Topic: [GLBSE] BDK -- LIQUIDATING UNDER NEGATIVE EQUITY PROVISION -- - page 8. (Read 21269 times)

MAY 21 UPDATE
Dividend/share paid: .002496BTC/share
Total dividend paid: 12.48BTC
Running total dividends paid in May: 35.45101BTC

May 2012 Net Income Expectations
Optimistic estimate: 840BTC
Reasonable estimate: 820BTC
Pessimistic estimate: 800BTC
(Guesstimated weekly dividend payouts -- May 7th: .0021BTC/share Actual: .0021331436BTC/share -- May 14th: .0028BTC/share Actual: .00246BTC/share-- May 21st: .0027BTC/share Actual: .002496BTC/share-- May 28th: .000135BTC/share)

Spreadsheet has been updated to show loans by due date. They mess up when I try to auto-sort now and since a lot of them have USD->BTC conversions going of the latest price I have in the sheet, they get very screwy, so I have to do it all by hand, now, which really isn't that much work -- but anyway, it's fixed now.

ETA: IBB & BTC100 donations will henceforth be counted as "personal expenditure."

Dividends will go out in ~1h. Some small trades executed while I slept and I haven't reconciled fees from GLBSE's .csv with Google Docs sheet in a few days.

I'll be paying dividends in ~6h. ETA: Sorry for being a jerk -- I'll be paying dividends when I wake up tomorrow (going to sleep right now). Dividends will be a bit lower than expected -- ~.00249/share instead of .0027/share due to the huge influx of new deposits which will benefit dividends longer-term. I pay BDK.BND dividends before BDK dividends.

Additionally, fwiw, I plan on awarding myself a salary starting in July. While the earnings from "my shares" are currently almost entirely reinvested in BDK, I plan to award myself a salary of 40% of non-public earnings (fwiw, that's currently 95.5% of BDK earnings). For instance, this month, I'd be paid ~$1600. I think that's an amount shareholders will find quite reasonable while allowing me to buy tampons, diapers, ramen, and other luxury items demanded of a cyber-lender. These will be counted as "personal expenditure" and not affect shareholder dividends except to reduce company growth.


Cheers,

Ben

This sure is interesting times:)
Would love for 100 shares at 0.20 as my debut with GLBSE if anyone is up for that?

Being out of Pirate was a contingency of the 2k BDK.BND buy, and I've been turned down for CDs before for being exposed to Pirate. I believe I'll be able to consistently get more money at relatively low rates by having no exposure. The money investing in pre-IPO GLBSE securities has been far better than I expected, too.

That said, it's worth noting ~507.6 of ~807.6 of profits this month came from Pirate interest. I don't think I'll have trouble earning 6-15% monthly on the funds which were in Pirate, and the additional 2k BTC from being out of Pirate should bring profits pretty close to what they were, without worry of BDK one day losing 3k BTC on an extremely high-interest gamble. I had 3k in Pirate earning 28%. That'd be 840BTC/month revenues. Let's assume I can get 10% consistently, and I have the extra 2k from being out of Pirate. 1% of 2k paid weekly = a bit over 80BTC in interest on the bond per month. 10% of 5k = 500. So, I should get ~420BTC instead of 2x that keeping it all in an uninsured Pirate account, and I'll never have to answer "Why would you risk >3k of BDK's money with someone who's never presented ID, who you've never met, who won't even tell you where he lives, and refuses to disclose what he's doing while taking in tens of thousands of BTC each month?"

I still think it's very possible Pirate's doing something which could bring in what he's claiming, but I'd never loan to someone just because it's plausible they could pay back what they promise.

In total, BDK is extremely close to reaching the milestone of 10k BTC in assets. I think we can beat this month's profits in July (I don't have high expectations for June, and this month has been unprecedented as far as the profit margin [>15% %RoE this month, and we're just a bit over halfway through]), and it should only be up from there.

Pleased to announce I've successfully withdrawn all funds from Pirate today. BDK now has no exposure at all to Pirate. I don't even lend to 100% insured pass-throughs. 

It seems the issue with Cutesy Puff 1&2 are resolved, and I've updated the OP to provide more information in a hopefully-more-coherent way. I'll get around to clearing it up even more in the next couple days. If anyone still has questions, please ask.

I'm also considering offering bonds which, over-simplified, pay face value + a partial % of BDK's %RoE. This should allow people to invest in BDK bonds which are "usually" higher than 1% but also insulates BDK from risk of over-paying. This would be kind of a hybrid between BDK & BDK.BND... likely lower return than BDK, likely higher return than BDK.BND, but higher risk than BDK.BND, with the spread between true %RoE and partial %RoE paid to bondholders used to boost BDK profits. However, they'd have a clear face value I'd try to maintain with walls on both sides, which I don't do at all with BDK (though I do with BDK.BND to provide a marginal amount of liquidity). Dunno, still thinking of how exactly to work it out.

This situation might be resolved now. They no longer pass through a USB hub. If they both still go down around the same time, my second guess is that it may be a networking issue. My connection goes through three different routers and hiccups once a day or so.


ETA: Ozco.in image is delayed by ~10m, I believe, so just give it a few minutes to update if you're really interested. BDK.BND also received a 2000BTC buy this morning. BDK.BND now pays ~105BTC/month for 2630BTC, which is unprecedented and fantastic -- I'm really pleased. BDK has recently greatly increased its position in Cognitive, and I'm glad to be a part of it. I should be able to point to a Hermes announcement within a couple weeks. All the proceeds of the Pirate withdrawal will be going toward that project, and BDK is also investing in another yet-to-be-announced project as well as YABMC bonds under market price. So - exciting stuff.

ETA2: I'll make another announcement when I have the funds from the Pirate withdrawal today.

There's a minor issue with the Icarus boards causing them to reset once every 2 days or so. I'm guessing it's related to the USB hub or cables. Simply disconnecting the hub from the PC and reconnecting it solves the problem. Will get it sorted out by end of tomorrow.

If any investors or potential investors (either in BDK or BDK.BND) have questions, comments, whatever - feel free to hit me up on Skype (Name: Ben Malec -- Skype Name: bdk_kluge -- add a note so I can recognize you as someone from here and not a rando commando). I also hang out in #bitcoin-assets. I'm almost always logged in, but not always on. Probably not snubbing you if it takes me a day to respond. 


For those interested in CDs and don't have interest in receiving bonds on GLBSE, feel free to PM me and we can work something out. I was hoping to do everything on GLBSE, but liquidity on BDK.BND is terrible right now and completely understand if someone'd rather do CDs. As well, I'm willing to convert BDK.BND to a CD if you'd like.

Cheers!

Last Valuation on 5/3 -- today is 5/17

GLBSE Securities Re-valuation (reconciliation between BDK sheets & GLBSE):
TyGrr: BDK - 2.08BTC/share, GLBSE - 1.9BTC/share -- total loss of 44.46BTC on paper
Cognitive: BDK - .58BTC/share, GLBSE - .59001BTC/share -- total gain of 14.28BTC on paper
Gigamining: BDK - 1.509BTC/share, GLBSE - 1.519BTC/share -- total gain of 8.47BTC on paper
BitcoinTorrentz: BDK - .931BTC/share, GLBSE - 1.19BTC/share -- total gain of 1.04BTC on paper

Total equity FMV change since last valuation -- loss of 20.67BTC

... Well.  ... 

Anyway -- good idea. I'll check into it and make changes within a couple hours. Thanks.

ETA: Changed "wife" to "executor of estate." However, only my wife has the password to the instructions. I really don't trust anyone else with it right now, but things change.

Kudos on thinking that far ahead Kluge, you are waaay ahead of most glbse issuers.

I have a suggestion: instead of referring solely to your wife, why not say your "agent" or "executor of your estate" and then outside of the contract you can say that for now that person is your wife.  One day it may be a business associate or lawyer.  But this way you can avoid having to modify the contract and wait another 60 days when you want to change the person who will be responsible.  I think my wife would be pretty upset about my death, probably not thinking about paying out my bitcoin peeps right away.

IANAL, but have have paid more than I can remember right now.  You might want to think about having a will and a durable power of attorney for this purpose.  Those two things can be done cheaply.  If you need a trust (or trusts) then it can start to get expensive.

Maybe glbse should have default terms for when an issuer dies or goes awol.  I hate to say it, but it's bound to happen eventually.

My wife now has instructions on how to do a forced recall in the event of my death or incapacity. I will put together a plan in the event of the both of us dying within a few months as I decide who to trust with it.


In 60 days, the contract will be revised to read:

Contract:
Ben Malec (referred to within this contract as "me," "myself," "I," and "operator") will issue 100,000 shares of "BDK Hybrid Instrument." Each share not controlled by the operator represents .0009% of BDK's monthly profit.  Dividends will be paid every Monday, starting May 7th, 2012. Dividends will not be paid on the first of the month unless that happens to be on a Monday. 100,000 shares will be issued. Up to 5,000 shares are to be sold on the second day of each month for four months, starting on the month of May, 2012. After that time, shares may be issued at will of the operator.

Additional provisions
"Operator Equity" - The operator holds all equity of BDK. Shares are not tied to equity, and represent only .0009% of BDK monthly profits.

"Shareholder Votes, Non-binding Motions" - While motions may be introduced, they are non-binding. They exist only so the operator may gauge opinion of those invested in BDK's success.

"Change of Contract" - The operator is fully permitted to change the contract at will, without consent of shareholders. However, the modified contract is not permitted to go into effect until sixty days after the changes are made public. When the contract is changed, the operator will honor the ability for shareholders to sell shares back to him at a price of .125 Bitcoins per share between the time a change is made and the time 60 days have elapsed since the change was made public.

"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)

"Share Value Protection" - If shares trade for less than ฿.01 on GLBSE for at least 168 hours continuously, the operator MUST issue a bid order of ฿.05 in an amount which equals 50% of shares issued not controlled by the operator. The "168-hour timer" does not again reset for 26 weeks after the "Share Value Protection" provision was last called to action.

"Negative Equity and Operator Liability" - BDK is permitted to operate while having negative equity so long as BDK has not had negative equity for 90 consecutive days. On the 90th day of having negative equity, the operator will be held personally liable to pay shareholders $.10/share (or ฿.02/share, whichever value is lesser).

"Operator Incapacity" - In an event where the operator of BDK is incapacitated due to death, kidnapping, imprisonment, or something else along those lines (arbiter & lawyers can hash it out over what's "along those lines"), the executor of the operator's estate is to initiate a buyback as instructed in the "Buyback" provision. If this is not done within 90 days of the operator's incapacitance, shareholders are entitled to sue the executor of the operator's estate for the amount they're due under the "Buyback" provision. In case where James McCarthy ("Nefario") is presented a death certificate by the executor of the operator's estate and she is able to provide login details for the operator's GLBSE account, James McCarthy is authorized to instruct the executor of the operator's estate on how to proceed with disbursement of due funds. It is also authorized that James McCarthey receive the amount due by the operator and disburse the funds himself according to this provision. Shareholders should be permitted to see the death certificate of the operator.

"IPO Value Preservation, Operator Trading" - The operator is not permitted to ever sell shares for less than he previously sold them for. However, he may sell shares for an amount equal to or greater than the amount he previously sold them for at will.

Sent, thank you!

About to PM you, urgently had to go somewhere for an hour, and when I come back, all gone.

Well, if anyone's interested in a quick turnaround, I'd buy 100 @ 0.18 BTC each.

Fantastic. All pre-IPO shares have been sold. On June 2nd, then, I'll be fulfilling the top 1k bids (1k of 5k shares each month are reserved for the public offering date) on GLBSE above .18BTC/share.


Cheers,

Ben

Over half of the BDK shares for June 2nd were reserved or pre-paid for today, leaving 1.7k shares remaining which I will be selling at the higher price of .175BTC/share. As well, for the reserved 1k (+ any pre-IPO shares not sold) shares for IPO date, I will only be fulfilling orders @ or > .18BTC/share.

ETA: fwiw, I'm guesstimating I'll be asking between .225BTC/share and .275BTC/share for the later July 2nd public offering.

ETA2: Down to 700 shares left

This certainly isn't the first time I've received a PM asking me what I've been going on about. I hope this is a little more easy-to-understand than the info in the OP.

Hi there. Sorry you couldn't get this information easily from the thread -- I've been thinking of ways to organize all the information, but I'm terrible at it. Seems really simple in my head, then seems excessively complicated when I write it down.

Anyway - the pre-IPO price is .16BTC/share, and that is fixed. When I do the public offering on June 2nd, what I'm really doing is filling all bid orders on GLBSE at or above .16BTC/share - up to 5k shares (rather, 5,000 minus #pre-IPO shares sold). The first dividend for buyers for the set of shares to be released on June 2nd would be June 4th, and every Monday thereafter. Shares may be pre-purchased prior to June 2nd, but those shares will not be transferred to the purchaser until June 2nd.

That may seem like a raw deal for those who pay up-front for June 2nd shares. However, they're guaranteed to get BDK shares @ that price. For the shares issued on May 2nd, I only had 1,000 shares to sell. Even though the IPO price was set @ .055BTC/share, because people bid high to be able to get those limited 1,000 shares, nobody who bid less than 0.07750001BTC/share for BDK shares was able to buy any. The majority of orders filled on May 2nd were @ .08BTC/share. So, if there's a bidding war like there was on May 2nd (and fwiw, there are already 7 unique bid orders on GLBSE ranging from .18BTC/share to .19BTC/share), then you may end up receiving a very significant discount -- or maybe not. That's the risk for you to choose whether or not to take.


Hope that helps. Tell me if there's still anything I can help clarify.

Cheers,

Ben


ETA: pt. 2

MAY 14 UPDATE
Dividend/share paid: .00246BTC/share
Total dividend paid: 12.3BTC
Running total dividends paid in May: 22.97101BTC

May 2012 Net Income Expectations
Optimistic estimate: 840BTC
Reasonable estimate: 800BTC
Pessimistic estimate: 775BTC
(Guesstimated weekly dividend payouts -- May 7th: .0021BTC/share Actual: .0021331436BTC/share -- May 14th: .0028BTC/share Actual: .00246BTC/share-- May 21st: .0027BTC/share -- May 28th: .000135BTC/share)

I'll re-check the #s for the next two weeks to make sure they're still fairly accurate and give an update within a few days. ETA: Done. These numbers were updated on 5/14 and I believe they will be +-15% of actual dividend paid. The total monthly profit I'm expecting is 815-840BTC (excluding ~15BTC to cover donation pledges), but assume I'm over-confident, so lower the numbers in the estimates.

Cheers!

ETA2: Minimum order (#shares, not #BTC) for June 2nd pre-IPO shares revised to 100. The June IPO price is .16BTC/share. I have no intention of lowering it. I am quite content not selling BDK IPO shares if not at a price I like. I'm pleased with fund-raising from BDK.BND.

Cutesy-Puff 1&2 on Ozcoin if anyone was interested. As noted before, all mining income from them is counted as profit without deducting electricity costs. In exchange, I don't list the 5850 in a different pool I'm about breaking even on.

~450BTC (in the form of PPUSD investment in an equity from personal funds) was added to the ownership equity today. I am not at liberty to discuss the actual project it was invested in (expect something within three weeks). However, I will be using ~4k BTC in total of BDK funds to make this investment, and wanted everyone to know that I am firmly committed to and expectant of great success with this project, backed up by an >$2k USD "personal" investment in the project. I make this statement because it will likely 2-6 months before BDK can record profit on this move. - And with that said, I'm expecting a record recording. So, short-term (next couple weeks) will show excellent profits, mid-term (3-16 weeks) will show relatively healthy (but not "extreme") profits, long-term (16-32 weeks) should show pretty darn extreme profits.

Fwiw. Cheers!