Topic: [GLBSE] BFLS - Bitcoin Mining & Sales - page 2. (Read 17925 times)

I assume Nefario / James McCarthy does not answer mail about this subject.

Isn't it about time to do something about this ?

Just sent him an email.

Nefario by e-mail
He reads e-mails. And answers sometimes. It seems he doesn't read this forum, so writing here is of no help.

Nothing... I'm not sure who to even try to contact at this point.

2 weeks past, still nothing from GLBSE ?

If you haven't already, you may want to visit GLBSE and put your name in to release the info for the asserts to me. 

If you don't do this, I'm not sure I will be able to verify the number of shares you are holding of BFLS and BFLS.RIG.  I am not recommending you do this, because who knows what they will do with that information, but I've done it and hopefully we'll get some sort of resolution soon.

Negative, I haven't received any GLBSE data as of yet, nor have I received any of the funds I had in GLBSE.

Did you receive the glbse data ?

I agree with RHA here. 'Shares' of BFLS and BFLS.RIG represent a share of physical hardware. The idea being that one could exchange a sufficient amount of BFLS or BFLS.RIG shares for an actual unit: 400 BFLS shares for a Single, or 6058 BLFS.RIG shares for a MiniRig.

Fundamentally a BLFS share and a BLFS.RIG share do NOT have the same value:

BFLS (1 Single is 200 shares): $600/200 = $3 per BFLS share
BFLS.RIG (1 MiniRig is 6058 shares): $15295/6058 = $2.52 per BFLS.RIG share

Thus it is clear that a BFLS share is worth MORE than a BFLS.RIG share. In fact, 1 BFLS share is worth 1.19 BFLS.RIG shares.

Put another way, if a person were to convert 100 BFLS shares, they should receive 119 BFLS.RIG shares to get equivalent fair hardware value. The 1:1 swap as originally proposed would be unfair to the BFLS share holder.

Yes, that is exactly right.  It has, from day one, been a proportional ownership in physical hardware and you are free to take that hardware at any time.

He always made it clear you were buying share in the hardware less the administrative fees when converted or you could leave the hardware with him and just get the BTC produced minus the administrative fees. Unlike most of the rest that offered these so called bonds at 2-4x cost of hardware with no ownership stake in the hardware once bought.

Really.  That sounds like an admission that you intentionally misled people in your OP.


I love how everyone who tried to make their offerings sound legitimate by using language which has real world legal meaning now wants to have it both ways and claim that they weren't really offering shares, bonds or other securities, they just called them that.  Either you were offering stock to the public or you misled people by claiming you were making a public offering of shares.  You can't have it both ways.

I'm going to have to go over the numbers again.  I was trying to factor in the administrative hold back on the shares and I may have screwed that up.

For simplicity sake, maybe we should just stick with 1:1 and I will make up the difference from my personal holdings as required. 

I thought the 1:1 ratio was a bit unfair for BFLS assets owners, but we could live with it.

However:
If my math is right, the above ratio is even more unfair than 1:1.

Why 1.21?  Is it ($600/200) / ($15000/6058) = 1.2116 ?  But it is in opposite direction: 1 BFLS = 1.2116 BFLS.RIG
Precisely:
1 single worth of $599 gives 200 BFLS shares. One BFLS equals to $599/200 = $2.995
1 minirig worth of $15295 gives 6058 BFLS.RIG shares. One BFLS.RIG equals to $15295/6058 = $2.52476...
So the monetary value of BFLS.RIG is slightly less than BFLS, not "more than".
In effect: 1 BFLS = 1.186251 BFLS.RIG
Or: 0.843 BFLS = 1 BFLS.RIG, so the ratio should be 0.843:1

Maybe I didn't take into account something important, so correct me, please.

Ok, so I'm just as in the dark as everyone else with regards to GLBSE, but here is how I am going to handle the BFLS and BFLS.RIG.  Fortunately, since BFLS and BFLS.RIG were never designed as a security, bond or anything of the sort things are fairly easy.  GLBSE was a way for me to handle payments being divided up easily among a number of owners of the BFL hardware - this means I can pretty easily make the transition away from GLBSE.  BFLS and BFLS.RIG has always been a way for us to split the costs of purchasing a single or a minirig, so it's not really a hindrance, as I made no profit on shares traded, etc... and thus have no accounting to worry about as far as that goes.

What  you need to do:

Send me an email with the subject beginning: GLBSE:

In that email include the following:

Your GLBSE user name
Number of shares you hold of both BFLS and BFLS.RIG
BTC Payment address

Obviously, I will need to verify that information with the GLBSE records, assuming they are forthcoming as potentially promised.  Once that information is verified, I will include you in the payout rotations.  I will be withholding payouts temporarily to unverified shares/shareholders until they can be verified.

BFLS and BFLS.RIG will be combined into one payment, and BFLS "shares" will be converted into BFLS.RIG "shares" at a rate of 1.21:1, so for every 1.21 "shares" of BFLS you own, you will get 1 "share" of BFLS.RIG - this is because the monetary value of BFLS.RIG is slightly more than BFLS.  This actually works out well, as I was intending to upgrade the singles to an ASIC minirig anyway, doing away with BFLS all together. 

I will continue with the Sunday night payouts, but they will be sent directly to your wallet going forwards.  I had a substantial chunk of funds in GLBSE for payouts when it went down, so here's to hoping it's recoverable. 

I will post here when I have more information on the situation.  I'm afraid I don't know anything more than anyone else and I just found out about GLBSE closing for good, so I'll work through the issues and get everyone squared away ASAP. 

Yeah, until all of the singles came in.  They came in a long time ago, but I didn't feel like reconfiguring all the GPUs so I left them mining on the BFLS system until I take them offline.

So you mean that the GPU mining income was just a temporary bonus?

Yeah, I will convert them to RIG shares at some point.

Will BFLS shares then be turned into BFLS.RIG shares?