Topic: [ASICMining.B] ASIC Investments - Establishing my Investment Firm, Part 1 - page 2. (Read 4785 times)

Note Details:
With the upcoming Butterfly Labs ASIC rigs (set to be launched October 2012), Hashes / sec will begin to make the transition from GH/s to TH/s for typical miners over the next 12 months. Basic devices are set to start out at 4.5GH/s, while full mining rigs will go up to an astounding 1.5TH/s.

I'm looking to make a purchase of 5 BFL SC "Mini-Rigs" (highest end @ 1.5TH/s apiece). At the current price of $30,247USD each ($29,899 + $348 shipping), purchasing 5 rigs amounts to $151,235USD, which is a substantial goal to meet under some of the best financial circumstances.

To reach my equipment requirements, I am looking to issue 50,000 Notes, priced at 1BTC apiece with a buyback period starting at in March 2013 (Five [5] months after rigs are released to market, Three [3] after assumed arrival time) and extending to December 31st, 2013 (based on funds available).

Each Note will have a Coupon Rate of 1% per month until March 2013, during which the rate will increase to 2%, until October when it goes to 4%. In December 2013, the Rate will increase one last time to 6% to pay back the final Note holders.

The starting buyback price will be 1.10BTC for the first 6 months (March - September 2013), 1.15BTC for 3 months (September - November 2013), and 1.20BTC for the last month. This would mean a 15 month holding (October 1st, 2012 to December 31st, 2013). The largest Note Holders will receive the most ROI as their holdings will last the longest.

This is all possible as a result of 32% (calculated as the most efficient percent) of all remaining Notes being purchased back during the Buyback Period per month. For example, if all 50,000 Notes are in the market during March, then 16,000 Notes will be purchased back, followed by 10,880 during April, and so on. This will continue until December 2013 when all remain Notes will be purchased back with maximum Coupon Rates and Buyback price.

If substantial funds remain during the final 3 months of 2013, up to 75% of all profit will go to current Note holders in the form of a further increased Coupon Rate and Buyback price. The other 25% will be reinvested in the company.

Assuming the Bitcoin market stays in stable state during the next 12 months after the transition from GPU to ASIC mining and the reward split in December 2012, mining at 7.5TH/s is set to have a payback period of around 6-8 months. This includes accounting for a substantial difficulty increase (1250%), a total network hash rate of 250TH/s, and 25BTC per block. Realistically, the hash rate will start off around 150TH/s and increase to 300TH/s over 12 months.


Note Info:
Ticker Symbol: ASICMining.B
Company: ASIC Investments (under parent company Korb and Co. Investments, LLC)
Notes to be sold: 50,000
Price (ea.): 1BTC
Monetary Goal to Raise: $375,000 [Any extra funds beyond equipment needs are used for Early Buybacks]

Blog, Twitter, Forum, and Email
Email: [email protected]
Website: korbman.webs.com
Twitter: A_Korb (though admittedly I barely ever use twitter)
Blog: korbman.webs.com
Google Docs Accounting Info: https://docs.google.com/spreadsheet/ccc?key=0AhnW49twNMNbdEpXb2VyU3NGYS1VQ2dJUmVtaWlMOHc
Forum Thread: https://bitcointalksearch.org/topic/asicminingb-asic-investments-establishing-my-investment-firm-part-1-112232



Basic Contract Information:
My fund offers Note holders exposure to the underlying equipment investments for Korb and Co. Investments, LLC, herein known as the ‘Parent Company’, currently in development.

Each Note has an initial value of 1BTC, currently backed 10% by funds held by the Parent Company. Current Coupon Rate is set for 1% every last day of the month until the start of the Buyback Period (March 1st, 2013). Upon that time, the Coupon Rate will double to 2%, 4%, and eventually to 6% during the last month of Buybacks.

Initial fund offering is currently established for October 1st, 2012 at 12:00EST (GMT-5). Orders for the BFL SC "Mini-Rig" will be placed during the next two (2) months until December 31st, 2012. Funds left over from any "Rig" not purchased by January 1st, 2013 will be issued as Early Buybacks.

March 1st, 2013 starts the initial Buyback Period, where Notes will be repurchased for 1.10BTC apiece, and otherwise equivalent to a 10% return on investment (ROI) for holding the Note for Six (6) Months. Starting September 1st, 2013, Buybacks will increase to 1.15BTC, equivalent to a 15% ROI for an 11 month holding period. Lastly, starting December 1st, 2013 repurchases will be increased to 1.20BTC to reward Note Holders with a 20% ROI for a 15 Month holding.

Profit gained (up to 75%) during the Buyback Period (March 1st, 2013 - December 31st, 2013) will lead to increased Coupon Rates and Buyback prices.

The Issuer reserves the right to buy back any outstanding Notes at a price equal to 1.005 times the Initial (Par) Value before the Buyback Period begins, stated as “Early Buybacks”.

The Issuer reserves the right to extend and/or otherwise modify the Buyback period and ROI after reevaluating current market conditions, block difficulty, BFL SC "Mini-Rig" 'received' dates, and general feasibility.

The Issuer also reserves the right to modify the Coupon Rate to accurately reflect market conditions, income, and profitability. This rate can be modified higher or lower to correctly compete with other market values for similar Stocks, Bonds, and/or Notes.

In the unlikely event that Butterfly Labs is unable to fulfill their orders or is otherwise not accepting purchases, the Issuer reserves the right to Buyback any outstanding Notes at 97.5% Par Value to cover expenses and fees.

These are nonvoting Notes.
The Issuer will strive to achieve the promises made in this document to the best of their human ability.

We've moved to: https://bitcointalksearch.org/topic/havelockkcim-korb-investments-establishing-my-investment-firm-part-1-119628

Hi all! I’ve been working on creating my new Fund, which was completed in August (though hasn’t been posted yet), but I figured it’s time for a brief presentation  

Also, as a result of the GLBSE fiasco, I'll be moving my fund to another exchange. At this time, I'm currently looking for suggestions on where to move it to.

In a one sentence summary, here’s the overarching idea: Establishment of my Investment Firm.

To reach this goal, I’ve split my idea into two parts.
Part 1) Creation of a Note fund to raise capital for ASIC Equipment.
Part 2) Creation of a Stock IPO to raise capital to establish my company in a small office to hold server equipment (for the pool) and possibly the mining equipment raised by the Notes. The parent company to the online moniker “ASIC Investments” is Korb and Co. Investments, LLC. This LLC is the ‘real world’ company that deals not only in bitcoins, but eventually normal investments as well (and for accounting and tax purposes).

Each requires a substantial amount of work, but the most important part here is the equipment, so I focused my work on the Notes to start. The equipment will allow for a revenue stream until my Stock release, as well as other investment opportunities outside of bitcoin, comes to fruition.

But first, a bit about me.
My name is Andrew Korb, and I currently live in South Burlington, Vermont.
I’m a 23 year old, 2011 college graduate with a Bachelor of Science in Business Administration (and soon to be working on my second degree in Computer Science, with a long term goal of Information Systems Management).

I currently work as a Systems Administrator for a small consulting company called Open Approach, Inc based in Bristol, Vermont, though I work out of Burlington (and we don’t have a website yet). We oversee the deployment and expansion of servers and networks for small businesses (under 500 employees), coupled with standard Help Desk support.

Financial Management and Investing has been a long time hobby of mine (over a decade now). During college I came up with my Investment Firm ‘Korb and Co. Investments’ with a friend of mine with the idea of someday having the capital to establish the company and make meaningful investments. Though the idea has fallen by the wayside for him, it still flourishes in me.

Creation of these funds is a way to help me realize these dreams (or at the very least, put me on the right path), so I’m 100% vested in the success of this venture. I want to do anything I can to make it a ‘Win-Win’ situation for everyone involved.