I think the reality of the situation is that it is far more profitable to sell Gen 1 hardware than to mine with it. Profit margins on the USBs are huge (cost ~$1.5 /GH, selling for ~$50+/GH), but I think we all agree that they are not great for a mining operation like AM. So, it makes sense that FC is not increasing the mining farm right now with Gen1.
So, that being said, hash rate and mining revenue becomes less important, but hardware sales are the focus until Gen2 comes out. And, at that time, it may be that mining just isn't worthwhile when margins on hardware remain so high.
Hardware sales have dominated the weekly profits for a long time, and they will continue to do so., even as mining revenue decreases in the short term.
Just a quick note - the $1.50/GH figure is for the blades, not the USBs. Those are almost certainly considerably more expensive to produce per GH.
Because there is more credible competition for gen 2 than gen 1. At this point, day to day price movements meaningless until we see who starts shipping or hasing with gen 2 miners in volume first. We won't really know where AM stands until mid-November.
+1, however, there is a lot of profit to be made between now and mid-Nov
Nowhere near 2 BTC/share worth of profit. Not even close. Especially if AM's hashrate is going to keep dropping to zero.
no, but AM's plans don't end in Nov, either. Are we now setting share price for only what can be made in the next 2 months? Every other security would be 0.
Of course not, but this is AM's last chance to crank out some value before getting overrun by competition. 2 BTC really is an extremely high price, even with a 10-year horizon.
