ASICMINER: Entering the Future of ASIC Mining by Inventing It

[bitcoin.newsfeed]

Bonam, I know, I was talking about chips

like Coincraft A1
http://bitmine.ch/?product=coincraft-ai-asic

I see. Well, looks like they are doing $2.8 USD/GH for large quantities.

$2.8 USD/GH vs $0.49 USD/GH is discount more than 500% ... unacceptable for ready-to-ship product

EDIT : yes I know, that max discount could be 100%, but I don't know how to say it in english that price is five-fold lower, but you get it

[Bonam]

$2.8 USD/GH vs $0.49 USD/GH is discount more than 500% ... unacceptable for ready-to-ship product

There's no such thing as a 500% discount. The most a discount can be is 100%, if you're selling something for free. $0.49 is an 82.5% discount relative to $2.8. Friedcat mentioned $0.49 - $0.99. $0.99 is a 65% discount relative to $2.8.

[Bonam]

The prices were quoted when delivery was predicted for end of Mar. The only thing counteracting the delay is competition equally having issues making deadlines. Regardless IMHO it's time to clarify the sale to rockminer as it does open the question of preferential pricing and how that may affect sales to the broader market. One would hope that rockminer isn't the main benefactor of AM's ASIC contribution in this venture and that AM's interests and that of it's shareholders are protected.

One would certainly hope Asicminer's investors are protected. I'm sure rockxie as a board member and thus holder of 5000+ AM shares also wants his shares to pay good dividends, too.

I would certainly be up for more clarification/info on the sale, or on Asicminer's business in general, but obviously communication has been very limited for a long time now so I wouldn't expect much, which is why I was just throwing some numbers out to see if $0.49-$0.99 / GH seems like a reasonable price. Given current rates of difficulty growth, I think an ASIC reseller that buys chips and makes miners would already have a hard time making much profit if they are buying chips at $1/GH in April, so I don't think friedcat's prices are out of line.

Every 1 GH turned on today will only ever make like $3-4 total. A manufacturer has to buy chips, PCBs, boxes, pay employees, etc, and still make a bit of profit too. If they are buying chips at $1/GH, and have $2/GH of other costs, that leaves like $0-1/GH of profit, pretty reasonable if you ask me.

[VolanicEruptor]

$2.8 USD/GH vs $0.49 USD/GH is discount more than 500% ... unacceptable for ready-to-ship product

There's no such thing as a 500% discount. The most a discount can be is 100%, if you're selling something for free. $0.49 is an 82.5% discount relative to $2.8. Friedcat mentioned $0.49 - $0.99. $0.99 is a 65% discount relative to $2.8.

He meant 500% cheaper.  No biggie..

[minerpumpkin]

yes, I suggest new round of shareholders questions for Friedcat 1-2 weeks after the 1st batch madness (what do you think friendly pumpkin? are you going to take initiative? )

Yeah, sure! So go ahead everyone and tell me what you'd like to know, I'll collect those questions and forward them after we agreed on them!

[bitcoin.newsfeed]

yes, I suggest new round of shareholders questions for Friedcat 1-2 weeks after the 1st batch madness (what do you think friendly pumpkin? are you going to take initiative? )

Yeah, sure! So go ahead everyone and tell me what you'd like to know, I'll collect those questions and forward them after we agreed on them!

thanks, after 1st batch 

[minerpumpkin]

I'm somehow puzzled, that we're back to 0.6 right now...

[hlynur]

I'm somehow puzzled, that we're back to 0.6 right now...

perhaps because of this auction...
https://bitcointalk.org/index.php?topic=439392.0

[necro_nemesis]

I'm somehow puzzled, that we're back to 0.6 right now...

Concern for the testing going south from expectations?

For reference here is the outcome of last Q/A from the 10th of Decemeber. Some questions appear to still be relevant and would benefit from further expansion now that things are starting to solidify.

Answers to Recent Questions of Shareholders' Concern

- When can we expect an official public relations appointment and what channels will be used to announce information?
  Still no dedicated full-time PR employee yet, since existing people in the company can only do it part-time, and knowing internals about the company business and arrangements poses requirements on some kind of loyalty for new employees, therefore we are still looking for the right people. Before that my collegues and I will keep updating information. The channel will still be forums from the start.

- What is the size of the first Gen 3 deployment and when is it expected?
  It depends on if there are any external orders for the first Gen 3 deployment and the final performance when the chips are out. From 2P to 20P are possible.

- How will Gen 3 be divided between mining, franchising and hardware sales?
  It depends on the users of our chips. It is a safe bet that we will be moving more to pure chip distribution. But if the edge of low cost on whole devices and deploying still exists in 2014 on our side, we will do more mining/franchising/hardware sales ourselves.

- What process size does Gen 3 use?
  40nm. Anything below that and taking the same optimization way as ours will consume too much time before taping out.

- What will happen after all cubes are sold? Will there be anything coming between now and the first Gen 3 deployment?
  During pre-production and production of the Gen3, most of our time will be spent on negotiating large chip orders (from us) and locating large-scale mining farm operations.

- Have dividends been paid out to shareholders for the cube sales yet?
  Yes. But fiat payments are not exchanged for Bitcoins yet and kept as company funds.

[dhenson]

Nobody is going to pay north of. 6 until eb3full is done selling at .6.

The minimum purchase amount and the qty of shares he has for sale combined with the lack of information coming out of FC is most likely going to keep us at .6 for a while.

[necro_nemesis]

Volume also appears to be relatively low. I'm thinking most people have already decided what position they want to be in or out of until the next round of news.

[freedomno1]

Nobody is going to pay north of. 6 until eb3full is done selling at .6.

The minimum purchase amount and the qty of shares he has for sale combined with the lack of information coming out of FC is most likely going to keep us at .6 for a while.

Well the auction is at half the price for bids and the market is at 0.6 so I am guessing that it is entrenched for a while

[necro_nemesis]

Nobody is going to pay north of. 6 until eb3full is done selling at .6.

The minimum purchase amount and the qty of shares he has for sale combined with the lack of information coming out of FC is most likely going to keep us at .6 for a while.

Well the auction is at half the price for bids and the market is at 0.6 so I am guessing that it is entrenched for a while

Yeah and to sell that volume at market on the exchange when looking at the order book you'd be digging down deep into the low offers so I don't think dropping that volume would equate to a quick sale unless you're willing to accept less. Certainly sets a cap that will only be broken with a significant reason to acquire a volume of shares.

[eb3full]

Assuming the trades I'm doing now are done, my auction should be finished.

[minerpumpkin]

Assuming the trades I'm doing now are done, my auction should be finished.

Ah, good to know! Care to reveal how many shares changed hands?

[eb3full]

Ah, good to know! Care to reveal how many shares changed hands?

All of the ones up for auction at least.

[VolanicEruptor]

and you sold them all for 0.6?  Not bad.

[aahzmundus]

Should we just expect divs on Thursdays now?

[bitsalame]

This is the second time in a row.
Once is an anomaly, twice is a coincidence, thrice is a pattern.

I don't like when patterns start shifting, it is worrisome.

[ning]

Reasoning by induction is like walking on ice, and yet it's all we have now.