Topic: ASICMINER: Entering the Future of ASIC Mining by Inventing It - page 811. (Read 3917468 times)

Since the story turned out to be bogus, does this mean that AM stock is going to skyrocket?

Doesn't seem to be posted here yet, but in response to the $200M rumor - bogus:
https://twitter.com/ScottWapnerCNBC/statuses/364370798892421120

Hashing is looking excellent

does this mean blade issues might be sorted out?

1/3 of that is because of the hardware sales.

_{(Est. 0.014 on mining + 0.007 on HW sales until now.)}

Average hashrate is indeed pretty nice at the moment.

the dividend is setting up to be good this week:  http://www.asicminercharts.com/live/

.02 so far.

It's not impossible that Joe Lewis wants $200M worth of bitcoins but realizes he cannot simply buy that many without blowing up the price. Someone has already been privately buying up all of Avalon's bitcoins, so it fits.

It's genius, really: trying to buy $200M of coins directly would spike the price before you actually gained ownership of the assets, so you'd get stuck buying in at a high price. Instead, they're going to keep all of the coins they're mining, which indirectly raises the price on assets they essentially have already paid for - those coins aren't being released into the wild like they would by a company like AM, so Joe Lewis is relieving the inflationary pressure of mining, which will manifest as an increase in value on his newly minted coins.

Anyone who says "well, he can't pull that off, he can't exceed 30-40% of the hashrate without destroying trust in BTC!" need only look at AM's own plans (leasing hardware for BTC, etc) to understand how it is possible to generate in excess of $200M worth of BTC over a couple of years.

As far as I am concerned, this is the vindication of my bearish sentiment on AM. If this story gets confirmed - and I rate the odds of that at far higher than zero, since this is published in the Wall Street Journal - AM stock is set to absolutely crater. The insane notion that AM will continue to return ~25% APR indefinitely is getting a reality check.

AM Kick his arse 

I thought this thing is fake and just some rehash of old stories that never materialize (see people's comment on the ActiveMining thread).

Given that the market cap of Bitcoin is currently around $1-$1.5 billion I think pumping $200 million into a chip designer only makes sense if you think the value of Bitcoin is truly about to skyrocket and you think Avalon will end up being top-dog in chips forever and a day. I mean, it sounds like a hell of a risk. You'd only be doing this expecting to get a 10-bagger or more, and if the price doesn't move you won't get much of a return even if you become 50% of the market (which they wouldn't even try).

Or are they moving in a different direction than mining?

If confirmed, that indicates that they want to close the technology gap to current state of art IT. It hardly makes any sense to invest this amount of capital at the current market price of bitcoin - unless they also accumulate large quantities of bitcoin and they want to keep the price suppressed. Buying hardware is like buying future bitcoins.

The more interesting aspect would be if they really intent to invest 200 million or if they just value Avalon at 200 million in exchange for e.g. 5 million in investment and equity. ASICMINER currently has a valuation of about 160 million.

USD$200 million is some serious fiat cashola.  I'd be interested in AM's thoughts about the news of the Avalon investment, and meeting that challenge.

http://online.wsj.com/article/SB10001424127887323997004578644491403250124.html

anyone know what FAB AM uses? TSMC? and how will the latest avalon rumors, if true, affect AM going forward?

have they begun development on smaller chips yet?

What is the point for You??? I mean You can have chocolate from food replicator on board USS Enterprise.

From Friedcat's point of perspective all PT shareholders are one entity. So no scattering here, and in fact the process is even easier.
Facebook was given as entertaining example. He can trade for bars of gold if need be or chocolate! Let's talk how much chocolate AM is worth?

It would be an incredible pain for them to do that. Even a cash offer would be difficult to entertain, I imagine. Sure, friedcat could take in cash, then he'd have to contact each shareholder and get their payment information and initiate transfers from his chinese account to everyone elses accounts scattered all around the globe. There's a fee right there, per transaction. Add in the passthrough share, especially the TAT ones where 1 AM shares = 100 potential shareholders, and you're looking at making transfers that will be consumed by the entire fee.

Likewise, friedcat could get FB shares. Then, everyone else would need to provide him brokerage account information for him to initiate FOP transfers. He can't do ACAT transfers, because those need to be same name. FOP can cost, especially when it's a few shares at a time (which it would be). Really, the way everything is set up, there's no option to transact in anything buy BTC, which is purposeful.

Or maybe that person sold at the 4.8~ mark like myself . I currently have 0 shares, since the market's a bit too... uncertain for me to buy back into at the moment.

Waiting to see if there's any big news from Friedcat - since personally, I don't trust all those IPO startups.

That would be bullshit: if I wanted to buy another security, I would have bought that instead.

I guess that tells us how limited the amount of BTC is around on the exchanges.