Argo Blockchain Share Discussion Threads

[supertag] 13/8/2019 10:39

Hootza, I am in at an average of 6.6p thank you.
I intend to sell at a profit of over 100% if that is ok with you?

[stampylong trader] 13/8/2019 10:37

"So you basically have to buy an expensive computer to mine bitcoins? Whats stopping anyone with money doing this?"

Nothing but you take on all the risk if bitcoin goes down. As we have seen, mining set ups in China have thrown out all their computers into the skip in the last Bitcoin crash. Devastating. It is safer to be a middle person or money changer rather taking a directional bet on bitcoin.

By having a subscription model, the risk is greatly lowered because you have paying customers that brings in cashflow. What you are paying for is the set up, network contacts, and of course management.

[stampylong trader] 13/8/2019 10:30

I doubt we will get taken out early. We have Gil Penchina who is a veteran investor, and used to dealing with this kind of thing. He knows what this is worth.

Check out his "Angelist" of investments

hxxps://angel.co/penchina

[le0nard] 13/8/2019 10:27

Thanks slt. Not sure the wife will appreciate me going missing for 6 hours as currently on holiday but will watch on my return.So you basically have to buy an expensive computer to mine bitcoins? Whats stopping anyone with money doing this?

[idiot441] 13/8/2019 10:26

Broker Notes

I strongly recommend viewing the detailed broker notes from Mirabaud & Align. Align found here: hxxp://www.alignresearch.co.uk/wp-content/uploads/2019/08/Argo_Blockchain_Align_Update_August_2019.pdf
A few comments:
1. Mirabaud was written with input from the company - I am inclined to think their figures are most credible/likely. But Align offers additional and useful input on many aspects of valuations etc and leaves plenty of room for future upgrades as targets are met
2. Big differences in forecast income by end Dec and for 2020. Align use $11k for BTC price and Mirabaud use $12k - but that does not account for difference. see 1. above
3. Dec 2019 MONTHLY income: Align £3.62m/Mirabaud £5.8m
4. 2020 income: Align £27.23m/Mirabaud £40.4m. Align have adjusted income to take account of halving (Mirabaud unclear to me) and both assume stable BTC values with 6% difficulty increases monthly 
5. Valuations. Mirabaud suggest 27p as fair equity value whereas Align offer 3 methods:
a) Yield based: 14.62p
b) Earnings multiple plus liquid assets: 31.33p
c) Efficiency based/compared to peers: 73.71p

My conclusion: massive undervaluation confirmed. My personal targets are to see us past IPO price in Q3 and reach Mirabaud target by year end with further blue sky ahead in 2020. My greatest fear is that we get taken out with a miserable bid below 20p but I am optimistic that core shareholders and directors (as major holders) will not let that happen.

[bad gateway] 13/8/2019 10:25

Am I correct in thinking their margins will improve further as they expand production? Got that impression from the July RNS..

Mike Edwards, executive chairman of Argo, said: "We are pleased with the mining results in July as they demonstrate that we can use our existing investment in people and facilities and add new mining hardware with no increase in staffing and no material increases in non-mining costs. This operational gearing is very important as we triple our mining capacity over the next two quarters with no significant increase in non-mining costs."

[martywidget] 13/8/2019 10:23

Perry Hothi, Argo's VP of Technology, takes viewers on a tour of Argo's 15 megawatt facility in Northern Quebec.


What is Bitcoin Mining?


Mining
What is Bitcoin mining?
How does Bitcoin mining work?


Satoshi Nakamoto's original paper is still recommended reading for anyone studying how Bitcoin works.


FAQ:


Resources:

[le0nard] 13/8/2019 10:14

So am i. Dont get cryptos really but ready to be convinced. Can someone explain how cryptos are mined?

[stampylong trader] 13/8/2019 10:10

This is for fun only - put away your Sandbanks and E-Lamborghini catalogues.

Argo valuation ................Market Cap

8p ..............................£24m................. £10K investment

80p (x10) ......................£240m ................£100K

800p (x10).....................£2.4bn .................£1m UK Blue Chip (steady uptake by businesses using blockchain)

1600p (x2) ....................£4.8bn .................£2m Europe Blue Chip
(multiple mining sites in every continent, mining all coins)

3200p (x2) ....................£9.6bn .................£4m Global Blue chip type valuation (the go-to mining company for blockchain assets)

£320.00 (x10) ...................£96bn .................£40m Amazon/Alibaba type valuation

[ilostthelot] 13/8/2019 09:11

So forward revenue for 2020 after opex of $33M or £27M.

Looks very cheap.

Quite crude calculations. I'm still trying to get my head round crypto currency.

[celinedetoro] 13/8/2019 09:07

80% Gross Margin. minimal opex.

[ilostthelot] 13/8/2019 08:52

If they have invested to treble the computers then it's fair to say we should see at least double the amount of bitcoin produced!?

Going forward.
So roughly 325 bitcoins per month.
Say average bitcoin price $10500.

That's roughly 3.4M per month or
$41 Millon revenue per year.

What's the production costs?

[celinedetoro] 13/8/2019 08:34

Conservatively I asses ARB to make £9m net profit this year.
P/E of 20 gives you a Valuation of £180m.
Looks about 8 times too cheap.

[hootza616] 13/8/2019 08:21

The general idea of these threads is for investors to predict the future using research, make a plan and stick to it. If the future pans out as predicted and the plan is followed an acceptable and predicted profit should be made, which would raise your profile and develop more followers of your advice.Telling us what could have happened if your plan was different is simply boring, hence the yawn.So, Supertag, what is your next move here? What is your current position and what price will you buy/sell to make a profit from here and why?

[supertag] 13/8/2019 07:15

My point was Hootza, that it's never wrong to take a profit!Yawn!

[hootza616] 12/8/2019 20:07

That's almost as predictable a statement as "wouldn't it be great if all this Monopoly money was real?""I wish" after the event is just a waste of words!I wish I bought 1000 bitcoins when they were $20! Yawn!

[suffersnofools] 12/8/2019 14:43

This will get bought out if it doesn't go higher soon. I reckon 25p and the big holders would take it.

[topazfrenzy] 12/8/2019 14:18

What you've just said can go the other way, having to buy back much higher

[supertag] 12/8/2019 14:15

Never a bad move to sell at a profit. Wish I had at 9.4p and bought again at 6p!
We live and learn.

[topazfrenzy] 12/8/2019 14:14

"Goldman Sachs Gets Bullish on Bitcoin With a Price Target of $13,971"

hxxps://cointelegraph.com/news/goldman-sachs-gets-bullish-on-bitcoin-with-a-price-target-of-13-971

[topazfrenzy] 12/8/2019 14:11

Bad move to sell this, new highs coming for Bitcoin quite suddenly imo

[horneblower] 12/8/2019 11:14

I agree, so will be watching carefully.

[scotty666] 12/8/2019 10:03

Good luck but think this has a way to go even if you considered a lower BTC price.

[horneblower] 12/8/2019 09:26

Falling highs on BTC points to a 10k revisit so I've sold my ARB for the moment.