We have already shared some insights into Butterfly Lab’s dubious business practices in the post “The Butterfly Promise“. But there’s more to come, BFL has managed to make the situation look even worse!
Butterfly Labs ASIC Chips in Bulk Sale
Butterfly has made an announcement on their forums yesterday:
What they are offering now, are bulks of their chips, not their assembled miners. You will need not only a pocket full of cash but also the capabilities to do your own assembly. Obviously this is only interesting for serious investors and/or established mining hardware experts with too much cash on their hands.
Yet another punch in the face of all waiting preorder customers. A couple of Terra-Hashes in mining power are ready to skip the queue and BFL would stuff their pockets again, before making any real deliveries.
Lets Prepare for Worse
BFL has millions of dollars worth in pending preorders. They may finally have a production-ready chip design and a supplier for it. They may have solved all their power supply issues and temperature problems. They might actually be just ready to go into serious production, but the situation still doesn’t add up. Their assembly line is more of a workshop than anything else.
Out of the blue, they now want to sell off Chips by the hundreds. It’s not too far fetched to assume they might have run out of cash and now need extra funds to start production and expand their capacities. But it’s probably also not too far fetched to doubt their capabilities all together.
Butterfly Labs earned their trust with the community when they manufactured and sold their FPGA devices. We don’t want to suspect a planned scam or any ill intentions behind their initial offering. But the way the story developed and how BFL is conducting business today, we also wouldn’t be surprised if they spent the millions on cocaine and prostitutes in China.
Let’s see what happens next.