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Topic: ASICMINER: Entering the Future of ASIC Mining by Inventing It - page 831. (Read 3917543 times)

sr. member
Activity: 322
Merit: 252
Anyone think that dividends will be over 0.025? Roll Eyes

Current mining income: ~4700BTC (wallet)
Sales income: 3100BTC (previous used addresses)

And 7800BTC --> 0.0195BTC/share + extra sales of 0.00 - 0.05 (He always uses some 'hidden' addresses Tongue)



But according to friedcat's DOCS document,
it CAN be possible that the total of 10,112.72BTC is the total of mining+sales this week, and that would mean at least 0.025 BTC/share. Wink
*However it seems likely that a part of that will be hold to pay for upcoming expenses. Smiley
sr. member
Activity: 360
Merit: 250
Anyone think that dividends will be over 0.025? Roll Eyes
No clue at all.
sr. member
Activity: 246
Merit: 250
Anyone think that dividends will be over 0.025? Roll Eyes
hero member
Activity: 518
Merit: 500
unconfirmed news:
The USB stick miner will be charged at 0.6BTC.

I feel so out of the news loop, but many thanks for trying to keep us in the loop  Smiley

Which USB stick miner are you referring to? The one currently being retailed for 1BTC? Is this a price drop announcement?
full member
Activity: 234
Merit: 100
unconfirmed news:
The USB stick miner will be charged at 0.6BTC.
Also,if you bought a stick before,you can buy a new one at 0.1BTC.
full member
Activity: 234
Merit: 100
unconfirmed news:
The USB stick miner will be charged at 0.6BTC.
hero member
Activity: 752
Merit: 500
bitcoin hodler
Would Friedcat consider approaching some of the smaller mining pools directly with the franchising deals?  

For instance offering machines in that fashion to the likes of ozcoin, deepbit etc. and other pools in the 1-5% of network size.  I imagine these operations are in a good position to be able to bring that kind of hardware online and run it, since they are large enough to handle the hardware and small enough that they are able to scale up.

I think you misunderstand what the pools do.  They aren't mining(or generally not very much), they are providing an interface to pool the mining of other people together.

Mining at asicminer scale is a big job with lots of problems and issues.

I concur, this is meant for medium-large mining coops and companies, not pools. I also don't think that friedcat needs to approach the potential customers, it's more likely that they will contact him directly once this option becomes widely known.

anyway thanks for the balance sheet and news, you rock friedcat!
full member
Activity: 219
Merit: 100
Would Friedcat consider approaching some of the smaller mining pools directly with the franchising deals? 

For instance offering machines in that fashion to the likes of ozcoin, deepbit etc. and other pools in the 1-5% of network size.  I imagine these operations are in a good position to be able to bring that kind of hardware online and run it, since they are large enough to handle the hardware and small enough that they are able to scale up.

I think you misunderstand what the pools do.  They aren't mining(or generally not very much), they are providing an interface to pool the mining of other people together.

Mining at asicminer scale is a big job with lots of problems and issues.
member
Activity: 112
Merit: 10
Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00¥
Electricity Expense: 729,542.05¥
Labor Expense: 327,081.00¥
Logistics Expense: 132,184.90¥
Deposits: 117,506.01¥
Total: 397,800.00$+6,216,243.96¥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

We look forward to working with you.

If you have any can you please post minimum technical team requirements to join your PPS hash network, or where to contact you to begin at once.
newbie
Activity: 34
Merit: 0
Would Friedcat consider approaching some of the smaller mining pools directly with the franchising deals? 

For instance offering machines in that fashion to the likes of ozcoin, deepbit etc. and other pools in the 1-5% of network size.  I imagine these operations are in a good position to be able to bring that kind of hardware online and run it, since they are large enough to handle the hardware and small enough that they are able to scale up.
sr. member
Activity: 322
Merit: 252
Nice update friedcat! Smiley

I've just created a real-time updating mining income + hashrate chart based on Runeks's data which compares the current week with the previous month:






Didn't check if the chart is 100% correct, so if something is wrong please PM me and don't spam the thread Wink

*I REALLY need some sleep now Cheesy
member
Activity: 69
Merit: 10
Love it!  I especially love how the renting of equipment translates to additional money for ASICMINER without centralizing the network, AND, when the rental is expired, the equipment can still be sold...

Friedcat is as brilliant as you all made me believe him to be.
legendary
Activity: 1834
Merit: 1094
Learning the troll avoidance button :)
Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00¥
Electricity Expense: 729,542.05¥
Labor Expense: 327,081.00¥
Logistics Expense: 132,184.90¥
Deposits: 117,506.01¥
Total: 397,800.00$+6,216,243.96¥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

Long live Friedcat and his team!!!!!!
As a Finance Person this is a lot better than nothing Smiley
Gets a bit tricky when converting the bitcoins to Fiat with the exchange rates to determine production costs but that's for a different financial report. And with the cash on hand not a big issue.
Totals matter here Smiley
Thanks for the great data.
Keep up the great work and it will be interesting to see how Hardware Franchising works.
Fb updated
full member
Activity: 210
Merit: 100
Update

Financial Status

Mining Income: 102,041.82BTC
Blade Sales Income: 29,594.75BTC
USB Sales Income: 37,524.00BTC
Total: 169,520.57BTC

Device and Infrastructure Expense: 397,800.00$ + 4,909,930.00¥
Electricity Expense: 729,542.05¥
Labor Expense: 327,081.00¥
Logistics Expense: 132,184.90¥
Deposits: 117,506.01¥
Total: 397,800.00$+6,216,243.96¥

Balance Sheet: https://docs.google.com/spreadsheet/ccc?key=0Al1fvFT7Sd5bdEthNEpIWWxpcW90RFBQOFZ6aFlxT0E&usp=sharing

Hardware Franchising

This is a new business model option besides self-mining and hardware sales. We will rent the excessive hashing power to financial and technical capable people, accepting full deposits at the market price, shipping the devices and collecting a certain PPS rate based on the theoretical hashrate. The PPS rate, the dividing of cost coverage, as well as warranty/exit strategy are being discussed in detail and executed as small-scale experiments.

This model is similar to hardware sales in the aspect that we do not have in control on how the users make use of our devices, therefore has more decentralization in spirit. And like with self-mining, it aims at settings in scale, enjoying the reduction of NRE cost and operating cost overall, and reducing potential marketing/advertisement/customer service costs.

Project Timeline

August-September: Deploy/sell all hashpower arriving in July and early August.
September-November: Deploy/sell the hashpower ordered at early July.
November-December: Experimental products of 2nd-gen chips and modular large-scale deployment solutions.

Love what you've built and how you've built it! Transparency and true customer service can get you a long way Smiley
donator
Activity: 994
Merit: 1000
If you look closely at the spread sheet, the company has a liquidation value of zero (Assets-Liabilities).
If you look closer at the spread sheet, the (Assets-Liabilities) is BTC10,112.72 + $517,800.00 + ¥3,002,649.85.
I stand corrected. I mixed owner's equity into liabilities, but it's actually not a liability, thus there is liquidation value. (need more coffee...)
full member
Activity: 160
Merit: 100
By my calculations, book value is 0.0513 BTC / share
If you look closely at the spread sheet, the company has a liquidation value of zero (Assets-Liabilities). All assets are either instruments for future income, reflect investments, contracts paid for or cover short-term costs.

What's not reported in the spread sheet, but can be estimated from the numbers in the posting is the generated "bitcoin flow": operation->equity owners, which is (169,520.57- ~15,000-40,000=~130,000-150,000). Thus the gross efficiency of the operation up to now is for each bitcoin spent, you get 5 to 10 back. However, that included a lot of early-mover pay-off, thus a separation into different time and operation segments would be desirable to see how that efficiency fares and compares.

(Assets - liabilities) = 0 always, since a balance sheet must balance.

Shareholder's equity is the important bit (which is part of the liabilities).

You are correct that the cashflow is more important. Balance sheets are important when there is debt. In Bitcoin land there is no debt.
And yes AM is not capital intensive. This indicates it can scale. However the limit to scaling up is the hashrate share (notwithstanding the franchising deals).

Most importantly, this is a step towards transparency, which reduces the perceived risk to shareholders. This means we can tolerate a lower yield and thus, we should get a higher share price.
newbie
Activity: 9
Merit: 0
Hardware franchising.  How does that work?  Is it like equipment leasing?  If so, does the equipment eventual returns?  Because typical retail franchise, the operator primarily acquires usage of brand name - can't really draw a true parallel between the this franchising and retail franchise.

Franchising isn't exactly the right word, it sounds like more of a lease agreement where the terms of the lease are the theoretical production capacities of the devices.

From what I understand, it allows Bitfountain to scale faster and in a distributed fashion with low risk to either the security of Bitcoin or the company.  The devices aren't controlled by or related to the company other than the payments of what the blades produce near theoretical maximum.  And the risk to the company is even lower because of the deposits required.

This could give Asicminer, effectively, mining farms all over the world, even in places that can operate much more efficiently than where they are now.  And let Bitfountain profit from more than 50% of the network hashrate without actually risking Bitcoin's security.

All in all a very good thing for Asicminer and shareholders methinks.
donator
Activity: 994
Merit: 1000
By my calculations, book value is 0.0513 BTC / share
If you look closely at the spread sheet, the company has a liquidation value of zero (Assets-Liabilities). All assets are either instruments for future income, reflect investments, contracts paid for or cover short-term costs.

What's not reported in the spread sheet, but can be estimated from the numbers in the posting is the generated "bitcoin flow": operation->equity owners, which is (169,520.57- ~15,000-40,000=~130,000-150,000). Thus the gross efficiency of the operation up to now is for each bitcoin spent, you get 5 to 10 back. However, that included a lot of early-mover pay-off, thus a separation into different time and operation segments would be desirable to see how that efficiency fares and compares.
full member
Activity: 179
Merit: 100
as a (admittedly part qualified) accountant, that balance sheet makes me cringe slightly, but its better than nothing! Smiley
full member
Activity: 224
Merit: 100
You can't kill math.
Wow anyone notice the expenses, nice and low.. 17 million income, less than a million in expenses. Nice. Great investment.
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