Argo Blockchain Share Discussion Threads

[orm5] 03/1/2020 12:48

As the hash rate increases this will be offset by the difficulty rate so that the average block time remains at circa 10 minutes.

[scotty666] 03/1/2020 12:26

No higher hashrates means the share of the spoils is reduced so ROI reduces and high cost miners stop. With halving coming that will amplify the effect significantly

[topazfrenzy] 03/1/2020 12:25

and UP she goes

10p in a month

[hootza616] 03/1/2020 12:20

Of course the rise in hashrate is there to service the expected rise in transaction rate, is it not?So if the hashrate doubles and the number of network BTC transactions also doubles the miners should retain the same percentage of rewards.Is this a logical argument?

[crooky1967] 03/1/2020 11:07

Sorry about the duplicates, PC had a hissy fit.

[crooky1967] 03/1/2020 11:06

I would imagine they would need upgrading every 3 years or so, however if they are still making a profit after 3 years then keep them running.

Just had a look at the specs of some old Bitmain T9's going back to August 2017. Based on our current electricity costs they would still be making $475 per year profit, Therefore if we had 17,000 of these installed 2 and half years ago they would be still be making $8m a year.

I would hope that a certain % of cash that will be made going forward will be ploughed into new machines and some given back to share holders.

The latest machines are being paid back within 5-6 months therefore meaning that they would be generating free cash flow for 24-30 months to be used for new machines and divi's.

[crooky1967] 03/1/2020 11:06

I would imagine they would need upgrading every 3 years or so, however if they are still making a profit after 3 years then keep them running.

Just had a look at the specs of some old Bitmain T9's going back to August 2017. Based on our current electricity costs they would still be making $475 per year profit, Therefore if we had 17,000 of these installed 2 and half years ago they would be still be making $8m a year.

I would hope that a certain % of cash that will be made going forward will be ploughed into new machines and some given back to share holders.

The latest machines are being paid back within 5-6 months therefore menaing that they would be generating free cash flow for 24-30 months to be used for new machines and divi's.

[crooky1967] 03/1/2020 11:06

I would imagine they would need upgrading every 3 years or so, however if they are still making a profit after 3 years then keep them running.

Just had a look at the specs of some old Bitmain T9's going back to August 2017. Based on our current electricity costs they would still be making $475 per year profit, Therefore if we had 17,000 of these installed 2 and half years ago they would be still be making $8m a year.

I would hope that a certain % of cash that will be made going forward will be ploughed into new machines and some given back to share holders.

The latest machines are being paid back within 5-6 months therefore menaing that they would be generating free cash flow for 24-30 months to be used for new machines and divi's.

[john henry] 03/1/2020 10:37

i would imagine in a few years ARBs new installs will be uneconomical and require upgrading. Valuation will depend a lot on how often these machines require upgrading,CapX cost going forward is always going to remain high.

[roddyb] 03/1/2020 10:34

BTC has risen a little but ARB has not.
Noting the relationship of the combination of hashrate, BTC price and installed units - ARB may indeed attempt to keep it's share but at what capital cost?
I think ARB may have entered the circle of having to add machines to keep the mining rate up - these machines bought with it's coin yield - only to have to buy more machines?
At what point is the SH going to see the reward?
Mr Market is far from convinced and even with today's BTC rise - there appears to be more sells than buys...

[topazfrenzy] 03/1/2020 10:28

Bitcoin and Monero soaring, the King and Prince of Crypto

[hootza616] 03/1/2020 10:14

I see the hashrate rise as advanced speculation of the BTC price doubling in May. As we know it takes a fair amount of time to implement these machines and planning a year ahead from May 2019 to be in a good position this year is what has happened, not just here at ARB but other mining facilities.The network is ready for the boom!

[orm5] 03/1/2020 08:59

I recall reading that the depreciation was based on 3 or 4 years, but could have changed as I think that was in the original prospectus

[topazfrenzy] 03/1/2020 08:51

With war in Iran about to take off, buy GOLD and BITCOIN now

[horneblower] 03/1/2020 08:50

Yes, ARB is ahead of the pack just now and may retain that position for many months, even years.

It depends on the speed of delivering the next generation of mining machines and their price.

If the next generation is considerably faster and cheaper, ARB will have to replace their current machines with new ones.

What is ARB's policy on hardware depreciation? I imagine it is to write off the total cost every two years.

[scottman72] 03/1/2020 07:57

In the sort term ARBs share price will fluctuate by a combination of hashrate, BTC price and installed units. The important thing for ARB is to maintain their processing fraction of any hashrate rise. Which they are more than doing at the moment.
By doing this, their profits will align with BTC price which will eventually rise. Currently they are doing the right thing by increasing their share of this fraction. But it also means it will become more difficult to maintain. A doubling of the hashrate means they will need to double their processing power to maintain their market share of mined BTC.
Eventually BTC will rise from the ashes for another bull run and ARB will not only take advantage from this but also a rise in PE ratio as investors try and get in on the profits.
It’s just a waiting game for now.

[parsons4] 03/1/2020 07:32

Scottman72 I agree with the principle but in ARB's situation the share-price is so far out of line that reduced margins will still mean a huge profit. And don't forget the potential rise in price and the reduction of those who can mine profitably. The DOW put on a stellar performance last night but still BTC regained the $7200 level. BTC and ARB is the best story around IMHO also in GOLD look at BMV.

[scottman72] 03/1/2020 06:40

Simples. It means mining profitability goes down, which means share price goes down.
Even though it also means more inefficient mines turning off, this is small in comparison to the lost share price

[hootza616] 03/1/2020 00:30

Why is it a bad thing Riddler?

[riddlerone] 02/1/2020 21:45

Doesn't help hash rate hitting all time high

[blackrolie00] 02/1/2020 19:59

Back down tomo :(

[nw99] 02/1/2020 14:40

About time it moved been a dog

[ragnarr] 02/1/2020 12:19

Quarterly financial updates are perfectly adequate and actually far more reliable as they represent a mean average. Weekly or monthly updates are very misleading and unreliable in ascertaining the long term direction. Last Q3 update was mid Oct i believe so look forward to Q4 in mid Jan.Holding and adding.