Argo Blockchain Share Discussion Threads

[stoneme] 20/1/2020 13:55

IndeedAlso they changed their accounting policy to cash in faster - So one has to assume the revenue generated was immediately converted to cash.That being the case, interesting their did not offer any reference to cash conversion. It remains all smoke and mirrors, with bullish statements without numbers to back them up.

[horneblower] 20/1/2020 12:25

I assume what they call margin is the sales from mining one bitcoin divided by the variable costs of mining that bitcoin. This has gone down mainly due to the price of BTC, not from increases in the variable costs.

[supercity] 20/1/2020 12:18

Surely the most concerning thing that has failed to get a mention is the margin dropping significantly to 52% which is just the mining costs (what about all the other company outgoings) which means that if it currently costs 5m to mine 10m of coins then when the halving comes if bitcoin hasn't rose then it will not be viable to continue mining.Bitcoin price has to rise by the time the halving comes and has to remain there for mining to remain a worthwhile business - and no one knows for sure if this will happen.In simple terms that's how it seems.

[barnetpeter] 20/1/2020 11:49

Sold some today at 7.2 for a good profit. Very decent results but so difficult to value this company. Btc is very volatile and we will see the halving soon. I see good profit this year for Argo but the mkt cap is substantial too. A lot of ramping here at the moment so I have cashed in some ...not all...good luck holders

[crooky1967] 20/1/2020 11:25

The 10,000 T17's are costing $951 each and should be paid back within 5-6 months. Providing that they can be run for 5 years they should be generating free cash for 4 1/2 years.

According to Bitcoin calculators they should be producing 214 coins a month.

These have all already been paid for out of cash reserves so anything being produced going forward can go towards new machines and possibly dividends.

[whoppy] 20/1/2020 11:20

The machines print money 24/7. The longer they last the more money they can print and the bigger the yield. $$

[horneblower] 20/1/2020 11:11

I don't think how long it could last is relevant here. It's how fast it is that counts.

[whoppy] 20/1/2020 11:07

The new machines use less electricity and have better cooling, and processing power, so not only will they pay back quicker but they will last longer. My laptop is 12 years old and on every day, all day, and it still works perfectly.

[king suarez] 20/1/2020 10:59

Depreciation of machines in the accounts is 1/3 per year - so assumed 3 year life - though I read an interview suggesting BOD believe latest machines should be economical up to around 5 years...

[horneblower] 20/1/2020 10:56

How much is each Bitmain Antminer T17 machine and when will they have to be replaced in order to keep up with the competition. Will they have any re-sale value?

I imagine the answers to these questions will be influential to ARG's future success.

My guess would be £300, 12 months and zero, but am probably miles out (producing a depreciation charge of about £5M pa).

Can anyone help on this?

[yump] 20/1/2020 10:25

imo if you can't explain how ARB makes profits and what will make them rise or fall, to a friend, who knows nothing about blockchain, you shouldn't be investing here.

I think I've 50% understood it, so just a small investment at the moment.

Its like reading a brief history of time, you read a couple of chapters, think you've got it and then a paragraph appears that makes you go back to the start !

[ragnarr] 20/1/2020 10:17

talk about stating the obvious - of course ARB is directly linked to BTC price and BTC practically halved Q3 to Q4 so surely its no surprise that revenue fell in Q4.Since those figures another 6375 machines have bern installed - effectively doubling capacity - and another 3500 in the process.Still way under valued imo.

[john henry] 20/1/2020 10:00

Roddyb unfortunately just another poster thats done zero research and hasnt a Ducking Clue.

[roddyb] 20/1/2020 09:49

-yes, all the ramping I have read on this BB concerning ARB and still the reality is dominated by the difficulty rate seeing our mining production merely tread water. In all this time no dividends and more importantly when we plateau at 17,000 machines - the revenue rate in BTC will decline unless we buy more and more, thus repeating the cycle.

Nice ride from 5.7p to 7.3p but I’m out (again).

“the dinosaur”

[orm5] 20/1/2020 09:20

Recalibrated my forecast calculation based on the latest results. £7 to £8m revenue for Q1 ?

[gtaval1] 20/1/2020 09:13

The post was relating to PE. It was not negative for Argo's prospects.

[gtaval1] 20/1/2020 08:26

Impossible to predict a 2020 PE for this. Bitcoin price has a large effect on their profits and is obviously volatile.. Who knows where the coin price will be in 2 months. Or 4 months.. or 1 week...

[purplepelmets] 20/1/2020 08:24

yes, and not to mention the main event this half which is the halvening and huge media coverage of all things BTC around that time. Still seems a no brainer to me.

[parsons4] 20/1/2020 08:23

What a useless few posts, ARB price rising, making profits and S...L... doesn't like the business model and topaz... suggests putting money directly into BTC!! what planet are they from !!!

[john henry] 20/1/2020 08:21

FY profit of around £2.8M giving a PE around 8. i expect FY 2020 profits to come in around £5.5-6M giving a forward PE of 3.5 - 4.

Cheap imho

[purplepelmets] 20/1/2020 08:17

After 2 years of trying and failing to verify my exchange account, I give up on it and bought here for ease and simplicity. Sick to the back teeth of holding up passport next to my face and sending off selfies and bank statements for it to be rejected time and again. F$%^ them

[topazfrenzy] 20/1/2020 07:55

Anyway, no chance of a dividend with these decreasing figures, best to stick your money directly into Bitcoin (or other cryptos) at this stage

[stockport loser] 20/1/2020 07:35

Agree, I looked at this in December, but I just don't see a decent business model here, all I can see is when Bitcoin half's so does revenue - the anticipation that Bitcoin will double in price is far to risky.

[stoneme] 20/1/2020 07:35

On 2nd July they declared they expected to mine 161 BTC in June! That would be 483 in Quarter without new machines. They release this statement with bullish style yet fail to address the thousand questions which must sprint to mind.Smoke and mirrors