Long Time No Update
It has been far too long since my last update to the public. There has been a lot going on between setting up new hosting locations, setting up a very large amount of BitFury equipment, and the usual BTC management with mining and paying dividends.
All of this takes a lot of time to put together, something which a lot of people don't understand. It is very time consuming to set up the amount of equipment I now have in hand, and it takes a while to deliver all of that equipment. Dave has been very helpful through the whole process and I would like to publicly thank him for shipping everything next day air through the whole process, as well as walking me through a couple unexpected errors with differing OSs.
This massive amount of equipment (minus a few rigs I'm setting up today/this weekend) is now all online and will begin the 14 day period on Monday as I will have everything up by then. This will result in a massive payout boost the week of 12/8-12/14.
I would like to thank everyone for being patient through this whole process (some more patient than others) and trusting LRM to pull through.
There is still some hardware on order with BFL (first batch of Monarch's) and I will likely be going out to visit them mid Dec to see how things are going on that front.
There will be a substantial amount of BTC to invest after this 14 day period is over and I will likely be throwing in some coin and USD of my own to increase the purchasing power. I may also be going in on a big order with another individual to see if we can get a deal for such a large purchase. I trust this individual and he is also a large bondholder with LRM but at this time I believe he wishes to remain anonymous. The two of us have been entertaining the idea of different manufacturers to see who we can get the best deal from ($/gh, earliest delivery, guaranty on time, etc.)
The List has been updated here: The List
Hopefully more great updates to come in the near future!
"The List" has been made available here: The List
News Regarding Dividends
Due to issues with people not having THEIR OWN bitcoin addresses on BitFunder, I will be postponing this weeks dividends in an attempt to help give people more time to get their address situated.
This means the dividends due to go out Oct. 19th and Oct. 26th will BOTH go out on Oct. 26th.
Tuesday, Oct. 22nd, I will be freezing LRM on BitFunder and taking the final asset list. At this time I am requesting that all individuals send a signed message in the format detailed below between Tuesday, Oct. 22nd Noon and Thursday, Oct. 24th 11:59 PM Eastern Standard Time.
If you fail to send a signed message via email to email@example.com by the end of the time specified, your dividends will be rolled over to the following week.
Thursday, Oct. 31st will be the cut off for the week following.
If you do not verify ownership of your bonds via this method by Thursday, Nov. 7th, your bonds and accrued dividends will be absorbed by LRM.
I am giving everyone plenty of warning, so make sure your address on BitFunder is one of your own.
Format for signed message must be as follows:
BTC address (must be the address on the bitfunder asset list which is the same one you signed the message with)
Bonds: # owned
Name: (Name on BitCoinTalk or BFL Forums, not your real name)
BTC Address: (Preferred address, may keep the same or change)
Message Signature: xxxxxxxxxxxxxxxxxxxxxxxx
The information in the body should be copy pasted from the signed message to your email, no leading or following spaces other than to separate the message signature from the message. No additional information necessary.
Dividends This Week
I'm going to take the asset list image from 12 noon EST today and pay out dividends based on that list manually this week.
Along with the help of an investor, I'm working on securing an automated payment system for LRM dividends, but for this week and possibly next I will have to pay out manually. This is a task sending hundreds of transactions by hand, so unfortunately I will be charging a small fee until the system is automated. This will be BTC0.025 per individual. If your dividends for the week are of equal or lesser value, you will not receive dividends this week. It appears the amount of bonds you must have in possession is ~20 to receive dividends.
This is not a permanent fixture in the LRM payout system!!!
Once automated, the only charge will be the transaction fees through the bitcoin network (generally BTC0.0005)
If you are curious as to why there were no transaction fees on bitfunder, that is due to the fact that the bitcoin never officially changed hands. The BTC stayed in their holding wallet and the numbers on the website changed.
BitFunder Is Tapping Out
Today, BitFunder posted on their website they are ceasing business in the US. I just wanted to let people know I'm 100% aware of this so you can stop spamming my email. I'm working out the specifics on how to proceed, but I want everyone to know I still plan on paying out dividends. It may just be manually for a little while until I can automate it. There is a reason BitFunder was chosen in the first place. That reason can be found right here: Asset List
I know every address linked to every bondholder and the amount of bonds that person holds. Please just remain calm until I make a further announcement regarding this news. If you wish to sell your bonds on BitFunder rather than hold them, feel free as I will be pulling the last updated list from BitFunder after trading has ceased.
My apologies to all for any inconvenience in your investments, but I can assure you this matter is being handled.
More Hardware Is In
We are approaching the great moment when we pass the originally planned 100MH/s per bond. We are currently running at ~5.15TH with 51,500 outstanding bonds which passes 100MH/s per bond, but only just over 75MH/s is being paid out. I'm working on increasing the hashrate to get us past this point, but it may not happen before the BitFury equipment rolls in. In which case we're going to blow right past 100MH/s per bond.
The Proposition Was Voted and Agreed Upon
The first 2 weeks of dividends will be scooped from the incoming BitFury equipment which will result in a large increase in hashrate over a short period of time. My share will be included in this so there will be a loss of funds generated to pay electricity and rent, the remainder will go to more hardware.
The Great Proposition
My apologies for it being so long since the last update. Yes, Dave is now mining for us.
With the news Dave gave me as to a time frame on receiving hardware, I realized I needed to hurry up on getting the second hosting location up and going. I'm almost ready and by mid Oct it should have a virtual boatload of BitFury gear hashing away in it.
There were two minor hiccups in the last week. One was a small networking issue that I fixed within 30 minutes, but the other was out of my control. For the first time in the many months I've been mining in James' pool, it went down. It wasn't that the pool went completely down, but James was doing upgrades/updates to the pool and it kept flashing off and back on at random when he restarted it. This made it appear that the hashrate went down due to the moving average on the pool. In a few occasions the pool went down for a split second too long and some miners switched to another pool. It appears he is done with the updates/upgrades, but to be sure I split the hardware between BTCGuild (I didn't want to do that) and James' pool.
BTCGuild is far overpowered at almost 43% of the network and the 100TH mine is going up pointed at them which doesn't help. I don't want to help throw them over the edge by pointing more TH at them, so this solution isn't permanent.
I have learned a lot about mining at scale in the last couple weeks and Dave (BitFury) and I have discussed our issues to make sure the other one doesn't run into the same issues.
Dave has given me information that could gain LRM a far greater amount of hardware than originally intended as long as everything goes to plan. There are a few individuals who hold a very large amount of LRM bonds who have all given me the same idea. Although my contract gives no one voting rights, I'm not the type of individual to veto the masses vote. (This is me showing I'm not looking to screw over the public for a few bucks )
This idea states that (and my contract allows for) LRM to mine for 2 full weeks with new hardware without paying dividends from it. What I would do if the public will generally agree to this is use this hardware to mine and scoop up a large sum of BTC. ~5% would be necessary for power consumption and ~5% would be requested as a management fee for setting up hundreds and hundreds of h-cards and getting everything mining in a very speedy manner. The other 90% would go straight into the hardware that Dave can give me a killer deal on.
If you would consider this, it could mean wonders for the company in the long run getting a better head-start.
NEWS REGARDING OTHER MANUFACTURERS
CoinTerra -- VP of sales with CoinTerra and I have been in contact and will remain in contact. We will be trying to work out a deal to maybe get some Dec and Jan equipment. Things looked good when I spoke to him.
If people want my opinion on which 28nm company will deliver on time (or even at all) it will likely be CoinTerra, which is why I'm interested in remaining in contact with them.
BFL -- Their recent announcement to host by the GH is exactly the opposite of my beliefs when it comes to PMBs. If you purchase a defined hashrate, your payout will only continue to go down. My intention is to keep up with the difficulty (to an extent) until it begins to level off.
I hope everyone can understand how much time and effort it takes to put together an operation of this size and can forgive me for not being as public as I used to be.
So Much Hardware Coming In!!!
There has been hardware coming in to the point where it's almost insane. I'm working on getting it all set up which is cutting back on the time I have to post updates and for this I apologize. There is ~2.1TH steady right now with 400GH acting up. I may need to RMA a BFL Single or 2, but I'd like to see if I can get them working stable first.
The hosting location is having additional AC put in place hopefully next week. It is very much needed. Starting to get a little toasty. For this reason I'm moving the BitFury equip to a cooler location tomorrow morning until the AC is installed.
This morning I had 8 Singles and a full BitFury rig come in. Murphy is always trying to make an appearance, so BFL decided to leave out the USB cables on the Single delivery (I didn't have enough on-hand) so I had to rush out to get some cables. This is why the dividends were a whopping hour or 2 late.
There are 2 or 3 sizable deliveries coming in next week that should push the hashrate up a notable amount.
Dave from BitFury believes he'll be ready to point some hashrate at LRM next week from the last I heard, but I wouldn't hold it against him if it was beginning of the following week.
More about BitFury: Soon I will be required to put up funds for a very large deal with BitFury that has been in the works and I'm looking to make it as large as possible to help out the company. This has lead me to look for a way to raise additional funds. I was speaking to a large investor today and he came up with the idea of providing a means for investors to purchase directly from me. This deal will allow investors with some extra coin to get a deal on bonds.
For any individual who would like to purchase direct from me, you may purchase bonds at market average for the day. If you would like to buy 500+ bonds I will give a 5% discount. 1000+ bonds will receive 10% off bonds. and 1500+ will receive a 15% discount on their bond purchase. This deal will give investors a little deal if they are looking to make a sizable purchase, and these purchases will be going toward expanding LRM's incoming mass of hardware. If you are interested in this deal please email me at firstname.lastname@example.org.
Long Time No Update
Quite a bit has happened in the last couple weeks since the last update. On 8/24/2013 there was a dividend payout by my assistant that resulted in a double payout. You will notice that this week the dividend payment was slightly lower. This is due to the fact that a small cut will be taken out over a couple week period to recover some of the additional payout.
The company's hashrate did spike to just shy of 1.3TH on Thurs. 08/29/2013, but due to the fact that the pool has a payout system that requires 120 confirms on blocks solved to grant funds to the individuals in the pool, ~18 hours passed without the company seeing this increase in hashrate. Along with this fact the pool saw a day of bad luck with a 12 hour block. Between these circumstances you'll notice that this week's dividend payout was good, but not as good as next week will be.
There were some additional bonds sold and the price of bitcoin is now skyrocketing, this will allow the company to purchase a far greater amount of hardware than originally expected. I will not speculate at this time as to what the total hashrate per bond will be or the company's total hashrate, but I will say the numbers look excellent for everyone involved.
I hope to see the hashrate pass the 2TH mark this coming week or beginning of next and start gaining some serious power shortly thereafter. Get ready to start seeing some good money going out to investors as everything looks to be going as planned, if not better.
Spike In The Hashrate!
Currently the pool is reading between 610 and 650GH/s... I wonder if that's because a MiniRig was added today?
This weeks dividends may be missing out on the major benefits of this new addition to LRM, but next week should be pretty impressive.
I will be out of town most of the week, but I don't need to be around for the hashing to continue. I have the rigs being watched and the dividends should still be paid out on time next Saturday. If they absolutely can't be paid out for some reason, the dividends will be paid out Sunday night when I return.
This is a huge jump for LRM and I'm excited to see the company go over 1TH soon!!!
First Dividends Being Paid!!!
Within the next couple of hours I will be paying out the first dividends on BitFunder, and I wanted to make an announcement about how this is going to work.
There have been concerns that the bonds I'm still holding (are in the process of selling) will receive a portion of the dividends. I am here to explain why this will not happen. On BTCT.co they have the option to "not pay dividends to yourself," whereas BitFunder does not have that option in place yet, although Ukto has stated it will be implemented. What I will be doing to pay out the dividends is removing those bonds temporarily from the market, deleting them, and then paying out dividends to the remaining bonds. This shouldn't stop anyone from purchasing bonds as it will only take a few minutes to do.
Next Saturday when dividends are paid out, I will not be re-listing the remaining bonds. It has occurred to me that some individuals may choose to purchase a large quantity of bonds once dividends have begun being paid, therefore diluting the existing bondholders dividends. As the hashrate of LRM is rising this could become a reality. To prevent this from happening while still allowing for growth of the company, I will be selling small quantities of bonds at market price until the remaining bonds (out of the 100,000) are sold. This will allow LRM to market regulate. It is important to raise capital and expand without harming those who made their investments early.
The reason I have chosen next Saturday is that it is 1 full month from the day the bonds were listed, and there should be a significant amount of hashrate coming online in the next couple weeks for LRM.
As of right now LabRatMining has reached 122GH/s, but should be increasing each and every week until those large orders are received. This means you will not be receiving a large sum of dividends this week, but the number is going to be increasing significantly from here on out. It has come to my attention that a few members of the community may have misinterpreted what I was saying in that I am promising a minimum of 100MH/s and a likely 350+MH/s per bond. What that statement means is that intended hashrate per bond will be paid out once all hardware is received. I am in the process of securing a significant amount of hardware, so this number should be reached rather quickly.
These next weeks will be very exciting for everyone involved. Thank you to everyone who has helped make this possible.
LabRatMining Official Main Pool Is EMC
Although as of this time it is not visible on the "Top Miners" page, it will be soon. As a backup pool a private pool will be mined in. For any reason that the miner hops over to the backup pool, you will not be losing dividends. They will just be coming from 2 places.
You may find the stats at the Eclipse Top Miners page once the minimum hashrate has been reached.
LabRatMining Is Hashing Away!
Want to follow LRM's progress in securing hashrate and generating dividends for investors?
There will be 2 pools that provide public stats involved in LRM's mining operation. Eligius and Eclipse Mining Consortium. I will be using DGM on Eclipse Mining Consortium and the standard CPPSRB on Eligius to provide short term and long term stability in dividend payouts. Once there is at least 200GH secured I will be load balancing the pools, but as for now you can view the Eligius stats here and the Eclipse Mining Consortium stats will show up here once enough hashrate is secured.
There are some big deals in the works so these numbers should be climbing rapidly.
Disclaimer: If you see hiccups in the Eligius graph, those are from Eligius going down, not the miners. There are backup pools in place so you will receive full dividends.
Dave From BitFury Will Be Mining For LRM
Dave and I just finalized a portion of our deal that I find to be significant. Dave has agreed to, with his own personal hardware, mine for LabRatMining for a minimum of 14 days once the hardware is received. There is a guaranteed hashrate of 400GH/s (one rig), with an additional 100GH/s per $50,000 pledged to his company. As of this time that is in the range of ~3900 bonds. From here on out, every (approximately) 3900 bonds sold will increase this hashrate by 100GH/s that he is mining for the company up to 2TH.
***To clarify, Dave is doing this with personal hardware, therefore it will not affect shipment to any of his customers.***
The terms of this deal that have been discussed can be considered to be "minimums." Dave has proposed that if this deal works out well for the both of us, we may extend the deal past 14 days worth of contracted mining. As of this time it is unclear as to how the mining will take place. We will be discussing whether it will be easier for him to mine and issue the BTC for that hashrate, or whether he can easily point that specific hashrate at an LRM public account for open viewing. Either way the payout will be the same.
There are additional aspects of the deal being worked on, unrelated to the contracted mining, that will sweeten the investment that much more.
Additionally, and unrelated, there is a Single 60GH/s unit on it's way to me at this time with other private deals with individuals in the works (some in the range of 2.3TH.) Dividends will be paid out next Saturday Aug. 10th accordingly on the terms I receive the unit before this weekend. I am under the impression it was over-nighted or next day shipped so this should not be an issue.
Another big announcement is that the first large order has been placed with Butterfly Labs. 3TH has been ordered securing LRM's place in line with them, while the place in line with BitFury is held regardless of paydate.
There are many different ways to secure hashpower, and LRM is taking every one of them to ensure dividends be paid out in the largest amount possible to not only benefit the investors, but the company as a whole.
Initial Estimates Show 300+MH/s Per Bond
More information can be found on the newly added Bond Calculator page here.
Big News About BitFury Coming Soon!
I just spoke with Dave a short while ago. The conversation was an hour long as we had a lot to talk about.
We ran a lot of numbers and spoke about the aspects of such a large set of orders. These orders will carry quite a few benefits to the company, one of which is a live viewing of a working 400GH/s unit. We will be committing to a date for his visit with this prototype to me over the next few days. He will have a lot more information about the specifics of the deal he can arrange for me, as to be fair to other purchasers, and provide the best deal for LabRatMining and each of it's investors.
He will be confirming that I am in contact with him regularly and the fact that the numbers I will be presenting over the weekend are accurate. These numbers show the specifics of the previously announced "minimum of 100MH/s per bond" that was in place to avoid any issues in the event of BTC price dropping or any other unexpected expenses. This number was a very conservative estimate due to the risk factors involved. The numbers I will be presenting, likely tomorrow, are accurate as of current BTC/USD exchange rates.
Expect a lot of big things to happen over the course of the next week as I remain in contact with Dave as well as other individuals with August ship-date BitFury orders and June/July 2012 MR orders with BFL.
Dave and I agreed that putting all of your funds toward a single manufacturer is not a smart move, but BitFury may secure a significantly larger purchase from LabRatMining as it has greater benefits to the company and it's investors.
As a feature of security, BitFury has agreed to "lock-in" my place in line without delivering funds until a working prototype is presented. This is to ensure that no funds are allocated irresponsibly.
Throwing In A Bonus For A Great Opening Day
I have decided to give the bondholders a nice juicy bonus due to such a wonderful opening sale. For every 20k bonds sold I will guarantee a minimum of a 10MH/s per bond increase.
20k sold 110MH/s
40k sold 120MH/s
60k sold 130MH/s
80k sold 140MH/s
100k sold 150MH/s
Those are minimum hashrates and will likely increase once I get to meet Dave. As if LabRatMining wasn't being competitive enough in the market, just had to make the deal that much better.
The first bonds were issued at 8AM Eastern Time as discussed. The initial sale was so large that it lagged BitFunder and spammed BitFunder IRC for approx 200 lines. The company is off to a great start and is getting better by the day.
Thank you to everyone involved. Your support through this launch has been very much appreciated. I have enjoyed reading every message and email.
Big News From BitFury and BitFunder
Today I received some big news!!!! Dave of BitFury has agreed to fly cross country to meet me and present a working prototype of their devices. I will definitely be diversifying the company hardware, the quantity is dependent upon what I see with Dave's presentation. If he presents to me something that I see as a great investment, this could mean a much higher than 100MH/s per bond value as well as a more power efficient company.
This meeting will likely take place in the next couple weeks. Please understand that I will always do what is best for the company and each of it's investors.
For anyone that doesn't know by this point, LabRatMining is now live on BitFunder.com
You may place bids for bonds here: LabRatMining , but bonds will not be put up for sale until Wednesday morning as previously announced. Get your bids in to ensure you get the price you want on these bonds.
Everything Appears To Be In Place
Today I spoke with the company lawyer, I will be meeting with him tomorrow to finalize the documents and terms. I also spoke to Ukto with BitFunder and everything appears to be in place to go public this week. I will be making an announcement and shooting an email to everyone who has signed up for the mailing list with more specific information regarding the IPO. To everyone who has sent an email to me and not received a response, check your spam and/or bulk mail folders. I have responded to every single email within 12 hours and will continue to do so. Please make sure to whitelist the email address email@example.com on your mail service!
Website Gets a Make-Over
Today I had a couple of hours to put together a decent site and it's truly amazing what you can do with a little time. This will make things a little friendlier on the eyes for everyone!
LabRatMining Announcement is Received Well
There have been hundreds of emails and PMs regarding this venture and I'm glad to be reading each and every one of them. I apologize for any sort of delay in replying to your messages as they are numerous and spread between multiple forms of communication. There have been a few questions regarding the IPO price structure. This will be announced with the IPO, but unless there is some massive plummet in BTC price, I will be able to guarantee a price of less than 0.2BTC/bond. Thank you everyone for your positive messages.
LabRatMining is Announced to the Public
After a lot of preparation, Lab Rat Data Processing, LLC operating under LabRatMining, is being announced to the public. An official statement is being released at Bitcoin Talk and at Butterfly Labs forums. You may read the full announcement there. The IPO is expected to take place in the very near future.