Argo Blockchain Share Discussion Threads

[suffersnofools] 03/12/2020 10:50

LTC leading again +4%

BTC should follow.............

[king suarez] 03/12/2020 10:20

There was also one less day in November than October.. that's a few coins :)

[brasso3] 03/12/2020 10:05

By February/ March ARB will have a larger mining capacity than HUT8.

ARB (now): 645 PH/sec
ARB (Feb): 1100 PH/sec
HUT8: 1031 PH/sec



HUT8 market cap is 3 times that of ARB.

[topazfrenzy] 03/12/2020 10:00

ps: that was a great update, only idiots cannot fathom this

[suffersnofools] 03/12/2020 09:53

Geheimnis23 Dec '20 - 09:49 - 8318 of 8320
0 0 0
And they are moving back to a presumably much lower margin mining as a service contract...

They've announced hugely increased margins this morning.

IF you don't understand the business model, and what factors are at play, why are you invested here?

[suffersnofools] 03/12/2020 09:52

It's pretty clear isn't it? They bought equipment but they've now got a better solution through leasing. So presumably when the purchased kit goes end of life then they will lease additional kit. Makes perfect sense and allows for easier scalability.

Like I say, second guessing management decisions is a mugs game as you don't have day to day visibility like they do. If you don't like what they're doing - sell.

[brasso3] 03/12/2020 09:50

We are talking about a massive increase in mining capacity in the next 90 days just as the BTC price is expected to make significant moves towards the $30k - $40k region. PW has played a fantastic move here IMO.

[geheimnis2] 03/12/2020 09:49

And they are moving back to a presumably much lower margin mining as a service contract...

[geheimnis2] 03/12/2020 09:48

Ok so the lease just spreads the cash outflow and includes an interest charge?

[geheimnis2] 03/12/2020 09:47

They spent £1.7m in H1 on buying mining equipment?

[suffersnofools] 03/12/2020 09:46

Leasing Agreement



Argo has entered into an equipment lease with Celsius Network for 4,500 Bitmain Antminer S19 and S19 pro miners for a term of 24 months. Celsius Network is an innovative and fast-growing cryptocurrency lending platform which currently has over US$1.8 billion worth of assets under management.



Argo's lease, which spreads the new equipment cost over 24 monthly lease payments, allows Argo to add capacity, upgrade its mining technology and achieve economies of scale while fully retiring the capitalized cost of the miners over the term of the lease. The mining machines are valued at over US$10m.



The new mining hardware is expected to be fully operational by February 2021 and will add approximately 430 petahash to the Company's installed computing power as well as consuming approximately 15 megawatts ("MW") of electricity.



Hosting Agreement



Argo is also pleased to announce the machines will be hosted by Core Scientific which will provide physical hosting and access to electrical power for these newly leased machines at Core's existing facilities in the United States. Core Scientific is the largest digital asset mining infrastructure provider in North America and the partnership enables Argo to gain access to extremely competitive rates on hosting and power.





Mining Agreement



In addition to the purchase of machines to be leased to Argo, the Company has partnered with a third party which has purchased a new fleet of 4,378 miners to mine for its own account. These units will be delivered in February and March 2021. Argo and the third party have entered into a managed cryptocurrency mining services agreement whereby Argo will be managing the mining operations of these machines. This managed cryptocurrency mining services agreement will have an initial term of 24-months, and Argo will receive a monthly fee for these services.




Peter Wall, Chief Executive of Argo, said: "We are delighted to partner with Celsius and Core Scientific as we pursue our growth plans. These agreements allow us to secure very competitive terms on both new mining equipment and hosting costs. Argo continues to successfully expand its mining capacity while simultaneously improving mining margins and is in a strong position to benefit from the amelioration in market conditions."



Alex Mashinksy, CEO of Celsius, said: "We are excited to provide the financial backing and equipment to enable Argo to help secure the Bitcoin network. Mining is an important part of how Bitcoin maintains its store of value and Celsius is happy to support one of the best operators in the industry to scale their capacity with community provided funds."

Kevin Turner, CEO of Core Scientific, said: "At Core Scientific, we have witnessed a significant shift in the digital asset mining industry as miners move towards North America. Our strategic alliance with Argo, a UK based miner, is further testament to North America's ability to provide a geopolitically and regulatory stable environment with robust energy infrastructure."

[suffersnofools] 03/12/2020 09:44

Geheimnis2 - Which surely is exactly why they (correctly imo) decided to lease the hardware to ensure it can be replaced when more efficient machines become available and get forward clarity on costs?

When I invest in a Company I like to leave its running to the BoD and assume that they're better placed then I am to make operational decisions.

[geheimnis2] 03/12/2020 09:38

My concern here is that as the price goes up, the difficulty rate goes up and more expensive hardware is needed to replace old hardware/continue to compete

Hence positive cash flow is more limited than one would hope.

Certainly, I am not sure it makes sense to apply much of a multiple to the FCF.

Any other thoughts?

[topazfrenzy] 03/12/2020 09:35

Grabbed a few more on the dip

[brasso3] 03/12/2020 09:29

There was a drop in the hash rate towards the end of October but it has risen in November.

[yump] 03/12/2020 09:21

:-)
Break out the bolly
Two people with pretty different views on social media are getting along !

[suffersnofools] 03/12/2020 09:19

Yump - we agree on something :)

[yump] 03/12/2020 09:15

Its not a facile count of number of coins mined. Its a relationship between factors thats important.

I’m sure a few people have it plotted out somewhere.

[yump] 03/12/2020 09:14

Erm - isn’t it profits that are important ? What is the obsession with revenue with the average punter ?

Post jumps in revenue on a share thats been making massive losses and the crowd get so excited. Clearly not many people have actually had to make a profit themselves in order to live.

Ffs:
1.2 x 40% = 0.48
1.48 x 0.57 = 0.84

The issue is the way in which btc price, difficulty and depreciation on kit vary profitability.

Obviously having enough capital to buy more kit is important.

[bandflex] 03/12/2020 09:12

Brasso3

Expansion does not address the problem.

When coin production fell previously Peter Wall blamed it on difficulty rate increasing which is reasonable.

Difficulty rate fell considerably in November and yet Peter Wall has blamed falling production on difficulty again, it makes no sense.

Electricity per Kwh is fixed, the only major variable is difficulty rate if all machines are up and running coin production should have gone up.

[brasso3] 03/12/2020 08:52

bandflex

Why don't you read previous RNS. They are addressing this with mining expansion!!!

'The new mining hardware is expected to be fully operational by February 2021 and will add approximately 430 petahash to the Company's installed computing power as well as consuming approximately 15 megawatts ("MW") of electricity.'