Topic: [LTC-GLOBAL] CIPHERMINE Industrial Cryptocoin Mining & High Perf. Computing (Read 21860 times)

Section 7 of the (pdf warning) business plan:

7.1
ŁTC collapse
Should ŁTC collapse then we will do the following:
1.  If GPU mining is no longer cost effective we shall end of life our GPU mining rigs (sell them)
2.  Work with LTC global to migrate CipherMine's shares across to its sister exchange, BTC Trading Co.
1.  In this scenario it is our hope that all shareholdings can be reconstituted; we keep backups of the shareholder reports we get from LTC Global which will assist with this.

Kate mentioned she is in negotiations to start a PT on BTC-TC.

Also:


https://forum.litecoin.net/index.php/topic,4582.msg42170.html#msg42170

Low divs until middle of next month according to business plan, but that was expected since that is part of the plan.  I don't see why the price is dropping now...  2.5L per share is a steal considering the hardware they have on order.  I think it was one whale cashing out in a shallow buy book, and the low expected divs over the next few weeks is causing a very slow rebound.


There was talk of a BTCTCT PT (hehe).  It's somewhere in here https://forum.litecoin.net/index.php/topic,4582.0.html

Swede75,

1st, Please don't quote images. 2nd, I'm simply asking for CIPHERMINE's strategy in that scenario. If you look at LTC-GLOBAL's income sheet, most of the revenue comes from BTC-TC, so I think there is a very real possibility the litecoin side of their business drying up if the Litecoin value slide continued indefinitely. The trade volume on litecoinglobal exchange is abysmal.

The point I am trying to make is I believe the company's share price is being de-valued by people pulling out of CIPHERMINE and the litecoinglobal exchange to avoid Litecoin value loss (when in fact, the price should be going up given that revenues are not dependent on litecoin's value). This is not a worry for shareholders in the long term so long as there are contingencies to move the shares to another marketplace if litecoin's become valueless or another altcoin supplants litecoin as the most stable and high valued alt-coin.

LTC-GLOBAL going belly up? Yeah, they only made a 20.000 LTC+ Profit last month.

Why is CIPHERMINE in decline?


programs to take screenshots

It's even worse (in terms of BTC value) when you consider that LTC/BTC price is in decline, too.

CIPHERMINE doesn't specifically mine Litecoin, and in fact, has many BTC ASIC miners on order (and some deployed); therefore, shouldn't CIPHERMINE's value be going up when LTC/BTC goes down? Are investors pulling out of CIPHERMINE because of the drop in Litecoin value (and they want their BTC back)?

Good time to buy or solid security in a dying marketplace (LTC-GLOBAL) denominated in an alt-coin in long-term decline?

Are there contingency plans to move CIPHERMINE over to a BTC-denominated marketplace in case LTC-GLOBAL and/or litecoin go belly up?

At this time we're focusing on scrypt FPGAs. I'm not sure how much of a performance boost we'd actually get from using FPGAs for prime mining though it is an interesting idea! The challenge with XPM is that we have no surety of its future value. At least with scrypt we can be fairly sure that there will be profitable scrypt coins to mine indefinitely.

We actually mainly like XPM because it is hard to mine with things other than CPUs. We have an abundance of CPU resources we can deploy. In antitipation of XPM difficulty rising as GPU miners get in on the action we are also exploring MemoryCoin on our VM grids.


Hehe, I'll keep it in mind!

Kate.

Hi Woodtec!

Very excited to hear about the beta XPMGPU proggy.

Can you set ye olde boffin squad to configuring the FPGAs for XPM?

Perhaps a CPU/GPU/FPGA Frankenminer is the solution?
 
If you need a math PHD, LMK and I'll dispatch a ringer.   

CryptoCoin speculation is not our business; mining is. Shareholders should feel free to invest their dividends wherever they like but that's not what CipherMine is about. While you may believe they will go up in price there is no surety; if there was the market would have accounted for it.

However, since XPM are proving profitable we are putting effort into ensuring we maximise their production. We are in a beta for a GPU XPM miner also.

That said, we are exploring the possibilty of an automated alt-cryptocurrency trading system.


$65/GHs? I don't think so. While I might be up for frittering away that much on the odd 80GHs avalon, I'd not want to risk the potential for difficulty to skyrocket making an expensive solution like that unprofitable. We can afford to wait another couple of months and get close to $10/GHs.

If we had that amount of cash to spend we'd integrate our own hardware anyway, and that is still potentially on the cards. I'm painfully aware that our ASIC suppliers are making a killing out of us - costs that could potentially be saved.

Kate.

i'm in with a few shares 

CiPHERMiNE's second Avalon is now happily hashing.   

thanx

http://www.cryptocoincharts.info/#jump-xpm-btc

where is the best place to trade XPM? I use vircurex, but liquidity is not very shiny

Agree, but it's Kate's call and I like investing in a panoply of approaches representing the investment strategies of several unique, outstanding individuals.

If you want to be long XPM, buy&hold them yourself, like me!   

I wish the XPMs mined could be 'bought' with the reinvestment fund @ current market and held by Ciphermine for a couple months.  I expect significant XPM value appreciation.  Dumping them now feels like an overall loss for everyone.

Edit:
Also available this month http://alydian.co/ (got $350k layin around Kate?  )

i'm joining this one too, i trust evilscoop 101%

Ciphermine's first Avalon is up and running!  XPM are flowing!   

I like very much the strategy of reinvesting 50% + depreciation.  AFAIK, that's by far the most aggressive growth fund of any mining firm.

Hi, I have a question or two regarding the recent announcement that Smidge.com and Ciphermine have made a share swap.

What were the terms of this deal?  


Did this come out of shareholder equity?


Was it done on a 1:1 basis with an assumed value of 0.02 BTC for Smidge.com shares?  (the IPO price indicated for Smidge)


Thanks



edit:  Also, maybe just a general question.  Why did you think this was a good deal and how does it advance the interests of Ciphermine shareholders?

That does look interesting! We plan to show live hashrates on ciphermine.com in the near future (we already centrally monitor them) and something like that could tie in quite nicely.

Once we've got some of the pressing jobs of our todo list I'll revisit this, thanks.

Kate.

Thank you.

Kate.

Hi Kate,

I'm really looking forward to seeing the things you do with Ciphermine. Here's a new mining dashboard you might be interested in.

http://thegenesisblock.com/tgb-launches-bitcoin-mining-dashboard/

Very impressive Kate, your business plan  blew me away, 
you have certainly set a standard.

bravo! 

definitely watching this space

We are not in the business of cryptocoin speculation. We mine whichever coin is the most profitable at any point.

However, we do intelligently hold or sell LTC and BTC (our core coins) based on EMA10/21 (ie. we hold when its rising).

I might use some of it to buy additional GPU rigs; I've not decided exactly and it depends how well the negotiations go, so thanks for your input. At present Avalons appear to be much more lucrative than GPUs according to my model but I will be keeping a close eye on LTC. We cannot guarantee that LTC on Gox will make it explode - if it were guaranteed the market would have moved more already.

As an aside, I could probably use the funds better by pocketing it and not selling my Audi R8 to pay for my Wedding. However, as I've often said CipherMine is something I'm passionate about and it tickles my inner geek a lot so I get plenty of pleasure from it!

Kate.

Small update: found 37.2 XPM overnight! Looking still very profitable to mine with CPU.

PS. Thanks str4wm4n. Stupid lesdyxia :p

I think you mean 'Industrial' not 'Industruial' 

Kate,

I appreciate your being willing to reduce your own equity to purchase some Avalons for CIPHERMINE, I can even understand your motivation as it will help to shore up dividends in the short to medium term, but in the long term I worry that these coins could have been used better—I suppose it's your donation, though, and you are free to allocate it as you see fit. Does CIPHERMINE plan to start focusing the GPUs on LTC until LTC trading goes live on MtGox? I think there is an opportunity to gain purchasing power with an impending bump in LTC/fiat trading—it's not like anyone in the US could withdraw LTC earnings from MtGox

Hehe.

Sadly no joy on the discount for Bitfuries but have got 7 x 400GHs ones on order now.

XPM VMs were doing great for the first couple of days but blocks have really dried up now. We think it is the bfgminer fork - seems no "CPU only" coin is truly safe from GPUs! However, at present the XPM grid is still more lucrative than scrypt coin mining. Also, if people were using EC2 instances for XPM mining we expect that to stop very soon. Will monitor the situation closely of course!

In total we've got about 80 XPM in the last few days (since Sunday), and sold them mostly at around 0.009 BTC each so ~0.7 BTC; normally we'd be lucky to get 0.4 BTC-worth of scrypt goodies out of them in a whole week so still worth it.

Kate.

interesting to see the market can absorb a large buy much easier than a large sell...

not encouraging if one is a short term speculator.

on the other hand, if you're holding out for dividends in 3-5 months as a ROI...
 lower price now is better. buy more.

I doubled my money on ciphermine shares, its been doing really good. Went all the wat to almost LTC 10 per share, but these noobs are starting to outsell eachother bringing it down to 6.8, some people just dont understand how to invest and leave their money to grow... let it grow up, and cash out much bigger...  damn noobs.

Someone came in and bought about $10,000+ worth of CipherMine, yikes. 

Im glad I bought my ciphermine shares at 3.6  lol... up up an away

Price up 20% on massive volume, including a 2200 share buy. 

IPO round 3 is complete!

Bitfuries are thus fully funded and in good shape for a bulk discount.

60 quad-core Xeons are set to mine PrimeCoins.

This is absolutely fabulous like Patsy and Adina!    

That's correct. Please see the main discussion thread here.

I felt it appropriate to cross-post since our principal activity will actually be SHA256 mining in the near-term, but we are a LTC Global security.

Kate.

Over 2000 shares were bought up in just the last 5 hours or so.

Not much discussion over there either, though. The appetite for the third offering seems lower, but no price retreat yet as investors still seem to be holding tight to their shares.

BitFury funding round

I am about to offer an additional 7,000 shares onto the market at LTC 4.00 / share as discussed in the last motion. Please see the updated business plan v2.01 at docs.ciphermine.com.

The funds raised from this round will be used to purchase between 5 and 6 EUR 7,500 400 GH/s BitFury SHA256 mining rigs which have recently become available for pre-order. We intend to go for the October delivery date (half the price). The BitFury ASICs are four times as productive in terms of capital costs and power compared with Avalon ASICs. Further, Giles believes that at 55nm it is unlikely anyone will come up with something better for a while.

The remainder of the funds will go towards another ~5 quintuple-GPU scrypt mining rigs (~25 Sapphire 7950 Vapour-X's with supporting hardware).

The price of LTC 4.0 / share is based on two factors:

1) With BitFuries incorporated into the plan, even with the reduced BTC price of EUR 60 and our new model which assumes difficulty will pass 100 million within a year, our forecast profits are now around EUR 880,000, 50% of which will be released as dividends. The 4.0 LTC / share price represents a P/E ratio of roughly 2, which is still lower than ASICminer's.

2) There has been considerable demand for shares recently and prople have been paying well in excess of 4 LTC/share. This was based on our old model with much lower forecasted yield. Thus we further believe this is a fair price.

Finally, following the dissatisfaction expressed by some shareholders over the manner in which this motion to issue more share capital was approved (I dominated the votes, basically) I have removed my right to vote "yes" on any motion which will result in dilution of existing shareholders until the end of the year. Further, we believe we must now enter a period of consolidation and focus on getting all the mining hardware up and running before considering further funding rounds.

I believe the main discussion is on the ltc global forums

Could someone link to the primary location for discussion of this security?  Weather it be on this forum or another.  Thanks.

I do have more than one business focus at present; Memset Ltd is my primary concern, but I hope that CipherMine and Memset can become increasingly allied over time. As for the recent motion, I concede I could have planned it better and I have revoked my right to force through diluting motions for now.

As for paying the team with shares, we don't have massive revenues right now and they are all keen to be a part of it so it seems like a win-win. It is a cheap way to remunerate people.

Anyway, more shares now released, please see the latest news on the security's page and updated business plan in the filestore:

https://www.litecoinglobal.com/security/CIPHERMINE

http://docs.ciphermine.com

Kate.

Well, the stock price clearly recovered, so never mind that   Exo- I'm not specifically against being involved in multiple business lines, but it seems like these guys are fairly new to a lot of the things they are dabbling in and I'm not sure there's any reason to think they should have a profitable edge at things like day trading the price of bitcoin based on a 10/21 bot thats available to everybody.  But if they do and make money at it, all the better!  Anyway this thread is pretty dead so I guess I might as well finally register on the litecoin forum.

Personally, I like that you are trying to diversify into other businesses—In fact, that is why I decided to grab some shares, and I'm very excited about your plans. Clearly, you have great enthusiasm for running the project, and I am glad you have been able to recruit new talent to the team via share renumeration.

wow, thanks for posting here, hadn't seen the motion.

kate, I understand you have enough votes to pretty much do whatever you want, but why don't you look at what happened to the share price after you posted this motion to see what investors really think of it.


Really amateurish.  Whats the criteria for employees who you pay from your shares vs employees who can be issued new free shares?  How many different businesses are you trying to be involved in?

This in a nutshell. Huge "screw you" to investors, especially since there are 20,000 yes votes (Interesting considering there are only 10,000 public shares, voting with the giles/cipherminer reserve shares?)

Keeping in mind they havn't even got the first batch of FPGA's running and want to expand into even more services too.

dude (dudette), what a curveball? the new motion within a month of "ipo" is quite surprising. i don't think this has happened in a real life IPO situation, ever. it is really, truly, shocking. what would happen in the real world is that you would INCREASE your valuation and dilute yourself at a higher  valuation price. diluting the public so quickly shows us that you may be smart at computers, technology and cryptocurrency but not in finance. diluting the public hurts them and makes them lose trust in you. why are you just not diluting yourself at a higher valuation or offering more shares of your own stock at a higher valuation?

sorry if i sound mean just more shocked

You have a (less favorable, but not bad) mention in Forbes too

http://www.forbes.com/sites/timworstall/2013/07/02/further-evidence-that-bitcoins-in-a-bubble/

is this a good location to discuss motions for ciphermine?

id like to discuss the most recent motion to add shares and dilute current shares.

First bit of press coverage!

Bitcoin: how I made a virtual fortune (Guardian technology blog)

seems it is time to move some funds to LTC as well

Please see our latest news and new motion on our security's page.

Please note that I intend to abstain from the motion with my votes. I want this to be truly down to the shareholders; if I believe something to be the right course of action then I should be able to convince you of that. If I cannot, it is probably a bad idea.

Kate.

Glad to see you got everything up & running Kate, well done & good luck.

Hello,

Please find below confirmation of this transaction using the Batch 6 purchase address for the thread https://bitcointalksearch.org/topic/liquid-synergy-designs-inc-asic-mining-hardware-192916


1JFYtJKcfqXPKijyo3DceT5en5RnswpAwC

---

I, forum member Steamboat, confirm the purchase of 2,000 Avalon ASIC chips from Batch 6 by forum member Woodrake.

---

G5QVKly3zinULCcyaPfCUAwNP0R1vT7JHNMvHPJR/oUm9NXMg4mccTdfjkZrdijQFH5grjcn/92QLrZffZ1HvI8=

Dear All,

Rather than posting information on individual hardware orders for evidence purposes and such I have decided to streamline the process by simply uploading screenshots of the order confirmation documents to docs.ciphermine.com/orders/. Please review them at your leisure. Note that I'm not bothering to include the small stuff (fans, cable ties, tools, CPUs, PCI-E risers, DVI-VGA adaptors, etc).

We have spent an initial 172 BTC out of 423 raised at IPO (15,667 LTC x 0.027 BTC/LTC) on Avalon ASICs (see order CM-SB-05).

We've decided to spend 15% of the fund (25 BTC) on GPU hardware rather than the planned 5%. This is mainly because of the fervour around LTC at the moment with its expected launch on Mt. Gox in July, but also because the prospects of our diversification into renting out big GPU clusters is looking increasingly promising as is their resale value (we could make 10% just by flogging them on eBay!). This is also likely a good hedge; spending the full 95% on SHA256 mining hardware was probably a bit overkill, especially with new, improved devices on the horizon.

We will be spending the rest of the fund (224 BTC) on SHA256 mining hardware in the next few days. Giles and I are figuring out what the best option is going to be; we're tempted by the ASICminer USB erruptors which are now 0.9 BTC each, but with Steamboat expecting to be shipping his ASICs (which are in 300% more efficient in terms of ROI) in mid August we might just stick with those! We do also need to purchase the parts for the Klondike boards so some of the funds are reserved for that.

Back to GPUs, we now have hardware for an additional three quad-Sapphire 7950 rigs on order due to arrive in the next week. We've determined that these cards are definitely the sweet spot in terms of cost and power consumption (those rigs only use 1kW but generate 2.43 MH/s scrypt - way better than 7970s for instance). We are also looking at squeezing a fifth card into the rigs.

For your interest I have also made a folder for pictures of the mining rigs and associated hardware. It is at docs.ciphermine.com/hardware/. See below for what our preferred rig configuration looks like (that one's back on the build workbench to try to squeeze in the extra GPU):



Kate.

Herewith proof of our first purchase with the IPO funds:



172 BTC out of the 423 BTC total raised (15,667 LTC @ 0.027 BTC/LTC)

We are currently evaluating how best to spend the rest. Since the USB Erruptors are now only 0.9 BTC each they are looking like an interesting purchase, however their resale value is likely nil whereas FPGA value is likely recoverable and they are repurposeable for industrial-computing.com (not yet launched). Further, with LTC's value trending strongly upward and a drop in Sapphire 7950 cards there is an improving case for spending more on GPU rigs.

Kate.

That's true, however we we did announce it there quite late also. The procedure for IPOs was not clear and I felt it inappropriate to publish it until we had been approved. However, our first approver corrected me on that so the security was announced on the Litecoin forum a few days before IPO.

Kate.

Quite correct. We hope to be deploying scrypt FPGAs in coming months though their practicality has yet to be determined (due to high memory requirements).

Kate.

Dear All,

I have updated the CipherMine business plan to take into account recent developments. Please download version 1.05 from docs.ciphermine.com. The pertinent changelog entry is pasted below. Three items are of particular note:

1) I am delighted to announce the addition of Jan Heinicke-Clemm (aka. JohnDorien on bitcointalk.org) to our team. Jan is a competent, multi-disciplinary IT specialist with skills in programming, systems administration and electronics engineering. In the near-term he will be helping me with software development, in particular putting up private pools (see section 5.1.8 ) for our alt-coin mining. Once this is complete the first tranche 500 shares will be released to him. The second 500 will be release on or before 15th August once we have verified his merit. Those shares are coming from my personal allocation so no-one is being diluted.

2) Today I had a conversation with my PR agent, Katie Olver, about CipherMine. She is extremely excited and thinks that with the interest around bitcoins at the moment she can get us coverage in national British newspapers. This is part of a strategy to raise awareness of the security in hopes of boosting share prices (see section 4.5) and making it easier to raise money in the future should we need to. It will also ultimately help our diversifications (see section 5.2). Katie is calling her journalist contacts tomorrow (PR people are always so impatient! so there is a chance that things could get "interesting" in the next week or so.

If it does look likely that we're going to get some good coverage then I will be "forking" the busines plan to modify a couple of elements and removing previous versions. Please retain a copy of v1.05! It will remain available to shareholders via a mechanism yet to be determined. Further, if you are a shareholder then please keep a close eye out for announcements in the coming week or two - we may need to act quickly and I will want to involve you.

3) We have purchased BTC with the 15,667 LTC raised in the IPO rounds and have placed an order and paid for for an additional 2,500 Avalon ASICs with Steamboat. There will be more hardware purchases in the next few days. This should nor mean that we are ahead of plan (we assumed the IPO would take longer and the ASICs would be delivered later than the mid-August ETA).

Kate.


Changelog for release 1.05:

• Added Jan (developer and electronics engineer).
• Added detail to R&D diversificaiton section.
• Expanded on software and mining pools section, including private pools plan.
• Updated staff shareholdings.
• Added preamble note to shareholder contract about successful IPO and how money is being spent.
• Added section 4.5 (marketing and press relations).
• NOTE: New hardware orders and timelines not yet put into the model - forecast should improve once done.

No because a SHA256 FPGA would be utterly useless for mining scrypt coins such as LTC.

This is a security bought with LTC to mine for BTC and a little bit of LTC. I believe the IPO announcement was released on the Litecoin forum.

just out of curiosity, why did you IPO before announcing the security here?

We have completed both rounds of our IPO in astonishingly little time; the second at the higher price of 0.9LTC/share sold out even faster than the first found (in less than an hour)! We have now put all planned reserves (20,000 shares) on the market.

Thank you to all our investors, and we look forwards to generating a reliable, growing stream of dividends for you.

Kate.

I'm pleased to announce our new security, CIPHERMINE, listed on Litecoin Global. CipherMine is a joint venture between leading British IT entrepreneur Kate Craig-Wood (aka. woodtech), founder and CEO of Memset, Giles Russel (aka. evilscoop) the man behind EvilMiners, and two systems administrators at Memset.

Please view the security here. We have completed both rounds of our IPO in astonishingly little time; the second at the higher price of 0.9LTC/share sold out even faster than the first found! We have now put all planned reserves (20,000 shares) on the market. Thank you to all our investors!

The latest version of the full business plan can be downloaded from docs.ciphermine.com, an excerpt of which is below. Although we are quoted in LTC our principal operation will be SHA256 mining using ASICs and FPGAs.

---

Executive summary

CipherMine is a virtual cryptocoin mining business. All shares are listed on on the LTC Global exchange.

1.1 Goals

• To provide a vehicle through which Litecoin (LTC) can be invested in mining cryptocoins.
• To give shareholders a high, reliable, long-term return on investment via regular dividends and equity growth.
• To aggressively invest in ASIC mining hardware to maximise early-mover advantage.
• To promote LTC and the LTC Global exchange as a good alternate to Bitcoin (BTC) and associated crypto-exchanges by being successful, and in doing so encourage a growth in value of LTC similar to BTC's.
• To operate in a sustainable and environmentally-friendly manner.

1.2 Strategy summary

CipherMine is already in operation, at present mining LTC with a combination of heavily discounted CPU resources and wholly owned GPU rigs. We wish to diversify into BTC mining and have an aggressive strategy of reinvestment in hardware. Although our models and discussion herein focus on LTC and BTC, we intend to apply our scrypt and SHA256 clusters to whichever coins are most profitable at any given time.

We have chosen LTC-Global since there is currently a dearth of mining companies on that exchange and because we believe that by being successful we can encourage LTC and LTC Global to become a main stream cryptocurrency and exchange with similar value explosions to that witnessed with BTC and shares on the BTC Trading Co exchange.

We shall invest 50% of profits back into hardware, as well as a 3-year straight-line amortisation / depreciation of existing hardware, and pay our 50% of profits as dividends. We have a detailed business model and forecast (available on request), the dividend forecast from which is shown in the figure 1.



The assumptions used (see detail below) are conservative. Most importantly, we assume that BTC mining productivity will decrease significantly due to difficulty increasing, and have based our difficulty forecast on the last two months trend. We also assume a fixed price for both LTC and BTC. Should they appreciate, as we expect, then our profitability will rise significantly. We shall be doing our accounting in Euros, not cryptocoins, though dividends will be in LTC.

1.3 Key strengths / differentiators and assets

• An outstanding, publicly visible principal with a wealth of technical and business expertise, backed up by a superb team of professionals with demonstrable experience.
• A carefully considered, detailed and realistic business plan and model showing the growth potential.
• 750 Avalon SHA256/BTC-mining ASICs on order (~230 GH/sec, delivery lateJuly - early August).
• 100 SHA256/BTC-mining FPGAs on order (~24GH/sec, delivery late June).
• We have the following arrangements with Memset Ltd:
• • Use of their ultra-efficient, high-security (to British government standards) data centre for which CipherMine will only be charged power at cost (and there is a lot of spare space).
  • Use of the spare compute in their virtual machine estate with a minimal at-cost charge.
  • The expectation that they will purchase end of life GPU rigs from CipherMine for use in their GPU cloud.
• Four quad-AMD 7950 GPU LTC mining rigs deployed (one mid-build).
• Cluster of 40 VMs LTC mining with Memset's spare compute (expandable).
• A proprietary, scalable software suite for the automation of mining workers as well as auto-selection of best value cryptocoin to mine and automatic conversion of alternate cryptocoins into LTC.

---

News

24 Jun 2013: First 80 SHA256 FPGAs delivered

We have recieved our first batch of 80 Ztex 1.15x clone SHA256-mining FPGA boards. Some pictures are below, apologies for the shakiness - was a phone camera! We've since packed them up for transport so not had a chance to take better ones, but will post more in a few days.





We are testing them in batches of 10 at present. Unfortunately we only have 10 mini USB cables due to a slow shipment, but according to Amazon they have been dispatched and will arrive in the next few days soon after which we will be able to get all 80 crunching on SHA256. We already have the necessary power cables and just need to rig up some fans (the little ones they came with are inadequate and we are removing them).

Each stack of 10 boards is producing 2.0 - 2.25 GH/s, so 16 - 18 GH/s in total (~0.44 BTC/day, or ~16 LTC/day with current conditions). Giles thinks we can coax a little more out of them with a firmware upgrade, some more overclocking and the aforementioned improved cooling arrangements.

Kate.

---

26th Jun 2013: Jan, Private pools, Diversification and PR

Dear All,

I have updated the CipherMine business plan to take into account recent developments. Please download version 1.05 from docs.ciphermine.com. The pertinent changelog entry is pasted below. Three items are of particular note:

1) I am delighted to announce the addition of Jan Heinicke-Clemm (aka. JohnDorien on bitcointalk.org) to our team. Jan is a competent, multi-disciplinary IT specialist with skills in programming, systems administration and electronics engineering. In the near-term he will be helping me with software development, in particular putting up private pools (see section 5.1.8 ) for our alt-coin mining. Once this is complete the first tranche 500 shares will be released to him. The second 500 will be release on or before 15th August once we have verified his merit. Those shares are coming from my personal allocation so no-one is being diluted.

2) Today I had a conversation with my PR agent, Katie Olver, about CipherMine. She is extremely excited and thinks that with the interest around bitcoins at the moment she can get us coverage in national British newspapers. This is part of a strategy to raise awareness of the security in hopes of boosting share prices (see section 4.5) and making it easier to raise money in the future should we need to. It will also ultimately help our diversifications (see section 5.2). Katie is calling her journalist contacts tomorrow (PR people are always so impatient! so there is a chance that things could get "interesting" in the next week or so.

If it does look likely that we're going to get some good coverage then I will be "forking" the busines plan to modify a couple of elements and removing previous versions. Please retain a copy of v1.05! It will remain available to shareholders via a mechanism yet to be determined. Further, if you are a shareholder then please keep a close eye out for announcements in the coming week or two - we may need to act quickly and I will want to involve you.

3) We have purchased BTC with the 15,667 LTC raised in the IPO rounds and have placed an order and paid for for an additional 2,500 Avalon ASICs with Steamboat. There will be more hardware purchases in the next few days. This should nor mean that we are ahead of plan (we assumed the IPO would take longer and the ASICs would be delivered later than the mid-August ETA).

Kate.


Changelog for release 1.05:

• Added Jan (developer and electronics engineer).
• Added detail to R&D diversificaiton section.
• Expanded on software and mining pools section, including private pools plan.
• Updated staff shareholdings.
• Added preamble note to shareholder contract about successful IPO and how money is being spent.
• Added section 4.5 (marketing and press relations).
• NOTE: New hardware orders and timelines not yet put into the model - forecast should improve once done.