Topic: [GLBSE] Lovlyn Mining Company (Read 1165 times)

Probably a good idea, glad it helped.

Thanks for all of the great info. I have decided to not go through with this business venture at the current time. I am going to revise my business plan with the information that has been provided on this topic. Hopefully with the revised model I will be able to start a sound business! 

Thanks for the info.

Nick is a friend of mine, and he didn't talk to me about this at all before the post. Instead he asked to borrow 8btc for the GLBSE fee

As I understand he is going to join the Navy and be in boot camp within a few months. He has already asked me to take care of his one BFL Single while he's gone, so I haven't a clue what he's thinking here. I'm sorry I have to say this, but knowing him personally I have a feeling this will turn out badly.

In my opinion:

I think that was a bad choice in bought equipment. Do more research first, why are you bulk buying dual chip boards when their are more than 1 quad core products in the market. These Quad-core ones are more cost effective I'll give an example of the one I know best.

https://bitcointalksearch.org/topic/cairnsmore1-quad-xc6slx150-board-78239

Buying a bulk order from Enterpoint, even taking into account shipping/duty costs which I'd imagine could add up abit ($500-1k) since your costs are based in US dollars, you can get the Cairnsmore1 (reporting over 800Mhash/s each) for $768 dollars when you bulk order them in the region of 50-99 of them. Just getting 50 of them would cost you less ($38.4k) and net you a higher Ghash/s (40Gh/s). The Artic silver and usb cables are unnecessary, at least with the cairnsmore1, they are already setup and provided.

With the amount of FPGA's you'll be getting you'll need a lot more PSU's or more powerful ones, you massively under-estimated how many you'll need in my opinion, since for one I'm not sure you can power them all, and even if you could your forgetting about having enough cables and spreading load appropriately . Also if you going to be getting that many FPGA's spend the extra money and get yourself a 4 x 1200+ watt modular PSU's Gold/Plat level ($300 x4), the Cairnsmore1 can use both molex and a 6pin from the PSU.
Don't forget you are going to need at least a powerful dedicated computer to handle the management of all these, not like you'd be able to run these off a simple atom processor, or a machine doing anything else, you are asking it to handle in the order of 200 spartan chips. Maybe consider 2 computers to handle this, after all you got enough PSU's.

You'd also be better off opting for some big 24 port usb hubs, the kind with big beefy 4amp power bricks, then only using them for 20/24 ports. So you'll need at least 3 of these (example: http://www.usbfever.com/index_eproduct_view.php?products_id=1661)

Don't get me started on the IPO dividend and initial price statements and of course you are selling so many shares it's as if you are selling more than your actual costs of the hardware (Approx 100k US dollars / 10k Btc). It's expensive as hell to be lent money via bitcoins since it seems the community has gotten use to these high % returns, so you don't want to be asking for more investor money than you need. If you can't find a way to front any of it yourself, it's going to cost you so much in the long run it's not worth going this route.
This makes it so you aren't even offering close to what the other mining companies are doing for a FPGA only mining operation which goes from 2.5% to 3.5% a weekly return, you have to see what a 0.7% weekly return looks like. It looks like a really raw deal for the investor, who see you really need to make a double take on your business plan and start again.

Advice to you:

Streamline what you need to be buying for your mining company, by looking into quad-core boards, pretty sure their is a US based provider as well (non-bfl). Most definitely look into re-evaluate all the other hardware you do need and don't. Don't under-estimate the importance of power stability, a good psu and powered hub matter a lot to nearly all FPGA's.

IPO offering, reduce the number of shares and it's price to approximately what you'd be paying for the hardware. Dividends should be at least 2.5%, if you can't do that you won't get any investors interested so you'd just be wasting your time even trying to go this route. Look into getting a business loan (outside of bitcoins) if you don't have the capital, it's the only reason why I think your trying to get $100k via this.

+1

I see nothing here that warrants an investment.

If you want to compete with the vast horde of utterly generic and mostly stagnant mining companies, you need to differentiate yourselves somehow; make your company a superior investment. Until that happens, you won't see much investment.

Thanks for the tips! I was just contacted by a seller of the quad boards and that is the way to go. I chose to go with FPGA instead of ASICs because of BFL's notorious wait time. What do you think about my plan with selling stock shares?

If you believe ASICs will hit the market soon then purchasing FPGAs is a bad business decision. Otherwise FPGAs are an optimal solution in this current market although the FPGAs you have selected are very expensive per MH/s. For the volume that you are considering you should be able to work a bulk deal for quad FPGA boards and get much better FPGA pricing.

In the end there is too much uncertainty in the mining market right now to make a move like this. Wait 2-3 months to see how these ASIC announcements play out.

What I am planning on doing is getting a ton of hardware, possibly 1THash worth, with the bonds to get the company started. Once I get the bonds paid off I will issue shares of stock where you can get paid dividends and be a part owner in the company. I will only issue a small amount of stock shares so the weekly dividends will be big eg. 5BTC.   

Theres already a million others trying to get free hardware just like you, what makes yours any different?

If you vote no, please tell me why/what I can do to make a good company.

Thanks

IPO on GLBSE will be released on September 2nd at 9:00am Eastern time (-4:00)
Postponed pending new business model.

This is a Bitcoin mining company. With the IPO we will be purchaseing 100 Spartain X6500 rev.3 FPGAs $580 each, 15 10 port USB hubs $16.95 each, 5 750watt psu $84.99 each, 120 mini-b USB cables $5.49 each, 25 Arctic Silver paste $9.99 each, shipping costs aprox. $250, and misc. mounting hardware/wire/anything that is needed to get the rig running $200. To make a total of $60,037.75 or estimating BTC at $12/BTC 5,003.14583BTC. The rig will get a garenteed 35.0 GHash. At the current difficulty that will be about 13BTC per day. Payouts will be made at the end of each week (Friday). You will make 1BTC per share. All shares will be paid-in-full in 210 weeks. The payouts will be proportional to the number of shares that you have or about .007BTC per week per security. We are releasing 10000 security's in the IPO. This offer will be one of many from this company. We plan to purchase BFL/ASIC rigs with the next offers.