Argo Blockchain Share Discussion Threads

[horneblower] 23/1/2020 15:39

Can we assume that btc will go back to touch 6,500 again?
That would be my expectation.
The big bull move will come. Just not yet.

[crooky1967] 23/1/2020 09:24

That was quite poor on ARB's part. Increased capacity to me was more relevant, and would have made a better headline, than the increase in revenue.

[orm5] 23/1/2020 08:51

I did - they said they will correct in the next update. I assume when the next batch of machines are installed - hopefully asap

[hootza616] 22/1/2020 18:51

Has anyone informed them of the typo in the RNS?Happy to do so if no one had done already.

[john henry] 21/1/2020 22:25

Supply / demand in balance will see BITCOIN rise.

[mnomis] 21/1/2020 14:44

Thanks @ ORM5. 380 did strike me as a bit low, so thanks for clarifying (had not had time to look into it too much - was a bit of a nothing announcement). Interesting comments and explanation @Scottman. Bitcoin is a cleverly designed system - at halving, price must go up or mining effort must reduce ... I would expect a combination of both.

[scottman72] 20/1/2020 22:27

Bit random?

[nico115] 20/1/2020 22:12

Feel isn't a risk management process Grow up

[scottman72] 20/1/2020 21:15

They should do as the current RNS is confusing/misleading.

[scottman72] 20/1/2020 20:53

Orm5,
As per JohnHenry quote. ARB confirmed via a tweet I believe, that the current mining rate is 480 Petahash.

[orm5] 20/1/2020 20:51

@mnomis thanks, I had tried to make my own calculator in excel and was getting a different result but one thing I spotted is that I have the capacity at closer to 500 petahash with the currently installed machines. Looking at the RNS, 380PH seems quite low for nearly 14,000 machines given that it also states 17,000 machines will be producing circa 650 PH.Perhaps a mistake in the RNS ? And the states PH should be higher

[scottman72] 20/1/2020 20:41

LOL
That will confuse some expecting Exahash.

:-D

[john henry] 20/1/2020 20:26

At present hash rate of 480 Petahash with an average BTC price of $8000. ARB will be earning around $1.78M per month. £1.37M

Providing total mining hash rate remains around 126 quintillion/hash.

[scottman72] 20/1/2020 18:47

Not sure what all the concern is about. Sounds like there are too many that don't understand the mechanisms behind mining.
From the Q4 report one of the main aspect that comes out is the 52% mining margin. This may concern some. But understand this, as JohnHenry points out this was during a period of lower BTC price. This lowered price has caused the hashrate to flatten/reduce as it has become unprofitable to run some of the older machines.
Argo is probably the most efficient mining facility out there. Not just in terms of efficiency of hardware but also in terms of cost of electricity.
When the halving occurs you can guaranteed that there will be a significant drop in hashrate as the resultant halving in mining profitability will mean that a lot of machines will no longer be profitable to run, but this won't be Argo and they will not end up with a halving of revenue. The reduced hashrate will mean that revenue which may halve initially will quickly increase with those machines switching off.
As we have just been through a period of struggle, I expect the final stabilisation point will mean mining profitability won't be too far off where we are at the moment and Argo will have good profit.

[mnomis] 20/1/2020 18:30

@ orm5 www.buybitcoinworldwide.com/mining/calculator/ and 380 PT = 380,000 TH/s
"The Company's installed machines currently produce 380 petahash". If want to look at power, would divide by factor of 20 (website seems to say 21, but a previous announcement referenced 20) so use 19,000,000 Watts.

[roddyb] 20/1/2020 17:32

FFS, Johnhenry - you ain’t got a ducking clue either. You may read all the RNS’s that are issued but even you cannot predict this one - so back in your box and be normal.

[orm5] 20/1/2020 16:20

mnomis - which calculator did you use pls? And what inputs ?

[topazfrenzy] 20/1/2020 15:26

Bitcoin about to surge big time, I can feel it

[mnomis] 20/1/2020 15:01

As of today, I estimate mining rate of 6.78 BTC per day. Thanks to a trusty calculator out there.

[supercity] 20/1/2020 14:54

Completely missing the point with your hissy fit

[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.