Topic: Butterfly Labs Announces Bulk Chip Sales - page 11. (Read 15801 times)

Dude ASICs cost between $0.5 - $2 each to manufacture dependant on volume of chips and intricacy of mask layers.

WTF!

what a piece of shit person/company

how are you going to announce chip sales when you havent even delivered 1% of your ridiculous 6,000+ order queue 8 MONTHS AFTER TAKING PEOPLES MONEY!

BFL is the the biggest disgrace to bitcoin, they are taking the entire mining community for a bunch of fools, and frankly dont give a flying fuck about the bitcoin community or the network. TRUE AMERICAN SLIME

This really feels like a sinking ship.


...and more wild speculation. If anyone truly believes they would have the ships in their hand after 100 days then they are delusional. BFL are just trying to buy their time - and they are failing miserably. If BFL were a person, they would be a manic depressive crack-head.

Forget how little they are making on the Jalapenos.
At $50 per chip (if that's correct) the 1.5 TH/sec mini rig will cost them $26,000 in chips alone to manufacture!

I took the number from this post: https://bitcointalksearch.org/topic/m.2344464
Im not sure if the numbers are correct or not.

This is the irony of it all.  The grass isn't always greener elsewhere.  There is power in numbers.  With hundreds/thousands of pissed off customers, BFL was forced to actually DO something (however bad they are at it).  Divide all that business among 100 or so fly-by-night operations that have little to no experience in mining and assembling hardware, and the opportunity is ripe for scamming.  A company with only 100 customers as opposed to 60,000 has far less to fear in the way of legal challenges.  I think people are going to be disappointed in these chip sales, both on the BFL and Avalon side.  Not everyone, but enough to make the scams go wild.  

It makes you wonder what is wrong with the general design that it needs that many revisions. Lets hope they will provide technical support for those that take the reins in the future.

It's a pretty sad state of affairs when I am considering converting my orders to chips because I trust yet unnamed DIY builders to deliver working miners before a multi million dollar company that has had 12 months to get a product out.

 

I'm selling the blades.

You are wise beyond all men!

BFL is always behind Yifu!

So one chip has 180MH/s. 14 engines per chip means $89/chip. $89000 per 10k. -10% means $80100 for 10k chips. Avalon charges 782.1BTC * $128 = $100109. Doesnt sound bad. But avalons chips have 282MH/s standard. So the GH costs $3.55 for avalon and $4.45 for BFL. The half power usage doesnt mean much at the current time. And isnt it still open if that is true at the end?

Then 100 days mean 14,28 weeks. Avalon claims to need 9-10 weeks only.

So im not sure if BFL will make a fortune with this... but... when i think about it... i believe most BFL customers will happily get their chips instead nothing. At least they know the chips are working. Even when this means they have to wait some time to have a working miner... its still more reliable to wait for someone in the community to build a miner.

Maybe some people will prefer to buy BFL chips too instead having to trust a groupbuy. Its a good move to lower the minimum amount of chips needed to order.

Something wrong with my calculations?

Yes, the upgrade was just chip binning and some firmware to run them at a different clock speed. The $100 is so they stay afloat while processing the pre-orders.

One can look up how much a square MM costs in an MPW production run. It ballparks them around $40-60 a chip which fits with their announced prices.
It also explains why so much time was spent tinkering with the chip & boards trying to get 5GH/s out of just 1 chip. They couldn't just slap in 2 chips per jalapeno and ship them without wrecking their margins @ $179. Since they promised 5GH/s, they would get lynched if they tried to deliver only 3GH/s for $179.

2 weeks?! ASIC chips cost under $2 each to manufacture. It's FPGAs that are expensive. The point in ASICs is they have high non reoccurring engineering costs which BFL should have covered ages back, but keep finding new ways to spend and delay.

Overheads must be expensive, but they will not be running out of cash this way, even if they just convert the current orders.

Is this what Yifu' saying at this exact moment?; "WTF dude?! just sell the chips and **** the mining units".

Bingo,

It also lowers the bar with respect to complexity in the delivery of orders. If it's only chips...they can manage that much right?

That is one way of resolving the issue.

Blows on his BS decoder ring.

The following is imaginary and simply wild speculation without a basis...allegedly

A) Oh shit, we have a shit ton of orders and little or no funding to pay for new wafers!
A1) I know, let just pass the cost of new wafers to our customers!
A2) I know, lets pitch the idea Avalon is doing to our boss. Surely he would love to see us sell 2$ chips for 97$!


B) Oh shit, we might not be able to complete our huge order backlog!
B1) I know, let get this monkey off our backs and shift the blame of bad boards to open source vendors. We will sell our yet to be made chips with an extra 50% downpayment for quick liquidity! That way we can clear our backlog of orders and prevent our asses from getting thrown into court.
B2) I know, lets lull people into thinking they can just make our boards for us. In this way we will only be responsible to order chips from the fab and the packaging people....and the rest will work itself out! We can't possibly screw this up....We are probably going to collapse soon, so we might as well open source our design. We are knee deep in commitments/liability we won't be able to fulfill anytime soon. Don't let them see the panic in our eyes?!

60 days to fulfill 2 days worth of orders.

How many days between june 23, 2012 and December 31, 2012? Alot. How many from Jan 1, 2013 till today? Can anyone say, entering PANIC mode?

So sometime in 2020? Right? I hope!

Yet another gimmick to buy themselves 2 weeks more of life with preorder money.  House of cards is collapsing faster than I thought.

Amazing how this is released at 5PM on a Saturday.

Of all the things that needs to be done at BFL, they've opt to sell chips they don't have. The same chips that................  FUCK IT!!!

This is so fucked up on so many levels, I don't even know where to begin.

Honest Abe must be rolling over in his grave, while PT Barnum is asking himself, "Why didn't I think of that?" The out-of-order sign in now firmly in place over the see-the-egress sign.

100+ days lead time and $90 chips makes it a shitty proposition though. I doubt at those prices you can even find ROI on miners you would DIY build in Sept.

I think you are prob a little bit off here. With BFL offering the $100 upgrade from 5-7 gh/s for Jalapeño I am assuming that what that 'upgrade' consists of is that they use Class A chips instead of class C/D. This gives them a little better margins if they can use 13-15 engine binned chips for the 5 gh/s jalapeños.

Still not impressive margins, OR of course they may have MASSIVE margins on the bulk chip sales. Hard to know.