Argo Blockchain Share Discussion Threads

[338] 05/8/2020 10:13

BTC and Zcash 🚀

[amazoner] 05/8/2020 10:07

the interim report next month should clarify the correct figure of cost, margin, depreciation, balance sheet, etc.

[mnomis] 05/8/2020 09:56

PS - and just for the sake of clarity (and balance), in my strong opinion, mining margin quoted is a cash margin. Although depreciation is included in cost of sales (in the accounts), I do not believe that depreciation is included in the mining costs netted off sales to arrive at the stated mining margin of 34%.

[mnomis] 05/8/2020 09:51

@ Stoneme, yes, I check margins / profitability every month and in between months, as do most larger investors. For July, my BTC and revenue calculations were spot on, but I calculated a lower margin (admittedly, I did some rough calcs on Zcash - need to update my model properly). Zcash seems to have boosted margin well, although I would have assumed slightly higher BTC equivalent production.

The bear case was always - what happens post halving and will ARB be negative margin while the ecosystem adjusts. Based on July results and my expectations for the price of BTC, I am very happy holding here, and would expect 10p to be reached later this year, with a longer term target of 25p +. I have no idea whether this tests 4 / 5p again, and don't really care as I am not a short-term trader.

It is always easy to look at historical information to say - this share is overvalued - think Amazon at $300 or Tesla at $250 with sky high P/E's. It is harder, but a requirement for profitable investments to look FORWARD into what a company could look like in 3 to 5 years!

[brasso3] 05/8/2020 09:27

Proactive
@proactive_UK
·
1h
$ARB Argo Blockchain boosts mining margins in July via
@proactive_UK
@ArgoMining #ARB

[amazoner] 05/8/2020 08:55

wakey wakey plat will be here all day. argo will turn to blue

[kcowe] 05/8/2020 08:49

Plat Hunter have you nothing better to do? which companies of merrit you invested in?

[plat hunter] 05/8/2020 08:47

Must have been BMN then... Your name and stupidly is very familiar, forgave me.When I have more time I'll dig out some of your more retro classic posts

[338] 05/8/2020 08:43

I can understand on your skepticism... but think it more positively that the profit can still grow significantly... and the company can generate enough cash to further growth organically (i.e.buying more advanced machines, software etc)... I will start worrying if the debt keeps going up... but it is not..

[338] 05/8/2020 08:36

I don't think the purchased 750 Bitmain Z11 mining units, for US$474,000 in June, has fully contributed revenue as expected yet.... because the investment is expected to get fully repaid in 8 months...

[stoneme] 05/8/2020 08:30

So guys had anyone checked the revenue, margin and profit between Feb and July?What is good about these results? Please help me understand your assessment.For me they are spending more case, to generate lower revenue at lower margins. .Ok. Someone will say did I miss halving. Well, I can see ARB now mine half the amount of BTC at higher costs than Feb, so I guess that is halving for you. Is BTC twice the price. Well no.Sorry , I relain a skeptic , who will grade for punt money of it looks over sold. I do not short. If I did, I would short from 6p. This is not going anywhere anytime soon.

[seball] 05/8/2020 08:26

Just a reminder that market is not valuing Argo correctly.

COURTESY OF Sniffer78 LSE
Huge disconnect on price .

ARB PH rate 730

Total dissconnect conpated to its competitors

Nearly $100 MCAP and only 56 PH rate, even when all machines come only in Q4 it will only have half the PH rate of ARB madness.
hxxps://www.marathonpg.com/


Just shows the magnitude of price disconnect here .

$100 =£76 million market cap equivalent for us .

We currently trade on a £17 mil market cap. Just shows how ridiculously cheap the current share price is.

[338] 05/8/2020 08:25

It will be good to know more detail on Zcash mining performance 👍

[orm5] 05/8/2020 08:18

825k GBP to mine 165 BTC eq - that's a cost of 5000 GBP per BTC eq. It appears they have adjusted the machines to give the best margin give the low total monthly cost and Zcash has had a good contribution to the margin achieved in month.Would expect to see August with a higher revenue and similar if not slightly better margin

[hootza616] 05/8/2020 08:17

All that matters for long term profits to be secured is our margin compared to other miners.If the BTC price falls, less profitable miners will fail first, leaving more coins at lower difficulty for us.As long as we stay efficient the future is guaranteed.

[338] 05/8/2020 08:17

that's wrong plat.... the depreciation has been included in the cost of sales.... Also the annual cost of admin is also low.... we all know the annual average price of bitcoin can only go up.... I want to hear the longer-term strategy on how to use the cash

[plat hunter] 05/8/2020 08:02

Exactly what I said all along... Margins not big enough to cover the volatility of bitcoin.Only a moron would buy this for the future, you could get wiped out here by the bitcoin price in as a little 5 days on a turn in trade alone.Toss a coin, heads buy, tales sell....That's as a nuanced as this gets.

[imnotspartacus] 05/8/2020 07:52

It's a money machine(s)!

[brasso3] 05/8/2020 07:25

£1.25m / 165 BTC (equiv.) = £7,575 ($9,700) per coin.

At $11,000 per BTC we should be looking at $1.81m (£1.4m) revenue for August.

[aidenabettin] 05/8/2020 07:23

Have they been asked to sell it?

[ilostthelot] 05/8/2020 07:20

Hope I am wrong but I think the market will sell this news.

[aidenabettin] 05/8/2020 07:20

$BTC rising fast $11300.Dont forget $BNB

[plat hunter] 05/8/2020 07:18

Esqctly k owe... now you're getting it

[brasso3] 05/8/2020 07:13

Productivity down but margins up and more importantly BTC is 20% higher in August. I am not here for July revenue/ profits. I am here for the profitability when BTC moves beyond $20k.