I'm thinking about creating a Bitcoin mining cluster, to be funded by shareholders on the GLBSE. I'd like to get peoples thoughts before I do this, as if nobody's interested, I'll save my 3 BTC
Updated on 08/28/2011 17:46 CST - thanks for the great input guys, keep them coming!
The Bitcoin Mining Coop aim is to constantly improve a bitcoin mining cluster. The Bitcoin Mining Coop cluster is currently capable of mining at
1200 MH/s, The Bitcoin Mining Coop will have 25,000 shares of stock, released at an IPO price of BTC 0.1 per share. All funds raised through the IPO will be used to grow this capacity as quickly as possible.
Technical Experience
The founder of the Bitcoin Mining Coop is an experienced Linux HPCC (High Performance Computing Cluster) system administrator. His specialized skillset brings Bitcoin Mining Coop a strong technical founding.
Facilities
The Bitcoin Mining Coop cluster is located in the basement of an upscale residence in Madison, Alabama (USA). The room in which this cluster is
located is adequately cooled and ventilated to ensure the cluster continues to operate at the highest possible efficiency. This room also has adequate
dedicated power circuits to facilitate growth of the cluster to 30,000 MH/s. Additional circuits can be easily added as the cluster grows.
Financial Details
After deducting the cost of electricity ($0.09/KWh) from each day's income from mining, earnings will be distributed as follows:
50%: Upgrades to increase cluster mining capabilities. This should help offset the impact of future difficulty increases.
50%: Paid as dividents on shares.
Shareholders will own 70% of the Coop, with the founder retaining 30% ownership. Although the founder will retain 51% ownership, in the interest of fairness he will only be paid dividends based on his initial investment of equipment (2,000 shares).
Dividend payment reports will be posted to this thread on a daily basis. As soon as possible a web interface to the Bitcoin Mining Coop will be created, which will show shareholders the cluster status and earnings. This is currently anticipated in late September, 2011.
Changing the financial structure of the Bitcoin Mining Coop (such as dividend payments, change of amounts applied towards upgrading the cluster) will require a 80% majority vote.
Voting
Unless otherwise noted in this contract, all decisions of the company are done voting on motions on GLBSE, with a simple majority rule based on the number of shares held by each investor. These decisions would include such things as which crypto chain to mine and which mining pools to use for mining. Suggestions for motions should be made on this thread.
Liquidation
If at any time the cost of electricity exceeds the income generated by mining, the company can be liquidated with a 30% majority vote. Liquidation for any other reason will require a 80% majority vote.
In the case that the Bitcoin Mining Coop is liquidated, all mining hardware purchased with Bitcoin Mining Coop funds will be liquidated, with all proceeds going equally to the shareholders.