[CLOSED][Hosted-Mining] Overview & Speculation Thread - page 2.

KCBitcoin

full member

Activity: 224

Merit: 100

Quote from: TMAN on August 26, 2013, 02:47:12 PM

Is 0.37 Btc/GH your physical cost? Are contracts available for investors to see?

You say you are CFO what experience do you have dealing with $1m plus of other people's money?

0.37btc/GH is calculated based on the current bitcoin price @ Bitstamp.
The deal is priced in USD, therefore, if the prices rises, this figure goes down, and vise versa.

Regarding the disclosure of the contracts, they currently are under NDA.

However, one way to verify the existence of the contract is for you guys to come up with someone you trust.
Let him/her sign the NDA, and we will send him the contract.
At last, he/she can come here and verify that the contract does exist.

One potential candidate for this can be John. K.

TMAN

legendary

Activity: 1414

Merit: 1808

Exchange Bitcoin quickly-https://blockchain.com.do

Is 0.37 Btc/GH your physical cost? Are contracts available for investors to see?

You say you are CFO what experience do you have dealing with $1m plus of other people's money?

redbeans2012

hero member

Activity: 887

Merit: 1000

I'm in, waiting for others to join the show. Undecided

KCBitcoin

full member

Activity: 224

Merit: 100

UPDATE: 8.29 02:18 EST

Trading is closed and the buyback is complete.

Thank you everyone for your support. We are sorry we were not able to make this happen.

HOSTED-MINING

*Background Information:
Alydian is offering 10TH/s selling and hosting service available on 8/29/2013: Alydian Targets Big Ticket Miners with Terahash Hosting

*Who is Alydian? Why do we trust them?
Alydian is a portfolio company of Coinlab, which is operated by Peter Vessenes who is the Chairman of Bitcoin Foundation.
Bitcoin Foundation is a organization that is committed to protect and promote Bitcoin. Their board members involves the CEO of Mt. Gox, Mark Karpeles, CEO of BitInstant, Charlie Shrem, and etc.

*Who are you? What is Hosted-Mining?
Hosted-Mining is a revenue sharing company listed on BTCT.co.
We help you get your share of hashpower without the worry of pre-buys, maintenance, or energy cost.
We are also committed to bring you immediately available large group buy offers to avoid a long wait time on mining equipment and give you a cheaper-than-market price/GH.
More information about our company can be found on http://hostedmining.com.

*Why buy the hashpower through Hosted-Mining? Not directly from Alydian's website?
Cheap. We have negotiated a contract with Alydian/Coinlab that offers a price a lot lower than their launching price on their website.

According to the contract, with the current Bitcoin price @ BitStamp, which is the exchange we are following, the number of coins needed is around 3,700-3,800 Bitcoins for the whole 10TH hashpower. (Figures will be available in a spreadsheet to public once the contract is signed.)

This means we can get the deal @ around 0.37btc/GH, which could be further negotiable once fully funded.

If the current price trend of Bitcoin persists, which should be expected as the difficulty skyrockets, by the time we get fully funded, we are expecting an even better price @ 0.30-0.35btc/GH for 10TH available immediately.

*Why? 0.30btc/GH is still too high, comparing to $17.5/GH from KnC or $7.8/GH from BFL.
As we can see, there has been another 30% difficulty increase for Bitcoin mining this Saturday.
i.e. You now mine 30% less coins with your rigs comparing to Friday.

For those of you who might not be following the difficulty of mining, the difficulty doubles at a rate of every 30-35 days(Source).
i.e. you can only mine half of the coins you can mine now at the end of September or 1/4 at the end of October.

A rough calculation can be the following,
If we discount the price of $17.5/GH from KnC delivering end of October back to 8/29/2013, it will be @17.5*2*2=$70/GH. i.e. 0.62btc/GH.
If we discount the price of $7.8/GH from BFL delivering end of December back to 8/29/2013, it will be @7.8*2*2*2*2=$124.8/GH. i.e. 1.13btc/GH.

A detailed return on investment calculation can be found here: https://docs.google.com/spreadsheet/ccc?key=0AgREYO5JZYrQdGxhenBBaGdEcl9vS3dha0RUYmprZHc&usp=sharing

*Note that we did not include any electric cost calculation in the spreadsheet, because it is already included in the price.
i.e. the initial investment is for the ownership of the rigs plus the fees for one-year hosting and energy cost.

*How much is your share?
Our share is priced at 0.0028btc/share.

*How do we buy your shares?
Our shares are listed on BTCT.
You can go to BTCT.co and buy our shares using your Bitcoins directly.

*But what happens if you cannot collect enough money for the group buy by 29th?
1. If the deal does not happen by August 29th, and the contract has not sold.
-We will ahead and negotiate for a lower price from the vendor according to our ROI spreadsheet. We will also do a motion on whether to keep gathering coins for the deal @ the new price or refund all coins to our investors.

2. If the deal does not happen by August 29th, and the vendor has sold the contract to someone else.
-We will do a motion on whether to keep looking for further in-hand group-buy deal, e.g. BTCGarden or refund all coins to our investors.

*You are selling 2,000,000 shares, which is equivalent to 5,600btc. What happens to the extra coins collected?
Yes, we only need around 1,350,000 shares to be sold to complete the purchase as of the current Bitcoin price.
One major reason to have 2,000,000 shares listed for sell is to hedge the risk of sudden Bitcoin price drop.
However, once the purchase is completed, we will raise a motion on whether to give the extra coins as dividend through first-week dividend payout or keep them as growth fund to bid for future group-buy deals.

*Any future plan after this purchase is done?
Yes. We are planning to become our own supplier with a 28nm or smaller design developed in collaboration with http://www.brioconcept.com/. We will be doing bulk mining, instead of physically shipping to customers, so that you get your revenue share without the hassle of monitoring, heat issues or technical issues.

*Thank you. But who are you, KCBitcoin?
I am the CFO of Hosted-Mining and posting this thread on behave of our CEO, zif33r.
I will be maintaining this thread and answering any question you might have.

Cheers,
Hosted-Mining

Topic: [CLOSED][Hosted-Mining] Overview & Speculation Thread - page 2. (Read 2496 times)