Topic: [GLBSE] BDK -- LIQUIDATING UNDER NEGATIVE EQUITY PROVISION -- - page 10. (Read 21174 times)

The upward jump of buyback price is impressive. Can't help estimating how much the trading price will rise to after some saturation.

I'm changing the buyback provision to account for how dynamic this asset will be. As it was, I believe it was unfair to shareholders. I believe this is a dramatically more generous offer. There is still a static amount of BTC factored into the buyback provision, which increases incentive for me to push BDK share value as high as it's able. Because I don't imagine any shareholders complaining, I have no intention to honor the requirement the contract not become effective for 60 days after I make the change -- this change is effective right now.

Before:
"Buyback" - At any time, the operator is permitted to buy back shares issued. The operator will pay .07 Bitcoins per share if the operator buys back BDK shares prior to August 3rd, 2012. If August 3rd, 2012 or later, the operator will pay ((.05 Bitcoins + GLBSE 5 day weighted average of trade transaction amount per share of BDK shares)/2)

Now, after change:
"Buyback" - At any time, the operator is permitted to buy back shares issued. The operator will pay .64 Bitcoins per share if the operator buys back BDK shares prior to August 3rd, 2012. If August 3rd, 2012 or later, the operator will pay ((.32 Bitcoins + GLBSE 5 day weighted average of trade transaction amount per share of BDK shares)/2)




Cheers!

[16:45] <`MBot> [ GLBSE ] [ TICKER ] [ BDK ] [ BID: 0.075 ] [ ASK: 0.09998999 ] [ SPREAD : 0.02498999 ] [ LAST TRADE: [email protected] ] [ VOLUME : 111.59 BTC ]

Four days left.

Ah, missed that, thank you.

More info can be found at https://bitcointalksearch.org/topic/m.873084
//DeaDTerra

You've certainly piqued my curiosity.

Sorry for the delay in the IPO release thread as well as the service announcement, they should both be posted soon
//DeaDTerra

Hmm? No thread on the forums and their website is only partially functional.

BDK has purchased 750 future shares of ZipConf for 300BTC (.4BTC/share). More on that when it's launched Monday.

[14:31] <`MBot> [ GLBSE ] [ TICKER ] [ BDK ] [ BID: 0.072 ] [ ASK: 0.10499999 ] [ SPREAD : 0.03299999 ] [ LAST TRADE: [email protected] ] [ VOLUME : 106.785 BTC ]


Will post the !ticker every day until the IPO to justify bumping this thread. I swear I'll stop spamming after May 2nd.

ETA: Wait -- I have something relevant to say! A motion has been created to simplify how BDK donates to IBB & BTC100. Instead of 3% for IBB, 2% for BTC100, but only counting monthly loan interest, I would like to now pay 1% of all profits (previously wasn't possible because I didn't include equity profits/losses in I/O reports) to each. Motion expires in ~24h. As always, it's nonbinding, and only done to spark discussion on what I'm proposing in case there's some critical flaw in my plan which I somehow missed.

Idunno... 5pm US Eastern.

Less than a week to go until 1k IPO shares are sold. My final decision on IPO shares is to go even more conservatively and not slate any public offering dates in the future, but simply to sell when I feel the price is high enough to justify it. I think this will allow me to distribute dividends enough where people are better-aware of what the value of these shares are. Already, I think there will be enough of a market where share-holders are comfortable with the trading volume (keeping in mind all share sales are still pre-IPO shares released in the last few days). I will alert everyone to sales after the trade has gone through. There will still be 1k shares sold on May 2nd. After that, no more are set to occur at any particular time, and they will not occur at any particular price, except at a price higher than previously sold.

[09:12] <`MBot> [ GLBSE ] [ TICKER ] [ BDK ] [ BID: 0.066 ] [ ASK: 0.067 ] [ SPREAD : 0.001 ] [ LAST TRADE: [email protected] ] [ VOLUME : 87.357 BTC ]



The essence of how early adopters are rewarded is as follows: Assume BDK currently has 3k of equity and I make 10% profit on equity, so the monthly profit expectation would be 300BTC. Let's say I sell 4.5% of profits @ 250BTC. Now, BDK has 3.25k of equity, and the monthly profit expectation would be 325BTC. June 1st rolls around and the dividends on 4.5% of profits (assuming 10% of BDK equity is profit) is 13.5BTC. Let's say I then sell another 4.5% of BDK's monthly profits (5k shares), this time for 500BTC. These people will pay more because BDK is now effectively worth more -- maybe not 2x as much as the first shareholders paid, but certainly more. Now, previous shareholders who bought 4.5% of profits for 250BTC still hold 4.5% of BDK's monthly profits - that percentage doesn't get diluted by future public offerings - but BDK equity has increased to 3.75k (more if you include growth due to dividends on shares I haven't sold and didn't use for personal expenditure), resulting in 375BTC of monthly profits. Now, 4.5% of monthly profits is 16.875BTC. Keep going and going, and you can imagine how incredibly high shareholder dividends can be. This has been over-simplified for the sake of explanation, but I hope it gives potential shareholders a better understanding of how this is intended to work if I don't screw it up.

I would be glad to hear your insights Patrick.

I would like to take a moment to point out  (to everyone's delight, no doubt) that I provided some advice to Kluge on different classes of shares and alternative rights that might attach to those classes (I am a qualified professional in this area).  I have been structuring businesses for much longer than bitcoin has been in existence, and non-voting shares and stock exchange issues have been around for more than 100 years (too lazy to actually look up when it started).  MOPE and MPEx have nothing to do with it.

I'll push out what I think the market will take. The last thing I want is a public offering where an ask order just sits around on GLBSE. I'm currently leaning toward (and given the first IPO hasn't even occurred, this is pretty meaningless) .1BTC/share next month. If the market thinks I've undervalued the shares, they can bid higher for them prior to the shares being sold. Eliminating pre-IPO shares gives "the market" a much more powerful megaphone, and investors more power in determining what they think the shares should be valued at compared to a number I whip out just because it'd be an amount where I break even with regards to how much I'll receive in income monthly. While personally making a profit through these public offerings is a goal I have no interest in not achieving, I don't think it'd be nearly as cool as controlling where >40k BTC goes.

Right now, the "business loan" group I arranged only guarantees each lender brings 200BTC to the table. They can have more cash-on-hand they're willing to invest, but requiring they have more than 200BTC becomes exclusionary and counter-productive at this time. The amount presented for "business-grade" loans is probably fine for someone whose project only needs to hire a developer for a couple months, or start up some type of gambling website, and I think having an organization where we do larger non-consumer loans is a big step in the right direction - but for someone seeking to produce something physical or complicated, it will barely even make a dent in purchasing specialized manufacturing equipment, or, say, hiring a few salaried CSR employees. With >$200k in equity, there are a lot of exciting opportunities I expect to be presented. Ultimately, there's no reason I need the money right now. As far as I'm aware, no producers currently need larger loans than a few hundred BTC -- nobody's applied for a for what I'm charitably calling a business-grade loan. It's consumer loans, loans (or investment) for bot-feeding, or mining, which are all investments which scale well if you invest just a tiny amount, or a very large amount. There aren't really any significant barriers to entry from capital requirements, except ASIC development and perhaps sophisticated trading bots.

Maybe there are no promising ideas in the Bitcoin community requiring funding. I don't believe that. I believe there isn't enough money available to them on reasonable terms to make their ideas viable (or at least, not viable to be done using BTC for funding), and I think pooling community resources (and lending/investment risks) will make BTC lending to businesses more practical, and create some truly outstanding products in the future.


ETA: Sorry, went a bit O/T in response. There's a finite % of profit which can be sold off. Once the 100k shares are sold, the only way it can grow beyond is with the 10% cut I'll have remaining or through initiating a buyback, then re-selling at a later time. It's a large commitment, and while I don't want to "give away" my income for it, what I want much more is unimpeded upward momentum. If I post 2k shares one month and they just sit there - per the "IPO value preservation" provision in the contract, that's pretty much it. If I issue more shares, they'll have to just sit there with the others. There is an extreme disincentive from the contract and nature of this offering against letting BDK shares stagnate. I may be taking losses of personal income toward the start, but being able to continue raising funds, IMO, is much more important. Because of the way the contract and offering is designed, I think there's an almost unreasonable lack of risk for investors, as BDK itself will only grow through these. Long-term, I believe the conservative, patience-demanding way the public offerings are implemented will provide BDK with dramatically more funds in the end versus trying to meet my own personal income goals.


ETA: motion created regarding the issue of selling 2k/month vs. 5k/month. 2 motions will be introduced ~ a week prior to future public offerings to help me determine what shareholders want me to price BDK shares at. One motion will be to issue at a conservative price. One motion will be to issue at a more aggressive price.

Decided to go about this much more conservatively. The sales of profits (until ~.32BTC/share) don't really help me boost my personal profits, and I don't need money to the extent where I'm willing to gather it at a loss of personal income. I think BDK can reach .32BTC/share much more quickly with an extremely conservative, slow release of shares. I now intend to release 2k shares on the second of each month (instead of 5k/month), and not sell shares pre-IPO. After the four scheduled public offerings (May 2nd, June 2nd, July 2nd, August 2nd), I'm thinking I will sell 2k shares every two months until 2013. At that point, 2k shares will be sold every three months. 2014, 2k shares every four months. Depending on how this works out, it's possible shareholders will not receive as much increase in dividends as they perhaps expected short-term and mid-term, but I believe this will dramatically reduce the possibility of stagnation, and long-term, will result in dramatically higher dividends/share than it would've if I proceeded as I outlined in the OP. Once the share price of BDK surpasses .32BTC/share, I will re-evaluate.

While they may be priced at .055 in theory, I suspect they'll sell for much higher at the IPO given the limited number of shares available for those who weren't able to put up 250 BTC in the pre-IPO.

(posted for the sake of disclosure -- these are not counted as gains or losses until time of sale, but changes the amount of assets BDK has -- I'll post this every week or two)

GLBSE Securities Re-valuation (reconciliation between BDK sheets & GLBSE):
TyGrr: BDK - 2BTC/share, GLBSE - 2BTC/share -- No Change
Cognitive: BDK - .69BTC/share, GLBSE - .63BTC/share -- total loss of 16.14BTC on paper
Gigamining: BDK - 1.5BTC/share, GLBSE - 1.55BTC/share -- total gain of .65BTC on paper


Total change in assets (on paper only) due to change in GLBSE asset valuation = -15.49



I also noticed someone paid .5BTC/share for 5 shares of BDK on GLBSE today. Just a quick reminder that IPO shares will sell for .055BTC.

I would like to take a moment to point out (to everyone's delight, no doubt) that since the MPOE and subsequent MPEx issues of nonvoting shares on large float everyone's doing nonvoting shares on large float (as opposed to the previously employed nonsensical if idealistic GBLSE method of voting shares, tiny float).

This is a good and welcome thing for a number of reasons that apparently either nobody felt equal to the task of discussing or nobody was too curious about.

We will obviously continue to lead the community by freely providing competence and insight into how securities markets actually work. Perhaps the greatest advantage of bitcoin for the "next door" demographic is that they get to interact directly with people they would not otherwise have met in a million years (gross estimate).

Resolved speedily thanks to Nef. Shareholders should now be able to sell their pre-IPO shares should they choose to do so.


Cheers,

Ben