Topic: SkepsiDyne Integrated Node - The Bitcoin Mining Company - page 39. (Read 104309 times)

Okay scratch that then. Only a third in dividends, the rest in expansion. Given the number of sold shares a third is plenty a dividend enough.
Review the position again next week.... hopefully the dividend renews investor confidence and new money comes in for expansion. We'll know a week after the dividend payment is in and can talk about it again then.

That can't be certain, since we will be pool mining. (i'll edit in some calculations for a certain amount of BTC generated though)

So, to clarify, how often will a shareholder be paid their dividends?
How much per share will a shareholder recieve in dividends per block solved?

Equally dividing generated BTC into the thirds of dividends, share payback, and rigs is equivalent of saying 66% of generated BTC should be paid out in dividends and 33% should be towards growth (66% will be the actual growth percentage however, as my dividends are directly reinvested in the business.)  Just to clarify.

+1

The original number of 39 rigs was just used to give numbers should the IPO completely sell.  That number of rigs was calculated at about $7.40 per BTC, so if the IPO sold out right now we'd have quite a bit more.  It wasn't really a promise, just a number used to calculate output and payouts.  Also, how do you know when everyone is paid off?  Some people will be receiving dividends for longer because they bought in sooner, etc.


I did a calculation based on 1000 MH/s because I know how roughly how much power is consumed by that figure, and the price of BTC needs to drop to about $1.30 for mining to get close to being unprofitable.  It would need to go down to $8.00 at a capacity of 7GH/s to disallow for a single rig to be purchased a week.  I'm not sure at what threshold you would consider it less profitable to sell the BTC and to pay them out as dividends instead.  As far as the graphs, I don't really have the time to, however I would not be against a motion to pay sharp to do something of the like. 

I would suggest calculating a USD per 100MH/s rate above which it is more profitable to sell mined BTC (and expand business) and below which it might pay off more to keep (or pay out) BTC to investors, since they are not very profitable to be sold anyways.

Currently 100 MH/s net over 4 USD/day, so I would advise on selling the mined BTC for USD as fast as possible. After the difficulty increase this will very likely melt down very fast, so it might be more wise to keep them.

In the end I wnat you do do something like in this thread: http://forum.bitcoin.org/index.php?topic=7427.0

of course you can keep growth going.  but you would need to stop at 39 or whatever and then pay out dividends to everyone like you  promised.  i would recommend sticking to your original gameplan b/c by my estimation this is what you promised to do and no one can argue with that.  once everyones paid off then you can re-enter your growth phase with more rigs.  the skys the limit as far as i'm concerned with btc related businesses.   don't forget we'll all be holding shares which should go UP if you play your cards right even if you are just paying dividends.  that would be a source of income to grow your rig count as well.

I agree, I meant the entire process surrounding the CLI is too difficult, especially the setup.

I'm in two minds here. On one hand I'd like to see capacity grow, but I know that we desperately need new funds in order for that to happen. New funds needs renewed confidence from investors confidence. I think we're just generating BTC too slowly right now to grow simply by putting all mined BTC into new rigs. Raising investor confidence probably means a dividend payout more than it means adding more MHash/s.

So I propose a middle ground: For now mined BTC (after expenses like electricity) should be divided into thirds: dividends, share payback and new rigs. Review the decision in a week.

I want to get as many rigs as possible - and I see the way to do that as attracting new investor funds.

I'm pretty sure that the mining model requires regular growth to sustain a profit. If we get to 39 ASAP, we might not have to move as fast at that point.


I don't think it is so much the CLI, but more so that the installation procedure has/can be so complicated.

I think the fastest route to 39 rigs is to pay dividends, because this will result in more IPO shares being sold, thus resulting in more capital that can be used for rigs.  If all dividends are used for new rigs, we won't get new investors and it will actually take longer to accumulate enough capital to buy rigs.

Nefario is supposed to have a new GUI interface for GLBSE in the next week, which could significantly expand the number of potential investors.  I don't think very many people are capable of using the current command line interface to GLBSE.  I think we should give these new GUI-using investors a good reason to buy SIN.

Ah, now I understand, you want to get to 39 computers as fast as humanly possible, then payout dividends once we get there.  Do you think that we should ever enter back into the growth phase, or just stick to 39 computers indefinitely?

Tawsix

my idea above is a maximum growth strategy.  take all revenue from either production or ipo share sales and buy rigs up until the pt u have the original # rigs u proposed which was around 39 i believe.  only then pay dividends.  i for one would be more excited at seeing the #rigs and production increase as rapidly as possible which i think alone would drive share sales and prices in the long run.  most of us here who bought @ .75, i presume, were in it for the longterm altho clearly there were the flippers too who i think were the minority of buyers at that price.  and then there are those who just want a payout asap in the form of dividends.

my only other word of advice fwiw is that you need to realize u wouldn't be having as many problems with shares sales and price if u hadn't let confidence slip during that 1-2 wk period by not posting.  share price is all about management perception (and eventually fundamental value).  just simply posting everyday and updates would have you in a better position today than you are.  and its not too late to do this.  just keep posting, continue to show progress as you are, slowly increase production and you'll get thru this.  there's nothing but a bright shiny future ahead for btc in general and mining in particular. you just need to learn how to ride the wave.

Summary:

- about 1 Month after IPO and with 8000$ converted from BTC at under 10$ per BTC rate, the shareholders are left with their 0.0x BTC payout from the 2.x gh/s mining operation
- leaves Shareholder of "assumed previous 1 BTC aka now 16$ +" with zero BTC but a virtual stake in 0.0x something BTC payout and the hope to get back to a BTC, sounds like the investment has worked out really well

So... paying out dividends might also increase shareholder confidence, which means fewer will be likely to put their shares back on the market for margin traders to play with – which is a game we've seen to be easy right now since they only have to stay one satoshi below the shares you offer.

That's an interesting take.  Paying out all BTC generated until the IPO was sold out would still allow for growth, as half of the dividends paid out (my half) will be reinvested into the company to pay off my shares.

I think until the IPO shares are sold out, all mined BTC should be paid out as dividends (after subtracting expenses).  IPO shares are currently being sold to raise capital for rigs, and paying the maximum dividend will help sell those shares more quickly.

After all the IPO shares are sold out, maybe 50% of mined BTC could go to purchasing new rigs (growth) and 50% could be paid out as dividends?

I'm not quite following.  Only about 5 BTC were generated in the last 24 hours, and that is not enough to buy even a single rig.  Also, I'm wondering if you're talking about the number of rigs proposed if the entire IPO was sold.

Also, to be clear, money raised from the IPO will never be paid out in dividends, only BTC generated by the rigs is eligible for that.

I don't think that there should be a cap on the growth of the company.

you could use todays production btc to buy rigs up to the #rigs u outlined in your original ipo plans.  then any further production gains PLUS any btc from left over ipo shares would be given out as dividends.  you would be capped by your original plan for # rigs.  clear?