Argo Blockchain Share Discussion Threads

[liveit2] 08/7/2019 10:10

yes rag its moving quickly

[ragnarr] 08/7/2019 09:59

hello - anyone watching btc

[idiot441] 07/7/2019 19:19

Zero chance of successful bid at 16p

Founders plus directors holdings near 40%. They are not playing for such gain.

[slicethepie] 07/7/2019 18:56

Why on earth would they roll over at 16p, less than 1 year after obtaining a full listing and having successfully changed strategic direction. Exec share options start to kick in after 12 months and are priced at 16p, they can however be exercised early in the event of a takeover but clearly no gain unless price is above 16p

[liveit2] 07/7/2019 18:52

Sound argument assuming everything remains as is - which is unlikely - The company has the choice for increasing capacity - which is what they will do

they have no control over BTC value - capacity upgrade will compensate the downside and the upside is more revenue -

I think Hive have bagged a deal and they know it - I suspect a reverse takeover more likely than a merger as I think they are more efficient than Hive

[richie666] 07/7/2019 17:40

Like your optimism Nick!

Somewhat more realistic we believe is a merger with HIVE, probably valuing ARB towards the listing price of 16p.

From a fundamental perspective, with the current BTC price, IF it holds will likely generate EBITDA of around £9-11m on an annual run rate. A multiple of 5 times this implies (as no debt) an EV (sole mkt cap) of @ £45-66m. That coincidentally is @ 15p - 20p.

We are now however all in on BTC. Should this hold north of $10k and move on (no certainties) then the EBITDA fig could move materially up.

Good luck. We still hold many millions.

[nico115] 07/7/2019 13:02

Mkt cap 30mProfits of 30m paPe of 1Easy 5 bagger 45p target

[ragnarr] 05/7/2019 17:05

good thought :-)

[geheimnis2] 05/7/2019 15:48

hhahahaha just a thought?

20p by the end of the month?


as you were

G2 x

[liveit2] 05/7/2019 15:43

weekend coming - should I buy bit coins or invest in ARB

decisions decisions decisions

I may do both :)

[horneblower] 05/7/2019 14:26

Bitcoin holding up well.
ARB also.
Looking for 12p here even if BTC doesn't shoot higher.

[fidra] 05/7/2019 09:48

Mining income of £2.5m year end looks a bit low that only about 284 bitcoin a month.the new machines going on line will be doing about that.The previous machine just bought (not the big order of yesterday)must be going to do in excess of 200 per month meantime.

Anyone else any the wiser?

[slicethepie] 05/7/2019 09:47

Who wrote this ?

[suffersnofools] 05/7/2019 09:40

Morning allBought in here earlier this morning. Brought to my attention by savvyinvestor.I like their model.

[maccamcd] 05/7/2019 09:26

ARGO BLOCKCHAIN plc(ARB LN) BUY 5th July 2019 UK-listed Argo Blockchain plc is a fast-growing crypto-mining group, with current mining capacity of up to 14MW in Quebec, supported by multi-year access to cheap electricity that enables the company to mine a Bitcoin equivalent for less than $2,000.  With a strong balance sheet and a highly efficient & up-to-date portfolio of crypto-mining equipment, Argo is well positioned to benefit from the continued recovery in cryptocurrency prices.   FYEIncomeGross MarginPTPEPSPEREV/IncomeDec(£M)(£M)(£M)(p)(x)(%)2018A0.8(0.7)(3.1)(1.07)-7.22019E13.97.65.31.426.31.32020E33.321.318.85.121.80.6 Since going public in August 2018, the company has invested over £13.5 million in the latest, most efficient, crypto-mining equipment - mostly ASIC-based machines that mine either Bitcoin or ZCash – with most of the investments made whilst cryptocurrency prices were well below current levels.  As a consequence, the strong rally in cryptocurrency prices during the June quarter means expected cash payback periods have fallen from 9-12 months at time of purchase to 4-5 months today.  Argo's most popular machine is the Antminer S17 from Bitmain – to date, Argo has taken delivery of 1,809 S17 machines for a total purchase cost of c.£2,800,000, and at current prices these machines now yield gross income of c.£1,161,000 a month.  We expect Argo to bring a further 6,000 S17s into production this year, following orders announced in June & July, including its latest announcement – a £10 million order for 5,000 S17s for delivery by November. With an expanded equipment portfolio, we expect Argo to be generating mining income of over £2,500,000 per month by the end of the year.   Argo's privileged access to the latest Bitmain ASIC mining hardware (both at discounted prices & early delivery) means its mining efficiency is now unparalleled.  As an illustration, the company's Petahash/MegaWatt (PH/MW) ratio, which reflects the amount of mining potential per unit of energy, stands at 21.9x, and far exceeds that of listed rivals, HIVE (4.6x) and Hut8 (8.3x) based on reported figures.  Due to its multi-year energy contract with GPU.one, which secures extremely favourable long-term electricity prices in its Quebec-based mining facilities (below $0.03/KWh), Argo is also now operating one of the most profitable crypto-mining operations worldwide, with a mining margin of over 80%.  Based on current market conditions and the company's current & on-order equipment portfolio, we expect mining income of over £11.0 million in the second half of 2019, using a price of $11,000 USD per BTC) which translates into a group pre-tax profit (after depreciation) of £5.3 million.  We expect the same equipment to yield mining income of over £33.3 million in 2020, implying a group pre-tax profit of over £18.8 million.  This means Argo shares now trade on just 1.8 times 2020E earnings.With listed crypto-miners trading at 1.0-1.3 times the current expected annualised mining income, Argo shares look undervalued, especially given the group's superior levels of efficiency & profitability, which in our view warrant a valuation premium relative to the peer group.  Assuming a year-end liquidity of £7.6 million (cash & crypto assets), an EV/income multiple of 1.5 times 2020 mining income would imply a fair equity value of £48 million, or 19 pence per share, 111% ahead of current levels. This upside is underpinned by a proposed £4.6 million share exchange with fellow crypto-miner, HIVE Blockchain (HIVE CN) that places a value on Argo shares of 11.0 pence per share, 22% ahead of current levels. We are initiating coverage on Argo with a BUY recommendation. 

[slicethepie] 05/7/2019 09:12

Dum question ..can they mine other currencies than bitcoin ?

[liveit2] 04/7/2019 17:10

Crazy market - but I guess its way too disruptive for some to accept that the world is changing - all western governments are worried what it would mean to them - cos they cannot control it -

I have time and patience - let the experts catch up

[idiot441] 04/7/2019 16:33

You know your calcs are right... and the forward p/e is probably 1 yes one!!!

Mkt cap is still under £30m.
My first target £100m

[liveit2] 04/7/2019 16:15

Idiot - can you remind me of our market cap

and how must did we just spend

and please let me know what the PE ratio is

This is a crazy market - with such a disruptive business case - this a crazy market - we will allow them to wake up and then smell the coffee - in the mean time I will chip away as funds allow

[fidra] 04/7/2019 16:14

Interesting that they state the payback time on the machines.$13m for the latest ones take that over a year that is $34.6m profit.add in the ones we already have that’s a further $26.8m approx so free cash of maybe $60m per annum at $11352 bitcoin.say at 7 times earnings market cap 420m$ or approx £336m.

That’s about 13 times today’s market cap.if I am correct in those assumptions.

Today’s market cap 26m£

[liveit2] 04/7/2019 16:07

yes but we are printing it much cheaper as of a few days ago

edit to add - 40% cheaper

[idiot441] 04/7/2019 15:57

Liveit2 we never stopped.
And even better... it's 24x7!!!

[liveit2] 04/7/2019 15:39

btc over 11800 - lets start printing money :)

[idiot441] 04/7/2019 15:31

Stoneme I don't think there are any. Not worth the paper they are written on anyway!

Use the recent RNSs.

I think we WILL see broker notes on coming weeks. Our poor chairman is going to be fighting the calls off!