Good luck dex! Looks like you've got 4. no? 4 on asset page, 3 on awaiting approval page.
Thanks zefyr0s! The 4th vote came in a few minutes ago, I assume the approval overview is cached.
Edit: it's there now.
Topic: [BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing - page 7. (Read 44684 times)
September 10, 2013, 09:21:57 AM
Thanks zefyr0s! The 4th vote came in a few minutes ago, I assume the approval overview is cached.
Edit: it's there now.
September 10, 2013, 09:15:05 AM
Good luck dex! Looks like you've got 4. no? 4 on asset page, 3 on awaiting approval page.
September 10, 2013, 06:34:13 AM
Open for votes
This security is in the process of approval on BTC-TC and now open for moderator votes:
https://btct.co/security/CIPHERMINE-PT
Please take your time to review this security, any comment is appreciated.
I will announce the official start of trading with a leadtime of at least 24 hours.
This security is in the process of approval on BTC-TC and now open for moderator votes:
https://btct.co/security/CIPHERMINE-PT
Please take your time to review this security, any comment is appreciated.
I will announce the official start of trading with a leadtime of at least 24 hours.
September 02, 2013, 11:05:24 AM
At some piont, once you are able to relax abit on the Ciphermine front (LOL, you don't strike me as a relaxing type). You could put some of your technical skills regarding "ultra-efficient and environmentally-friendly computing systems" into a little free guide/series of posts for smaller miners and individuals hobbists. Even bigger miners can benefit I am sure.
this would be a great community legacy to create.
this would be a great community legacy to create.
You're right, I should! I have been lax on the blogging front lately and I now have a wealth of knowledge in this space. It is also very relevant to my PhD (I'm researching the rebound effect / Jevon's paradox in relation to ICT ability to decarbonise society, hopefully without itself becoming a major emitter) and I see mining as an excellent microcosm example of the rebound effect in action.
Kate.
September 02, 2013, 06:26:33 AM
Kissing? I think you meant "word of mouth".
It is not clear which parts refer to CIPHERMINE and which parts refer to CIPHERMINE-PT. You seem to switch back and forth as if they are the same thing. Can you make it more clear?
It is not clear which parts refer to CIPHERMINE and which parts refer to CIPHERMINE-PT. You seem to switch back and forth as if they are the same thing. Can you make it more clear?
Thanks for the input!
I differentiate between "CIPHERMINE-PT" (the pass-through), "CIPHERMINE" (the security on LTC-GLOBAL) and "CipherMine" (the company). I added passage 8.1 Terminology which is an extension of the former passage Users to state this explicitly. Mostly all references to the company CipherMine and the underlying security are updated and addressed as external instances to a greater degree now.
Furthermore the passage 8.5 Fees and Operating Cost was added as requested.
September 01, 2013, 06:58:17 PM
Owning a hosting company has other advantages too like access to rather cheap power. I cannot go into full details yet since Memset (my company) has not released them, but we are doing something pretty special in this space which also benefits CipherMine. To give you a hint; in the UK I'm a nationally renowned expert in ultra-efficient and environmentally-friendly computing systems (that's also largely what my PhD is about
).Good to hear CipherMine has goals beyond Bitcoin. there is definitely alot of opportunity
At some piont, once you are able to relax abit on the Ciphermine front (LOL, you don't strike me as a relaxing type). You could put some of your technical skills regarding "ultra-efficient and environmentally-friendly computing systems" into a little free guide/series of posts for smaller miners and individuals hobbists. Even bigger miners can benefit I am sure.
this would be a great community legacy to create.
September 01, 2013, 12:12:02 PM
First off, just to validate this does have my support and I have been working with dexX7 on this for a little while now.
We see BTC mining as a near-term opportunity. The longer term and more interesting opportunities are undoubtedly in CPU and GPU mining. We also hope to put the skills gained to use in renting out, in effect, a specialised high-performance cloud (GPU and potentially FPGA - we wish to test the market for the latter). To that end we've been doing quite a bit of R&D into things like how to get GPU and FPGA rigs into a rack-mountable format which can be housed in a data centre (ie. no wood/plastic etc - not good for fire risk).
Once we've finished building the last few (had some supplier issues) we will have nine quintuple S7950VX GPU rigs (~3 MHz each) and more are planned. We also have a good stock of FPGA hardware but I don't want to buy more until we've proven the business case for renting them out - for now they are earning their keep BTC mining.
We don't use multipools since we have our own intelligent mining and trading software called CipherMine. I am the principal author. It automatically applies our mining estate to the best coin in any given minute. It then also automatically sells the coins to BTC or LTC, though we are soon implementing a more intelligent algorithm so that it holds the alt-coins if they are rising (this is rare so it has not cost us much to date). We also intelligently go short or long on BTC or LTC depending on market trajectory. Currently CipherMiner has the capability to mine about 40 different coins and we're adding more.
As dexX7 mentioned, I am in the unique position of having an arsenal of cheap compute resource available as well. Our Miniserver VM hosts rarely run at more than 10-20% CPU and I've devised a system where we can apply the spare compute to XPM mining - or any other profitable compute-intensive activity that comes along. We're currently running at about 150k primes per sec across ~500 2 GHz Xeon cores.
Owning a hosting company has other advantages too like access to rather cheap power. I cannot go into full details yet since Memset (my company) has not released them, but we are doing something pretty special in this space which also benefits CipherMine. To give you a hint; in the UK I'm a nationally renowned expert in ultra-efficient and environmentally-friendly computing systems (that's also largely what my PhD is about).
Kate.
PS. Please note that the financial forecasts in the business plan are now quite out of date. I am waiting for LTC Global to let me update the security's details (for which we had a successful motion) before bringing it more up-to-date. However, please do have a look at the static version of the business model at docs.ciphermine.com (the .ods spreadsheet).
Are there coins that can be profitable with cpu-mining and the power usage of it?
And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.
And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.
We see BTC mining as a near-term opportunity. The longer term and more interesting opportunities are undoubtedly in CPU and GPU mining. We also hope to put the skills gained to use in renting out, in effect, a specialised high-performance cloud (GPU and potentially FPGA - we wish to test the market for the latter). To that end we've been doing quite a bit of R&D into things like how to get GPU and FPGA rigs into a rack-mountable format which can be housed in a data centre (ie. no wood/plastic etc - not good for fire risk).
Once we've finished building the last few (had some supplier issues) we will have nine quintuple S7950VX GPU rigs (~3 MHz each) and more are planned. We also have a good stock of FPGA hardware but I don't want to buy more until we've proven the business case for renting them out - for now they are earning their keep BTC mining.
We don't use multipools since we have our own intelligent mining and trading software called CipherMine. I am the principal author. It automatically applies our mining estate to the best coin in any given minute. It then also automatically sells the coins to BTC or LTC, though we are soon implementing a more intelligent algorithm so that it holds the alt-coins if they are rising (this is rare so it has not cost us much to date). We also intelligently go short or long on BTC or LTC depending on market trajectory. Currently CipherMiner has the capability to mine about 40 different coins and we're adding more.
As dexX7 mentioned, I am in the unique position of having an arsenal of cheap compute resource available as well. Our Miniserver VM hosts rarely run at more than 10-20% CPU and I've devised a system where we can apply the spare compute to XPM mining - or any other profitable compute-intensive activity that comes along. We're currently running at about 150k primes per sec across ~500 2 GHz Xeon cores.
Owning a hosting company has other advantages too like access to rather cheap power. I cannot go into full details yet since Memset (my company) has not released them, but we are doing something pretty special in this space which also benefits CipherMine. To give you a hint; in the UK I'm a nationally renowned expert in ultra-efficient and environmentally-friendly computing systems (that's also largely what my PhD is about
).Kate.
PS. Please note that the financial forecasts in the business plan are now quite out of date. I am waiting for LTC Global to let me update the security's details (for which we had a successful motion) before bringing it more up-to-date. However, please do have a look at the static version of the business model at docs.ciphermine.com (the .ods spreadsheet).
August 31, 2013, 09:44:44 AM
Are there coins that can be profitable with cpu-mining and the power usage of it?
CipherMine is in the special position to use spare VM hosts of the UK hosting provider Memset Ltd to mine Primecoin (bitcoinmagazine.com on XPM) which are traded on Cryptsy. Currently CPU mining is the only way to generate XPM, though I can't provide exact numbers on profitability.
And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.
CipherMine uses different mining pools based on what cryptocoin is mined. Basically the CPU rigs/VMs are used to mine XPM at the moment, GPUs are focused on scrypt coins (like Litecoin) and ASICs and FPGAs are used to mine SHA256 coins (like Bitcoin).
Page 6 and following of CM's business plan provides some more details about coin selection, hardware and mining pools:
http://docs.ciphermine.com/CipherMine%20Plan%20v2.11.pdf
August 31, 2013, 08:53:16 AM
Are there coins that can be profitable with cpu-mining and the power usage of it?
And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.
And how about using techniques like multipool or this other pool are using? I would invest probably. But mining bitcoins doesnt sound good for that hardware.
August 31, 2013, 07:13:01 AM
Dear potential shareholders,
a few minutes ago I initiated the approval process on BTC-TC. After the admin lock has been
removed, shareholders of LTC-GLOBAL are eligible to approve CIPHERMINE-PT:
https://www.btct.co/security/CIPHERMINE-PT
I will announce the official start of trading with a leadtime of at least 24 hours.
Cheers!
a few minutes ago I initiated the approval process on BTC-TC. After the admin lock has been
removed, shareholders of LTC-GLOBAL are eligible to approve CIPHERMINE-PT:
https://www.btct.co/security/CIPHERMINE-PT
I will announce the official start of trading with a leadtime of at least 24 hours.
Cheers!
August 30, 2013, 05:16:12 AM
great to see, glad this has been set up, I'll brought and will continue to buy mostly in litecoins, but this will encourage more opportunities to buy a quality stock!
August 29, 2013, 06:42:46 PM
Reserved.
August 29, 2013, 06:01:35 PM
Dear potential shareholders,
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
I'm happy to present a pass-through issued by myself in cooperation with CipherMine, a
cryptocoin mining company which is listed on the Litecoin Global Exchange.
This security is listed on the BTC Virtual Stock Exchange:
https://btct.co/security/CIPHERMINE-PT
To learn more about CipherMine and this security, please take a look at the prospectus below.
Feel free to contact me here on the forums or via e-mail ([email protected]). From
time to time I'm also available on freenode.net (IRC) with the nick dexX7.
Cheers!
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
1. Executive Summary
This security represents a depositary receipt/pass-through of the CIPHERMINE security.
Listed on the virtual stock exchange BTC Trading Corp. Stock Exchange this security can be
found under the ticker symbol CIPHERMINE-PT:
https://btct.co/security/CIPHERMINE-PT
Underlying shares are issued by the cryptocoin mining company CipherMine which is quoted on
the virtual stock exchange Litecoin Global Exchange under the ticker symbol CIPHERMINE:
https://www.litecoinglobal.com/security/CIPHERMINE
CipherMine maintains a forum thread on LitecoinTalk:
https://forum.litecoin.net/index.php/topic,4582.0.html
According to CipherMine, the company mines scrypt and SHA256 based cryptocoins with a
combination of heavily discounted CPU resources, GPU rigs, FPGAs and ASICs. Although the
focus lies on Bitcoin and Litecoin, mining clusters are diverted to other cryptocoins based on
profitability. Highly automated coin switching and trading is used to maximize performance.
Incoming profits are distributed to shareholders in form of dividends and partially used as re-
investment. To maximize an early-mover advantage, CipherMine aggressively invests in cutting-
edge technology like ASIC mining hardware.
This security acts as an extension of the underlying security CIPHERMINE and provides potential
users of the BTC Trading Corp. Stock Exchange a way to participate in trading virtual shares of
the cryptocoin mining company CipherMine nominated in Bitcoin.
Benefits of underlying shares will be passed through to shareholders of this security as defined
in the Shareholder Agreement.
2. Business Description
CipherMine, the basis of this depositary receipt/pass-through, is a growth-oriented virtual
mining company which specializes in cryptocoin mining as well as high-performance computing.
Formed in June 2012, CipherMine was established by leading British IT entrepreneur Kate Craig-
Wood in partnership with Giles Russel, Ross Martyn and Simon Weald, two systems
administrators from Memset Ltd., and Jan, a DevOps specialist.
What started out as a hobby for Craig-Wood, has seen her set up a virtual company whose stellar
debut grabbed headlines around the world as shares soared 500 % following their initial public
offering on June 24 2013 on the virtual stock exchange LTC-GLOBAL.
Recognizing that there was room for an alternate cryptocoin, CipherMine believes that Litecoin
is that alternate.
More information about CipherMine can be found on http://www.ciphermine.com.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
3. Definition of the Market
Mining cryptocurrencies strengthens the underlying infrastructure and can be highly rewarding.
Because of the fast growth of this sector constant expansion and improvement is needed to stay
profitable and competitive. CipherMine, the company from which this security is derived, offers
a way for potential investors to benefit from mining and provides an option for all those who
like to take part in cryptocoin mining without the needs of larger initial investments or
maintaining own hardware.
This virtual security is directed to potential shareholders of the CipherMine security
CIPHERMINE and users of BTC-TC who wish to participate in trading CIPHERMINE shares
nominated in Bitcoin without the need of using another exchange.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
4. Products and Services
The operator is offering a redemption and deposit service which allows shareholders to
exchange CIPHERMINE and CIPHERMINE-PT shares.
How to redeem CIPHERMINE-PT shares on BTC-TC to CIPHERMINE shares on LTC-GLOBAL?
1. Contact the operator of this security via an appropriate medium (e-mail or private message on
bitcointalk.org) and submit the exact number of CIPHERMINE-PT shares to redeem, the account
name on BTC-TC from which shares to redeem are sent and the account name on LTC-GLOBAL
to which shares should be transferred. Please also include the e-mail address used for the
registration on BTC-TC.
2. Transfer the exact amount (as stated in the message) of CIPHERMINE-PT shares to the BTC-TC
account CipherMineTransfer via the Internal Asset Transfer mechanism within approximately 360
minutes after the request message has been sent.
How to deposit CIPHERMINE shares from LTC-GLOBAL to CIPHERMINE-PT shares on BTC-TC?
1. Contact the operator of this security via an appropriate medium (e-mail or private message on
bitcointalk.org) and submit the exact number of CIPHERMINE shares to deposit, the account
name on LTC-GLOBAL from which shares to redeem are sent and the account name on BTC-TC
to which shares should be transferred. Please also include the e-mail address used for the
registration on LTC-GLOBAL.
2. Transfer the exact amount (as stated in the message) of CIPHERMINE shares to the LTC-
GLOBAL account CipherMineTransfer via the Internal Asset Transfer mechanism within approximately
360 minutes after the request message has been sent.
No confirmation from the operator is necessary to initiate the share transfer.
Following the instructions given by the operator is mandatory for a successful share transfer
and shares received by the operator due to other means will be returned to the original sender.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
5. Organization and Management
This virtual security is managed by dexX7, a bitcointalk.org member. He acts as pass-through
operator and is approved by CipherMine.
https://bitcointalksearch.org/user/dexx7-104899
Kate Craig-Wood is the principal founder of CipherMine, the underlying of this security. Her
principal responsibilities in CipherMine are business administration, finance and software
development.
https://bitcointalksearch.org/user/woodrake-99792
Giles Russell is CipherMine’s ASIC rig builder and general mining hardware expert.
https://bitcointalksearch.org/user/evilscoop-98209
Jan Heinicke-Clemm is the mining software specialist of CipherMine and maintains systems such
as CipherMine's private pools and Primecoin mining grid.
https://bitcointalksearch.org/user/johndorien-91526
The CipherMine team consists furthermore of the following experts:
Richard West (as diversification services developer), Ross Martyn and Simon Weald (as systems
administrators at Memset Ltd.), Katie Olver (as CipherMine's press relations agent) and Liam
Devany (a developer who is responsible for maintaining ciphermine.com as well as the planned
industrial-computing.com sites).
More details about the CipherMine team can be found on http://www.ciphermine.com.
6. Marketing Strategy
Promotion of this virtual security and the underlying CipherMine is mainly done through word-
of-mouth marketing and advertisement on related cryptocoin forums and websites.
Katie Olver (CipherMine's PR agent) also obtained wide attention including coverage in the
Guardian's blog, as well as Forbes online and the Wall Street Journal.
The Guardian:
http://www.theguardian.com/technology/blog/2013/jul/01/bitcoin-virtual-fortune-crypto-currency
Forbes:
http://www.forbes.com/sites/timworstall/2013/07/02/further-evidence-that-bitcoins-in-a-bubble
Wall Street Journal:
http://blogs.wsj.com/moneybeat/2013/07/08/forget-bitcoins-litecoins-are-the-next-big-thing
7. Financial Management
Detailed information about the financial management and estimated returns of the underlying
CipherMine can be found in the current version of CipherMine’s business plan and business
model.
The related documents are updated frequently and available at http://docs.ciphermine.com.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8. Shareholder Agreement
PLEASE MAKE SURE TO READ AND UNDERSTAND THE TERMS OF SERVICE OF THE
VIRTUAL STOCK EXCHANGE "BTC TRADING CORP. STOCK EXCHANGE" TO BE FAMILIAR
WITH ALL DEFINITIONS USED THROUGHOUT THIS SHAREHOLDER AGREEMENT AND
RELATED TERMS OF SERVICE.
This virtual security ("CIPHERMINE-PT") represents a DEPOSITARY RECEIPT/PASS-THROUGH
of the underlying CIPHERMINE security.
CIPHERMINE shares are issued by the cryptocoin mining company CipherMine which is quoted
on the virtual stock exchange Litecoin Global Exchange ("LTC-GLOBAL"):
https://www.litecoinglobal.com/security/CIPHERMINE
8.1 Terminology
The term "CIPHERMINE-PT" (upper case) is used for this security.
"CIPHERMINE" (upper case) is used for the underlying security of this depositary receipt/pass-
through which is traded on LTC-GLOBAL.
"CipherMine" (camel case) refers to the virtual mining company CipherMine lead by British IT
entrepreneur Kate Craig-Wood. CipherMine is the issuer of CIPHERMINE shares.
The terms (potential) "INVESTORS" and (potential) "SHAREHOLDERS" are used to address
POTENTIAL USERS and USERS of BTC-TC, LTC-GLOBAL and potential users and users of the
virtual securities CIPHERMINE and CIPHERMINE-PT.
8.2 Shares
Virtual shares of this security are nominated in BITCOIN and listed on the virtual stock exchange
BTC TRADING CORP. STOCK EXCHANGE ("BTC-TC") under the ticker symbol CIPHERMINE-PT:
https://btct.co/security/CIPHERMINE-PT
Each CIPHERMINE-PT share represents one underlying CIPHERMINE share on LTC-GLOBAL.
CIPHERMINE-PT shares are backed by at least the same amount of CIPHERMINE shares held in
the account "CipherMinePT" on LTC-GLOBAL by the operator of this security.
The operator may increase the number of outstanding CIPHERMINE-PT shares, if the number of
CIPHERMINE shares in the account "CipherMinePT" on LTC-GLOBAL is higher than the number
of outstanding CIPHERMINE-PT shares on BTC-TC.
The number of underlying CIPHERMINE shares held by the operator is verifiable through a
public portfolio on LTC-GLOBAL:
https://www.litecoinglobal.com/portfolio/f781Cg==
8.3 Voting Rights
The operator uses the mechanism provided on BTC-TC to raise motions.
Shareholders are eligible to participate in voting whereby each CIPHERMINE-PT share held by a
shareholder represents the weight of one voting right.
A motion is considered as approved on a majority of more than 50 % of approval votes.
The content of an approved motion will be adopted as soon as possible.
Within approximately 48 hours after a motion has been raised by CipherMine on LTC-GLOBAL,
the operator puts up a motion with a similar content on BTC-TC to extend his voting rights of
CIPHERMINE shares to shareholders of CIPHERMINE-PT.
Shareholders will be notified in advance, if the operator may be unable to forward a motion
within approximately 48 hours.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8.4 Dividends
Shareholders of CIPHERMINE-PT may receive virtual dividends on a regular or irregular basis in
form of Bitcoin through the mechanism provided by BTC-TC.
Dividends issued by CipherMine and received by the operator on LTC-GLOBAL are passed
through to shareholders of CIPHERMINE-PT to an amount of 95 % of its converted value in
Bitcoin within approximately 48 hours.
In the case of a foreseeable event that the operator is unable to forward a dividend within this
timeframe, shareholders will be notified in advance and the dividend payout will be rescheduled
accordingly.
BTC-E (https://btc-e.com) is used to determine the value of Litecoin. A trade within
approximately 60 minutes will be used as reference to calculate the conversion factor from
Litecoin to Bitcoin after a dividend has been received on LTC-GLOBAL.
8.5 Fees and Operating Cost
An amount of 5 % of dividends received from CipherMine are retained by the operator as fee.
95 % of dividends are passed through to shareholders of this security based on the conversion
factor from Litecoin to Bitcoin determined as defined in the section Dividends.
No additional costs for potential transaction, conversion or withdrawal fees are imposed.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8.6 Share Transfers
The operator is offering a redemption and deposit service which allows shareholders to
exchange CIPHERMINE and CIPHERMINE-PT shares.
For further information about the process share transfer process, please take a look at the
section Products and Services.
Shareholders are eligible to use this service twice every week.
The exchange is processed by the operator within approximately 48 hours.
Should the operator be unable to guarantee this timeframe or execute this service, shareholders
will be notified in advance.
No confirmation from the operator is necessary to initiate the share transfer.
Following the instructions given by the operator is mandatory for a successful share transfer
and shares received by the operator due to other means will be returned to the original sender.
Fraudulent attempts to hijack the share transfer process may result in an exclusion of the
malicious user from this service and will be announced publicly by the operator for the sake of
transparency.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8.7 Communication
The operator uses the Asset News channel of BTC-TC to publish important announcements or
information for shareholders of CIPHERMINE-PT.
The preferred medium of communication for public matters between shareholders and the
operator is bitcointalk.org. A dedicated thread shall be used for additional announcements,
information and discussion directly related to CIPHERMINE-PT, CIPHERMINE or CipherMine.
Shareholders may contact the operator via e-mail or the private message mechanism on
bitcointalk.org. Content discussed in non-public channels shall be treated confidently.
Shareholders will be notified in advance, if the operator may be unavailable longer than
approximately 72 hours.
Should BTC-TC become inaccessible or unusable by any means, the operator is going to use
bitcointalk.org to communicate with shareholders and may further try to reach out to
shareholders via e-mail.
8.8 Dissolution
In the event that the operator chooses to or is forced to close this security for any reason, the
following methods will be used for dissolution:
1. A new operator may be chosen by the operator to take over this security. Shareholders of
CIPHERMINE-PT are eligible to approve/disapprove the new operator by a motion.
2. Shareholders of CIPHERMINE-PT have the right to exchange CIPHERMINE-PT shares for
CIPHERMINE shares on LTC-GLOBAL. If applicable, this right is granted for at least four weeks.
3. All remaining underlying shares of CIPHERMINE will be sold on LTC-GLOBAL and the
proceeds will be distributed to the remaining CIPHERMINE-PT shares as a final dividend. This
option is to be considered as unfavorable and only applicable, if the other two options yield no
sufficient result and no other solution has been determined by a consensus of the operator and
shareholders.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
I'm happy to present a pass-through issued by myself in cooperation with CipherMine, a
cryptocoin mining company which is listed on the Litecoin Global Exchange.
This security is listed on the BTC Virtual Stock Exchange:
https://btct.co/security/CIPHERMINE-PT
To learn more about CipherMine and this security, please take a look at the prospectus below.
Feel free to contact me here on the forums or via e-mail ([email protected]). From
time to time I'm also available on freenode.net (IRC) with the nick dexX7.
Cheers!
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
1. Executive Summary
This security represents a depositary receipt/pass-through of the CIPHERMINE security.
Listed on the virtual stock exchange BTC Trading Corp. Stock Exchange this security can be
found under the ticker symbol CIPHERMINE-PT:
https://btct.co/security/CIPHERMINE-PT
Underlying shares are issued by the cryptocoin mining company CipherMine which is quoted on
the virtual stock exchange Litecoin Global Exchange under the ticker symbol CIPHERMINE:
https://www.litecoinglobal.com/security/CIPHERMINE
CipherMine maintains a forum thread on LitecoinTalk:
https://forum.litecoin.net/index.php/topic,4582.0.html
According to CipherMine, the company mines scrypt and SHA256 based cryptocoins with a
combination of heavily discounted CPU resources, GPU rigs, FPGAs and ASICs. Although the
focus lies on Bitcoin and Litecoin, mining clusters are diverted to other cryptocoins based on
profitability. Highly automated coin switching and trading is used to maximize performance.
Incoming profits are distributed to shareholders in form of dividends and partially used as re-
investment. To maximize an early-mover advantage, CipherMine aggressively invests in cutting-
edge technology like ASIC mining hardware.
This security acts as an extension of the underlying security CIPHERMINE and provides potential
users of the BTC Trading Corp. Stock Exchange a way to participate in trading virtual shares of
the cryptocoin mining company CipherMine nominated in Bitcoin.
Benefits of underlying shares will be passed through to shareholders of this security as defined
in the Shareholder Agreement.
2. Business Description
CipherMine, the basis of this depositary receipt/pass-through, is a growth-oriented virtual
mining company which specializes in cryptocoin mining as well as high-performance computing.
Formed in June 2012, CipherMine was established by leading British IT entrepreneur Kate Craig-
Wood in partnership with Giles Russel, Ross Martyn and Simon Weald, two systems
administrators from Memset Ltd., and Jan, a DevOps specialist.
What started out as a hobby for Craig-Wood, has seen her set up a virtual company whose stellar
debut grabbed headlines around the world as shares soared 500 % following their initial public
offering on June 24 2013 on the virtual stock exchange LTC-GLOBAL.
Recognizing that there was room for an alternate cryptocoin, CipherMine believes that Litecoin
is that alternate.
More information about CipherMine can be found on http://www.ciphermine.com.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
3. Definition of the Market
Mining cryptocurrencies strengthens the underlying infrastructure and can be highly rewarding.
Because of the fast growth of this sector constant expansion and improvement is needed to stay
profitable and competitive. CipherMine, the company from which this security is derived, offers
a way for potential investors to benefit from mining and provides an option for all those who
like to take part in cryptocoin mining without the needs of larger initial investments or
maintaining own hardware.
This virtual security is directed to potential shareholders of the CipherMine security
CIPHERMINE and users of BTC-TC who wish to participate in trading CIPHERMINE shares
nominated in Bitcoin without the need of using another exchange.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
4. Products and Services
The operator is offering a redemption and deposit service which allows shareholders to
exchange CIPHERMINE and CIPHERMINE-PT shares.
How to redeem CIPHERMINE-PT shares on BTC-TC to CIPHERMINE shares on LTC-GLOBAL?
1. Contact the operator of this security via an appropriate medium (e-mail or private message on
bitcointalk.org) and submit the exact number of CIPHERMINE-PT shares to redeem, the account
name on BTC-TC from which shares to redeem are sent and the account name on LTC-GLOBAL
to which shares should be transferred. Please also include the e-mail address used for the
registration on BTC-TC.
2. Transfer the exact amount (as stated in the message) of CIPHERMINE-PT shares to the BTC-TC
account CipherMineTransfer via the Internal Asset Transfer mechanism within approximately 360
minutes after the request message has been sent.
How to deposit CIPHERMINE shares from LTC-GLOBAL to CIPHERMINE-PT shares on BTC-TC?
1. Contact the operator of this security via an appropriate medium (e-mail or private message on
bitcointalk.org) and submit the exact number of CIPHERMINE shares to deposit, the account
name on LTC-GLOBAL from which shares to redeem are sent and the account name on BTC-TC
to which shares should be transferred. Please also include the e-mail address used for the
registration on LTC-GLOBAL.
2. Transfer the exact amount (as stated in the message) of CIPHERMINE shares to the LTC-
GLOBAL account CipherMineTransfer via the Internal Asset Transfer mechanism within approximately
360 minutes after the request message has been sent.
No confirmation from the operator is necessary to initiate the share transfer.
Following the instructions given by the operator is mandatory for a successful share transfer
and shares received by the operator due to other means will be returned to the original sender.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
5. Organization and Management
This virtual security is managed by dexX7, a bitcointalk.org member. He acts as pass-through
operator and is approved by CipherMine.
https://bitcointalksearch.org/user/dexx7-104899
Kate Craig-Wood is the principal founder of CipherMine, the underlying of this security. Her
principal responsibilities in CipherMine are business administration, finance and software
development.
https://bitcointalksearch.org/user/woodrake-99792
Giles Russell is CipherMine’s ASIC rig builder and general mining hardware expert.
https://bitcointalksearch.org/user/evilscoop-98209
Jan Heinicke-Clemm is the mining software specialist of CipherMine and maintains systems such
as CipherMine's private pools and Primecoin mining grid.
https://bitcointalksearch.org/user/johndorien-91526
The CipherMine team consists furthermore of the following experts:
Richard West (as diversification services developer), Ross Martyn and Simon Weald (as systems
administrators at Memset Ltd.), Katie Olver (as CipherMine's press relations agent) and Liam
Devany (a developer who is responsible for maintaining ciphermine.com as well as the planned
industrial-computing.com sites).
More details about the CipherMine team can be found on http://www.ciphermine.com.
6. Marketing Strategy
Promotion of this virtual security and the underlying CipherMine is mainly done through word-
of-mouth marketing and advertisement on related cryptocoin forums and websites.
Katie Olver (CipherMine's PR agent) also obtained wide attention including coverage in the
Guardian's blog, as well as Forbes online and the Wall Street Journal.
The Guardian:
http://www.theguardian.com/technology/blog/2013/jul/01/bitcoin-virtual-fortune-crypto-currency
Forbes:
http://www.forbes.com/sites/timworstall/2013/07/02/further-evidence-that-bitcoins-in-a-bubble
Wall Street Journal:
http://blogs.wsj.com/moneybeat/2013/07/08/forget-bitcoins-litecoins-are-the-next-big-thing
7. Financial Management
Detailed information about the financial management and estimated returns of the underlying
CipherMine can be found in the current version of CipherMine’s business plan and business
model.
The related documents are updated frequently and available at http://docs.ciphermine.com.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8. Shareholder Agreement
PLEASE MAKE SURE TO READ AND UNDERSTAND THE TERMS OF SERVICE OF THE
VIRTUAL STOCK EXCHANGE "BTC TRADING CORP. STOCK EXCHANGE" TO BE FAMILIAR
WITH ALL DEFINITIONS USED THROUGHOUT THIS SHAREHOLDER AGREEMENT AND
RELATED TERMS OF SERVICE.
This virtual security ("CIPHERMINE-PT") represents a DEPOSITARY RECEIPT/PASS-THROUGH
of the underlying CIPHERMINE security.
CIPHERMINE shares are issued by the cryptocoin mining company CipherMine which is quoted
on the virtual stock exchange Litecoin Global Exchange ("LTC-GLOBAL"):
https://www.litecoinglobal.com/security/CIPHERMINE
8.1 Terminology
The term "CIPHERMINE-PT" (upper case) is used for this security.
"CIPHERMINE" (upper case) is used for the underlying security of this depositary receipt/pass-
through which is traded on LTC-GLOBAL.
"CipherMine" (camel case) refers to the virtual mining company CipherMine lead by British IT
entrepreneur Kate Craig-Wood. CipherMine is the issuer of CIPHERMINE shares.
The terms (potential) "INVESTORS" and (potential) "SHAREHOLDERS" are used to address
POTENTIAL USERS and USERS of BTC-TC, LTC-GLOBAL and potential users and users of the
virtual securities CIPHERMINE and CIPHERMINE-PT.
8.2 Shares
Virtual shares of this security are nominated in BITCOIN and listed on the virtual stock exchange
BTC TRADING CORP. STOCK EXCHANGE ("BTC-TC") under the ticker symbol CIPHERMINE-PT:
https://btct.co/security/CIPHERMINE-PT
Each CIPHERMINE-PT share represents one underlying CIPHERMINE share on LTC-GLOBAL.
CIPHERMINE-PT shares are backed by at least the same amount of CIPHERMINE shares held in
the account "CipherMinePT" on LTC-GLOBAL by the operator of this security.
The operator may increase the number of outstanding CIPHERMINE-PT shares, if the number of
CIPHERMINE shares in the account "CipherMinePT" on LTC-GLOBAL is higher than the number
of outstanding CIPHERMINE-PT shares on BTC-TC.
The number of underlying CIPHERMINE shares held by the operator is verifiable through a
public portfolio on LTC-GLOBAL:
https://www.litecoinglobal.com/portfolio/f781Cg==
8.3 Voting Rights
The operator uses the mechanism provided on BTC-TC to raise motions.
Shareholders are eligible to participate in voting whereby each CIPHERMINE-PT share held by a
shareholder represents the weight of one voting right.
A motion is considered as approved on a majority of more than 50 % of approval votes.
The content of an approved motion will be adopted as soon as possible.
Within approximately 48 hours after a motion has been raised by CipherMine on LTC-GLOBAL,
the operator puts up a motion with a similar content on BTC-TC to extend his voting rights of
CIPHERMINE shares to shareholders of CIPHERMINE-PT.
Shareholders will be notified in advance, if the operator may be unable to forward a motion
within approximately 48 hours.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8.4 Dividends
Shareholders of CIPHERMINE-PT may receive virtual dividends on a regular or irregular basis in
form of Bitcoin through the mechanism provided by BTC-TC.
Dividends issued by CipherMine and received by the operator on LTC-GLOBAL are passed
through to shareholders of CIPHERMINE-PT to an amount of 95 % of its converted value in
Bitcoin within approximately 48 hours.
In the case of a foreseeable event that the operator is unable to forward a dividend within this
timeframe, shareholders will be notified in advance and the dividend payout will be rescheduled
accordingly.
BTC-E (https://btc-e.com) is used to determine the value of Litecoin. A trade within
approximately 60 minutes will be used as reference to calculate the conversion factor from
Litecoin to Bitcoin after a dividend has been received on LTC-GLOBAL.
8.5 Fees and Operating Cost
An amount of 5 % of dividends received from CipherMine are retained by the operator as fee.
95 % of dividends are passed through to shareholders of this security based on the conversion
factor from Litecoin to Bitcoin determined as defined in the section Dividends.
No additional costs for potential transaction, conversion or withdrawal fees are imposed.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8.6 Share Transfers
The operator is offering a redemption and deposit service which allows shareholders to
exchange CIPHERMINE and CIPHERMINE-PT shares.
For further information about the process share transfer process, please take a look at the
section Products and Services.
Shareholders are eligible to use this service twice every week.
The exchange is processed by the operator within approximately 48 hours.
Should the operator be unable to guarantee this timeframe or execute this service, shareholders
will be notified in advance.
No confirmation from the operator is necessary to initiate the share transfer.
Following the instructions given by the operator is mandatory for a successful share transfer
and shares received by the operator due to other means will be returned to the original sender.
Fraudulent attempts to hijack the share transfer process may result in an exclusion of the
malicious user from this service and will be announced publicly by the operator for the sake of
transparency.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
8.7 Communication
The operator uses the Asset News channel of BTC-TC to publish important announcements or
information for shareholders of CIPHERMINE-PT.
The preferred medium of communication for public matters between shareholders and the
operator is bitcointalk.org. A dedicated thread shall be used for additional announcements,
information and discussion directly related to CIPHERMINE-PT, CIPHERMINE or CipherMine.
Shareholders may contact the operator via e-mail or the private message mechanism on
bitcointalk.org. Content discussed in non-public channels shall be treated confidently.
Shareholders will be notified in advance, if the operator may be unavailable longer than
approximately 72 hours.
Should BTC-TC become inaccessible or unusable by any means, the operator is going to use
bitcointalk.org to communicate with shareholders and may further try to reach out to
shareholders via e-mail.
8.8 Dissolution
In the event that the operator chooses to or is forced to close this security for any reason, the
following methods will be used for dissolution:
1. A new operator may be chosen by the operator to take over this security. Shareholders of
CIPHERMINE-PT are eligible to approve/disapprove the new operator by a motion.
2. Shareholders of CIPHERMINE-PT have the right to exchange CIPHERMINE-PT shares for
CIPHERMINE shares on LTC-GLOBAL. If applicable, this right is granted for at least four weeks.
3. All remaining underlying shares of CIPHERMINE will be sold on LTC-GLOBAL and the
proceeds will be distributed to the remaining CIPHERMINE-PT shares as a final dividend. This
option is to be considered as unfavorable and only applicable, if the other two options yield no
sufficient result and no other solution has been determined by a consensus of the operator and
shareholders.
DUE TO THE CLOSURE OF BTCT THIS CONTRACT IS PARTLY INACCURATE AND CM-PT SHARES ARE DIRECT SHARES NOW.
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