Topic: [BTCT][BFMINES] - Mining Contracts Now Available - Bonus Divs First Months - page 11. (Read 26402 times)

It's still pending unlocking by burnside. I've pinged him so you'll find it in Locked instead.

.b

The first dividends comes out within a week of receiving and putting the miner to work. The contract with Metabank states no later than October, but the unofficial word is August 2013, so anywhere from six weeks (best case) to fifteen weeks (worst case) from now.

We all know ASIC hardware deliveries can be unpredictable, though, but Bitfury who is delivering the chips to Metabank is just a couple of weeks late for his target. 100TH, the other recipient of those chips, estimated a trial run for mining in late June, so somewhere in August is still feasible.

.b

Didn't find bfmines in the list of "awaiting approval" on BTCT.

When do you anticipate seeing the first dividend from the bond?

BTW, any way I can make this topic un-selfmoderated? I did it initially while I was adding the initial posts but can't find an option to remove it. I do not intend to moderate anyone.

Edit: I intend to moderate SOSLOVE who is an unstable individual who holds a personal grudge after I explained to him how assets like these worked and he freaked out.

Thanks, tradefortress. The pricing is intended to be competitive. I want to have a reasonably priced PMB and this should be around 30% lower than current PMBs trade. Add to that a rougly 15-20% bonus dividend the first six months and I hope to see some interest.

On a price/mhs, BFMines will be the lowest priced PMB on the market.

Pretty competitive price, but I still wouldn't invest at this price through.

Contract:
Overview
BFMines is a perpetual mining bond (PMB) backed by ASIC miners from Metabank. The bond pays a coupon/dividend equivalent to 1 megahashes per second (mh/s) of mining power.

Please read the following article to understand how perpetual mining bonds are:
http://coin.furuknap.net/understanding-mining-bonds/

In summary, however, please note the following:

• The term bond is somewhat misleading because the debt never matures and it does not have a face value as such. It may be better to think of this as a mining contract but the term perpetual mining bond is understood in the mining community as having this particular behavior.
• This is a perpetual mining bond, not a share in a company. You receive no voting rights and no other income than the stated coupon/dividend.
• The mining bond is perpetual, which means it will continue to generate coupon/dividend until terminated following one of the below conditions. There is no defined repayment date of the bond.
• The mining bond pays the equivalent of income from 1 mh/s. Any excess payments not explicitly stated in this contract is solely at the discretion of the operator and should not be expected.

A total of 100,000 bonds will be issued backed by no less than 120 GH/s of mining power. The excess mining power will be held in reserve to account for operational cost, hardware failure, or other problems. Revenue from the excess mining power will not be paid out to bond holders.

Each bond pays exactly 100% of 1mh/s of BTC mining power. All expenses related to the operation will be carried by the operator.

Operation and Buyback
The mine will operate perpetually and pay daily dividends, to be scheduled at or around the time of difficulty changes.

The term perpetual is unlikely for practical reasons, and as such, there exists provisions to close the bond for one of the following reasons:

• The operator becomes incapable of operating the bond over an extended period
• The overhead of operating the bond becomes greater than its profits
• Permanent and irreparable damage to hardware
• The operator must close the bond for other reasons

If the bond must close for any of the above reasons, the operator or a duly appointed representative, in case the operator is permanently unavailable, can buy back bonds at no less than 110% of the average trading price at BTCT over the previous 7 (seven) days.

Please note that this buy-back is a right of the operator, not a duty. Any buy-back is solely at the discretion of the operator.

In any case of permanent and irreparable damage to hardware, the operator will pursue any means available to replace hardware as quickly as possible at no cost to bond holders. However, if replacement hardware cannot be obtained at reasonable costs, the operator may choose to suspend operation and dividends and start liquidation of the bond as explained above.

Pre-Release Terms:
Please note that these terms apply only until the miner has been delivered. Upon delivery, these terms will be removed from the contract.

The bond is backed by miners that have yet to be released. The scheduled release is September 2013.

All funds received as part of the IPO process at BTC Trading Corporation (BTCT) will be held in escrow until said mining hardware is delivered and made operational (the release date). In case the mining hardware fails completely, all funds will be repaid fully at the listing price of 0.004BTC/bond.

No dividends will be paid until delivery. On the release date, the IPO funds will be released from escrow. Upon delivery, any excess capacity from the mining hardware will be used to pay bond holders additional dividends for six months. The additional dividends is intended to compensate bond holders for not receiving dividends until the mining hardware has been delivered.

Expansion of Bond
This bond will always be backed by real mining hardware or equivalent mining assets. In case of expansion of the bond, those bonds will be offered at a rate not lower than the lowest trading price at BTCT over the previous 30 days. Any expansion will be backed by mining hardware or mining assets.

Caveats
Please be aware of the following before investing:
A mining bond decreases in value as Bitcoin mining difficulty climbs. The biggest return on investment will happen early in the bonds existence and gradually decline as the Bitcoin mining climbs.

Perpetual mining bonds are not shares, they are effectively loans from you to the operator, to be rewarded in coupon/dividends based on mining power. The face value of a perpetual mining bond will under normal circumstances not be repaid so your sole income will be from the coupon/dividend paid daily.

Due to the buy-back clause of this contract, please be careful of paying too much for this bond, especially when there are sudden price spikes. The operator may choose to buy back bonds at 110% of trading price so if you pay more than this, you may theoretically lose anything you pay above that.

Pre-release only (will be removed once mining hardware is operational): This bond does not pay dividends until the release date. To compensate for this, the first months of operation will give approximately 20% higher coupons/dividends. In case the hardware fails completely, the bonds will be repaid for 0.004BTC per bond.

Asset operator details:

BFMines is operated by:
Bjørn Furuknap
Cariari, San Jose, Costa Rica
[email protected]

Bjørn Furuknap is a well-known author, SharePoint expert, and Bitcoin investor and commentator. He has previously run and operated several successful (and some unsuccessful) businesses across a wide range of disciplines. With over 20 books and journals published both in print and eBook formats, hundreds of articles in numerous online and offline publications, as well as a track record of provactive but accurate commentaries, Furuknap has gained a reputation for brutal honesty often in the face of popular opinion.

References and Web Presence:
Professional Services Website: http://furuknap.net/
Cyrptocoin blog: http://coin.furuknap.net/
SharePoint blog: http://blog.furuknap.net/
Assortment of books published: http://uspjournal.com/
Facebook Profile: http://facebook.com/furuknap
Twitter: http://twitter.com/furuknap

BFMines is a mining contract backed by ASIC hardware. The contracts pay a dividend equivalent to 1 megahash per second (mh/s) of mining power.

This is not a PMB. This is a real mining operation.

Asset URL: https://btct.co/security/BFMINES

Latest Updates:
Expected delivery of first hardware is September (i.e. before October).
July 15: Changes to Contract (http://bfmines.com/2013/07/15/update-to-contract/)
July 3, 2013: Trading is now open

The listing price of each contract is 0.004BTC.

Please review the following articles to understand the asset and the risks involved:

http://coin.furuknap.net/bfmines-bitcoin-mining-contracts-ready-for-listing-heres-how-you-should-evaluate-investing/
http://coin.furuknap.net/comparing-bitcoin-mining-contracts-and-mining-bonds/
http://coin.furuknap.net/why-bfmines-is-a-better-mining-investment-than-a-pmb/

In summary, however, please note the following:

• This is a mining contract, not a share in a company. You receive no voting rights and no income other than the stated dividend.
• The contras are perpetual, which means it will continue to generate dividend until terminated following one of the below conditions. There is no defined termination date of the contracts.
• The contracts pay the equivalent of income from 1 mh/s. Any excess payments not explicitly stated in this contract are solely at the discretion of the operator and should not be expected.
• BFMines pays a guaranteed minimum dividend equivalent to the income form a perpetual mining bond, but BFMines is not a PMB. BFMines has significant benefits compared to a PMB, including on average higher payouts.

A total of 100,000 contracts will be issued backed by no less than 120 GH/s of mining power. The excess mining power will be held in reserve to account for operational cost, hardware failure, or other problems. Revenue from the excess mining power will not be paid out to contract holders.

Each contract pays exactly 100% of 1mh/s of BTC mining power. All expenses related to the operation will be carried by the operator.