Topic: [HAVELOCK] PETAMINE - 1,150 TH/S HASH RATE (1GH/S per Unit) - page 259. (Read 565837 times)

Although unfortunate, I can understand the business reasons behind converting to fiat.  Thank you very much for posting the Eligius stats page URL, that should alleviate any fears that people had regarding using IPO funds to pay dividends.

I'm sure you are used to it by now, but after many bitcoin investment fiasco's, we shareholders are currently very distrusting.  I have found your actions so far to be very trustworthy and above board, thank you for the responses.

Thank you, cryptx. And keep up the great work!

How about the reinvestment fund, will that be kept in usd or btc? I would think btc would make more sense as you could distribute the reinvestment fund to investors in case there are no reasonable options to expand the mine.

How are you planning to proceed with the reinvestment fund? What is the timescale of deploying hashing power and if there is no reasonable hardware investments to be made how long do you wait until distributing reinvestment fund to investors?

UPDATE 24/10/2013

http://eligius.st/~wizkid057/newstats/userstats.php/1KkMPX9oKxoYnb5DU2xCJDrgQF6r9g6jza


We would like to share our mining statistics with you (see link). Note that statistics are variable and not always reflect real time / accurate activity.

1) We always convert all received BTC's in fiat money, because we have to buy all mininq equipement in EUR/USD. This way we elimate the exchange risks involved. Even if the BTC rate would crash, we would still have to deploy the agreed GH/s.

2) According to Cointerra, they are still on schedule to deliver as promised. We have a hashrate protection in place if there are delays.
    (http://www.cryptx.com/faq/ look under "the insurance")

3) All boards are deployed now. However we are not able to reach the full 20 TH/s because of 2 reasons. First, we anticipated a higher hashrate per board after first tests had shown 4 GH/chip. Second, we have about 1 TH in broken boards and will try to get these fixed.

I hope this answers your questions;

Cryptx,

1) Now that the USD/BTC exchange rate is exploding and the mining hardware is priced in USD, the amount of hardware the mine is able to deploy should scale linearly with the btc/usd exchange rate (using IPO funds).  Could you please verify your plans in this regard?

2) What are your thoughts on the Cointerra tape-out delay. How will this effect roll-out plans?

3) Could you please update us on the status of the 20TH roll-out?

Thank you.

Well I'm happy to say I made a nice profit already from this.

Picked up quite a few on btct during the fire sale at the end. 

Friday collected dividend and sold  1/2

I'll jump back in when management has a real deployment plan

Column E in that spreadsheet is not difficulty, it's a number taken out of formula used to calculate BTC/day:
btcDay = myHashes / difficulty * 3600 * 600 / 2^32

Spreadsheet calculates column E as:
difficulty / (600 / 2^32 * 10^12), or, simplified: diffculty / 139500
(10^12 is in there because we are dealing with tera-hashes later in columns D and F)

Hashrate = 0 because of technical problem + reorganisation
Difficulty = 267,730,000 (1919TH/s) until next change so mining income is calculated using current difficulty (1919)

1) We will look into this
2) 36,504 shares are in IPO, our first incentive is selling these shares, even after paying dividends to other shareholders

1. We promised to start hashing at the end of September. The Bitburner Fury boards were not ready at that time (due to factors out of our control). Because of that we calculated a reasonable mining profit we could have made if we started mining at the end of September. So yes, the biggest part of the 300 BTC was paid out of our own pocket.

2. The first deployment of 20 TH/s at the end of September has a monthly total cost, including electricity, maintenance and hosting, of maximum 5,000$.

3. The spreadsheet model uses a fixed reinvestment percentage of 35%. (35% of an increasing number is always going to be higher) The 35% reinvestment policy can be changed when demanded by the market situation.

4. We will look for the best opportunities in the market to reinvest in. The 35% reinvestment pool of BTC will be used for this. There is no way to tell in advance how much X% in hashing power this will be.

5. I do not understand were the 2 GH/share comes from. 1 GH/share in December + 20TH/s now

6. Everybody has to make his own calculations since the ROI calculation is subject to a lot of unknowns.

I hope this gives you a better view on the situation.

Cheers

CryptX

Dear CryptX

Common sense and basic algebra.


1. How the number 0.00474B for this weeks dividend came about?
    I suppose it was calculated from the initial ("free") 20TH/s one weeks worth of work, i.e. approx 300B (even thou the PetaMine is  9.2TH/s as of now;so probably coming from your private earnings or reserves)?
 
2. Whats the running cost approximately?.

3. You are talking about reinvesting 35% of the net profit to increase the total PM hashing power.
Will it be upped regularly with every difficulty increase? Every week?(at least every month that's what your spreadsheet model says)
Does it mean the hashing power per share will increase proportionally to this reinvestment?(as the spreadsheet suggests, yet its not very clearly specified in your terms)

4. How exactly will this 35% reinvestment relate to the hashing power increase of PM? 35% of profits reinvested = X % increase in hashing power?
Whats in the spreadsheet is not enough to fight the difficulty and generate reasonable profits for too long.

5.Also if all 100k shares will become public, u add Another 100TH/s in December, does that mean 2GH/s/share by December (+all the compounded 35% reinvestments in Hashpower)??

6.I plugged more realistic growth of the HashPower of the whole network over time into your spreadsheet and the break even point moved to about June 2014 and the total profit per share shrunk to measly 0.068B after 40 months,i.e. approx 100% profit over 40 months (considering the over optimistic difficulty estimate I used + possibility of many other future unknowns in the BTC world the risk reward is not too good).

From all the above specifying that each share represents 1GH/s is clearly a bit misleading (since it is actually better than that).

thanks
f

Doesn't matter. If an BTC-denominated investment doesn't make a profit in bitcoin, then you're better of just holding bitcoins. More profit, less risk.

I do not understand where you got these figures...

You can find accurate info here: http://www.cryptx.com/peta-mine/

In short:

One share represents 1 GH/s and will be deployed in December. If 100,000 shares are sold we will deploy 100 TH/s. (currently 63,496)

CryptX added an extra 20 TH/s starting end September (currently about 9.2 TH/s deployed and rising), net mining revenue of this extra 20 TH/s will be divided among shareholders until 0.065BTC /share is recovered.

ok some more info... kim schmitz advertised PETA-MINE in a bitcoin group on facebook. profile seems legit https://www.facebook.com/kim.schmitz.9803

To answer your question:

Oct 18 2013
We got today 0.00474B @  difficulty of 2.6e8

December 2013
We will have difficulty of about 1e9 (almost 4x todays!; yea  one billion)
That implies 0.00474B/4=.001185B
Cryptx says they double GH/s/share in Nov
so we'll get about 2x.001185B =0.00237B

May 2014
difficulty of about 4.2e9 (four billion i.e. 16 time today's)
we should get about  0.00237B/16=0.0001481B

if all stocks are sold the dividend in May should about 0.00009B WOW!!

and so on ...................... inverse exponentially


I probably misscalculated so I would like to ask Cryptox rep. to comment and school us.
thx

Loss in bitcoin is highly probable, but it could be some profit in fiats

The price of a mining-stock is proportional to the expected payouts. As dividends are paid out and the difficulty rises, stock price goes down. Unless the company is able to keep its share of the bitcoin network hashrate constant (or increasing), stock price will go down. The decline of the stock price is something that you should definitely factor in when assessing the viability of an investment. History tells us that mining stocks so far have been a net loss for investors.

I don't know enough about PETA-MINE to say whether this will be the case here, but the mining business is highly competitive with many people willing to operate at a loss, so beware.

hey cryptx is kim schmitz involved in your business?

Remember we are going to deploy an extra 1 GH/share in December. This means an extra 100 TH/s (in case all shares are sold).

are you basing this on peta's current hashrate?