ASICMINER: Entering the Future of ASIC Mining by Inventing It

[data]

Havelock is impossible for price discovery... Enormous spread.

1. We seem to get a pretty good BTC/USD price. ~566 USD/BTC, if I calculated correctly. Would be interesting to see when exactly we got such a high price.

2. Reserves seem to be very limited right now. Only ~8 Million USD left. What this suggests for share price just brings me close to tears.

3. AM spend a shit ton of money on something called "power ICs". I assume this is to power some boards, suggesting that AM is still building their own boards. So are we competing with our resellers?

4. Can someone estimate how many chips were produced? If we spent 5.7M USD on wafers, at about $1500 per wafer, that is ~3800 wafers. Can someone estimate how many chips that is? Is this still in line with
"1) This month: 850k, next month: 3.35m (order size), June: 6.7m (order size), assuming each chip is 10G."

5. Are there still outstanding balances with the resellers? (and how many of the above chips have been ordered?)

6. We produced wafers for about $5.7M, sold some for $3.7M, rest value is $7.4M. Is the margin really this bad?

Have more, but need to go...

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[JoTheKhan]

This is to inform that friedcat met with the board today and provided some updates.

General Update
==============

The dividend schedule will be aggressive, as AM will not require large sums of retained capital. The rationale is that AM doesn't need to invest large sums into infrastructure and that the majority of chip production costs will be covered by the business partners on a contract schedule. The new round of dividends are scheduled to begin as soon as the first large purchases have concluded and should precede or coincide with the publication of the updated financial statements.

Specific Updates
================

Submitted Questions:
1) What is the status, size, and expected delivery of the next batch of chips? What about the one after that?
re 1) This month: 850k, next month: 3.35m (order size), June: 6.7m (order size), assuming each chip is 10G.

4) When are the new chips expected to start mining in ASICMiner datacenters and what hashrate are you currently planning on deploying?
re 4) May-June for air cooling and June-July for immersion cooling. They are only capable of 3PH. Most should go franchising or as chips for other vendors' OEM products.

5) When are the sales revenues of the chips expected to be paid out to shareholders?
re 5) When the balance payments are received and exchanged for Bitcoins.

General Disclaimer
==================

Please note that some information is subject to change, as this is a very agile business. Please be careful when speculating on company valuation. This information is purely provided as a service to current shareholders and may not be free of errors.

Wondering if this Aggressive dividend schedule still applies? How many chips have been currently sold?

Edit: Man people are selling down to nothing. My number of shares might increase by another digit soon.

[dmcdad]

Per-share equity is low. If we subtract current losses, it's about 0.03BTC/share.
And that is if they manage to sell everything at current prices, and does not include potential cash conversion problems.

Because of cost principle, inventory should be reported on balance sheet at its cost to produce/acquire, not its market or selling cost. So presuming AM can sell their inventory at a profit (IMO very likely), the net will be a multiple higher than the current inventory asset. How much higher is the question.

[dnaleor]

Will take a closer look into it, but it seems I made a bad decision not selling at least a part of my shares at 0.8 BTC a few months ago...

[arnuschky]

Per-share equity is low. If we subtract current losses, it's about 0.03BTC/share.
And that is if they manage to sell everything at current prices, and does not include potential cash conversion problems.

Because of cost principle, inventory should be reported on balance sheet at its cost to produce/acquire, not its market or selling cost. So presuming AM can sell their inventory at a profit (IMO very likely), the net will be a multiple higher than the current inventory asset. How much higher is the question.

Ok, thanks for the clarification. Was wondering about that.

[hdbuck]

seriously this is very very bad financials. 
we dont even know when will be next divs. 

[Ozziecoin]

seriously this is very very bad financials.  
we dont even know when will be next divs.  

Same can be said for Berkshire Hathaway.

[Chris_Sabian]

I was told there would be a moon 
I beleived I'd be rich with these earth shattering gen3 divs then cash out ASAP
I sold my BMW for this.now I will end up in a soup kitchen, someone please hold me 

These picture pretty much sum up how I feel right now...

[mc_lovin]

I heard the sky was falling but it doesn't look TOO bad.. 

[robix]

Hey guys, there is 7.5M USD merchandise in the warehouse that needs to be sold within, I would say, the next 4 to 6 weeks.

[cs54]

POS company, FU friedcat.

Friedcat new business is not called Bitfountain it is "比特泉科技有限公司" in chinese.
Of course there are no positions for public shareholders open there.
could be their balance sheets are looking more attractive, and blockchain address
draw your own conclusions..

Bitquan Technologies Limited?

[atx.btc]

POS company, FU friedcat.

Friedcat new business is not called Bitfountain it is "比特泉科技有限公司" in chinese.
Of course there are no positions for public shareholders open there.
could be their balance sheets are looking more attractive, and blockchain address
draw your own conclusions..

Bitquan Technologies Limited?

Does anyone know what they do?

[asdfghj]

Cashflow statement up to May 27:
 - Any electricity for May 25 (Line 18)
 - Was released before payment of May 28 salaries (Line 22)

This makes it hard to estimate whether we are ramping up or withering away in both mining and production.

The balance sheets show a large amount of Materials waiting to be turned into chips. (Line 7)  This looks to be the only bit of hope in this picture.  Even then it looks bleak.  If each chip makes 100% over cost, that bumps assets to 40 USD per share.


Well......

Edit: 7M USD is 17 dollars per share.  Not quite the positive picture.

[bitfair]

About 30 PH bought and paid for so far, according to my estimates.

Many may disagree, but I find it reassuring that AM is feeding the revenue back into the company - it is a healthy sign.

[aahzmundus]

Seems the reason FC was not posting an update is that he has a good amount of work to do.  Keep up the good work FC, but drop by a little more often... once a month just to say hi?

[cs54]

POS company, FU friedcat.

Friedcat new business is not called Bitfountain it is "比特泉科技有限公司" in chinese.
Of course there are no positions for public shareholders open there.
could be their balance sheets are looking more attractive, and blockchain address
draw your own conclusions..

Bitquan Technologies Limited?

Does anyone know what they do?

Appears to have been formed August 15, 2013. Not sure if the Mem & Arts are publicly available but this site seems to suggest that's possible.

Edit: removed. I don't want to toe the line of doxing, not that that was anyone's intent.

[bitcoin.newsfeed]

Update

Financials
Balance sheet in May 27, 2014:
https://docs.google.com/spreadsheets/d/12wJMe3A6Ie8ris86m2OJ_1vucurdcVtM3fDkNCjKIRI/edit?usp=sharing

Cash flow from Feb 28, 2014 to May 27, 2014:
https://docs.google.com/spreadsheets/d/1phCAhMR-9_AaRXKICfN_M7gw4rI1hsOtRD_6PElmLOM/edit?usp=sharing

Comments about Recent News & Concerns
Policy: The bank deposits and third-party payment systems for Bitcoin exchanges in China are all closed. Workarounds exist (like buying physical cards with deposit code) but the real trading volume is severely affected.

Conversion: We have OTC conversion channels to trade USD for Bitcoins in Hong Kong.

edit : reaction after first look, then reconsidered  :

What the fuck is this ? ? ? is this a joke ? FUCKING SCAM

where are all the millions money from gen3 sales ? what is that -4164 BTC and - 4M CNY on exchange ? did you play with company money on day trading, or its frozen or what ?

Dividends per share : - 0.0081 /share  <<< is this that "aggressive dividend" ?

so is AM bankrupt, tunneled by you, divided to your private companies or what ?

unbelievable ...

[atx.btc]

Cashflow statement up to May 27:
 - Any electricity for May 25 (Line 18)
 - Was released before payment of May 28 salaries (Line 22)

This makes it hard to estimate whether we are ramping up or withering away in both mining and production.

The balance sheets show a large amount of Materials waiting to be turned into chips. (Line 7)  This looks to be the only bit of hope in this picture.  Even then it looks bleak.  If each chip makes 100% over cost, that bumps assets to 40 USD per share.


Well......

Edit: 7M USD is 17 dollars per share.  Not quite the positive picture.

I wonder if we will be mining with any of these materials and chips in warehouse. It looks like we have paid rent for the two mining farm locations in April, with 264.02 mined in 2 months...

[bitfair]

What the fuck is this ? ? ? is this a joke ? FUCKING SCAM

where are all the millions money from gen3 sales ? what is that -4164 BTC and - 4M CNY on exchange ? did you play with company money on day trading, or its frozen or what ?

Dividends per share : - 0.0081 /share  <<< is this that "aggressive dividend" ?

so is AM bankrupt, tunneled by you, divided to your private companies or what ?

You apparently have a poor grasp of accounting. The cash flow shows negative income per share in BTC since last report because they spent more BTC than they earned since last report. Which is not really surprising, since they have had to pay for the chip production.

The millions from gen3 sales are there, under "Income - Chip sales".

Please ask more questions if you are still confused, hope that clears up a little bit for you.

[aahzmundus]

What the fuck is this ? ? ? is this a joke ? FUCKING SCAM

Investments have risk... FC already paid out far more then what he took in from IPO.  You can HARDLY call this a scam.  If things go down hill and collapse from here, call it a failed business venture sure.  But scams do not ship and develop working products that make their customers happy, and pay their investors their entire investment back before paying themselves.  Remember that?  FC paid ALL profits to investors till we were paid back in full... then everything after that was gravy.

INVESTMENTS HAVE RISK!  Bitcoin is risky, and you are investing in an entirely bitcoin focused business.  RISK!!!  Do you not understand?!  There is no free lunch...