Topic: [PHM] - Power Hash Mining Announcement - page 2. (Read 5756 times)

Thanks TAT for this.

One of the difficult things to do, is to explain moral hazard in relation to trust at the IPO level.  You have put your rep out there and delivered, thanks.  It's the case that they may pick and choose what portions of your advice, to accept?

Thanks for all you do.

I had a conversation with PHM before this announcement. It looks like some of the details discussed were not included in the final version here. While I cannot speak for PHM, it was my understanding that the funds for the IPO will be owned by the shareholders under PHM, but that the current market value of the BFL orders and the GPUs will be deducted in order for the fund to buy the equipment and own it. He quoted the BFL value as what they paid for them in cash, but we did not discuss how they would determine the value of the GPUs.

PHM, please update the details to clarify that the fund owns money raised via the sale of shares, and what exact cost will be deducted to purchased the existing equipment/orders.

I think perhaps havelock may wish to put this ipo out farther, suddenly this stuff is all showing up on their board, and indeed, their board is like a coin itself.  Having fewer issues, retains credibility.  But so far so good, so thanks to lightbox.

But yes, clearly there needs to be time to write this up like a government grant.  There are huge chapters missing, from the prospectus which is not going to be required.

If exchanges want to survive as such, they will have to toe a certain line, this is like acting as if there is no line.  I mean mining altcoin??  DUH.  It is not a stroke of genius.  But whomever succeeds in this lofty goal as stated in the issuer's few words, will be the ipo that has lots more detail.  Sure, push this one out a week and give five times more data, and I bet it will soar.  

There is a lot of room for something like this.  Even if it doesn't go well, or my advice is ignored, I'll be using this thread henceforth to discuss issues like this as they crop up, which they surely will.  But sure, mining altcoins and passing daily dividends on?  Frikkin duh.  If I had the time I might do it myself, maybe my own ipo will be forthcoming by the Fall.

But thanks to those persons who are reliable and run these fine exchanges, day trading bitcoin stocks makes more coin than mining does.  So thanks to lightbox and his peergroup, because their service is appreciated.

More info on this, and it might be the first real horse out of this gate.  Of course like Facebook, the IPO could just be designed to completely screw investors, but if you just have ipos that are designed to pop then fizzle, you're basically pissing in your own soup bowl.  So this is a very important ipo and thread, I say it came onto the radar too fast at this point, but for speculation, well, ipo is spelled p-o-p in the old days of equities.  But equity means, as explained by others, that you are mining and have substantive operations.  This is not like a loan office where they give you a business loan, pics and more demonstration of nitty gritty knowledge and previous follow through on that would help.

In fairness, if I was trying to sell 2 BFL preorders + a few GPUs for $60k I wouldn't be too keen on clarifying either.  Which is what we have to assume to be the case given the total lack of clarity on the very key point of whether the funds raised by IPO go into the fund or into the issuer's pocket.

This will be a major flop. The IPO issuer is not willing to clarify squat!

Why?  You think there's more than 3 people who will buy it if the operator doesn't clarify things?

Can the Havelock admins look at lowering the maximum allocation of shares per user for this one?

2400 KH/s   and 300,000 Share's....

that is nothing per Share...

and the BFL Stuff needs so much time to deliver..

Also,


Yes, because GPU mining Bitcoin is the way to go.

An excellent post Korban, hope it will teach fund managers how to write their IPO statement correctly. You should make some sticky post with general guidelines, it will have more visibility.

Welcome to the forums! Launching an IPO is a good way to introduce yourself to the community and showcase your reputation.

Is this going to be sandstorm all over again? 100 000/300 000 shares per user seems moot.

I agree with posters some information about you would be a good starting point, or how about a picture of this so called mining room for starts.

I have held respect for havelock I just hope this ipo is not their undoing .

Korbman, I think your post is great since it teaches newbies what to look for in a bitcoin security. However, the poster is likely a scammer, and if not, is incompetent based on the poorly written IPO.  Only a fool would invest based on this prospectus and you know what they say about a fool and their bitcoins....

Ok!
If you are indeed a new account (not an alt of someone else), then let me start by saying welcome to the forums! It’s not often you see a legitimate account pop up who starts off their tenure on the forums by launching an IPO.

For those of you that read my other post, this will sound familiar (but still rings true). I respect the decisions made by Havelock administrators, even though I don’t necessarily agree with their decisions. I’m quite surprised by the recent changes, particularly by the astonishing lack of information recently perpetuated by Havelock administration and individuals looking to host their funds.

That said, this isn’t about Havelock, this is about PowerHashMining [PHM], so I’ll keep on topic.

As a forewarning, my responses may sound rude and/or condescending, but I assure you I don’t intend for them to come across that way! I imagine it as if you and I are sitting at a table and I’m asking these questions with more of an upbeat attitude. My goal here is to try and pry as much information as I can about what you’re trying to do. I am not alone in my skepticism, so this will be an opportunity to clear the air.

Generally speaking, the willingness of the OP to thoroughly answer any and all questions can be indicative of the effort they’re willing to put into their business.

Here we go…


[1] – This is impressively short notice when we no really nothing about what you’re trying to do or who you are. Why Monday, July 15th, and why 300,000 shares?

[2] – Hoping to add, or will add? In monetary terms, how much will it take to get up to 50MH/s? What equipment will you purchase?


Just to make sure I’m reading this correctly, whatever is generated within a week (Wednesday to Wednesday) is the revenue. From that amount, you will deduct all expenses for that week (rent, electricity, any replacement parts, and cover any repairs). [1]
From what’s left over, you will keep 15% as a “management fee”, distributing the rest as a dividend.

So we’re essentially purchasing the hardware for you…and giving you 15% (after expenses) just because “labor”? I can understand the expenses part, but 85% (after all expenses) is quite shallow given you’re asking for our coin.

[1] – Bunch of questions here:
How much is rent per month?
How much is electricity per kWh?
How much power does your rig currently consume?
How much power will the fully developed rig consume?
How often do the GPUs break, and when they do what fails first?
How much do replacement parts cost?


So you will, without a doubt, dilute our shares in the future?


Just so I understand, should you sell the full 300,000 shares (valued at $0.20 each), you’re plan with the $60,000 is to purchase $1,600-ish worth in BFL gear, and push the remaining $58,400 in GPUs for alt-coin mining?

I don’t think I have a problem with that plan, I’d just like more detail on the GPUs. And why BFL? Why not splurge the extra $400 for a 100GH/s Mercury from KnC?


Not sure I see any real problem here, though I could be overlooking something other forum members will point out. If anything, I suppose dilution will be a problem with voting rights, but that’s far down the line (supposedly).


Uhh…but you just said there’s voting rights? So shareholders get to vote “upon decisions that affect shareholders as a whole or changes to this agreement” ..but then you reserve the right to change it regardless?
Or are you saying that we can vote on the changes, but only you have the ability to implement the change?


This is guaranteed to happen. You haven’t specified how you plan to expand your operation, so I can only assume you’ll mine on 50MH/s until your hashing power is drowned out by larger or more efficient operations.


Pretty standard stuff.


Final thoughts:

With all honesty, I like the idea. Building up a large scrypt mining operation can certainly generate an income, but this investment is still quite risky.

After going over everything, here are my final questions to you:

-- Who are you? You joined today and yet you’re already asking for $60,000 worth of Bitcoins. In my experience, rarely has any offering fitting this pattern NOT been a scam. I’m not saying you fall in this category, I’m just saying it’s a bit odd, that’s all. Trust is a HUGE factor here..or at least to established members (newbies throw money at everything and anything).

-- Proof of Mining? Where are you currently mining now where we can see the 2.4MH/s in action? What GPUs are you currently using?

-- Financials? Do you have any financial and network models where you show where you think the network is going to go (for Litecoin or the other alt-coins)? As a potential investor, I want to see you do your due diligence on hashing speeds and how our hardware will ultimately benefit us in the end.

-- Your Investment? What are you putting into the fund? Anything other than the already established 2.4MH/s?

Bottom line here is TRANSPARENCY. Give us detail..so much detail that if we printed out each word we could literally swim in pages. Investors want to see what you're doing with their money down to the smallest detail. If you can do that, while providing a reasonable investment opportunity and managing your fund correctly, then I can assure you money won't be a problem in the future.

*grumbles in an old man voice*
Where is my walking stick to go harass a lightbox

That said an alt coin entity is interesting the BFL's well good luck similar to Korbman so not really an issue there just need to wait on a delivery.
That said it bugs me
According to TAT the order is from April however the wording clearly says plans of purchasing does that mean that some units have been ordered already.

PHM also has plans of purchasing 2 ASICS from BFL

Can I propose a shareholder motion to not order from BFL currently based on past history but to look at alternatives or is that too soon to propose a motion

Ordering now will in my opinion be a bad idea for investors right from the start due to the backlog and I would not want to have investors having an orderbook set for now.
http://bfl.ptz.ro/

To the questions

PHM will mine alt-coins, including, but not limited to, Litecoin, Terracoin, Freicoin and any currently profitable crypto-currency available. Our hashing power will be aimed at different coins depending on each coin’s potential profitability. These coins will be sold at market to maximize their value and convert them into Bitcoin for dividend payment. Funds raised will go towards the expansion of our mining operation.

Shareholders own all PHM mining equipment. Currently, PHM is GPU-mining Litecoins at approximately 2.4Mh/s. We have an established dedicated mining room, which is properly temperature-controlled and secured.

How is potential profitability deduced and can we see the units

Buyback Rights
The issuer has the right to buy back shares at any time at a price equal to 105% of the highest price seen during trading of the previous 7 days.

The highest price over the last seven days can you explain this one a bit more seems a bit too easy to manipulate I don't want to see another Sandstorm IPO share rise/drop

With that said due diligence on page 1 completed waits for some good questions from the usual suspects ^^
Welcome to the forums an IPO already that's intense

Registered the same day as the post always gives me alarm bells.

Deprived, are these guys legit? How can I tell? I want to buy shares.

So are those added to the fund for free - or is some portion of the funds raised from IPO being taken in return for them?  If so, how much?

lol (laugh of a good faith)
be not too strict to young's. give them a try - both Sandstrom and these
pure criticism does help rarely, mentoring - mostly.