Argo Blockchain Share Discussion Threads

[brasso3] 03/11/2020 18:15

A few big trades after the bell:-

196,670 at 7.1p (£14k)
290,000 at 7.023p (£20k)

[trentendboy] 03/11/2020 17:35

Sinking in now that we may be seeing dividends or more corporate action

They are cleaning the balance sheet

I can even see someone like RIOT buying them up to get scale quickly

There really have an excellent location (non-US) with cheap energy price for many years

This is really a time when they will fly with fewer Chinese miners to compete with

Perfect positive storm.

Double figures expected

[1new guy] 03/11/2020 15:18

Will this permanent seller be the one who just sold 500,000 cheaply? That won't last very long.

[kcowe] 03/11/2020 14:37

Got my stack over the past few months .... no brainer going forward

[king suarez] 03/11/2020 14:31

^^ ADVFN's biggest de-ramper has (finally) appeared, just like on RMS before it multi-bagged - a welcome sign :)

[justtrying1] 03/11/2020 14:20

Seller is here to stay

[gspanner] 03/11/2020 13:54

Strikes me that the seller has gone...Time will tell! (Not very much time!)

[brasso3] 03/11/2020 13:46

If Biden gets elected I expect gold and bitcoin will be off to the races. In fact I do not see a result that is negative for bitcoin.

[parob] 03/11/2020 13:40

Cup & Handle on the chart, ready to break out once BTC breaks through $14K.

[king suarez] 03/11/2020 12:31

Who knows - wouldn't rule out merger/aquisition activity in the BTC space!

[uapatel] 03/11/2020 12:30

Maiden Dividend or the ability to buy shares back. On the face of it buy backs surely would be better initially, bearing in mind what the IPO price was.

Either way the company is clearly confident on cash generation.

[typo56] 03/11/2020 12:26

In the past when there's been a cancellation in the share premium account I've seen an all share acquisition come along several few months later. Could happen here?

[king suarez] 03/11/2020 12:18

There is an AGM Q&A FAQ on the ARB website:

Is a share buyback being considered?

As part of the resolutions tabled at the AGM, the Company requested the authority to make market purchases of its ordinary shares (commonly referred to as a share buyback). This is an important option to have in Argo’s tool-kit for the Company’s ability to make distributions if, and only if, Argo is able, in this tightening mining environment, to generate sufficient cash reserves beyond working capital and sustaining capital reserves.


Are then any restrictions on the Company deciding to announce a maiden special dividend?

There are several restrictions. There are legal and financial tests that the Company’s financials must pass in order to be able to declare a valid distribution. Beyond those enumerated restrictions, there are practical restrictions to consider. Crypto mining, with volatile prices and increasing difficulty, makes predicting future cash flows challenging. In addition, the business requires sustained capital investment. So if the Company can navigate through the restrictions and be successful in its mining to create value beyond prudent reserves for the future, then the Company would be in a position to consider distributions.


It does appear the company is gearing up to announce a maiden dividend soon?

[typo56] 03/11/2020 12:12

Thanks King Suarez. I've just spotted myself and was about to update. Thanks for taking the trouble to look. Plenty to get my head around here.

Perhaps the purpose of the capital reduction is to use the share premium account to wipe out the deficit? This would presumably permit the company to pay a dividend in the future if it wished. If so, you'd have thought the company might have made a bit more noise about this.

Or is it more in order to dress the company to look prettier for a future fundraise?

[king suarez] 03/11/2020 11:55

Typo56 - I just checked the annual accounts and £2.5m is the Company retained deficit and £5.0m is the Group retained deficit.

ARB is presumably a (main) subsidiary of a larger group?

[hootza616] 03/11/2020 11:45

I would hope that all capital reserves are held in freshly mined BTC. They only need to exchange mined BTC to fiat to pay wages and bills.I would be quite happy to receive my divi in BTC, which would also be a game changer!

[typo56] 03/11/2020 11:45

Sorry if this is obvious but I've only just started looking at ARB and the retained deficit (which is what I assume they are trying to remove in this capital reorganisation).

I notice that in the audited full year results on 29/4/2020 they show a retained deficit at 31/12/2019 of £2.5m

Yet in the interims on 9/9/2020 they show a retained deficit of £5.0m at 1/1/2020.

Have I read that right? How did the deficit increase overnight by £2.5m? What happened?

[sirrux] 03/11/2020 10:40

They may be contemplating replacing capital reserves with Bitcoin, that'll be the day! Possible here, and shareholders may support it. Unlike other mining businesses, there is little or no cost to building a Bitcoin reserve and makes sense if there's a future in it relative to fiat.

[brasso3] 03/11/2020 10:25

I would hope they focus on expanded mining capacity before a divi. If BTC hits the dizzy heights some are predicting in 2021 there may not be much choice but to pay a special divi!

[dennisbergkamp] 03/11/2020 10:15

Hootza,

The minutes should tell us why, I hope! A divi would be a valuation changer, imo

D

[hootza616] 03/11/2020 10:09

I speculate it can only be to tidy things up to clear the way for a divi!I have written to them asking for a copy of the AGM minutes. Only the Q&A is shown on the website.

[trentendboy] 03/11/2020 09:28

I am sure they will want to start paying a dividend.

Still seems the best value for money BTC play in my book (as well as MSTR in the US)

[typo56] 03/11/2020 09:23

The ability to pay a divi often seems to be the reason given for a capital reduction. Presumably it also looks better to newcomers, not having the retained deficit higlighted in the accounts (assuming I understand what the capital reduction means).

[purplepelmets] 03/11/2020 09:15

was hoping for a token divi, not share buybacks but wtfdik