This is quite literally hosted-mining 2.0
Why do people think they can value their company at multi million dollar levels when they have absolutely nothing?
They aren't valuing their company at "multi million dollar levels" any more than a bucket would be valued at $10,000 if you were to place $10,000 in it.
They are simply collecting money to purchase mining equipment with which they will reinvest funds.
If you were to place $10,000 on a bucket, you would be valuing that bucket at $10,000 - and nobody would buy it because nobody else thinks the bucket is worth 10 grand.
Similarly, Cryptx has valued Peta-Hash at over 8 million dollars when it currently has absolutely nothing - and nobody is buying into it because nobody thinks that Cryptx is worth 8 million.
This is a simple group buy where people with money pay someone else to buy equipment, maintain it and distribute profits so they don't have to. That's it.
I personally don't want to have to maintain hardware at my house, nor do I have access to cheap power (.17 usd/kwh here). This is an easy way to throw money at mining and let someone else do all of the work. Mining is just a small % of my overall bitcoin portfolio (maybe 10%) so this was a no hassle way to go.
It appears that I am in the minority as not very many shares are being sold, and that is ok. I'll take my btc and invest in a different security.. or maybe I'll invest in some Cointerra hardware myself... No harm no foul. But I would rather this IPO hit 30k shares so I can have my little piece of the pie without having to host the equipment.
Lets do some calculation and see if you revise your sentiment -
Assuming 25% Difficulty increases (lower than the last few and the next projected increase - all around 30), by mid December 1 MH/s will be able to mine less effectively by a factor of 9.31322574615478515625, essentially 1 MH/s now would be the same as 9.31 MH/s in mid December.
Take DMS.Mining at .0032 btc/share
DMS.Mining = 5 MH/s
1612.90 MH/Btc Current
This is the equivalent of 15016.099 MH/Btc in mid December
Take PETA-hash at .68 btc/share
PETA-hash = 10000MH/s
In mid December, this would equate to 14705.88 MH/Btc
As you can see even at this point, PETA-hash is less profitable than a Perpetual Mining Bond. This does not even take into account how you can purchase DMS.Mining right away and begin receiving dividends nor does it take into account the possibility of reinvesting the dividends into the much lower price of DMS.Mining as time goes on.
So Peta-hash is worse than a PMB that I think even now is overvalued.
Edit: As Dhenson points out below, the math above is slightly incorrect by the tune of 5% because I used .68 in error when I should have used .65 - it should be noted that PETA-Hash is still unprofitable given these numbers and moderate estimates of difficulty growth
