Bi-weekly

report Discovery
Summary This is the third report for Discovery. Where we said in the last report that it had been an hectic time, the past two weeks were even worst. After the BTCT.co announcement, Bitfunder announced October 8th that they would close down for USA investors as well. All non-verified users were not allowed to enter new positions and could only sell their holdings which most of them promptly did. Along the lines all assets dropped in value. Below a few examples:
Stock Value Oct 8th Value Oct 23rd % difference G.ASICMINER-PT 1,08 0,56 -48% Great.Loan 0,01 0,007 -30% Ukyo.Loan 0,00989 0,0072 -27% ActiveMining 0,0014 0,0006 -57% Addiction 0,0076 0,0031 -59% NEOBEE 0,00289 0,00225 -22% TAT.ASICMINER 0,0111 0,005 -55% Kenilworth 0,00162 0,00035 -78% RentalStarter 0,0255 0,00841 -67% IceDrill.ASIC 0,00105 0,0007 -33% btcQuick 0,00035 0,00005 -86% Average -51%

Especially USA issuers have taken a big dive. Also some assets have been frozen in order to move to another exchange. Amongst these BTCInvest and LabRat. The main goal for Discovery was to make profits out of daytrading and dividends. Whilst maintaining a respectable NAV. Unlike the closure of btct.co, the announcement on Bitfunder caused NAV of the complete asset to drop. Mostly because of the tremendous volume drop it has been very hard to trade at all, let alone at a profit. Weve seen a few small opportunities but nowhere near what weve seen earlier. We have not been able to maintain the NAV of the asset the past two weeks. Weve been forced to sell some positions at a loss (mainly positions for which we believe converting to direct shares will never offer any ROI anymore). The added value started at -10.60% and ended at -31,11%. Daytrading ended up with a loss of -3,67% (which was 11,86% at the start of this period) due to selling positions at a loss. Dividends are doing quite well however, causing the total profits to be -0,23% (was 12,07%). Current NAV of the asset is 108,73765862 BTC which translates to 0,00753187 per share. We dont expect this number to improve very soon. BTC securities need to stabilize first. Since some of the assets will not be publicly traded anymore but seem to have more value than the current liquidation we are reluctant to sell any more shares at this point. The 8-week rolling average for div calculation remains 129.96401309 (Last reports NAV after divs and mngmt fee). There is no performance fee nor dividends this period.

Below youll find three graphs representing the most interesting figures. Below each graph the numbers are explained. Dividend and costs As described in the assets description dividends are determined as follows: Gross profits is determined every two weeks by calculating NAV of the asset. The difference in NAV over the two-week period is the gross profits. 4% of gross profits will be used as a management fee 21% of gross profits will be reinvested in the fund the remaining 75% of profits are net profits distributed dividend. For this report start NAV is last weeks NAV after dividends and management fees (130,47425461). NAV Start 130,47425461 NAV End 108,73765862 Gross profits -21,73659599 Management fee 0,00000000 Dividends 0,00000000 Dividends/share 0,00000000 Outstanding shares 14437 NAV current 108,73765862 NAV current/share 0,00753187 Future of Discovery The positions we currently have turned into long positions. This means we need to find new markets in order to start daytrading again. We considered closing down discovery completely but that would simply cost to much. We expect these shares to gain value in the long run again. We will try to find new opportunities of course to regain NAV as fast as possible. We use our current cash position to put up a relatively large sell order at 95% of NAV (approx. 1200 shares). Due to the instability of the security market we will not issue any new shares for now. If you want to sell beyond our current cash position please let us know through PM or E-mail. Direct Shares Weve been asked by a number of people if we are going to offer direct shares. We will offer those on the following terms. To receive your shares as direct shares follow these steps. A list of private shareholders will be included in the bi-weekly report from now on. 1. Transfer your shares to the DISCOVERY account on Bitfunder (account name is DISCOVERY) 2. Send an email to discoverybtc@gmail.com containing your: a. Bitfunder username b. Number of shares transferred c. BTC address to be used for dividend payment and private share administration Important! Only use a BTC address with which u can sign. This is needed in order to sell or transfer your shares later. Issuing new shares No new shares will be issued.

Investments
Bitfunder 140.00000000 120.00000000 100.00000000 Astitel 80.00000000 60.00000000 40.00000000 20.00000000 0.00000000 9.25120779 108.73765862 99.48645083 Other Non-invested Total

Total: The NAV of the complete asset Bitfunder: The amount invested on Bitfunder Non-invested: The amount currently not invested (outstanding orders for example)

KPI
Total Costs % 20.00% 10.00% 0.00% Astitel -10.00% -20.00% -30.00% -40.00% -50.00% -30.80% -32.45% -0.23% -1.42% Total NAV % Total proeits % Total added value %

Total profits: profits made by trading stock Total NAV: increase or decrease of NAV compared to BTC raised Total costs: trading fees Total added value: the value of bought stock Dividends are such a small part of the whole that we havent added them yet to the KPI graph.

Net Asset Value

BTC Raised 155.00000000 144.37000000 145.00000000 135.00000000 Astitel 125.00000000 115.00000000 105.00000000 95.00000000 127.80196041 118.26980952 108.73765862 Total Bid Total Avg Total Ask

NAV is calculated based on bids. This graph shows the NAV based on both the average and ask prices, as well as the total amount of BTC raised. As you can see at times there is a huge spread between bids and asks. Using bids ensures were on the safe side with our reports.