Argo Blockchain Share Discussion Threads

[mnomis] 04/3/2020 20:46

John Henry, suggest a course in accounting or put down some figures on a piece of paper. Surprised by how many people on this board cannot understand that a halving of revenue at a 50% margin means zero margin afterwards (until inputs such as price / difficulty adjust). Mining costs DO NOT reduce, simply because rewards do.

I trust is a minority and that this is priced in.

[supercity] 04/3/2020 20:15

They mined 337.5 coins at £2.54m in revenue at fifty percent works out at £7,500 per coin or £3,750 to mine a coin (multiply by 1.3 to get your dollars) and you are looking at just under $5,000 to mine one coin.From May that means it will cost $5,000 to mine half a coin or $10,000 to mine one - that's as simple as it is based on today's figures.

[king suarez] 04/3/2020 19:56

Not true?

If revenue drops by half, due to the rewards dropping by half, then all else equal (costs being relatively fixed) the margin drops to zero, not 25%?

The machines are still running flat out, so using full electricity costs, and the wages are unchanged - so explain how margins drop from 50% to 25% upon halving, all else equal.

The mining difficulty must change and/or Bitcoin price rise in order for margins to be maintained.

I am invested here because I believe ARB, being (one of the lowest?) a low cost producer will benefit from the mining difficulty being reduced as other miners are unable to make a profit upon the rewards halving unless/until the BTC price rises..

[john henry] 04/3/2020 18:53

Some unbelievable posts on here today, there really are some thick f uckers

[john henry] 04/3/2020 18:51

Basic maths needed mnomis, margin reduces too 25%

[chilly0] 04/3/2020 17:52

It's fair to say BTC will out live ARB. Of course anything can happen

[chilly0] 04/3/2020 17:51

It's fair to say BTC may out live ARB

[chilly0] 04/3/2020 17:50

I stand corrected 2140 for last BTC. Just Google search

[chilly0] 04/3/2020 17:47

2040 is the calulated date for the last BTC to be mined. Granted it will be very difficult to mine as we get closer. currently 18M coins mined out of 21M

[parsons4] 04/3/2020 17:02

Ptolemy are you going to be still around in 2140 then. What rubbish you talk !! I am invested here are you ? if not it is you that should be going elsewhere.

[hootza616] 04/3/2020 16:40

Today's posts are simply a confirmation that most people still have no clue about BTC and mining crypto. The facts are clear if you can be bothered to understand them.Then you can make your own informed decision on investing or going else where, politely.

[ptolemy] 04/3/2020 16:19

You people need to calm down, read what is written, and stop assuming people don't know as much as you.

Now, if you can manage that, go back to post 3363 and explain any statement which is not correct. The cliff edge is when no more Bitcoin are left to be mined and ARBs business is mining Bitcoin.

[stoneme] 04/3/2020 15:58

You have been pushing this message for more than 18 months now.As the share price does not support your statements, care to explain why you are right and the market is wrong?

[benny70] 04/3/2020 15:41

That cliff edge is in 2140 so what worries you?.

[ptolemy] 04/3/2020 15:37

The update is welcome but adds nothing to investors understanding of the value proposition.

It simple tells us what we already know: ARB continues to accelerate towards the cliff edge represented by the remaining three million BTC to be introduced into circulation.

[blackrolie00] 04/3/2020 15:30

Why are you suspicious???

[sf5] 04/3/2020 15:24

Forgive me for being blind, but I see absolutely no evidence for:
"Bear market proof investment, safe haven". Just look at the chart at the top of the page! Of course it *might* evolve to such, but to my mind that's just wishful thinking at this stage.

[roddyb] 04/3/2020 13:28

King Suarez, I too am very suspicious of this company's prospects however as a Quebec taxpayer, I can say the electricity costs are unlikely to rise much as we have the cheapest electricity in the world and ARB entered into a long term agreement here so that price is fixed for the next 3(?) years or so.

[mnomis] 04/3/2020 12:54

Thanks, good to see some logical comments emerging. Antimony, being ignorant is forgivable, but keep the attitude to yourself.

[king suarez] 04/3/2020 12:31

For February £2.54m generated from 337.5 bitcoins mined = average bitcoin price of c$9,600.

If the margin is c50%, then costs were £1.27m? So if the rewards halve, difficulty doesn't change and bitcoin price doesn't change then revenue will drop to £1.27m also - and the company will run at around break-even? Wages and electricity costs are not going down?

ARBs biggest variable cost much be electricity, so unless new machines that are twice as efficient in using energy can be purchased we are relying on either increase in BTC price and/or a decrease in mining difficulty once rewards are halved?

[supercity] 04/3/2020 12:29

Your gross profit calculations don't make senseFor example - if it costs 1m to mine 2m of bitcoin (leaving out all the other business/staff costs) and the bitcoins mined are 200.Then when halving comes it will still cost 1m to mine but you will mine half the bitcoin so it will cost 1m to mine 1m of bitcoin (100)Your gross profit is now zero.Assuming the bitcoin price is constant.

[parsons4] 04/3/2020 11:25

gross margin is the profit after your variable costs so a decrease on t/o of 50% means your gross profit should go down by 50% (of course the margin may drop to say 45%). It is the fixed costs that don't change. This is why my figures are there or thereabouts.

[antimony64] 04/3/2020 11:13

50% of 50% FFS.