Hi creativex,
First I just wanted to say thanks for your hard work!
I have invested more than a year ago if I recall correctly for less than 1k USD and today I have a significant return on investment and collected a significant amount of dividend...
I'm a long term Investor nevertheless I would like to know what is your plan till the end of the year?
We have seen difficulty going up dramatically and our hashing power hasn't move in the last month. So I'm a little worry of the sell off we have seen in the stock... I have every confident it will turn around so I'm buying back lots of the stocks I sold above 0.7!
I believe a few things could help in the short term:
1) Doing a stock split again to get small investors interested and being able to compete with stocks like Labcoin, Activemining etc. (it's cosmetic but people will be more likely to buy a few shares if it's "lower", it's purely psychological)
2) reassure Investors that Basic mining has a plan for the end of the year and for next year (especially when difficulty will stabilize and all ASIC or most are out)
3) Sell our "barely profitable" ASIC mining gear before it rocks bottom!
4) try to increase our hashing power with difficulty (I know this one is hard but we need to increase at least 10% when the difficulty goes up that much otherwise dividend get diluted and impatient investors start selling like there is no tmw)
5) share buy-backs to increase the value of shares still available and reducing supply
Again I know you are working around the clock to make this venture profitable for everyone and I have every confident that you will be successful in the long run
regards,
CAA
Hi cix888. Thank you for trusting me with your hard earned funds.
My plan till the end of the year is to allow the current hardware price war to continue to play out and then to purchase gen2 ASIC mining gear at favorable rates. There are several new vendors coming on the scene in Q4 with 28nm designs and this is driving hardware prices down in anticipation.
Actually our hashing power has increased by 495Gh/s(+52.66%) in the last 30 days. It's just that this increase has done nothing to support the share price due to market perceptions. Please see btct.co news releases for details.
1) I don't see liquidity as a problem currently.
2) I've lain out my plan going forward numerous times, but perhaps a more concise news release could help to reassure those that do not follow us closely.
3) We don't have any barely profitable ASIC gear. Our least effective ASIC gear is a 3 module b2 Avalon that remains profitable for us.
4) This would doom us long term. If we spent large portions of our current resources on currently available hardware it would necessarily be hardware from Avalon, BFL, or ASICMiner. None if this hardware is expected to remain profitable long term. This is why I've suspended such purchases.
5) Share buy backs have been a topic of discussing over the past month+ and something I'm considering.
Thank you, I am reviewing options daily, there just aren't many available at this time as we're stuck between ASIC hardware cycles.
Cheers.
