ASICMINER: Entering the Future of ASIC Mining by Inventing It

[friedcat]

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

[1714500542]

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[candoo]

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

love ya,

thanks for the update

[ashitaka]

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

Nice!
Thanks for the update

[gog1]

Hardware franchising.  How does that work?  Is it like equipment leasing?  If so, does the equipment eventual returns?  Because typical retail franchise, the operator primarily acquires usage of brand name - can't really draw a true parallel between the this franchising and retail franchise.

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

[Strange Vlad]

Thank you, friedcat!

Finally we can stop discussing politics and ecology 

[TsuyokuNaritai]

This is good, right?

[supert]

By my calculations, book value is 0.0513 BTC / share

[furuknap]

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

friedcat, this is a good update, thank you.

There are a few questions left unanswered. You mention revenue and expenses, but not the period. Is this from operation start last year?

You have also mentioned significant investments in July and investments in 2nd-gen chips. Where is this listed in the balance sheet? If they're not listed, are these costs accounted for elsewhere?

.b

[VJain]

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

friedcat, this is a good update, thank you.

There are a few questions left unanswered. You mention revenue and expenses, but not the period. Is this from operation start last year?

You have also mentioned significant investments in July and investments in 2nd-gen chips. Where is this listed in the balance sheet? If they're not listed, are these costs accounted for elsewhere?

.b

Was just writing a post asking about period of Revenues/Expenses... but your post did it much better than mine would have .

A bit more detailed books would be appreciated if possible - monthly expenditures for instance

[kokojie]

By my calculations, book value is 0.0513 BTC / share

So... At your valuation, it would return 100% biweekly. I'd say that would be undervalued.

Book value does not mean share value, it's just the value of the company's quantifiable assets.

[bbxx]

Great news, cat.
Our company is doing really good.
Capital is growing and sales/mining income is huge comparing to costs.

[Eric Muyser]

Wow anyone notice the expenses, nice and low.. 17 million income, less than a million in expenses. Nice. Great investment.

[CoinBomb]

as a (admittedly part qualified) accountant, that balance sheet makes me cringe slightly, but its better than nothing!

[Jutarul]

By my calculations, book value is 0.0513 BTC / share

If you look closely at the spread sheet, the company has a liquidation value of zero (Assets-Liabilities). All assets are either instruments for future income, reflect investments, contracts paid for or cover short-term costs.

What's not reported in the spread sheet, but can be estimated from the numbers in the posting is the generated "bitcoin flow": operation->equity owners, which is (169,520.57- ~15,000-40,000=~130,000-150,000). Thus the gross efficiency of the operation up to now is for each bitcoin spent, you get 5 to 10 back. However, that included a lot of early-mover pay-off, thus a separation into different time and operation segments would be desirable to see how that efficiency fares and compares.

[APT_MLB]

Hardware franchising.  How does that work?  Is it like equipment leasing?  If so, does the equipment eventual returns?  Because typical retail franchise, the operator primarily acquires usage of brand name - can't really draw a true parallel between the this franchising and retail franchise.

Franchising isn't exactly the right word, it sounds like more of a lease agreement where the terms of the lease are the theoretical production capacities of the devices.

From what I understand, it allows Bitfountain to scale faster and in a distributed fashion with low risk to either the security of Bitcoin or the company.  The devices aren't controlled by or related to the company other than the payments of what the blades produce near theoretical maximum.  And the risk to the company is even lower because of the deposits required.

This could give Asicminer, effectively, mining farms all over the world, even in places that can operate much more efficiently than where they are now.  And let Bitfountain profit from more than 50% of the network hashrate without actually risking Bitcoin's security.

All in all a very good thing for Asicminer and shareholders methinks.

[supert]

By my calculations, book value is 0.0513 BTC / share

If you look closely at the spread sheet, the company has a liquidation value of zero (Assets-Liabilities). All assets are either instruments for future income, reflect investments, contracts paid for or cover short-term costs.

What's not reported in the spread sheet, but can be estimated from the numbers in the posting is the generated "bitcoin flow": operation->equity owners, which is (169,520.57- ~15,000-40,000=~130,000-150,000). Thus the gross efficiency of the operation up to now is for each bitcoin spent, you get 5 to 10 back. However, that included a lot of early-mover pay-off, thus a separation into different time and operation segments would be desirable to see how that efficiency fares and compares.

(Assets - liabilities) = 0 always, since a balance sheet must balance.

Shareholder's equity is the important bit (which is part of the liabilities).

You are correct that the cashflow is more important. Balance sheets are important when there is debt. In Bitcoin land there is no debt.
And yes AM is not capital intensive. This indicates it can scale. However the limit to scaling up is the hashrate share (notwithstanding the franchising deals).

Most importantly, this is a step towards transparency, which reduces the perceived risk to shareholders. This means we can tolerate a lower yield and thus, we should get a higher share price.

[Jutarul]

If you look closely at the spread sheet, the company has a liquidation value of zero (Assets-Liabilities).

If you look closer at the spread sheet, the (Assets-Liabilities) is BTC10,112.72 + $517,800.00 + ¥3,002,649.85.

I stand corrected. I mixed owner's equity into liabilities, but it's actually not a liability, thus there is liquidation value. (need more coffee...)

[greenbtc]

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

Love what you've built and how you've built it! Transparency and true customer service can get you a long way

[freedomno1]

Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00￥
Electricity Expense: 729,542.05￥
Labor Expense: 327,081.00￥
Logistics Expense: 132,184.90￥
Deposits: 117,506.01￥
Total: 397,800.00$+6,216,243.96￥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

Long live Friedcat and his team!!!!!!
As a Finance Person this is a lot better than nothing
Gets a bit tricky when converting the bitcoins to Fiat with the exchange rates to determine production costs but that's for a different financial report. And with the cash on hand not a big issue.
Totals matter here
Thanks for the great data.
Keep up the great work and it will be interesting to see how Hardware Franchising works.
Fb updated

[Ninshatamoto]

Love it!  I especially love how the renting of equipment translates to additional money for ASICMINER without centralizing the network, AND, when the rental is expired, the equipment can still be sold...

Friedcat is as brilliant as you all made me believe him to be.