ASICMINER prospers but honestly I hope the share price dwindles when BFL ships to balance the difficulty lol, I wish i didn't sell my shares 

Sour grapes much?

[stripykitteh]

I hope ASICMINER prospers but honestly I hope the share price dwindles when BFL ships to balance the difficulty lol, I wish i didn't sell my shares 

Probably worth wishing for something with a higher chance of occurring. 

[stripykitteh]

If friedcat has an idea to start another line of business (possibly outside Bitcoin) that could be a better avenue for reinvestment.

I think that's what the point of Bitfountain is.  I think he will use that as a mechanism to provide some capital to new ventures for a controlling interest in a venture.  He may publically offer the other part (a la ASICMINER) or not.  Either way, I think Bitfountain will be one of the big players in Bitcoin down the road, probably moreso than ASICMINER will be.

Yes, you're probably right. There'd be a few ASICminer success story early investors that will throw BTC at him whatever he turns his hand to next, if he offers part of it.