ASICMINER: Entering the Future of ASIC Mining by Inventing It - page 322.

whalezy

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Activity: 103

Merit: 10

Quote from: bitcoiner49er on June 05, 2014, 10:46:10 AM

Quote from: whalezy on June 05, 2014, 10:20:22 AM

Quote from: vortex1878 on June 05, 2014, 10:07:45 AM

Sales price will be adjusted if BTC rises.

So if we link the current price of 0,5$ to the current BTC price of 666$ we get a to-date sales price of 0.00075 BTC/G.

Using a factor of 0.9 for an average future price and retaining 1/3 for Gen4, I come to a gross-income per share of 0.06756757 BTC for the 60P.

Forget to ask FC will they change the chip price based on BTC price. It may sound silly, but I don't think the chip price is so flexible. That is a huge risk, because BTC price can be really crazy.

Maybe we can suggest a BTC buy/sell program where "X" amount of BTC is bought or sold each day to average prices and maintain a BTC to USD ratio.

We should ask FC how he plans to deal with the BTC price risk, you cannot collect a huge amount of cash and throw it in the BTC market, it would be a tragedy for us.

shawshankinmate37927

hero member

Activity: 854

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Bitcoin: The People's Bailout

Quote from: bitcoiner49er on June 05, 2014, 10:46:10 AM

Maybe we can suggest a BTC buy/sell program where "X" amount of BTC is bought or sold each day to average prices and maintain a BTC to USD ratio.

Controlling the USD/BTC exchange rate is far beyond AM's control. All they can do is raise or lower their own risk of exposure.

bitcoiner49er

sr. member

Activity: 457

Merit: 250

Quote from: whalezy on June 05, 2014, 10:20:22 AM

Quote from: vortex1878 on June 05, 2014, 10:07:45 AM

Sales price will be adjusted if BTC rises.

So if we link the current price of 0,5$ to the current BTC price of 666$ we get a to-date sales price of 0.00075 BTC/G.

Using a factor of 0.9 for an average future price and retaining 1/3 for Gen4, I come to a gross-income per share of 0.06756757 BTC for the 60P.

Forget to ask FC will they change the chip price based on BTC price. It may sound silly, but I don't think the chip price is so flexible. That is a huge risk, because BTC price can be really crazy.

Maybe we can suggest a BTC buy/sell program where "X" amount of BTC is bought or sold each day to average prices and maintain a BTC to USD ratio.

vortex1878

hero member

Activity: 491

Merit: 500

Quote from: whalezy on June 05, 2014, 10:31:44 AM

Quote from: vortex1878 on June 05, 2014, 10:28:18 AM

fc "kind of" answered to the BTC/USD issue. Although I honestly don't really get what he means with that.

Quote from: friedcat on June 05, 2014, 08:46:38 AM

(...)

Quote from: bitcoin.newsfeed on June 01, 2014, 10:01:17 AM

2) How many months of inventory do you estimate that represents?

Depending on the Bitcoin price. Under this price we expect it to be 1-1.5.

(...)

That means the market demand for Gen3, it depends on the BTC price. With a higher BTC price, we can expect a higher inventory turnover. For $700/BTC, it's 1-1.5.

That makes sense. Thank you.

whalezy

member

Activity: 103

Merit: 10

Quote from: vortex1878 on June 05, 2014, 10:28:18 AM

fc "kind of" answered to the BTC/USD issue. Although I honestly don't really get what he means with that.

Quote from: friedcat on June 05, 2014, 08:46:38 AM

(...)

Quote from: bitcoin.newsfeed on June 01, 2014, 10:01:17 AM

2) How many months of inventory do you estimate that represents?

Depending on the Bitcoin price. Under this price we expect it to be 1-1.5.

(...)

That means the market demand for Gen3, it depends on the BTC price. With a higher BTC price, we can expect a higher inventory turnover. For $700/BTC, it's 1-1.5.

vortex1878

hero member

Activity: 491

Merit: 500

fc "kind of" answered to the BTC/USD issue. Although I honestly don't really get what he means with that.

Quote from: friedcat on June 05, 2014, 08:46:38 AM

(...)

Quote from: bitcoin.newsfeed on June 01, 2014, 10:01:17 AM

2) How many months of inventory do you estimate that represents?

Depending on the Bitcoin price. Under this price we expect it to be 1-1.5.

(...)

minerpumpkin

hero member

Activity: 686

Merit: 500

A pumpkin mines 27 hours a night

Quote from: vortex1878 on June 05, 2014, 10:07:45 AM

Sales price will be adjusted if BTC rises.

So if we link the current price of 0,5$ to the current BTC price of 666$ we get a to-date sales price of 0.00075 BTC/G.

Using a factor of 0.9 for an average future price and retaining 1/3 for Gen4, I come to a gross-income per share of 0.06756757 BTC for the 60P.

Basically correct, but I believe we can't sell for $0.5/GH/s in the future. That batch will be sold within the next 1.5 months, so we'll achieve a price of about $0.35/GH/s. And we should brace for a price above $700. Also, FC's wording seems to suggest that we won't adjust the chip price that much but rather sell more chips.

My calculation for those interested: https://bitcointalksearch.org/topic/m.7148348

neilol-real

full member

Activity: 142

Merit: 100

This is the best possible outcome - look back at the balance sheet guys. Your div predictions are too low above.

Quote from: friedcat on June 05, 2014, 08:46:38 AM

Quote from: bitcoin.newsfeed on June 01, 2014, 10:01:17 AM

1) On the Balance Sheet, approximately how many chips does the current Inventory (Products + Materials + Masks) represent?

A little less than 60P of wafers, most of which are on their final stages of production. The materials consist mainly of lead frames for packaging. The mask is re-usable for years if there are continuing demands for the corresponding wafers.

Quote from: bitcoin.newsfeed on June 01, 2014, 10:01:17 AM

12) What is the cash flow ratio between the amount of Chips Fabricated and the percentage of the batch that is dedicated to cost.

There are no orders dedicated to cost in the short time. So it's 1:0.

whalezy

member

Activity: 103

Merit: 10

Quote from: vortex1878 on June 05, 2014, 10:07:45 AM

Sales price will be adjusted if BTC rises.

So if we link the current price of 0,5$ to the current BTC price of 666$ we get a to-date sales price of 0.00075 BTC/G.

Using a factor of 0.9 for an average future price and retaining 1/3 for Gen4, I come to a gross-income per share of 0.06756757 BTC for the 60P.

Forget to ask FC will they change the chip price based on BTC price. It may sound silly, but I don't think the chip price is so flexible. That is a huge risk, because BTC price can be really crazy.

shawshankinmate37927

hero member

Activity: 854

Merit: 1000

Bitcoin: The People's Bailout

Quote from: vortex1878 on June 05, 2014, 10:07:45 AM

Sales price will be adjusted if BTC rises.

So if we link the current price of 0,5$ to the current BTC price of 666$ we get a to-date sales price of 0.00075 BTC/G.

Using a factor of 0.9 for an average future price and retaining 1/3 for Gen4, I come to a gross-income per share of 0.06756757 BTC for the 60P.

We need the FUDsters to go crash the BTC price now.

vortex1878

hero member

Activity: 491

Merit: 500

Sales price will be adjusted if BTC rises.

So if we link the current price of 0,5$ to the current BTC price of 666$ we get a to-date sales price of 0.00075 BTC/G.

Using a factor of 0.9 for an average future price and retaining 1/3 for Gen4, I come to a gross-income per share of 0.06756757 BTC for the 60P.

necro_nemesis

full member

Activity: 224

Merit: 100

This is the post we have all been patiently waiting for. Thanks FC and to all the board members who provide clarity.

Ozziecoin

sr. member

Activity: 448

Merit: 250

Quote from: IPO Magic on June 04, 2014, 04:27:25 AM

Quote from: Ozziecoin on June 04, 2014, 02:01:11 AM

...I have never personally met the man, yet I trust him more than anyone else I've met in bitcoin land or anywhere else...

Amen Brother! Let me hear you testify!

I testify that I judge a man by his actions and not his words. And FC has given me no reason to doubt him.

shawshankinmate37927

hero member

Activity: 854

Merit: 1000

Bitcoin: The People's Bailout

Quote from: Dexter770221 on June 05, 2014, 09:49:28 AM

So, ASICMINER will be buying 30k BTC to pay shareholders? Time to buy BTC not shares Wink

Would be nice if AM could sell a portion of the June batch for BTC instead of fiat. Unless, of course, AM is able to get a better exchange rate than AM customers can get.

michaelGedi

sr. member

Activity: 364

Merit: 250

"to be or not to be, that is the bitcoin"

Quote from: kibblesnbits on June 05, 2014, 09:42:15 AM

A lot of weak hands will soon be using those same hands to facepalm today.
Thanks, FC.

fuck my weak hands, fuck the fudders, fuck buying back at a loss... and fuck me 60PH?

Ozziecoin

sr. member

Activity: 448

Merit: 250

Quote from: minerpumpkin on June 05, 2014, 09:41:25 AM

Quote from: KarmaShark on June 05, 2014, 09:08:47 AM

Some are still waking up, I predict. Should be a nice surprise to wake up to given the last few weeks. Minerpumpkin, any chance you want to take a shot at speculating on some numbers now that FC has filled us in on some of the variables? Should be able to give us a cleaner looking crystal ball.

Sure! I'll just quick and dirty address what we may expect from those 60 PH/s.

60,000,000 GH/s * $0.35 (average, we have to remain careful and realistic) = $21m / 400,000 (shares) = $52.5/share * 2/3 (payout as shares, not retained) / $700 (BTC price - this may get dangerous) = BTC 0.05 / share for this batch in production (those 60 PH/s). Plus everything that comes after this of course, since it's not the total of gen 3. I guess we'll see BTC 0.1+ for all of gen 3, so with the old valuation we'd be at a reasonable share price of BTC 0.3.
This is pure conjecture given the numbers we just got and not meant as investment advice!!! Please make up your own mind!

If Btc prices rise, I believe there will be capacity to adjust chip pricing in USD terms.

bitdude

sr. member

Activity: 277

Merit: 254

Thanks for the update FC.
Still, I believe the communication part should be not that hard.

Dexter770221

legendary

Activity: 1029

Merit: 1000

So, ASICMINER will be buying 30k BTC to pay shareholders? Time to buy BTC not shares Wink

Chris_Sabian

legendary

Activity: 896

Merit: 1001

Quote from: bitcoiner49er on June 05, 2014, 09:39:47 AM

Already did. Anyone that has been around the block even once with ASICminer/FC knows there is no panic. Things are lost in translation and in internet forums.

^
|
|

This is very true. In Friedcat we trust

kibblesnbits

hero member

Activity: 557

Merit: 500

A lot of weak hands will soon be using those same hands to facepalm today.
Thanks, FC.

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