Seems like a motion is appropriate, but I can see this working a few different ways:
1. Sell hardware, use proceeds to pay 100% div. Raise COG.F3 if we need more funds for hardware purchase later
2. Sell hardware, use 50% of proceeds to pay div, keep 50% for reinvestment fund
3. Sell hardware, put it all in reinvestment fund
I think 3 is only reasonable if we have some other hardware to buy that we can have in-hand very soon (like, < 1 month). Otherwise, I'd prefer 1 or 2. Would 1 mean "the end of cog", or would there still be plenty of money left over for reinvestment in the next big thing? Maybe to answer these questions, we need to see just how many CT machines we sell, and how much profit we can make from them. Also, if some of the CT machines do work, or if we are able to run a smaller number of them reliably, maybe we don't sell them all - just a few.
Also, maybe before we are able to sell them, the data center comes through and magically fixes everything. Who knows. I'm still in favor of keeping our options open, so long as movement happens to keep as many options open as possible in the meantime.
Garrett has decided that all of the hardware that is sold (old hardware and CT hardware) will go to the reinvestment fund. Of course, we will start by seeing how many of the CT units we can sell. The plan right now is to start by selling the first 8 CT units, one at a time, on eBay. We will place the starting bid at $8,000 and see how much people are willing to pay. If the new facility in WA is ready when the remainder of the CT units arrive, it may be most profitable to keep them. In a facility with cheap/reliable power, adequate cooling, and 24/7 supervision they should be far less problematic. If all goes as planned, this facility should be housing new hardware by the first week in April.
Our priorities are as follows:
1.) Sell the first few CoinTerra units
2.) Secure the new space
3.) Purchase new hardware
4.) Documentation and transparency: Financial reports, irc interview, google hangout… anything people want to increase transparency. Of course, we will be working on these things whenever there is time to do so in-between the tasks listed above, and transparency is something we will be continuously working on.
Meanwhile, Garrett plans to set up a better way of paying dividends: The plan is to place a 4 BTC buffer in the Cognitive account on Havelock, so that within about 5 hours, funds from the cog mining address can transfer to Havelcok, Havelock can pay dividends, and the balance should always go back to 4 BTC. This way Garrett doesn't have to continue paying dividends from his own Havelock account.
Maybe Asicminer will have gen3 units in-hand and ready to sell in the next couple of months? Has anyone been following them? Their hardware has always been expensive, but they (AFAIK) have always only sold units in hand, shipped quickly, and delivered exactly as promised meaning the ROI calculation is straightforward, reliable, and low-risk. Of course, on the other hand, (at least based upon their share price), gen3 might be vaporware itself and not something to rely upon...
Agreed, but Asicminer's hardware is overpriced.
FWIW, with the slowdown in network size increases, I have been running my 65nm BFL hardware longer than I anticipated and I think COG's BFL hardware will be economical to run for a while longer (the returns are small, but they more than offset cost to run still I believe).
Garrett believes that selling them now will be more profitable in the long run. They have been up for sale on the forum but haven't sold so the plan is to put them on eBay either tonight or tomorrow.
We will keep you updated, and give you links to the eBay auctions.
- Samuel
and the Penalty/Bonus hashrate contract amount continues to grow.