126,315 BTC! This is how much the new owner of SatoshiDice paid for the famous gambling website, which was recently sold by Erik Voorhees. Translate that into US dollars and you have the amazing amount of $12.4 million.
This means that the holders of S-DICE shares on MPEX now have the right to receive their part: as each share is equivalent to a hundred-millionth of the company, each shareholder is entitled to get 0.00126315 BTC per share.
However, Erik Voorhees is rewarding the shareholders with a larger value of 0.0035 BTC per share. “This is a 277% premium over the sale price and a roughly 175% premium over the current market price of S.DICE shares on MPEX. It is also roughly equivalent to the average price of S.DICE shares at IPO (though BTC was $12 back then, and over $90 today)”, he explains in the public announcement of the sale.
Voorhees knows that some people “will be pleased, and some upset”. However, he believes “this to be a solid, desirable and fair outcome for those who have put their trust in S.DICE”.
“While I know some S.DICE owners intended to hold for a long time, and will thus be dismayed by the buyout, it is my sincere hope that this compensation level will be amenable. It is substantially higher than the contract mandates, and it is almost 3x higher than all private owners are being paid. It has not been easy to negotiate to this level, but I believe it is the right thing to do”, he adds.
SatoshiDice is hugely known in the Bitcoin world, since it’s currently one of the largest businesses in the virtual economy. The website, which has a simple interface and it’s quite intuitive, maintains a number of Bitcoin addresses, each representing a chance of winning. Then, users can send their Bitcoins to an address and get two different results: either receive the amount sent multiplied by a specific number or a micro-payment that confirms the loss of the bet. Once the site was first created, it became responsible for a lot of transactions in the cryptocurrency universe. Soon, it was a pathway for almost half of all operations on the network.