[BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing - page 4.

dexX7

legendary

Activity: 1106

Merit: 1026

This weeks dividend

We received 19.00723618 LTC dividend for 5369 shares. This results in 0.27807587 BTC dividend for this pass-through, given an exchange rate of 0.0154 LTC/BTC and a 0.95036181 LTC fee. I will initiate the payout within approximately four hours, when I'm back at home.

Message from Kate to CIPHERMINE shareholders:

Quote from: Kate

Dear Shareholders,

Our first seven BitFuries arrived towards the end of last week and have been happily mining since. As a result revenues this week were €2,370, and a profit of €1,225, so a dividend of 389 LTC. €1,030 is going to the hardware reinvestment fund taking our total to €6,160. There is a debate as to what our reinvestment strategy should be going forwards here. You can see our BTC hashrate on the BTC Guild team rankings page (we're currently about 12th). I'm anticipating that revenues for the coming week will be over €5k.

Edit:

Dividend sent: cbf3ac5a1df7bef659dd668aa23fed19381176a2f5a812064b114d369be62edd

inspiredinvestor

hero member

Activity: 658

Merit: 500

great hear, we Ciphermine is cooking with gas!
so glad i held on thru the exchange tornado

dexX7

legendary

Activity: 1106

Merit: 1026

2.8 TH/s (stock) out of 12.5 TH/s hashing

Quote from: Cablesaurus on February 15, 2011, 10:36:36 AM

Including FPGAs our total paid-for hashrate is about 12.5 TH/s. We've currently got 2.8 TH/s (officially - its actually running at a good 10% more than that) so we've still got 78% to come.

We need to decide where to spend more cash on hardware too. Please see the Where to invest next? thread.

Kate.

https://forum.litecoin.net/index.php/topic,6354.0.html

Where to invest next?

Quote from: Kate

This is for CipherMine shareholders. We currently have about €4,500 in the hardware reinvestment fund and it is about to start growing quite rapidly now that the BitFuries have started arriving; probably at least another €1k by the end of this week.

I would value your collective input on where we should invest those funds. I plan to share with you all my updated economics-based forecast of difficulty which suggests that we will be able to maintain fairly healthy profits of €30-40k/month by continuing to invest in the ever-cheaper ASIC mining gear on the market then switching to scrypt GPGPUs when they become a reality. However, there are some permutations we could do instead. Some options:

1) For now put all the reinvestment fund into SHA256 ASICs as per the current plan. This is probably the most obvious course of action for now. If we do stick with this the question is which vendor? BitFury are the most expensive per GHs, but they are delivering and their gear seems pretty stable (though we've only been running it for a day). KNC are reportedly having capacitor explosion issues which doesn't inspire confidence. I like HashFast since their CEO is a mate of a mate and I think their Miner Protection Program is pretty good, but they are looking expensive now compared to CoinTerra. I was skeptical about CT but having done a lot of digging and speaking to people I think they are legit, but spending money now on stuff that won't arrive until January makes me twitchy, even at their amazing prices.

2) Put some or all of the fund into more GPU rigs. This has the benefit that they will have residual value, but to be frank GPU rigs are proving to be a bit of a nightmare. That said, our new rackable design should help - we're moving to 4 GPUs/rig due to the constant issues we've been facing. However, with LTC diff over 1,100 (and other scrypt coins only offering 10-20% above that) their profitability is getting quite slim.

3) We save up for GPGPUs so we can splash out €10-€30k once they become available and really get the full advantage of that first wave.

4) Use the fund to pay off some of CIPHERMINE.B1 (the bond) early.

There are other options too. As previously mentioned I'm using the Avalon refund to help with setting up a new exchange, hopefully buying Burnside's code. We could "go large" on that and put the h/w fund into that new venture if we feel the outlook for mining is just not good enough; in that scenario you'd all get a larger share of the new venture as CIPHERMINE shareholders.

Equally, we could switch to 100% profit mode. This would double dividends in the short-term but we'd effectively become a perpetual mining bond. Our revenues would steadily decline and in the longer term my models suggest that this would be less profitable than continuing to invest. It is very contingent on GPGPUs becoming a reality though.

Anyway, just wanted to float this out there and get your collective feedback. I'll post a new public version of the business model at the weekend.

Kate.

PS. 4 BTC in the last 24 hours with just 10% of our expected total hashrate - we're cooking on gas now! Cheesy

https://forum.litecoin.net/index.php/topic,6354.0.html

If you have anything to add, I'll forward your opinion.

medicine

hero member

Activity: 697

Merit: 501

I guess I am one of those four people with only one PT share. Ha ha ha, sorry for the inconvenience. I will initiate the transfer process because I don't think there is any reason to hold PT shares at this time.

Is there a reason to hold onto a PT share?
Peace.

dexX7

legendary

Activity: 1106

Merit: 1026

First direct dividend issued

Kate sent out some test payments to test the the direct dividend payout. We received 11.13140127 LTC, which equal 0.16390988 BTC, given an exchange rate of 0.0155 LTC/BTC and a 0.556570302 LTC fee. I initiated a payout of 0.16390988 BTC for 5369* shares. You should receive approximately 0.000030415 BTC x amount of shares you hold. Please contact me, if something went wrong.

* Due to the minimum transaction amount of 5430 satoshi I doubled the share amount for this payout for four user, which only hold one share, thus the dividend was technically distributed to 5373 shares. This was only a work-around and I don't intend to do something similar again in the future.

Addresses to keep an eye one

Dividends issued by CipherMine go to this Litecoin address:

LKvW3g9EQyuk8B3GjYqqfFTAAQGshJYVj6

I will distribute the Bitcoin nominated dividend from this address:

1CiPhERsFPjVS1DyBUgFjndaigUGKbErXD

Cheers! Wink

dexX7

legendary

Activity: 1106

Merit: 1026

First three BitFuries received!

CipherMine has received the first three BitFuries today. Four more should be delivered very soon, as well as the KnCMiners.

BTC Guild team ranking, here we come!

CipherMine is currently hashing at BTC Guild, which is verifiable via the team ranking:

https://www.btcguild.com/index.php?page=rankings§ion=teams

Kate said further:

Quote from: Kate

Giles and I have been rather distracted by sorting out how we're going to keep the security liquid and tradeable post-LTCG close down, and Ross and Simon have had to rebuild three of the GPU rigs recently (two randomly melted their main motherboard connectors - still not 100% sure why - and another has an as-yet undiagnosed fault), so we've not had time to sort out live hashrates for the GPU rigs yet (sorry!). Things are actually looking quite positive on the new exchange front and I'll have more news soon; there are a number of options being explored, and we will continue to pay dividends regardless.

dexX7

legendary

Activity: 1106

Merit: 1026

Message from Kate to CIPHERMINE shareholders on Litecoin-Global:

Quote from: Kate

Dear Shareholders,

Apologies for not being in touch over the weekend; I was getting married.

We made a small loss again this week (~EUR 50, ~EUR 300 into the reinvestment fund), but we have seven 400 GH/s BitFuries on the way which should change our fortunes! I emailed them about why we'd only had a notification about our second order and the response is below.

We have not yet had tracking numbers from them but will let you know when we do. Giles got his little BF about one week after he got the tracking number so hopefully we'll have them some time next week.

Kate.

Quote

On 03/10/2013 13:00, Niko Punin wrote:

You should get a tracking number soon

On 3.10.2013, at 23:16, Kate Craig-Wood <[email protected]> wrote:

Thanks. :)

Is there any reason why this order, #525, is shipping before our first order, #498?

Kate.

On 05/10/2013 07:51, Niko Punin wrote:

Hello Kate, They were so close together that they were built simultaneously, but getting 4 full rigs done took more time than getting 3 full rigs and it didn't make it in time for shipment that day. Thank you for your understanding.

dexX7

legendary

Activity: 1106

Merit: 1026

Repost of the announcement I made on Octobre 4th during bitcointalk.org's downtime:

Closure of BTCT and Litecoin-Global:

On October 7th, 2013 (2013-10-07) all trading activities of BTCT and Litecoin-Global will be halted. In case this is news to you, please read the official announcements of BTCT or Litecoin-Global for further information:

BTCT: https://btct.co/
Litecoin-Global: https://www.litecoinglobal.com/

bitcointalk.org hacked and defaced:

On Wednesday (2013-10-02) hackers - calling themselves "The Hole Seekers" - were able to deface bitcointalk.org. It is unclear, if they gained access to the database of bitcointalk.org.

It is strongly advised to change your password, if you use the same password on other websites. This is solely an additional security measure, despite the fact that passwords are hashed using sha256crypt with 7500 rounds and are not stored in clear text.

Softpedia.com published an article about the hack here. theymos (the admin of bitcointalk.org) commented on the hack on Reddit and offers a bounty of 50 Bitcoin for the first one who is able to reconstruct the hack.

Please be aware that the rumors about 150.000 emails and hashed passwords being offered for 25 Bitcoin are false. theymos analyzed the data sample and came to the conclusion that it is fake.

bitcointalk.org will stay offline until theymos knows how the hack was done.

The future of CIPHERMINE and CIPHERMINE-PT:

Due to the closure of BTCT and Litecoin-Global CipherMine has decided to continue with direct shares, at least for the time being. I also decided to continue this pass-through and until a solution is found for CIPHERMINE, I will go the direct share route as well.

This means CipherMine will not be traded on an exchange after the 7th October and dividends will be send to your Litecoin or Bitcoin address directly. Share transfers will be possible and further instructions on how to transfer direct shares will be published in the next days. I will also update the prospectus and shareholder contract accordingly soon.

What are your options?

Till Monday, October 7th, 2014 (2013-10-07) you are able to freely trade CIPHERMINE-PT shares on BTCT and CIPHERMINE shares on Litecoin-Global. But it is advised to finalize all trades before this date, because it is unknown when trading will be halted exactly. I will process all share transfers from BTCT to Litecoin-Global and vice versa till Sunday, October 6th, 2013 (2013-10-06) at 20:00 UTC. Please take a look at “Products and Services” under the tab “Details” on the BTCT listing of CIPHERMINE-PT for instructions on how to transfer shares.

On Monday, October 7th, 2014 (2013-10-07) at 20:00 UTC I will extract a list with all shareholders and use this list as basis for direct shares. Please make sure your public withdrawal address is correct. It will be used to identify you as shareholder and dividends will be send to this address also.

Please understand that I'm unable to verify your status as shareholder otherwise.

Positive news:

Kate announced the following on Litecoin-Global:

Excitingly, we've today had news that our first three 400 GH/s BitFury miners have shipped! They are from order #525 - actually our second BFSB order. I'm not sure why it has happened before #498, but I've emailed them to ask. We don't have an expected delivery date yet but it should be within the next few days.

KnCMiner also announced that they started to ship units. A video of this announcement can be found here: http://www.youtube.com/watch?v=JFOcI8nK2xI

To give you an overview, the following hardware is currently hashing for CipherMine:

1 x Batch 1 60 GH/s Avalon miner
1 x Batch 3 60 GH/s Avalon miner
100 x Ztex 1.15y clones
10 x Quad 1.15y Ztex
6 x Cairnsmore CM1s
6 x Quintuple Sapphire 7950 Vapor-X GPU rigs
2 x Quad Sapphire 7950 Dual-X GPU rigs
1 x Quad Gigabye 7970 GPU rigs
1 x Quad mix GPU rig

Those units are on order:

9 x 400 GH/s BitFury units
2 x KNC Jupiter units
8 x HashFast BabyJet with Miner Protection Program
2 x HashFast Sierra with Miner Protection Program

Receipts for open orders can be found here: http://docs.ciphermine.com/orders/

Shareholder communication:

Until bitcointalk.org is online again, I will communicate all updates via the asset news channel on BTCT. I also created a backup thread for this pass-through on the Litecoin forums:

https://forum.litecoin.net/index.php/topic,6255.0.html

I'm also available via email at [email protected] or under the nick dexX7 on Freenode (IRC).

Please feel free to ask questions, if anything needs further clarification.

Rannasha

hero member

Activity: 728

Merit: 500

Quote from: dexX7 on October 07, 2013, 12:01:09 PM

Just a quick reminder: I will freeze trading at 20:00 UTC. The state of the shareholder list will then be final. Please finalize all trades before this time.

To access btct.co on a Windows machine:

1. Edit the file: \Windows\System32\drivers\etc\hosts
2. Add the following line: 141.101.113.21 btct.co
3. Save and you're done.

Fixed a minor mistake in the name of the file to edit.

Also make sure to open the file as administrator.

dexX7

legendary

Activity: 1106

Merit: 1026

Just a quick reminder: I will freeze trading at 20:00 UTC. The state of the shareholder list will then be final. Please finalize all trades before this time.

To access btct.co on a Windows machine:

1. Edit the file: \Windows\System32\drivers\etc\hosts
2. Add the following line: 141.101.113.21 btct.co
3. Save and you're done.

Edit: Thanks Rannasha!

evilscoop

sr. member

Activity: 350

Merit: 250

please dont give her idea's lol.....
And agree'd on the latter

Luckybit

hero member

Activity: 714

Merit: 510

dexX7

legendary

Activity: 1106

Merit: 1026

Message from Kate to CIPHERMINE shareholders on Litecoin-Global:

Quote

This week and the future

Dear Investors,

There is good news and bad news this week. The bad news is that a) as you'll have heard this exchange is closing and b) we've had a rubbish week due to continuing to rise difficulty on all fronts. We actually made a very small loss this week after power, depreciation and the bond interest payments. The net contribution to the hardware fund was €306 so we are still net positive, it is just all going into reinvestment. I am not overly concerned by this since we have always been geared towards being hardware-reinvestment intensive.

However, my forecasts are looking a little more doubtful for scrypt mining given recent rises in difficulty. Further, I am not entirely satisfied that we will get good value for money from money invested in SHA256 ASICs either right now. Therefore I have decided not to reinvest the Avalon refund in more hardware. Instead I we are going to use this money to advance some of our diversification plans, the most notable of which is a gambit to purchase Burnside's code and re-launch this exchange and BTC Trading Co (some details here), which is the good news. For this purpose we will setup a new virtual security most likely and CIPHERMINE shareholders shall get a proportional number of shares in the new entity(ies). I feel it best to keep clearly different business operations separate. It should also be noted that I have personally contributed at least that amount to CipherMine's hardware estate out of my own pocket, so I feel that redirecting those funds is not innappropraite (and it will likely benefit you all more).

Finally, thanks to the aforementioned plans, CipherMine shall continue as a virtual security. The business itself is strong and we have significant ASIC pre-orders coming through in the next weeks and months. It is likely that there may be a period where the security is illiquid and not on an exchange. During that time we will continue to pay dividends to your public withdrawal address (please do make sure you've set this!). My aspiration is that we will have a new exchange operational for the start of December; ie. only one month of illiquidity (this exchange closes at the end of next month).

Finally, please also ensure that you have set an active and secure email address as your LTC Global email account. When reconstituting shares on the new exchange we will be using those email addresses (I have records of them from the shareholder reports .csv sent twice daily). If you are using an insecure or out-of-date email address then you will likely lose your holdings during the trasition!

Kate.

dexX7

legendary

Activity: 1106

Merit: 1026

According to Kate we should receive an update on CipherMine's future with 24 hours.

dexX7

legendary

Activity: 1106

Merit: 1026

IMPORTANT NOTICE TO ALL CIPHERMINE-PT SHAREHOLDERS AND USERS OF BTCT AND LITECOIN GLOBAL IN GENERAL

Please set your public withdrawal address on BTCT and Litecoin-Global.

In case you didn't do it already, please head over to your account settings on BTCT and Litecoin Global and go to "Settings". There is a field with the label "Public Withdrawal Address". It is extremely important that you enter a Bitcoin and Litecoin address that you own and control. You may need to sign a message with that address and a shared wallet address (e.g. Bitstamp deposit address) is not sufficient. Please see this picture for instructions:

Why is this important?

Asset issuers receive a list containing all public witthdrawal addresses as well as the amount of shares you hold frequently. After the shutdown of BTCT and Litecoin Global this address will be used to identify you as shareholder and to map the amount of CIPHERMINE/CIPHERMINE-PT shares you hold. If you miss this step, you run into the risk that CipherMine is unable to map your shares to you. You might need to proof that you are the owner of this address.

How can you be sure that you are able to proof the ownership of your withdrawal address?

Ownership of an address can be shown by signing a message with your Bitcoin/Litecoin address. Only the one with control over the private key (or wallet) is able to generate a valid signature for this address. With the stock Bitcoin QT client, you can sign a message by clicking on "Receive" and then right click on the address you'd like to use to sign a message with. If you want to try it yourself, please choose "Sign Message" as shown in the following picture:

Please make sure that you chose the correct address which you'd like to sign a message with (3). After entering a message (4), you can click on "Sign Message" (5) and a signature for this specific address and exactly this message you have entered will be generated.

You now have the following data:

Code:

Address: 13AK4qMJh1fon7e2SpJ3bmm6mDUaq2kqQU
Message: Hello, this is dexX7 and I'm the owner of the BTCT address "13AK4qMJh1fon7e2SpJ3bmm6mDUaq2kqQU". I will use this address to proof ownership and claim my CIPHERMINE shares.
Signature: H7K+KXAwzpxy1thK1bi9uL7KySNIngH7jT6OnxZx4quBA65JKiOuvDqQLf2ODEwoqrOKgCYzFxo5Ps7CelBaKf0=

A signature can be verified in the section "Verify Message" in the Bitcoin QT client. You can also head over to http://brainwallet.org/#verify and verify a signature. The following picture shows this process for http://brainwallet.org/#verify:

TL;TR: please make sure you set your public withdrawal address on BTCT and Litecoin Global and you are in control of this address. Team CipherMine and other asset issuers on BTCT and Litecoin-Global may ask you to provide proof of ownership of this address by signing a message. This is necessary to identify you as shareholder after BTCT and Litecoin Global have been shut down. Please don't hesitate to ask, if you need assistance in this process.

dexX7

legendary

Activity: 1106

Merit: 1026

Looks like everything has calmed down a bit.

Message from Kate to all shareholders, posted on Litecoin Global:

Quote

Dear Shareholders,

Obviously today's news that LTC Global is closing down by the end of the month is very distressing.

We have not yet decided exactly what to do going forwards but are exploring a number of options, the most obvious of which is to simply bring all shares in-house and run them direct so you all continue to get dividend payments but to the public payment address you have set here (which does mean you must set it if you have not!).

If we were to do that it would prevent automated trading of the shares, and at this time we don't have the resources to administer trades manually. The security would therefore become illiquid for a time. We would likely therefore wish to move the security to a new exchange, and indeed we are exploring some options there too.

Another option is a forced buy-back of shares at the weighted average of the original issue prices (i-e. 1.62 LTC/share), but we don't have the necessary funds to do that in reality. Further, what funds we do have (mostly from the Avalon refund) I am more inclined to offer as a discounted, or possibly forced, buy-back of CIPHERMINE.B1 (the bond issued on BTC TC). At least 50% of the bondholders are investment funds who will likely want their money ASAP; I can't see how their funds can survive this unfortunately.

In the mean time please be assured that we are going to try to look after you, our shareholders, and that does include those of you with small stakes (my somewhat ill-considered forum post earlier should largely be ignored). CipherMine remains a viable business and will continue regardless.

I will be in touch in the couple of days with a clear plan. In the mean time, don't panic!

Kate.

iCEBREAKER

legendary

Activity: 2156

Merit: 1072

Crypto is the separation of Power and State.

superduh

hero member

Activity: 602

Merit: 500

Quote from: dexX7 on September 23, 2013, 12:10:49 PM

I was shocked, too. But I'm sure it was a very emotional response and I also know team CipherMine tries it's best at the moment to evaluate different options to come up with something fitting.

If your interested, I suggest to follow the thread on the Litecoin Forums:

https://forum.litecoin.net/index.php/topic,4582.465.html

But to be clear: I'll forward important inforamation as soon as possible anyway.

ya, looks like more debate going on there.

dexX7

legendary

Activity: 1106

Merit: 1026

I was shocked, too. But I'm sure it was a very emotional response and I also know team CipherMine tries it's best at the moment to evaluate different options to come up with something fitting.

If your interested, I suggest to follow the thread on the Litecoin Forums:

https://forum.litecoin.net/index.php/topic,4582.465.html

But to be clear: I'll forward important inforamation as soon as possible anyway.

superduh

hero member

Activity: 602

Merit: 500

kate-
telling people to sell is just wrong. if you plan on closing everything down and leaving shareholders with NOTHING then wtf.
sell to WHO, you? who the hell would want to this stock that will be worth exactly 0 in a month.
your response seems to be filled with anger and hate.
keep in mind that anything short of either a fair buyback at 4ltc (your last round) is stealing.
i advice you to CALM down for a few days and then proceed to do something that is legal and fair.

Topic: [BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing - page 4. (Read 44684 times)