Argo Blockchain Share Discussion Threads

[aidenabettin] 01/5/2020 07:01

They are confident and buying new equipment but real growth will come through M&A and diversification of portfolio imo

[aidenabettin] 01/5/2020 06:55

ARGO could also build a portfolio similar to RIOT. hTTps://www.riotblockchain.com/portfolio.Just some thoughts as this is a very fast moving sector

[aidenabettin] 01/5/2020 06:51

I think M&A is the way forward for ARGO as organic growth is too slow unless BTC really rockets. hTTps://www.coinmint.one/.[C]oinmint operates the largest digital currency data center in the world,.But even they have gone into a collaboration with Riot.'The partnership comes amid thin profit margins for many United States-based mining companies resulting from the mid-March crypto market crash.'.Even the largest operations are coming together..It may be a way for ARGO to get to the next level in the shortest timescale

[suffersnofools] 01/5/2020 06:18

What are you talking about?!We run antminers, they are excellent and even in 2 years time will still be very efficient. The speed of improvement in mining kit is slowing, now that ASICs have become so application optimised. Argo will no doubt buy faster machines as they become available but the S19s will still be more efficient than 90% of competing miners. Then add in Argo's much cheaper power costs compared to peers and the petahash per megawatt is still excellent. The only potential issue down the line is if quantum computing is applied to mining, Google are at the forefront here....

[scotty666] 01/5/2020 04:33

You can still run the old machines they are just less efficient. S19 are only just released so assume will be a while before S20 pops out.

I think last year ARB switched S17 for T17 (or the other way around), the T17 was less efficient but they got double the machines for less overall outlay and net net higher output and better ROI

S19 rock but they are not cheap

[horneblower] 30/4/2020 23:36

It seems to me that two years is too long. If you cannot afford to run inefficient machines and they cannot be used for anything else then they have to be totally replaced at least every two years.
When will the S19 be replaced by the S20?

[aidenabettin] 30/4/2020 21:49

The Bitmain Antminer S19 Pro boasts a hash rate of 110 TH/s and an energy efficiency of 29.5±% 5 joules per terahash (J/TH). Once the new S19s are received and fully deployed, Riot estimates its aggregate operating hash rate will increase by 46% to approximately 358 petahash per second ('PH/s'). Riot anticipates receiving the S19s by early July.

[aidenabettin] 30/4/2020 21:47

$2.4M investment .Riot Blockchain announces purchase of 1,000 next generation Bitmain S19 Pro Antminers.What do we know about Riot?

[mcfly79] 30/4/2020 21:44

It's 3 years for computer equipment:

'Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their estimated useful lives of 3 years in the case of mining and computer equipment and 5 years in the case of the data centre improvements, on a straight line basis.'

I ignore it anyhow, it's a sunk cost. imo the only way to value a company like Argo is future cash flows (including future capex).

[suffersnofools] 30/4/2020 21:36

3 years is about right.

[horneblower] 30/4/2020 21:21

Surely not!

[whoppy] 30/4/2020 19:13

ARB are working on 5 year depreciation.

[horneblower] 30/4/2020 18:35

Depreciating the machines over three years sounds like a short time. However, in two years time they will all be out of date with no resale value. They will all have to be replaced with the latest, fastest machines. Three years is too long. Make it two years or even less. If BTC goes up it won't make a huge difference to the profitability and will satisfy the institutional investors.

[aidenabettin] 30/4/2020 18:24

Organic growth will be very slow. How long before machines become obsolete?.Big dip again down $1k.Wild swings

[sunnysideup1] 30/4/2020 18:11

aidenbettin

they would only be buying old machines. why would you want to that. Stick to plan A. build and buy own platform. but as they said they want to focus on running what they have built already. for now anyway.

[roddyb] 30/4/2020 17:23

For the first time Topaz, I agree with you. I have been in and out on this one - I don't believe the long term story because the shareholders are unlikely to be rewarded when that money can go on the core team and buying more machines ad infinitum.

I bought back in with a small holding two days ago as well. Trying to ride the coat tails of BTC but the lack of correlation is disappointing.

[topazfrenzy] 30/4/2020 15:49

Buy Monero, Stellar and Dash folks, that's where the serious money will be made in the next parabolic phase

x50 to x100
maybe more

[suffersnofools] 30/4/2020 15:26

Then factor in the 4m lost BTC....

[aidenabettin] 30/4/2020 15:25

And only ever going to be 21M.New$ can be printed at will and still discovering Oil,Gas,Gold and other metals.But only ever 21 BTC.

[yump] 30/4/2020 14:47

Last point very true - won't really know how good the competitors are until well after halving.

Other bit I can't really get is what effect the reducing number of new bitcoins has at each halving. Something like 88% have been mined. So if they're being stashed up like gold and not in circulation... ? Increased scarcity as well as 'safeness' ?

[king suarez] 30/4/2020 14:45

Yes, the cost of sales @ $5.5m = depreciation ($2m) and hosting (£3.5m) for 2019.

That 42% margin rate for March 2020 was based on the price of BTC at that time, though - 333.8 coins mined, generating £1.8m ($2.25m) means average BTC price was $6,740 so the running cost for March 2020 will have been 58% of $2.25m = $1.3m or £1.04m

Annualised is £12.5m cost of running all machines (inc depreciation) - that tallies approximately with my guestimated hosting cost + depreciation?

So annualised cost of £12.5m + say £2.5m admin/overheads = £15m revenue for break-even I worked out.

[stoneme] 30/4/2020 14:35

I agree. Although it is the unknown , as is what BTC price does at and just after halving. What I doubt is machines being turned off immediately. A war of attrition no doubt. IF ARB are the most efficient, they will be able to benefit. How long that takes, and whether their claims about their efficiency stand the test remains to be seen.

[yump] 30/4/2020 14:29

Can't see why difficulty would double, if everyone got half the revenue they were getting, there would be almost certainly be a decrease in miners and therefore at the same difficulty level, with the same computing resources, a drop in transactions.

That would mean difficult would drop, to maintain transaction volume surely ?

[stoneme] 30/4/2020 14:23

They include hosting and depreciation in cost of sale quite rightly IMOIn their March update they highlighted 42% mining margin.So 15m revenue would generate a mining margin of 6.3m. I think you are about about with admin expenses which should go down rather than up, due to changes. BTC mined, at your annualised 4k delivers 28m revenue, and, assuming their 42% holds, mining margin of c. 11.6m. Apply the non direct overheads, say 2m, I get to my 5-6m profit.Halving, million dollar questions. Does difficulty double, does BTC price remain static.