ASICMINER: Entering the Future of ASIC Mining by Inventing It

[rudi]

Sounds like FC wants to really step up franchised mining from what I am seeing.  Give someone the chips, arrange some 80/20 (or something) profit share from the hardware and be done with it.  No need to convert CNY or USD to BTC, you build up relationships with your customers... you take on part of the ROI risk so that both parties are hurt if chips do not ROI.

If this is the case, I think this is the best option.  It builds trust and is a way of AM to stand behind their product.

Lots of people are complaining on reddit that ASIC manufactures know their chips wont ROI and that they are basically scammers, this kind of partnership squashes that argument.

Friedcat for President!

Yes, this seems very sensible.
But it is not completely clear that this is really what is going on. Looking forward to the answers to the next round of questions.

[1714963778]

1714963778

[kingcrimson]

They should make a priority to get rid of AM100 or merge them. That trash is ruining it for everyone.

[aahzmundus]

HL themselves said they liked my idea of merging them... More people should pressure them to make the move merging all shares into AM100, and getting rid of the 5% fee.

[Franktank]

HL themselves said they liked my idea of merging them... More people should pressure them to make the move merging all shares into AM100, and getting rid of the 5% fee.

The issue is forcing people to either: 1) Buy up to reach quantities of 100 or 2) Force them to liquidate

I'm surprised they would be up for getting rid of the A100 shares. At 3255 shares, a 5% cut is about 162 whole shares of dividends for HL and that doesn't including trading fees. They seem pointless at these prices but if/when AM shares go up again, it allows people with fewer coins to jump in. They do serve as an alternative option but we shall see.

I completely misread that, you meant it the other way. I don't see the reason why to have all fractional shares, that in itself raises many more issues (such as exporting).

[Chris_Sabian]

HL themselves said they liked my idea of merging them... More people should pressure them to make the move merging all shares into AM100, and getting rid of the 5% fee.

If HL is going to only have AM100 shares, then they should also quote prices in millibitcoins.  The currently price list of 0.0016 makes it rather hard to see small changes in price.  1.6 millibitcoins / share makes it easier to see.  I suggest that HL does this for all shares because not one is trading higher than 0.0425 (save AM)    

[aahzmundus]

I completely misread that, you meant it the other way. I don't see the reason why to have all fractional shares, that in itself raises many more issues (such as exporting).

Wouldn't it be in HL's best interest to make exporting shares harder, while not doing anything dishonest or corrupt?

I personally don't see a reason to limit it to .01 of a share, it would not be that hard to let someone by any fraction of a share they desired and let the computers handle the rest.

[Swordsoffreedom]

HL themselves said they liked my idea of merging them... More people should pressure them to make the move merging all shares into AM100, and getting rid of the 5% fee.

I completely misread that, you meant it the other way. I don't see the reason why to have all fractional shares, that in itself raises many more issues (such as exporting).

Raises a question thought about it a bit more and if havelock ever shuts down and someone owns a 1/100 of a full share I don't think it would convert efficiently unless they bought another 99/100 in the period before it closes.

[arousedrhino]

HL themselves said they liked my idea of merging them... More people should pressure them to make the move merging all shares into AM100, and getting rid of the 5% fee.

Why do you want to own fractional shares? Better liquidity, ok but its not the true price of the shares then so your just fooling yourself.

Also what happens when HL gets shut down, it's going to happen at some point at which point whole shares would be easily converted to real shares.

Lets get rid of the AM 100 its not a true representation of the share price.

[chairforce1]

Does AM get a piece of this?

Edit: What I mean is share of mining profits?

.......
BTCGarden mining room. Countless miners are running day and night.

.......

[Blazed]

Well of course they need to be burned in before selling!!  I would hope AM does get some revenue if they are really selling the chips at cost.

[chairforce1]

Well of course they need to be burned in before selling!!  I would hope AM does get some revenue if they are really selling the chips at cost.

I meant a slice of the mining revenue. After reading your post I realize that I may be mistaken. I was assuming this was a mining farm, not a testing setup. Your post makes senses.

[Blazed]

I was just guessing that those will be sold off (I do not know for sure).  The rumor mill keeps saying that AM is selling wafers @ cost (I assume if so they take a cut of mining)
These are guesses so take them as that 

[willBTC]

I was just guessing that those will be sold off (I do not know for sure).  The rumor mill keeps saying that AM is selling wafers @ cost (I assume if so they take a cut of mining)
These are guesses so take them as that 

Giving the chips for free to partner who could build the mining hardware and deploy is a reasonable strategy. AM will benefit from mining of franchising.
Cause cost of building the hardware and deploying is big (infrasture、electric fee、labor). And we can see through financial report that Friedcat has not enough cash to support the cost.
For the shares price , I think 0.2BTC per share maybe undervalued. Cause doing some simple calculate, 10p franchising equals at least 0.3BTC per share.

[kuji kiri]

10p franchising equals at least 0.3BTC per share.

Is this before or after expenses?

[willBTC]

10p franchising equals at least 0.3BTC per share.

Is this before or after expenses?

After the expenses .  I am assuming the expenses take part 50% of mining revenue, and the total network hashrate is 200P .

[feifa]

Finally, PCB board has been outputted yesterday.
All night and all day our engineers tested it.
We've got about 0.9W/Ghs power consumption.
Tomorrow we will assemble all these stuff in one case and test.

Tomorrow I will upload short video of working device, I think.

XBTec Pacific 2000 using AM gen 3 chip can get 0.9 W/G
https://bitcointalk.org/index.php?topic=626694.msg7550446#msg7550446

[jjdub7]

They should make a priority to get rid of AM100 or merge them. That trash is ruining it for everyone.

Uh...even at only 95% of divs, the yield on AM100 is projected to be about 25% higher than AM1 (At ask: 0.16 for 100x AM100 @ 0.00161 vs. 0.2 for 1x AM1).  Yes, you lose 5% on AM100 divs, but the compounding effect may be greater for certain ranges of share quantities...

[lophie]

10p franchising equals at least 0.3BTC per share.

Is this before or after expenses?

After the expenses .  I am assuming the expenses take part 50% of mining revenue, and the total network hashrate is 200P .

Are you sure you are talking about divs and not share price? Because that means we are looking at 1.5BTC share price @ 20% Yield!

Care to share more specific calculations?

[zy02264]

Next round of shareholders questions July 2014 - gathering

Dear shareholders,

we've gathered 10 questions so far, still 2days until forwarding them to Friedcat. If you want to add something, don't hesitate to write it here, or in PM. Closing time for this round of questions is 29th of June 2014 12:00 UTC +01:00

*The closing time was moved because of practical reasons

1) Could you please provide an estimate on:
- When the next dividend can be expected ?
- When ASICminer will become cash-flow positive ?

2) Regarding self-mining and franchising:
- What is the current status of self mining and franchising ?
- What partners are and will be working with ASICminer ?
- What do the respective partnership agreements entail ?
- How many PH (including percentages from franchising) will -directly- contribute to ASICminer mining income ?

3) How many PH/s of gen 3 have already been sold/shipped by now ?

4) Has the "60 PH/s batch" progressed any further ? When is it supposed to be completely done ? How much has already been sold ?

5) Given the ratio of 1/3 retained and 2/3 paid out of the revenue, is this after deducting costs for upcoming batches/expenses or are those part of the 1/3 of retained capital ?

6) AM sells chips to multiple mining companies including Rockminer, Datatank, Bitgarden, Hashratio is it possible to get some clarity on the relationships AM has with different groups ?

7) Is Asicminer selling chips at cost already ? Rumors have been going around that it is known in China that the chips are being sold at cost. Can we please have a confirm/deny on these rumors and explanation why ?

8 ) The last post mentioned that average sales cost is about .5$/gh, is this still the average ?

9) Regarding Gen 4, can you give us rough (plus/minus a month or two) estimates on:
- When tape-out is expected ?
- When production is expected ?
- When the first chips will be in hand ?

10) Personal question from shareholder freedomno1 : Hi friedcat I have been receiving several requests for replacement baseboards/ power boards and parts for the block erupter cube and was wondering if their is a repair service or parts store available that I can relay to those individuals to contact with if something breaks.

I was wondering if AM has any stock repurchase plan for now or in the future giving the stock price is keep falling. Thank you!

[arousedrhino]

They should make a priority to get rid of AM100 or merge them. That trash is ruining it for everyone.

Uh...even at only 95% of divs, the yield on AM100 is projected to be about 25% higher than AM1 (At ask: 0.16 for 100x AM100 @ 0.00161 vs. 0.2 for 1x AM1).  Yes, you lose 5% on AM100 divs, but the compounding effect may be greater for certain ranges of share quantities...

But they are fractional shares which is why they trade at a lower price.

You cannot convert them to direct shares.
You can only trade them on Havelock due to ^.
Nobody on BTCTalk can sell you 1/100th of a AM share and nobody on BTCTalk would buy 1/100th of a AM share.

If you get rid of the AM 100 then there would only be one stock to trade so the share price would be more accurate. Instead people put a slight premium on the AM 1 shares due to the factors above.

I agree with you that from a dividend standpoint the AM 100 shares have a compounding divided effect which actually might put some people ahead but I would not want to own them.

If my AM 1 shares were converted to AM 100 shares I would sell them immediately or transfer them off of HL to direct shares.

Its fine to have the AM 100 shares but I don't get why some want to get rid of the AM 1 shares other than to improve liquidity. If FC splits the stock to AM 100 shares then I would be all for it, but he will likely not do that since he would have to deal with more transfer requests.