Topic: [GLBSE] MergedMining BTC/NMC Mining Company - page 12. (Read 43955 times)

You bring up a good point.



Don't doubt that it would be profitable if prices rise.  A price rise would only make the addition more profitable.  A price drop would make it more valuable and essential to the company.  



It's not so much about direct comparisons (although I have done the math).  I think we all know that 5970s are more profitable at $10/BTC.  However, an FPGA miner would be profitable at a $0.25/BTC.  Since we already have 2-5970s, I think the added ability to maintain profitability at a $0.25/BTC rate is the bigger advantage.

I'm actually opposed to adding an FPGA miner to your mining equipment at this point in time, personally.

Why don't you ask your shareholders first via a motion on glbse and present some math here on the thread?

I doubt it's profitable if prices rise more in the coming months. I agree it's a sort of insurance against falling prices, but too expensive in my mind.

Can you compare adding the FPGA miner to adding another 5970 for different bitcoin price levels (say $2, $3, $5, $10)?

I would like to purchase a dual FPGA board for the company in order to ensure profitability by lowering power consumption per megahash.  In order to purchase this board, the company is listing 1,100 shares at 0.136/share. 

allright, thanks for letting us know.

how is miner coming along? I hope you have some fun building/configuring

All companies offer guidance.  I'll try to be more reserved with my opinions in the future.  



1) Not that I know of.  Perhaps I'll make this public information.

2) I believe so.  I would NEVER issue new shares without a shareholder vote.  Dilution is not a friend to the shareholder.

3) Shares can be sold at any price, at any time.

Thanks for being open about everything so far. Keep it up and I'm looking forward to the miner running. Should you need help with anything, you can always ask me, also on irc, I'm molecular there.

EDIT: you shouldn't have said that about the price being too low, now some offers disappeared and best price is 0.14

EDIT2: 3 questions about GLBSE: 1.) there's 10000 shares in all, do we see somewhere how many are on the market and how many are held by you? 2.) can you issue new shares at any time, how does that work exactly? 3.) the shares you have in your account, can you only offer them for the initial price of 0.1 or can you also just sell them on the market?

No problem.  Once the parts for a mining rig were ordered, the company was then tied to the value of something.  When the BTC price dropped, it would have allowed new investors to buy shares of the company at a much lower cost (in dollar terms) than the company was actually worth.  For that reason, I decided that it was no longer in my shareholder's best interests to be selling shares for 0.1BTC/share.  The sell orders you see on the GLBSE now are not being sold by the company.

thanks for the information.

another question: up until about 3 days ago there where still around 800 shares available on GLBSE at the starting price of 0.10 BTC/share.
These seem to have disappeared without leaving a trace on bitcoincharts (http://charts.glbse.com/charts/MergedMining#rg30zigHourlyzvztgSzm1g10zm2g25). If someone had bought them, one should see a volume bar there. I think they disappeared around Oct 19th. Any info on this for us?

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I updated this information last night.  I sold off all the BTC and deducted the amount of funds needed to pay bou707.  The NMC are in the process of being sold off and are not accounted for in the current totals.  I will have something better in place once the miner is operational. 

Yesterday we received a majority of the parts needed to get the first miner running.  The remaining parts should arrive Friday/Saturday.  I'm hoping to be mining away by Saturday morning.

I plan to use multiple pools due to all the DDOS attacks happening lately.  I think using 1 pool would invite problems.

I'm planning to use Win7 to begin with.  I may switch to Ubuntu at some point if I feel that the operation would benefit from it.

Hi, it's been a while, what's the status on these issues:

• current asset list? can you update in main post?
• timeline for starting mining
• question: which pool will you use? I opt for eligius, that way we can confirm mining operations/profit without needing a login (just the pool address necessary), easy namecoin merged mining support (I tried it, very simple)
• question: what OS do you use for mining?

Thanks for the suggestion.  I'm brainstorming on how to implement an automated accounting display of some kind.  I hope to have something better and more trustworthy in place by the time the miner goes live.

a suggestion: could you maybe make this into a spreadsheet, with the info above contained in one row? That way, we could see changes more easily. You could use google docs or editgrid or a similar service and make the sheet publicly viewable.

Thanks, OgNasty, for your answers to my questions. These satisfy me quite a bit and I will buy some more shares now

On another note: I might be selling my 5970 (I pay $0.30 per kWh). Should you have use for one, I might be willing to sell them for shares in the company. Would that be possible at all?

My power is actually charged at 2 different rates.  $0.16/kWh from 9am-9pm & $0.05/kWh from 9pm-9am.  If the exchange rate continued to drop to where mining was no longer profitable at the average $0.10/kWh rate, I would most likely begin running the miners only from 9pm-9am.  If the exchange rate dropped to where it was no longer profitable to mine using $0.05/kWh electricity, I would propose a shareholder motion to see if the equipment should be sold off to refund investors.



Good question.  This will most likely be based on market conditions.  With the namecoin difficulty so low right now, I'm expecting a large price drop coming for namecoins.  I do like the idea of namecoins being like the company's "savings" while bitcoins were sold to pay costs and paid to investors as dividends.  Perhaps some ideas could be floated on this thread to give shareholders the opportunity to voice their opinion on this subject.



As soon as possible.  This will depend on our ability to raise funds for building a rig.  Being conservative, I'd say by November 5th we should have a rig in place and enough bitcoins generated to make a good dividend distribution.



Dividends will be split among the purchased shares.  For example, if 10,000 shares have been issued, but only 1,000 purchased, those 1,000 purchased shares would split the entire dividend payment equally on a per share basis.  The amount of the dividend will be at my discretion and based on the company's current financial situation.



I'm planning to pay dividends weekly.  This could change at any time, but would most likely never be longer than monthly.

I just bought some shares. I will buy more once I have higher confidence in this business.

Can you make some predictions (or calculations) as to what dividends we can expect. How often will you pay the dividends, how exactly will you go about calculating the amount?

I'm really interested in this, since my own little miner will likely have to be shut down due to energy prices being too high where I live. I'd still like to mine and support bitcoin, however, and this seems a good way to do this.

EDIT: more questions (integrating questions from above):

• In the top post, it says "2x5970 (sale pending)". Do you mean "purchase pending" or did you buy them and are selling them again?
• What will you do if exchange rate drops below a price that would cover our power cost?
• What policy will you use to sell the namecoins? Sell right away?
• When will you start paying dividends?
• How will dividends be calculated?
• How often will you pay dividends?

Yes, but my personal rigs aren't built with costs in mind and wouldn't make the best investment for my shareholders.

I have reached an agreement with bou707 to purchase 2x5970s for MergedMining:
https://bitcointalksearch.org/topic/sold-2-xfx-ref-5870-2-5970-45233

Have you considered selling your personal rigs to your business, but buying the rigs from yourself using stock?

ASAP. As soon as enough capital is raised to purchase the bare necessities, a rig will be brought online to begin paying out dividends.



You can check the difficulty for namecoin and bitcoin here: http://dot-bit.org/tools/nextDifficulty.php
The namecoin difficulty will be adjusted down by the time our rig is operational.

The difficulty will drop within a few days, but then it will very sharply increase next time around to even higher than it is now (I'm guessing merged mining has really caught on).