Argo Blockchain Share Discussion Threads

[broomrigg] 29/8/2024 08:51

SELL ARB ASAP, read the report, especially the bit about ongoing concern that's buried lower down in the blurb. Too much was paid for the 9%, ARB did well to get that done at 11.25p. Bonkers whoever paid that. Another option over another 9% at same price. More dilution if the shares do ever get moving. Bitcoin needs to be at least 100k usd for ARB to be viable but then after that their fleet is old and maybe soon homeless and need special water-cooled facility etc etc etc.SELL.

[jaknife] 28/8/2024 15:29

The price of the bonds has fallen 7% today, they now trade at $9.31, which is 37% of par ($25), indicating significant financial distress:

[horneblower] 28/8/2024 14:08

"and the year end Bitcoin price is likely to be a lot higher"

...or a lot lower.

The current formation is quite strongly bearish, with falling highs and lows over the past six months. Support at $42k and $25k is looking attractive.

There is scope for a rise to $69k but it will have to be quick, as that resistance line is dropping. It will take a lot to break through, so the days of $70+ look over.

[sharetalk] 28/8/2024 13:54

As said before Armistice Capital have just taken a 9% stake in ARB and the year end Bitcoin price is likely to be a lot higher.

[jaknife] 28/8/2024 13:47

The BTC price needs to increase by c. 50% just for ARB to break even! It needs to increase by significantly more than that for them to make a profit.

And even then they explicitly warn in the accounts today that they may not be able to renegotiate their lease at Helios (shouldn't be a surprise as Galaxy have indicated that they want to pivot away from BTC and instead shift to AI). It could easily be game over for ARB from 31 Dec this year.

Given that ARB has been a perpetual loss-maker since it first listed, and hence it needs to place to raise funds on a regular basis to cover those losses, I am amazed that anyone thinks that it's a sensible investment!

It's a total dog heading to zero!

JakNife

[sharetalk] 28/8/2024 13:33

That's just being silly. The higher the Bitcoin price, the better for ARB. I think we will see Bitcoin $70k within weeks and $90 - $100 year end.

[jaknife] 28/8/2024 13:20

The price of Bitcoin is completely irrelevant to ARB if you read today's interims:

1. They made a $9.3m operating loss just from running the business of mining bitcoin. Just to break even the price of BTC would need to increase by c. 50%!

2. Post tax that loss ballooned to $32.4m

3. The bonds (ticker ARBKL) trade at 40% of par indicating significant financial distress.

4. The balance sheet is technically insolvent to the tune of - £20.3m

5. The accounts are qualified, there is a “significant doubt regarding the applicability of the going concern assumption”.

6. It could all be game over come 31 Dec as that's when ARB's lease expires at Helios and they note that they may not be able to renew the lease on commercial terms.

All in all it's a complete and utter dog that is heading to zero!

JakNife

[zydecoco] 28/8/2024 13:14

"In August 2024, the Galaxy loan was repaid in full."

[sharetalk] 28/8/2024 13:01

Armistice Capital have just taken a 9% stake in ARB and the year end Bitcoin price is likely to be a lot higher.

[sharetalk] 28/8/2024 12:56

I think Bitcoin will soon move up to $70k.

[zydecoco] 28/8/2024 06:36

Yep, always helps to zoom out

[martywidget] 28/8/2024 06:32

BTC and the BIGGEST CUP & HANDLE IN CRYPTO HISTORY!
Yesterday


May 16, 2024
Bitcoin ‘could’ consolidate for ‘4 or 5 months,’ but big cup and handle looks promising — Analyst

[zydecoco] 25/8/2024 22:19

Enjoy the ARBank Holiday all

[tenapen] 17/8/2024 04:53

City chappy, sharetalk and tell sid will be back with another 100 bagger. With their many followers! I'm sure we won't have to wait long to find out !.

Well done 1 knocket for challenging them..

A good weekend All.

[1knocker] 16/8/2024 18:48

QBT down another 7.5% today, on top of yesterday's 22% drop.

Beware any dead cat bounce, except to take advantage of it to offload any QBT you have the misfortune to hold.

[1knocker] 15/8/2024 08:57

I hope no one was so misguided as to follow the buffoon advice to sell ARB and buy QBT.

The QBT share price has fallen through the floor this morning on the release of its latest operational update.

[1knocker] 14/8/2024 08:07

If you mean rigs, the answer is yes, if only it had the ackers. Presumably the game plan is to pay down debt to strengthen the balance sheet and then to raise more equity capital.

[robo21] 12/8/2024 18:13

Should Argo be buying new miners ?

[qs99] 12/8/2024 14:57

Could be an interesting H2 IMO, I sense with the USA GE coming up, will we see a surge if Trump or Harris wins? Anyone got a view on how +ve or not either are?

also the 12 months following halving stats from history, from a few things I have seen, please DYOR, look bullish if it follows the same pattern this time.

Let's see....DYOR as ever

[sharetalk] 12/8/2024 07:01

It means ARB have completely repaid the $35m loan ahead of schedule and are thus now free of the $440k monthly interest repayments. Armistice Capital have just taken a 9% stake in ARB and the year end Bitcoin price is likely to be a lot higher. Looking much better now.

[mirabeau] 12/8/2024 06:09

Does this debt retirement completely clean up the balance sheet?

[sharetalk] 09/8/2024 07:23

Armistice Capital have just taken a 9% stake in ARB and the year end Bitcoin price is likely to be a lot higher.

[jaknife] 08/8/2024 10:54

BTC and the price of BTC is completely irrelevant to Argo's prospects, which are dreadful.

Argo reported that in July they mined 48 BTC:



However, if you compare this to how much BTC they mined in July last year:



^^ they mined 129 BTC.

Mining revenue in July 2024 was $3.0 million whereas it was $3.87 million in July 2023, so it's down 22.5%.

Last year Argo made an operating loss of $19.4m and a total loss after tax of $35.8m:



If you run the numbers based on a 22.5% fail in revenue you will see that Argo must now be making a horrendous operating loss of c. $30m per annum (run rate), a humungous loss after tax of c. $45m and is also making a loss at the gross profit level of about $6m per annum.

There is also the issue that Argo's hosting agreement with Helios expires at the end of this year. As explained in this RNS from December 2022:



It will be lights off time in December this year!

That's probably why Argo's bonds trade at a mere 38% of par, which implies significant financial distress:



ARB's equity is heading to zero!

JakNife