Financials / Tax Return
The monthly financials for November and December 2018 have been sent via the email associated with this post. Please note that these internal statements are not very helpful from a tax perspective; revenue is tracked differently from a tax perspective (due to how IRS treats the income and when it is received) and depreciation is not tracked in the internals.
Scott Grypma, CPA, of Mierendorf CPAs is preparing the tax return and K-1’s. He has all of the information that he needs and has indicated that all tax documentation will be finalized likely in the latter half of February and has encouraged everyone to be patient. The fund has 40+ investors and between
This is a top priority and we are doing everything we can to get these out in a timely manner. The way this information needs to be tracked and reported is quite atypical and thus makes it a cumbersome process. We appreciate your patience.
We continue to sell the Antminers on eBay at a rate of about 10 per week. We are not listing our full inventory simply to avoid flooding the market.
Cave Update / Distributions
The cave continues to chug along. Ether difficulty has recently seen an uptick, which is likely related to the coming Constantinople upgrade. This rise in difficulty has followed a long-term decrease in difficulty associated with depressed prices.
We have been making distributions on a very close to bi-weekly basis as we said we would in November. Please check your Ether Wallets periodically to make sure you are receiving distributions.
We are planning a sweeping cave clean up on February 24.
Over the past few months, the biggest news for Ethereum surrounds the Constantinople Hard Fork. Originally slated for October 2018 and then January 2019 implementation, the upgrade was delayed again due to developers drawing attention to an error in the protocol’s code, which would purportedly allow malicious attackers to drain ETH from smart contracts.
The hard fork should now activate at block number 7,280,000, likely to be processed on February 27th. To read more about the Constantinople update, please see our latest blog post.