Topic: SCAM IPO [Bakewell] - Finally, a 'transparent' investment that will 'grow'! - page 17. (Read 47857 times)

This is a good move.
Even though CPA is in question, you should not deviate from your contract until you have definite response (one way or the other) from CPA.
It shows you are willing to keep your side of the bargain, and reflects positively on BAKEWELL.

Im trying to find out what collateral CPA still has to back the contracts its signed. A lot of their funds are tied up in deposit takers that are in default and wont pay back for 3 years or more.

I run 5 rigs with 21cards in my 900sqft condo in Calgary, have 2 12000btu A/C units and it still gets up to 32c if I have everything running. My one crutch is that my unit faces south so I get a lot of sun heat. I too have "shared" utility costs but have come to a limit with my power panel, you got quite the setup to avoid that problem.

This is looking really good!


I don't think there is anything you can do. You got CPA insurance to build shareholder trust, which was a good move.
But at this time, the whole Pirate fiasco is the worst economic blow to Bitcoin in its history. Unfortunately CPA is right in the middle of it.
The outlook of CPA is grim and again there is nothing you can do. You have already paid for insurance for BAKEWELL but if CPA goes out of business (in the USA, we call this Chapter 7 bankruptcy) it will mean BAKEWELL is uninsured. And that's all there is to it.
CPA was the only reputable insurance issuer that I know about.
After things from the Pirate fiasco settle down, I'm sure you will be able to find a reputable person/company/entity to get insurance from if you still want to go that route.

Lucky... no cost utility for you.

I was just getting the questions out of the way. And I'm sure once you have 10+ GPUs, you will not need to turn on central heating. 

I have questions about how you plan to handle GPU mining:
GPUs suck energy, get hot, and loud.

• How are you going to handle the electricity requirements? 
• How/who pays for it?
• What about cooling?

Me too!  (I'm sorry, I couldn't resist starting a recursive loop).


Sounds good. Once you finalize the plan, you'll be getting a pm from me. 

I think receiving 10% extra shares for free is a pretty damn good deal, don't you?

This is a new development that has occurred over the last couple of days. I only mentioned Starfish because I trust him, have my own personal BTC on deposit with him, and COGNITIVE has as well (precedent).  During "Normal operation" Starfish would be able to handle withdraws of a couple hundred BTC in one day--more than enough to withdraw and purchase some new equipment.

Starfish may longer be an option but there are others out there, if you still would choose to do so.

This is why people offer shares in increments, instead of all at once. That's how you reward early investors.

For example, first 50k shares 0.3
second 50k shares 0.32
3rd 50k shares 0.35
etc...

props for the sock on the head

The only way I can see it being "ethical" is if you invest idle BTC until you have enough to purchase appropriate equipment.

COGNITIVE has done this very thing to help keep the dividend yield up for investors.
You can see the motion here.

This is a very bad idea for exactly the reason you gave.


Also, never borrow money to pay dividends. By definition, a dividend is a distribution of a company's earnings.
Not a distribution of a company's debt (loans).
Only pay dividends with coins made by the company.

Here is what others have done to help jump start:

Before the IPO, offer shares at a discount off the IPO price. Example. Your shares sell for .15 so you could have offered investors an opportunity to purchase at .14 per share. Perhaps even a better discount for multiples of 100 shares. It brings in less BTC but it can really jump start a new IPO.
Unfortunately, the IPO trigger has already been pulled so doing this is a bit more difficult.

You can still do this. But you would have to take down most of your 49K+ ask wall in GLBSE.
Next, advertise here in this thread that you plan to offer shares to investors at some discount.
Set a deadline date. At the deadline, pay a dividend to the existing shareholders for the difference.
For example, if you offered .14 per share and investors on GLBSE already bought in at .15--give them a .01 special dividend.

Once you have offers for share, you can use the GLBSE asset transfer feature to distribute the shares.


No matter what you do, make sure you have your revised mining plan posted in the OP.
Make sure you explain your "special sale of shares," if you want to do this, in the OP as well.

Since this is a company then my statement in the other thread still stands. Sell the company, equipment (and your founder shares) to someone who wants to take over. Or motion to liquidate equipment and distribute all remaining BTC to the shareholders.

The other "out clause" is only needed in a perpetual bond.

That's another thing that needs to be more clearly defined on the asset page and in the OP.
Is BAKEWELL a bond or a company that issues stock shares?

I think you are setting this up to be a company with actual stock shares--in which the investors (shareholders) own a piece of the company, and it's equipment. But I just want to make sure this distinction is clearly defined as it is an important one.

Hello again. I am enjoying this discussion.
I am also being hard on you because I want BAKEWELL to succeed.

I didn't mean to step on your technical knowledge, but running a company is a new thing for you, and it has its own perils and pitfalls.
Also, running a mining rig that thousands of shares rely on for dividends is way more involved with the personal mining that you have been doing.
When you start mining "this big" you have to consider stales/rejects much more carefully. Things like lost packets, and ping times to the mining pools actually become an issue. As a gamer, I'm sure you know what I'm talking about. This also leads to making sure you have a very stable internet connection from the rig to the pool.
Every little problem gets amplified at this large scale. Just one hour of any downtime is significant. These are just some of the things to be considered.


You can still loan personal rigs/coins/whatever and charge 0%. The principal would still need to be paid back but I would suggest using the "maintenance/growth" shares for this.
As I understand it, you have 100K shares broken down into 3 categories:

• 20% Founder Shares -- Your personal profit
• 30% Maintenance Shares -- For maintenance and growth of equipment
• 50% Public Shares -- For the rest of us

I see no reason why any loan can't be paid back using profits from the maintenance shares--especially since you are using it to grow the equipment. This is exactly what its for.


You can still keep your 20-30-50 ratio by selling 5 common shares, and then activating the 2 founder and 3 maintenance shares.
By activating, I mean all unsold shares--and corresponding "unsold" founder and maintenance shares should not receive dividends.

This seemed counter-intuitive at first, but makes good sense. The whole point is to use them as a stop-gap and try to get going again after as fast as possible.

Sorry, should have been more specific. The GPU rig.

IPO: The biggest flaw that I haven't seen addressed is that there's no incentive to get in early. No discount, no dividend, nothing. As well anyone who doesn't want to wait can sell into your wall at 0.125, or into anyone else's wall at 0.12500001 which is also below your wall. The laws of economics make your security a hard sell right now.

That being said, you have a great plan for what to do after all the shares are sold; you have a solid start on GPUs that can be resold later, and a clear plan to transition into ASIC as available.

My biggest complaint is the 20% "Founders Stake." While I realize that you're putting capital and time forward to setup, manage, and run the IPO, inventory, insurance, and growth. Your plan ends up with you owning $12,000 worth of ASIC for free. Assuming 50x difficulty and 25 BTC block reward you may end up with 600 BTC annually. If the rig runs at 1.5KW and you pay $0.15 USD for your electricity you stand to make $500 USD monthly if bitcoins trade at $10/BTC (Obviously everything would be in local currency though).

Pool: I'd suggest P2Pool with at least some of the GPUs, for large enough miners it provides low variance and comes with zero fees. BFL's FPGAs have been known to not play well with P2Pool, but hopefully this won't be a problem with the new generation of products.

Caveat emptor: The block reward is halving soon and the difficulty is going to shoot up when ASICs come out, both predicted before year's end. This isn't something the security operator can control, but it's something to be aware of.

Also, while you're paying 0.15 to get 20MH/s post-ASIC, dividends are based on half that. That will cause the immediate returns seen by investors to look smaller.

How much do you estimate the mining rig will cost?
Will it be purchased new?



I agree with some of the other posts here. You are competing with other miners.

There is a very similar share CIUCIU.MINING
It is a fund for a "BitForce Mini Rig ‘SC’  by Butterly Labs" and they pay out 1% per week. Once the unit arrives, the interest paid out in advance will be deducted from the weekly profits.