Topic: Lab Rat Data Processing, LLC (LabRatMining) Official Announcement - page 176. (Read 452224 times)

As the official 14 day period is starting from Monday I would expect labrat to be able to tell his shareholders exactly what hashrate is in hand.  This is not an unreasonable requirement and will answer the question everyone is asking...

So between 20-25TH it looks like based on grnbrgs post.

How we can correct you? without information =/

Lets hope its 35

Shouldn't that be 5,000,000M/h in hand plus  at least 30,000,000 M/h of new equipment as below.

(But in real news.  LRM has about 12-13TH up, another 17TH going up by end of day Tuesday and I believe only one more shipment (maybe 2) from Dave of an unknown size before the 14 day period officially begins)

that would be 35,000,000 M/h / 55561 = 629 M/h per bond.

please correct me if I am wrong.

Woohoo, I'm doing good then, a used 5830 would have been at least 0.5btc when I bought in, and AM BE USBs were probably still a whole coin. 

This is BTC based, hashrate isn't instantly purchased...... when this hashrate had to be paid for, BTC was only around $130 probably. Are you new to mining equipment purchasing?

That 25% was used towards costs, some reinvestment probably, and himself.

You still failed to read again, some of that money went towards monarchs which are estimated to ship mid December I believe was the last from BFL.

I suspect LabRat having some position in Cointerra to 

We'll see that by Dec, 9.

Still, $90 price estimation, same return with $600 price BTC? and after he kept 200+ BTC from his 25%?... 6x the price, all the 25% and not a single TH extra?

Information... the documentation with the hashrate, yield, difficulty hasnt been updated in 50 days and its actually only accessible up to Aug, 31. Inform the people who lent you the money to start, regardless of how stupid we were back then.

sounds great but how?

Actually starting Dec 9. Our bonds will be worth at least 20,000,000MH/55561 (Bonds) = 359.96MH/Bond

I suggest that i dont know what is he doing at all in any lvl, i dont know what he has, what's coming, what's he producing, what's he getting, what's being paid, what we should expect and i know what we put in and what we got out.

He offered a 360mh/bond with $90 BTC, we're at $600 btc with 80mh/bond, do your math.

You think he got mining gear on consignment? LOL

Sorry but all the gear that is currently hashing is already paid for. Still kind of boggled that you suggested that he might be mining without paying for the gear.

Thanks, i can read pretty well.

I still don't know if those 15-20 were paid or plan to be paid with the 14 days produce or how or when or anything. The fact its simple, i'm not seeking your replies, i want Labrat to address this, yours and mines are just guesses, i appreciate you taking the time to answer what the person in charge should have kept clear to start with.

In fact, i think LRM was MUCH MORE communicative back then when he started, right now he doesnt even have time to post the dividends break down.

Not sure if you refuse to read or are just trolling

Where we are standing: 5TH being paid out - 15-20TH extra up and hashing currently going towards reinvestment until Dec. 9th based on how I read grnbrg's last report.

The only hardware that we know is coming would be the Monarchs at this point in time.

I apologize if this isn't the answer you want, but it is the answer to at least two of your questions.

Clever, that would work. It's a grey area, but not one that anyone at the IRS would be aware of or want to touch.

Overall, we have different comfort levels of data required for investment. This is one of the least transparent (if not most opaque) BTC investments available. It is what it is, we invested before LR had any track record of success, so it is on us. I just am hope he receives an education through his own experience and learns where he can improve (and then implements improvements). Those questions, in my opinion, need to be explicitly answered - not just hand-waving "trust me."


My biggest problem is not simply getting hashrate quicker than difficulty increases. That short sighted goal is financial and business suicide and will drive share price to 0 (literally, 0) with dividends that do not exceed investment. You need to make sure you get hashrate at BTC/GH/s that exceeds the expected valuation (in BTC) of the hardware when accounting for difficulty increase. Those are two very different things. LR has never made any statements or comments indicating he knows the difference, nor indicated he has plans for implementing it. Even if you do implement it, one of two things can happen: 1) share price shrinks to 0 if you reinvestment rate doesn't exceed difficulty, but dividends will exceed investment or 2) share price rises if reinvestment rate exceeds difficulty, but dividends will be smaller than case 1. I think LR wants to be in case "2" What is his plan to stay in case '2'? Are we there?

But you're right, it is our fault for putting too much trust in him at the start without these answers.

Amazing how to turn a perfectly legible msg to a mess of reply. Are we in kinder again that we need to explain each sentence?

Info, i just request information, where are we standing, what's hashrate, what hardware its coming, what's ordered, financial info, soon.

Currently you only pay taxes if you cash BTC in for USD, since I suppose he bought all of his gear with BTC and since you deduct all expenses (What he had to Cash BTC into USD for) Taxes would be negligible.

This is just one way of doing it.

Maybe he will claim a value for the BTC equipment. If the value is the same that he raised again this would be an expense. However he might have to amortize this.



Because LabRat is still working for shareholders to get hashrate quicker than difficulty can increase. If you noticed I said likely, as in much more likely than if he didn't.

This has been stated many times about the "current plan", going forward part of the 25% will be used. If you want more details than that I will kindly point to your own words here

This is something for shareholders to speculate over. Lab Rat likely isn't going to try and release speculation as he has not done so in the past.



If it doesn't then he will shut this project down as stated in his prospectus, the one you bought into.
But yes, revenue will exceed expenses for a long time considering the price jump of BTC. It was exceeding expenses prior when it was only $130/BTC




It's part of the 25% you agreed to.


Again, he stated that if it becomes unprofitable he will close shop, again something that was agreed when you purchased the shares. Thankfully this doesn't appear to be happening in the near or distant future with the information we've already been provided by grnbrg.


No, or at least I highly doubt it. This is a mining bond of sorts, it pays based on hashrate not his investments and I highly doubt he used any funds outside this intended purpose.


Not sure if I understand this question, he's obviously running 15-20TH worth of gear currently, has stated he has quite a bit of Monarch on order. Do you think he didn't spend this money on gear?

So what that we have 15-20 TH/s more, how much did it cost (in BTC/Gh/s)? What other hardware can we get with remaining funds?

Why does this ensure that we will likely get a 100% return? What is the investment plan that ensures this? What are the price points and difficulty projections? Will revenue exceed expenses? What is lab rat's fee and how will that affect long term profitability? He needs to get paid, is he being paid enough to keep the program running? Does he have investment/options/buy-in that is affected as well? Of the $1m we gave him, what did he do with his person $200k? What was the plan for the other $800k of hardware we bought for him? Can LR hire someone (or outsource) management of the business so he can concentrate on hardware?

These are questions investors (and lenders) ask. I don't share your enthusiasm because nothing has been presented to make us excited. I can be excited if those questions are answered.

But it doesn't matter, we're pretty much all strapped in for the ride due to the difficulty in exchanging shares and LRM doesn't have to (and won't) answer any basic questions on the fundamentals of their business.



EDIT: Another, possibly huge problem coming up in April, depending on how he set things up... He raised $1m from investors, but in exchange for no equity. On his annual IRS reporting, that just counts as income - not as raised capital since there is zero equity outlay. LR, as sole owner of his LLC, is personally responsible for taxes on that income at his personal tax rate. He will be forced to take a distribution just to cover that taxes. In the US, that's somewhere between ~15-35%, even if it is retained earnings. If he structured it as a loan, that could work - but we didn't sign a promissory note.

What's the plan for this? Have you talked to a tax accountant? Is there plans to buy lots of hardware fast to reduce tax liability?