ASICMINER: Entering the Future of ASIC Mining by Inventing It

[Ozymandias]

I think friedcat should keep 1-1,5% of direct shares amount he transfers from a user to another, and keep these money for the company. Passthroughs charge a fee, he should do the same, since he has to do that manually. This way the company will benefit more from an increase in share price.

They have ample reserves we asked that question a while back 

I think he was talking about a "transfer fee" of 1-1.5% per transfer

[ThickAsThieves]

Friedcat,

A team of us shareholders has taken the time to collect and simplify the most popular questions people have for you and ASICMINER. I am sending these questions to you at Jutarul's suggestion, and on behalf of all ASICMINER shareholders that took our poll.

I am only going to send 3 questions to you, in order to keep things simple, and to hopefully maintain this line of communication in the future. We understand that you might not be able to fully answer some things due to competition, but any amount of info will be plenty for us!

If you can take the time to answer, feel free to post your answers in your main ASICMINER thread, or respond to me directly and I will copy your answers verbatim.

Thank you so much for your consideration, here are the questions:

1. Can you tell us more about the next generation of ASIC chips? When should we expect them, and what specs might they achieve?

2. Does ASICMINER/Bitfountain have any legal risks by doing business in China? Are cryptocurrencies or mining of virtual currencies allowed there?

3. What contingency plan do you have in place if Friedcat or other important employees become seriously ill or otherwise unavailable as a resource to ASICMINER?

OFFICIAL RESPONSE FROM FRIEDCAT

Hi ThickAsThieves,

1. They will arrive at October as their earliest. The specs are unknown (only simulation results at this moment), but surely they will be much better than all available similar products in the market now.

2. Cryptocurrencies or mining of virtual currencies are OK. Exchanging them for fiat is less OK but the legal risk is mostly on the exchange operators' side. However as everyone knows, the policy in China is never predictable so there is indeed risks in the future. We have been considering and coping with this uncertainty from the day our chips passed the test and are on the start of building offshore company structures.

3. The access to company wallet is backed up and we back up shareholder information frequently. Also the division of work in Bitfountain is not yet so refined that there are no replaceable positions. We have already left our startup stage so it's become more organized, therefore backup employees are becoming more important and in our range of plan.

Best regards,

friedcat

Awesome job at organizing this TAT, and excellent news from Friedcat!

My pleasure but I want to make sure the other 3 guys get credit too. VJain, ianp, and Franktank handled most of the work gathering questions and making the poll, while I did some editing and pm'd Friedcat.

Together we formed Voltron. (cat reference!)

Our next plan is to update the poll with a few more questions and let it run for a few more weeks before bothering Friedcat again

[ThickAsThieves]

I think friedcat should keep 1-1,5% of direct shares amount he transfers from a user to another, and keep these money for the company. Passthroughs charge a fee, he should do the same, since he has to do that manually. This way the company will benefit more from an increase in share price.

They have ample reserves we asked that question a while back  

I think he was talking about a "transfer fee" of 1-1.5% per transfer

This could actually add MORE work to Friedcat if you think about it... it would also drive more shares to the exchanges. I think eventually all the shares except board seats will end up on the PTs anyway.

[tinus42]

Even wonder why first unit has 1337 as serial number?!
Former 1336 units won't even boot

http://en.wikipedia.org/wiki/Leet

[tinus42]

FYI.  Avalon chips are built by TSMC.

Oh ok, so they are made in Taiwan. 

[hammurabi]

Even wonder why first unit has 1337 as serial number?!
Former 1336 units won't even boot

http://en.wikipedia.org/wiki/Leet

It was intended to look like it,
but I revealed its true meaning!

Only one device works out of every 1337.

[tinus42]

Even wonder why first unit has 1337 as serial number?!
Former 1336 units won't even boot

http://en.wikipedia.org/wiki/Leet

It was intended to look like it,
but I revealed its true meaning!

Only one device works out of every 1337.

That doesn't matter. James Dyson tried out over 5000 prototypes of his first Dyson vacuum cleaner before he got it right:

http://solutionsology.com/2013/03/25/the-incredible-entrepreneurial-story-of-sir-james-dyson-and-his-5000-prototypes/

It matters if BFL can deliver en masse now. We shall see.

[binaryFate]

I think friedcat should keep 1-1,5% of direct shares amount he transfers from a user to another

Then don't call it shares.

[tomywomy]

I think friedcat should keep 1-1,5% of direct shares amount he transfers from a user to another, and keep these money for the company not including them in dividends of course. Passthroughs charge a fee, he should do the same, since he has to do that manually. This way the company will benefit more from an increase in share price.

He pays dividends out of revenues minus expenses.  If there are expenses associated with managing the book of share owners, then the dividends are reduced accordingly.  Please don't suggest that our dividends be reduced in another manner or that a new fee be charged for transacting in shares.

[binaryFate]

BTC/USD being shit, at least the shares price gives something to be happy.
If the divs keep consistent in the next few weeks, it should continue to rise since they were priced at 2.5 since a while based on lower average shares.
Keep on the good hardware sales

[philipma1957]

    As I see it AM has three 'weaknesses'  that they can't stop but can plan for;


1) China could decide to shut them down.  Friedcat has made statements of building more mining locations

2) A disaster could destroy the mining building (think western digital floods)  Friedcat has made statements that multiple mining plants will be built outside  of China.

3) BFL ,Avalon,   unknown ASIC co etc could build more gear faster and cheaper the AM.  Friedcat has made statements that new AM chips will come out in OCT.

  I bailed at 2.5 btc took profits of 30 btc.   I will  watch and wait for now.  I will also sell off all my pc's from my gpu farms.      I still think AM is selling sticks at an insanely high price along with blades.  The gear is selling and boosting dividends but I do not see how this can continue. BFL keeps shipping  gear out sooner or later  people will stop buying AM gear at the prices it sells for.  

What is break even for a stick 300 days?  

[radiumsoup]

I think friedcat should keep 1-1,5% of direct shares amount he transfers from a user to another, and keep these money for the company not including them in dividends of course. Passthroughs charge a fee, he should do the same, since he has to do that manually. This way the company will benefit more from an increase in share price.

That's a REALLY large fee. Exchanges charge much less for transfers, for instance 0.2% (to each side) with BTC-TC. Granted, exchanges are automated, but that's exactly the point - you'd expect automated transfers to be MORE expensive than a manual transfer because of the added speed and convenience the automation brings. I'd be fine with a fee if it were less than what the passthroughs/3rd party exchanges provide, otherwise one would lose an important benefit of having direct shares - the ability to transfer shares cheaper than on an exchange. (The primary benefit, of course, being an absence of the need for trusting a 3rd party to hold your direct shares on account as is required for the passthrough/3rd party exchange shares.)

[velacreations]

   As I see it AM has three 'weaknesses'  that they can't stop but can plan for;


1) China could decide to shut them down.  Friedcat has made statements of building more mining locations

2) A disaster could destroy the mining building (think western digital floods)  Friedcat has made statements that multiple mining plants will be built outside  of China.

3) BFL ,Avalon,   unknown ASIC co etc could build more gear faster and cheaper the AM.  Friedcat has made statements that new AM chips will come out in OCT.

  I bailed at 2.5 btc took profits of 30 btc.   I will  watch and wait for now.  I will also sell off all my pc's from my gpu farms.      I still think AM is selling sticks at an insanely high price along with blades.  The gear is selling and boosting dividends but I do not see how this can continue. BFL keeps shipping  gear out sooner or later  people will stop buying AM gear at the prices it sells for.  

What is break even for a stick 300 days?  

again with this?  Do we have to hear about how you think AM can't continue to succeed on a daily basis?  Ok, you sold out, great for you! Good luck with your future ventures, and I hope BFL does well for you.

Now, can we keep this discussion for current shareholders, please?

[VJain]

   As I see it AM has three 'weaknesses'  that they can't stop but can plan for;


1) China could decide to shut them down.  Friedcat has made statements of building more mining locations

2) A disaster could destroy the mining building (think western digital floods)  Friedcat has made statements that multiple mining plants will be built outside  of China.

3) BFL ,Avalon,   unknown ASIC co etc could build more gear faster and cheaper the AM.  Friedcat has made statements that new AM chips will come out in OCT.

  I bailed at 2.5 btc took profits of 30 btc.   I will  watch and wait for now.  I will also sell off all my pc's from my gpu farms.      I still think AM is selling sticks at an insanely high price along with blades.  The gear is selling and boosting dividends but I do not see how this can continue. BFL keeps shipping  gear out sooner or later  people will stop buying AM gear at the prices it sells for.  

What is break even for a stick 300 days?  

again with this?  Do we have to hear about how you think AM can't continue to succeed on a daily basis?  Ok, you sold out, great for you! Good luck with your future ventures, and I hope BFL does well for you.

Now, can we keep this discussion for current shareholders, please?

Even if dividends and network hashrate drop, we're still undervalued - seeing as we're the highest, consistently, paying asset out there (feel free to correct me if I'm wrong, because I'd love to invest in that other asset ) - and 1.5%+ weekly dividend is outrageous.

My personal opinion is the stock will eventually balance out to about a 25-30% APR value, and not lower (at which point, there are many other better returning assets)... leaving much room for the asset value to still rise.

[Birdy]

Seems like price is dropping again, because BTC price is tanking.
I hope I am able to snatch some shares below 2.4 again

[freedomno1]

  I bailed at 2.5 btc took profits of 30 btc.   I will  watch and wait for now.  I will also sell off all my pc's from my gpu farms.      I still think AM is selling sticks at an insanely high price along with blades.  The gear is selling and boosting dividends but I do not see how this can continue. BFL keeps shipping  gear out sooner or later  people will stop buying AM gear at the prices it sells for.  

What is break even for a stick 300 days?  

Locking in profits is never a bad idea so congrats on making 30 BTC
I probably bought you out if that was the 1994 on the passthru sold it all at 2.6 and that's cheap

B/E profit in 365 days is more like 75% return on your initial investment from 2.5 from dividends not accounting for growth
At 0.0261   its 68.67%

Conservative at 0.025 would be lower but still pretty nice

We broke a wall Friedcat said if I read that correctly anything on market will be outmatched (I assume that also includes BFL)
And In execution I believe in the team no one else has actually put their money where their mouth is

(But if it goes down to 2.5 I'll take as many as I can get lols)
Adjusting for currency exchange rates as someone seems to like flushing out the weak hands every weekend
Bet they get dividends on Wednesdays XD

1. They will arrive at October as their earliest. The specs are unknown (only simulation results at this moment), but surely they will be much better than all available similar products in the market now.

(On B/E for the sticks can use BFL's difficulty chart)

[binaryFate]

if I read that correctly anything on market will be outmatched (I assume that also includes BFL)

surely they will be much better than all available similar products in the market now.

Sorry to insist again, but in October the market will be different, and Friedcat never said that things at that time will be outmatched. I'm just sticking literaly to the exact wording, because I believe it can have its importance so don't misunderstand his statement. We're far from being sure to outmatch the market in October technologically, or in terms of price, or delivery, or whatever.

[freedomno1]

if I read that correctly anything on market will be outmatched (I assume that also includes BFL)

surely they will be much better than all available similar products in the market now.

Sorry to insist again, but in October the market will be different, and Friedcat never said that things at that time will be outmatched. I'm just sticking literaly to the exact wording, because I believe it can have its importance so don't misunderstand his statement. We're far from being sure to outmatch the market in October technologically, or in terms of price, or delivery, or whatever.

Until I see other companies actually doing something not just posturing will hold my opinion
That said I do watch the competitors as well information is important
(Klondike might actually be faster than anyone else atm still in prelims but actually see the development happening of course ASICMINER is confidential but they are the leaders and I trust them to bring out a top-line product)

[ThickAsThieves]

if I read that correctly anything on market will be outmatched (I assume that also includes BFL)

surely they will be much better than all available similar products in the market now.

Sorry to insist again, but in October the market will be different, and Friedcat never said that things at that time will be outmatched. I'm just sticking literaly to the exact wording, because I believe it can have its importance so don't misunderstand his statement. We're far from being sure to outmatch the market in October technologically, or in terms of price, or delivery, or whatever.

Keep a few more things in mind:

1. The mining hardware leader doesn't need to compete on technology, it needs to compete on value.
2. Friedcat tends to underpromise and overdeliver.
3. AM likely has other products and tricks up its sleeve.
4. No one else has demonstrated a guarantee of best-in-class mining equipment being delivered before October. Some may have goals, but only time will tell.

[BitAddict]

if I read that correctly anything on market will be outmatched (I assume that also includes BFL)

surely they will be much better than all available similar products in the market now.

Sorry to insist again, but in October the market will be different, and Friedcat never said that things at that time will be outmatched. I'm just sticking literaly to the exact wording, because I believe it can have its importance so don't misunderstand his statement. We're far from being sure to outmatch the market in October technologically, or in terms of price, or delivery, or whatever.

Keep a few more things in mind:

1. The mining hardware leader doesn't need to compete on technology, it needs to compete on value.
2. Friedcat tends to underpromise and overdeliver.
3. AM likely has other products and tricks up its sleeve.
4. No one else has demonstrated a guarantee of best-in-class mining equipment being delivered before October. Some may have goals, but only time will tell.

+1

And +9999 to point 2. All other ASIC sellers promise too much and they're always late. AsicMiner do the opposite.

Now I feel really bad for selling @ 2,5 btc