ASICMINER: Entering the Future of ASIC Mining by Inventing It

[JoTheKhan]

I have asked Friedcat about the franchising mining farm,Friedcat replied me by E-mail that the franchising mining farm will be work after the mid of July.

BTW, I  will be a small franchise partner too    

each 100 Asciminer shares will  mortgage 15T hashrate .  franchising will get 20% mining profit when deduct the electric fee .

Anyone wish to elaborate this means? If you have 100 AM shares, you can put them up as collateral for ~15T in mining gear, where you personally keep roughly ~20% of Profits/(Take Electricity Cost) (Meaning the other ~80% goes to AM for Divs/BitFountain)?

If this is the case, that is really cool. This sounds really really cool.

Collateral?  I thought he meant every 100 shares would be entitled to the 15T's 20% profits? 

Well he did say "I will be a small franchise partner too". And then went on to use the word Mortage. (Though I don't have a Mortage, I thought a Mortage was a type of collateral. Effectively losing the ability to sell/get dividends from the shares you put up to mortgage the TH they send you, otherwise how is AM going to make sure that the small individual franchisers don't run off with their equipment?)

[sngwinner]

With all of the franchise hash power coming online soon, this might be the perfect time to introduce an AM low fee or no fee mining pool open to the entire world. The franchisee hash power would instantly give our pool a large share and it could provide additional revenue in a low fee model and would definitely get the AM name out into the public a bit more. The important thing would be providing an alternative option to ghash.io. If AM balanced out the mining share Eco system I'm sure r/bitcoin would go nuts with praise for AM.

[xhomerx10]

I have asked Friedcat about the franchising mining farm,Friedcat replied me by E-mail that the franchising mining farm will be work after the mid of July.

BTW, I  will be a small franchise partner too    

each 100 Asciminer shares will  mortgage 15T hashrate .  franchising will get 20% mining profit when deduct the electric fee .

Anyone wish to elaborate this means? If you have 100 AM shares, you can put them up as collateral for ~15T in mining gear, where you personally keep roughly ~20% of Profits/(Take Electricity Cost) (Meaning the other ~80% goes to AM for Divs/BitFountain)?

If this is the case, that is really cool. This sounds really really cool.

yes, that's the case. I was confirmed with Friedcat.

 NOT cool at all.  That would be ludicrous.  At the current value of Bitcoins in USD that means you are putting up $1.25 per GHs and getting back 20% of what that will mine after electricity costs?  Did we not already BUY those chips with the profits from our company?  There is no way we have to put up our shares to get the hashing!!  If AM is giving away the chips for a deal like this, then we should be getting a percentage of those proceeds from mining based solely on our ownership of those shares.  I fail to understand how you think it's "cool"  to have to use your shares as collateral for such an operation.  It would be much better for your to sell your shares, buy mining equipment that uses more efficient chips and keep 100% of the profit after electricity costs.

 I sincerely hope that this is not the deal FC cooked up.  I cannot believe this for one second.

[aahzmundus]

This is not new, friedcat has previously let people use their shares as backing to buy blades and other things.  It lets people that want to get hashing power, and also acts as a way friedcat can buy back some of his shares.  In fact, this is a good thing.

If friedcat did not value his own shares enough to be willing to do something like this, one would probably be suspicious.  He values his own company enough that he wants to buy back as much equity as possible when he can.

[Franktank]

NOT cool at all.  That would be ludicrous.  At the current value of Bitcoins in USD that means you are putting up $1.25 per GHs and getting back 20% of what that will mine after electricity costs?  Did we not already BUY those chips with the profits from our company?  There is no way we have to put up our shares to get the hashing!!  If AM is giving away the chips for a deal like this, then we should be getting a percentage of those proceeds from mining based solely on our ownership of those shares.  I fail to understand how you think it's "cool"  to have to use your shares as collateral for such an operation.  It would be much better for your to sell your shares, buy mining equipment that uses more efficient chips and keep 100% of the profit after electricity costs.

I sincerely hope that this is not the deal FC cooked up.  I cannot believe this for one second.

It would be best to wait until all the terms and conditions are presented.

[JoTheKhan]

NOT cool at all.  That would be ludicrous.  At the current value of Bitcoins in USD that means you are putting up $1.25 per GHs and getting back 20% of what that will mine after electricity costs?  Did we not already BUY those chips with the profits from our company?  There is no way we have to put up our shares to get the hashing!!  If AM is giving away the chips for a deal like this, then we should be getting a percentage of those proceeds from mining based solely on our ownership of those shares.  I fail to understand how you think it's "cool"  to have to use your shares as collateral for such an operation.  It would be much better for your to sell your shares, buy mining equipment that uses more efficient chips and keep 100% of the profit after electricity costs.

I sincerely hope that this is not the deal FC cooked up.  I cannot believe this for one second.

It would be best to wait until all the terms and conditions are presented.

My personal Assumption
It isn't a share buy back. The shares go up as Collateral where you alone get 20% of the machine you are hashing for, and 80% goes to AM (For Everyone else's Dividends). You don't lose your shares, you merely have them on collateral until you are done with your franchising then. (This means that if you run off with the equipment then you are effectively lose your shares, if you don't run off with the equipment then you won't lose your shares). You would get them back at the end of the endeavor at no cost.

No shares would be bought back and AM wouldn't lose money, they would effectively be building a decentralized mining farm.

Basically if you put up 1000 shares as collateral, then you would mine ~150TH and get 20% of the BTC they mine (minus electricity), 80% of the BTC would go back to AM, where AM saves for Gen4/Pays Divs.


(I don't know if your 1000 shares will get divs from these or any other mining at the time, but if you have 1001 shares, then 1 share will get divs.)

After this is done and the mining ceases or I guess you wish to finish franchising, then you would send the equipment back to FC and get access to your 1000 shares again.

This is the same type of franchising FC talked about a month or so ago, instead of doing checks on mining farms though, he just uses your shares as collateral.

[aahzmundus]

Oh i know that if everything goes well, no shares are purchased back... but sometimes they would be.  And the fact that FC is totally cool with getting his shares back, says something.

[bitcoin.newsfeed]

So for every 100s of my full shares I can get 15Th/s of mining gear for free from AM ? And I will get normal company dividends for that shares, plus 20% of what I mined "at home" as franchise? And that shares are held as collateral in case I get robbed, I run away, or don't provide expected hashing power to the pool(cheating, self mining, not mining for AM but myself). Good.

If this is the case, it's nice franchise program also for small miners and nice bonus for us, shareholders

Interesting idea

EDIT : AND it creates a demand for AM shares, because if you want to be franchise(in this program), you must own shares.

[xhomerx10]

So for every 100s of my full shares I can get 15Th/s of mining gear for free from AM ? And I will get normal company dividends for that shares, plus 20% of what I mined "at home" as franchise? And that shares ale held as collateral in case I get robbed, I run away, or don't provide expected hashing power to the pool(cheating, self mining, not mining for AM but myself). Good.

If this is the case, it's nice franchise program also for small miners and nice bonus for us, shareholders

Interesting idea

EDIT : AND it creates a demand for AM shares, because if you want to be franchise(in this program), you must own shares.

 So I can buy 100 shares for 20 bitcoins, put them up for collateral, get 20% of the mining paying my own electricity costs out of it and at the end of it all, I get my 100 shares back?  Well guess what.  At 15 cents US per kW.h and Bitcoin at $650 USD your power costs ARE  20% of what you could generate today!  You get nothing but loss from this venture.

 15 TH/s generates 0.4485 BTC per 24 hours
 1 kW.h @ 0.15 cents US = 0.000230769231 BTC /kW.h
 15 TH/s of AM GEN3 uses ~ 16.5 kW
 16.5 kW.h x 24h x 0.000230769231 BTC/kW.h = 0.091384615476 BTC
 20% of your production (0.4485 BTC per 24 hours) =  0.0897 BTC

 As you can see, it sucks.  Also, when diff goes up, it sucks worse.  
Check my math but I think I'm right.


  


 

[bitcoin.newsfeed]

So I can buy 100 shares for 20 bitcoins, put them up for collateral, get 20% of the mining paying my own electricity costs out of it and at the end of it all, I get my 100 shares back?  

You're still owner of shares, that shares are *receiving* dividends as usual plus 20% of mining profits from that 15Th/s (seems like that to me)

Well guess what.  At 0.15 cents US per kW.h and Bitcoin at $650 USD your power costs ARE  20% of what you could generate today!  You get nothing but loss from this venture.

 15 TH/s generates 0.4485 BTC per 24 hours
 1 kW.h @ 0.15 cents US = 0.000230769231 BTC /kW.h
 15 TH/s of AM GEN3 uses ~ 16.5 kW
 16.5 kW.h x 24h x 0.000230769231 BTC/kW.h = 0.091384615476 BTC
 20% of your production (0.4485 BTC per 24 hours) =  0.0897 BTC

 As you can see, it sucks.  Also, when diff goes up, it sucks worse.  
Check my math but I think I'm right.

That math is correct. But for somebody who has access to really cheap or free electricity, this deal is no brainer. Even with 0.15 cents/kW.h , you're making free 0.09 BTC (ups , I forgot about electricity cost, so yes, with 0.15 cents/kW.h you are making zero for you) every day + you're contributing with another 0.3588 to AM dividends for all shareholders(so you as miner get cut from this too). The more I think about this ... mastermind idea, also it helps decentralization  

edit : what about combine this with some hosting in Iceland ?

[silverfuture]

Isn't the 80/20 split done after the power is paid for? That way it is the profit you are splitting. It doesn't make sense otherwise.

[JoTheKhan]

Isn't the 80/20 split done after the power is paid for? That way it is the profit you are splitting. It doesn't make sense otherwise.

That would actually be a lot better. The profit looks really nice like this.

[NotLambchop]

...
edit : what about combine this with some hosting in Iceland ?

I see gargantuan potential here, maybe get IceDrill Will interested?
I remember talk of hot water for apartments, but this is more Regal...

[bitcoin.newsfeed]

Isn't the 80/20 split done after the power is paid for? That way it is the profit you are splitting. It doesn't make sense otherwise.

That would actually be a lot better. The profit looks really nice like this.

Yes, great point. It is. 

... franchising will get 20% mining profit when deduct the electric fee .

[mc_lovin]

It would be very exciting to be a mini franchise.  Us Canadians have the cheapest electricity around, too.

DEFINITELY something to ponder!  Crazy idea but it's so crazy it just.. might.. work..

[jdany]

I have asked Friedcat about the franchising mining farm,Friedcat replied me by E-mail that the franchising mining farm will be work after the mid of July.

BTW, I  will be a small franchise partner too    

each 100 Asciminer shares will  mortgage 15T hashrate .  franchising will get 20% mining profit when deduct the electric fee .

Any details on how it works?   
Any idea who's hardware they'll be using?

[dropt]

I see gargantuan potential here, maybe get IceDrill Will interested?

Sure, if you never want to see your payouts or hardware again.

[bitcoin.newsfeed]

I see gargantuan potential here, maybe get IceDrill Will interested?

Sure, if you never want to see your payouts or hardware again.

It's NotLambchop , it was irony

[Chris_Sabian]

I see gargantuan potential here, maybe get IceDrill Will interested?

Sure, if you never want to see your payouts or hardware again.

Oh please.  Let's not start a discussion about them.  That was a bad time...

[xhomerx10]

Isn't the 80/20 split done after the power is paid for? That way it is the profit you are splitting. It doesn't make sense otherwise.

 Sure your way makes economic sense for the person mining but I think it would become an administrative nightmare for AM to figure out the energy costs for each miner.  If AM uses all 60 PH worth of chips - that's 4000 x 15TH franchises.