George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Hi Mafioso - thanks for posting the link. He basically confirmed what I and Mumbo guessed, i.e. that all costs; investment, working capital, opex are being funded by capital raise not income (i.e. BTC mined). I think he will get away with it this time, but this is not sustainable in any business. BTC will not just keep going up, and when it goes down the SP will go down and you will get the reverse effect. So I hope this is last time, and hopefully enough cash to keep them going for a while. They should introduce a programme of selling a proportion of their BTC mined each month, and saving the rest. One good think is I thought he looked a lot more nervous than in previous casts he has done. I think he at least noticed the backlash and will be more careful next time. Luckily for him he is being bailed out by strong BTC, though we should really be at 275 now....
Mafioso - I'm very jealous - I just couldn't get primary bids to work, then got timed out. With BTC over 54k, I bought another 20k ARB at 235, but that's a lot more than you paid!
Blimey - Got 75% Allocation of my £10k bid from PB.
That’s a turn up
Check out update from CEO
https://youtu.be/Gs_fUGmbSmY
Makes total sense to me. Think of ARB acting like a pseudo CryPto SPAC right now.
Your more precious resource BTC is still predicted to increase or £100k in medium term so make no sense selling it right now, (not like Gordon Brown who so stupidly sold all of U.K. Gold bullion reserves back in early noughties before gold value multiplied over next decade. )
Also At same time diversify into other crypto related investments so share value of company isn’t solely reliant on BTC value is also smart
I’m sure when BTC hits £100k this will be looked back as the right thing. If this funding exercise is repeated more frequently over next year then we can question funding via BTC, but think we should give benefit of doubt, given the fast period of growth and expansion
Willibo- just baffled. It causes resentment when there is so much good will and sentiment in the stock.
Mumbo - exactly right. They need to realise they have to sell some of their BTC to fund expansion plans, working capital and operating expenses. They can not expect shareholders to put up with a continual series of dilutions to do this. They may believe BTC will go up for ever so this is in shareholders theoretical interest, but I’m sure most shareholders, me included, do not.
Eva - just to add, Pluto (incorporated in jan 2021 and based out of a lawyers office- I checked the register at companies house) is now doing second round of raising of 20+ million, so they need 7 million to keep 25% of the shareholding. That’s the rational for the £7 million, where’s rest of the money going?
My biggest concern is that they have no plans to sell any bitcoin, then where will the cash flow cone from. Are they going to continue to just raise.
It’s like a gold miner, digs up gold and then just hoards it and never sells it!!
Eva embarrassing himself over on the ARB page is one of the funniest FOMO fueled mental breakdowns I've eva seen. Oh the tears lololol.
Willibo - I agree. This is a situation which I'm 'mildly' annoyed.... Hopefully CEO Q&A video can clarify one or two why they need the money etc. I think not everyone like their style of communicating via Twitter, but CEO did pretty well previously to 'calm' investors.
tomorrow should be challenging, lets hope bitcoin price hold well.
Hi Eva, if they were spending it on director’s bonuses then I’d have to agree with you. But they are building a massive plant in Texas, or do you think this is a scam? I actually agree with you they shouldn’t be doing this, they should just sell some of their Bitcoin. Funding it this way does not send good messages to shareholders, maybe they’ll fund everything by equity raise going forward?
But the company is built around bit coin and the belief it will continue to rise in price (the CEO now paid in Bitcoin so he must believe it), so to them they think that raising shares in Fiat currency to produce future BTC revenue streams is the cheapest capital.
Again, I’d rather they just sold some Bitcoin, but if they spent all this cash on a summer party it’s only about 10p off the share price. More worrying at the moment are the market sentiment issues you have rightly been calling out, if that spreads to BTC itself there are bigger problems.
Williboo
just gone through the app and put in a request for 1500 shares.
just a heads up they ask if you currently hold shares and if so how many
I couldn’t get any unfortunately, website swamped.
I’ll buy more ARB in open market if it dips tomorrow, but don’t think it will much this time. Dilution much smaller than last time, plus we know they r using the cash to expand operations, which is what we want them to do.
Eva,
It’s just over 13m shares added to 365m. So it’s about 3.5% dilution in absolute terms.
Admission will take on this Friday. If anyone can bear with the risk of bitcoin dropping this week (small risk if you can hold longer term), it's worth to try.
Subscribe myself but with a small amount.
Also on late RNS Today, offer closes @6pm
Guys,
Don’t know if you have seen but Had a Twitter flash from Argo and thirnCEzl they have very limited offer of shares @200p (20% discount) available on Primary Bid app only. Ofrer only open tonight for about another hour or so.