Topic: Lab Rat Data Processing, LLC (LabRatMining) Official Announcement - page 145. (Read 452290 times)

If LR really thinks the future of LRM is golden - especially with the ASIC's in a few months - this should be a no-brainer to what's best for LRM & bond holders, I'd think.

This may be the best or perfect idea about what to do with alts earned , very cool.

Yeah, I'd like to see this happen.  Less outstanding bonds for the same # rate sounds good.

Reverse dilution... or bond buy-back.... akin to what I think is termed accretive acquisition.

Good point

This is a tried and true strategy for companies which feel their share (bonds) are undervalued. It is also a huge confidence statement on the part of management.

Buying GH on CEX is a bad idea, imo.

A better idea would be for LR to buy LRM bonds from people selling them. And deleting the acquired amount from the list of outstanding bonds.

+10

except..only if the idea is to buy more hardware with it after holding...not to redistribute as dividends (otherwise, just pay the dividends now to the same effect).

If you feel you must buy something. Then evaluate the return on buying GPU hardware to mine alt coins to in turn buy BTC. The return on investment might be as good as buying Bitfury hardware, and the hardware delivery is as fast as you can order video cards online. Check for a PM from me on this.

Interesting Fact.... it would appear that the aggregate hashrate at CEX.IO is 50Th/s - hmmmmm.... hmmmmm....

Am I wrong? https://www.cex.io/redeem appears to list all the hardware and the amount hashing.  Perhaps this would represent a pivot opportunity for LRM to offer up some competition. I know for a fact that we have some pretty heavy hitters from a coding and business perspective on the LRM bondholder team now.....

Seriously, shouldn't you stop mining at GHash.IO???

They already got 38% of the total network hashrate?

https://blockchain.info/de/pools

I agree wholeheartedly - apologies if I was not sufficiently clear in my point.... Simply put, it makes more sense to put ones reserve BTC into something like CEX.IO as long as you are willing to monitor the account to ensure the total position does not drop below an acceptable rate of return for the risk. If LRM were to do it is my opinion that it be done solely on this basis in order to maximize returns on BTC held for future use. Once analysis indicates that a better return from investment can be derived from buying new gear then, based on its track record, CEX.IO provides sufficient liquidity to transition out of the position in a timely fashion. Clearly we would not want to hold a too large a position for the market to absorb a rapid liquidation. My estimation based on recent volumes is that such position should not exceed more than 5% - 10% of daily volume which would presently indicate not more than BTC78 - BTC156. The range would of course be contingent on the timeline for liquidation. The more time to liquidate the larger the position.

Clearly we have no insight as to the BTC reserves held by LRM if any and the pipeline of gear inbound. Without this information we can only speculate as to an optimal strategy.... hopefully such musings add value to the ongoing discussion.

Oh you tease LR!

Any hints?  How about a greater than ___? 

Already on it.

Final news (specifics) on the BitFury deal coming out within the next week and the numbers look good. 

+1

+1  , I think this is best for all involved.

Seconded...

LRM needs to be buying sub $5/GH to stay competitive.

As did Bitcoinica, until they didn't. Then GLBSE, Inputs.io...

I'm not saying CEX.io are a bunch of scammers, but there are some red flags. Even if there weren't, buying 500GH/s on CEX.io simply isn't comparable to having a KNC Jupiter or similar in your possession. Ignoring the counterparty risk that's introduced with using such a service is bad business.

Don't like the reinvestment idea in cex either

- Turn NMC into dividends
- Invest NMC in more profitable hardware

Would still rather just see the Alt Coins be turned into BTC (About 26 BTC by my estimates currently) and distributed with dividends with 25% being kept by LRM as it is profits from mining.

Reinvesting it in overpriced CEX.IO gear would be a waste and just push payback time further out as 26 BTC is only going to get around ~550GH currently at CEX.io prices (~0.2BTC/Day).

To put this in perspective it would take 130 Days to get that back if difficulty DIDN'T change.
I also didn't sign up to play the CEX.io Market with shareholder gear.

Let's not waste money simply to have more hashing power please.

If I have BTC sitting in a wallet doing nothing versus the opportunity to participate in a marketplace that has proven liquidity and a track record of performance along with mining proceeds it would seem rational to put it into the marketplace. Of course, I would need to have a reasonable expectation that the aggregate return from mining and subsequent disposal of the GH/s will exceed my total investment. Price paid for the GH/s becomes less important than total return on invested capital. It amounts to a timing issue and you better know what you are doing if you are trying to time a market.

One would think that the price trajectory of GH/s on CEX.io would be deterministic and downward as a function of the increase in difficulty but it seems that this is not strictly the case. Other forces are at play 

Say what you like about CEX.IO but it appears that they have done a good job and provide a service the community values. And, now I have another ticker to watch......