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the 4500 "leased" rigs were plugged in, sometime in Feb.; so they have been operational for 9-10 months. The purchase price was "around" $ 2300.00 each, in Nov. 2020., financed by celsius over 24 months. Based on the avg. BTC price since Feb., x 430PH, I suspect these machines have already paid for themselves.
Rorydinho
“ That money could have been used to buy 350PH of S19s - instead EPIC are ******* it up the wall.”
Filtered. Nothing personal. I’m just having a purge of stupidity.
I’m also guessing in PWs last Q@A when he spoke about others hosting your Rigs that the barbs delivered with regards care and downtime were also delivered with this case in mind.
Yes they are jofhoggit
People are getting this bit not correct.
We wouldn't be paying ourselves to host are own machines :)
The RNs from 5th November 2020 said the machines were to be hosted by core scientific.
Hee hee we are all guessing
Yep we own the rigs outright now & no extra hasrate thats true
But let's see if there is agood few extra in the pot next month
.
Ah, so Argo essentially were just purchasing the machines from Celsius over 2 years - rather than Celsius hosting them too. This settlement is about how the machines are paid for.
Well there’s a new $6m opportunity cost now. That money could have been spent on other machines.
Well, this puts the $5m free subsidy (using shareholders’ money) of EPIC into perspective.
That money could have been used to buy 350PH of S19s - instead EPIC are ****ing it up the wall.
Argo now have ownership of machines that they have been using and paid for over time during the leasing agreement so no extra hashrate as it is machines already in use.
So does this mean Argo are 450PH down then?
The machines were being hosted by Celsius. ARB just bought them outright, rather than over 2 years.
ARB paid $6m settlement to get out of the contract. Celsius paid ARB 125 BTC as I imagine this is what was forgone due the dispute. Both balance out no, net loss.
But what is happening with the S19s? Are they being put to work in one of ARB’s Canadian facilities? Or are ARB 450PH down on expected hashrate.
Yes, I was originally thinking the same, as in...
We got paid 125btc ... but we were owed , lets say 100 btc for the sake of an example ,anyway from what our machines had mined at core scientific if In fact any were being withheld at all
Maybe Emma is correct Flowerpot but that means ARB have effectively got the machines a year early for free or put another way they only paid half the original price which, as welcome as it would be, I don't think is the case especially given how the RNS has been worded.
Hi hexam
Thanks for your explanation , it is a guessing game for sure.
Emma is probably correct
But from the rns I was thinking these machines were not being hosted by us , but for us by core scientific.
Hence my thought maybe the payment of btc we mined with these rent to own machines was not controlled by us and just maybe we were only getting paid a certain percentage of what we were mining with them while despute was on going.
Emma
“ Argo paid 6.3 million to Celsius according to the RNS which also exactly matches 125 BTC in value.”
Brilliant spot.
May well be Emma given it does add up - but I we'll know start of Jan for sure by the end Dec HODL figure.
Anyway I found the video - this is all about the second agreement. My guess is this is related to the hosting we do - see linked RNS below - Mining Agreement section.
https://youtu.be/ebIrLYQwHgg?t=411
https://polaris.brighterir.com/public/argo_blockchain/news/rns/story/x2n4e7x
"that makes sense, so the overall contract was terminated at no cost each way, just we paid them USD for 125 BTC" - no if this is the case then ARB has gained $6m as we no longer have to pay the lease payments - which would be great but I think the BTC are being received for payments ARB are no longer getting. But just my guess and happy to be wrong as that would mean ARB have got something for nothing.
AB,
I summarised the same as Emma it’s far to much of a coincidence that the figure in $ equates almost exactly to the mysterious 125 extra Bitcoin from last month, Of which PW wouldn’t clarify where they had been derived from - When Argo have previously bought he’s been in the RNS so why not this time - My hunch was the litigation result was not common knowledge so he couldn’t comment on the outcome.
Flowerpot - I'm not sure but I think there are two things going on here. The first seems straightforward. As you say ARB have paid $6m to Celsius which means ARB now takes ownership of the machines and no longer have to make the remaining monthly lease payments.
The other bit is less clear "Argo agreed to terminate its mining services arrangement with Celsius in return for a payment from Celsius to Argo in the form of Bitcoin".
This suggests to me a separate arrangement whereby ARB were receiving from Celsius amounts for services provided. At around the time the lease started amounts of revenue began to appear in the accounts of almost $500k per month which are labelled simply as "Crypto currency management fees - United States ". It could well be that the BTC paid by Celsius is in respect of the termination of some or all of these fees. In other words just as ARB are paying Celsius upfront for the outstanding payments from an obligation, likewise Celsius are paying ARB upfront for similar outstanding payments - except in the form of BTC. Whether this would amount to 125 BTC though is unclear but this looks about right if ARB is no longer receiving around $400-500k per month. Of course I could be completely wrong but am just trying to complete the jigsaw when we haven't been given all the pieces. We'll know soo enough though if the 'Crypto currency management fees' stop now. If that doesn't shed any light then we'll know when the next accounts are published as this will explain the 125 BTC once and for all and whether it is connected to Celsius or not.
Explains why PW was so coy about talking about in on the video - though he led us to believe they bought them (which in effect they did I suppose)
Hi Emma - that makes sense, so the overall contract was terminated at no cost each way, just we paid them USD for 125 BTC.
No, the 125 extra was assumed by some here to be done with Argo Labs but nothing the company said.
Argo paid 6.3 million to Celsius according to the RNS which also exactly matches 125 BTC in value.
Emma - I'm not getting the connection there. I thought the extra 125 was from Argo Labs activities (defi/staking/etc).
Which sum paid do you mean?
Kev, our monthly numbers have underperformed our hash rate for a while now. I had put it down to 17 series miners having a high failure rate, however this indicates that maybe the deal with Celsius wasn't quite right.
I know there was a video at some point where Peter touched on this. Has anyone got the link?
AB, I think that was the 125 extra BTC that appeared on the operational update. It matched the sum paid by Argo.
I hadn't read the RNS properly - I thought Argo had paid Celsius Bitcoin to get out of the contract - but it was the other way round.
Hopefully we get this as increased HODL when the next operational update comes out. No idea how much BTC though.
"Argo agreed to terminate its mining services arrangement with Celsius in return for a payment from Celsius to Argo in the form of Bitcoin"
Excellent RNS.
I was wondering as they were being hosted could it be a possibility that we were not being paid all the btc we were mining with them every month at the time because of the dispute.
Would be great if that was the case.