Argo Blockchain Share Discussion Threads

[idriveajag] 07/6/2024 09:34

Bitcoin now over $71k and on its way to $80k, then $100k.

Buy ARB.

[idriveajag] 07/6/2024 09:28

Bitcoin price now above $71k and will go higher.

[jaknife] 07/6/2024 08:39

idriveajag,

"Arb's average costs per bitcoin mined pre-April 2024 halving was $31k, which implies $62k post halving. So with bitcoin now above $71k and rising, Arb are in a good position."

Have you looked at the accounts?

In Q1 ARB mined 319 BTC generating $16.8m in revenues. You can find the detail here:



This also shows that the "direct costs" of mining BTC in Q1 were $10.4m. After all the other costs, ARB lost $2.8m in Q1.

Following the halving, ARB will now generate half the revenue that it did before. That was effectively confirmed this week when the May update reported revenue for May of a mere $2.9m.

See:

Very roughly $2.9m x 3 means that ARB's revenue for Q2 will be in the ballpark of $9m.

It doesn't take much to see that, if all other costs remain unchanged, then ARB will make a a negative mining margin in Q2 of about -$1.4m and should report a loss for Q2 of the order of -$10.6m.

So Argo was in a really poor position before the halving and post the halving it's in a disastrously terrible position. I don't actually understand how the director can carry on running the business? If they were to just turn the machines off then they'd make a better profit (ie a smaller loss).

JakNife

[1knocker] 07/6/2024 08:21

You do not understand costs, pedalcar. You need to take into account capital costs such as depreciation and rig replacement as well as direct production costs.

In any sector there are strong and weak players. Is ARB a strong player? If so, why, if not why gain exposure to the sector through ARB.

That said, i suppose just about any share looks good to someone who has been accumulating QBT irrespective of price in the belief that its shares, current market price sub 1p, actually have a conservative current fair value in excess of 100p.

[idriveajag] 07/6/2024 07:33

Sharetalk I agree.

Arb's average costs per bitcoin mined pre-April 2024 halving was $31k, which implies $62k post halving. So with bitcoin now above $71k and rising, Arb are in a good position.

Arb share price should recover rapidly.

[sharetalk] 07/6/2024 07:12

hTTps://www.ibtimes.com/robert-kiyosaki-says-bitcoin-can-hit-350k-august-slams-incompetent-leaders-3733765

[sharetalk] 07/6/2024 07:12

New Bitcoin support level above $71,000 and rising.

ARB should be mining profitably.

[opposablethumbs] 06/6/2024 15:48

This is a recovery and leveraged play on Bitcoin.

Bitcoin will begin its main rise any day from now to the end of August.

Do not get caught out watching from the sidelines.

[bakedbean] 06/6/2024 13:59

Bailed out on a big loss to get into corz , feel like it's going places unlike Argo

[1knocker] 05/6/2024 23:18

Do make good and sure you have no more staked in ARB than you can afford to lose.

I got out a while back, at a bit over 12. I took a hit, but better half a loaf than no loaf at all. I really cannot see an investment case here.Frankly, even if you are confident that BTC is going up a long way, and the miners are the way to leverage the rise, ARB is not the miner to back. It is small, undercapitalised, has no significant holding of BTC, and is going to run into Capex requirements it cannot afford in order to keep its rigs up to date.

[elushi] 05/6/2024 14:46

BITF was mining 450 BTC a month in March and only mining 150 BTC in May ...

[broomrigg] 05/6/2024 13:26

There's been a halving.....and ARB numbers are down by MORE than half.

[jaknife] 05/6/2024 09:51

drob1,

I'm short and have been for a number of months now. I think that ARB equity is heading to zero and will most probably be zero by the end of this year. But I believe in risk management and so like to try and find what the bulls think.

Do you have an opinion on the company itself? Or can I assume that, given that you want to play the player rather than play the ball, you find yourself in total agreement with everything that I've written in 34,248?

It's difficult to argue with when you actually look at the Q1 numbers and assume that the revenue is half of what it was.

JakNife

[drob1] 05/6/2024 09:26

So why are you here if it is so bad JakNife if ARB is not for you simply move on. But you are here and you are here often which means you are heavily invested and losing big or you really want to invest in ARB and looking for a lower opportunity

[jaknife] 05/6/2024 09:08

drob1,

You're being silly. Putting that aside, the facts are:

* The revenue figures for May are pathetically slim
* (which was completely predictable given the halving that took place in April)
* If you now look back at the Q1 results:



It's easy to see that a halving of revenue means that the direct costs of mining will exceed revenues

* adding in depreciation, operating costs, finance costs, tax, etc it should be plainly obvious that Argo is hopelessly loss-making and cash burning
* Argo was loss-making before but now it is colossally loss-making, incinerating cash on a day to day basis
* And there's a big chunk of bond debt that ranks ahead of shareholders

There is no positive spin that shareholders can put on this, those who are speaking negatively about ARB are simply telling the truth.

JakNife

[drob1] 05/6/2024 08:29

Just remember. Anyone that comes on to a free board like this to trash the company has probably lost big and now sit there very disgruntledSad really but just watch the ones knocking it every day unfortunately for them they are the big losers watching every day hoping for a miracle hahaha

[tia01] 05/6/2024 06:46

I recall reading a few investors owned over 30% of Argo somewhere months ago.
Not sure that’s a smart move.
How is this company burning so much cash and just raised so much and still has a market cap of 50m.
If all stocks were valued like this the stock market would be heavenly

[broomrigg] 05/6/2024 06:38

Still calling themselves "a global leader in cryptocurrency mining"......really?!

[jonc] 05/6/2024 06:38

Should be zero!

[tia01] 05/6/2024 06:36

5m wow
Not looking great

[cool runnings] 05/6/2024 06:31

Market cap of £50m! Wow . Should be nearer £5m

[broomrigg] 05/6/2024 06:06

There we have it, as expected, dire numbers out this morning.

[1knocker] 03/6/2024 21:10

Bad luck robo. I see that no one here seems to know.
An unworldly lot, ARB investors.

[robo21] 03/6/2024 09:48

I have had a sheltered upbringing
Could someone explain what a French tickler is ?

[broomrigg] 03/6/2024 09:00

Sub 10p this week?