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If memory serves me I think the energy agreement would allow 1300 ph so a lot of head room for expansion, my query around the data centres was if enough capacity to accommodate our future expansion plus provide the service for other miners to provide another revenue stream ?
Trigger - I read this as there is almost certainly capacity for an increase, but in terms of the numbers of potential machines, that I am not sure of. I’ll have to work my way through the TR-1’s since that date and calculate the miner number increases since then.
Cheers arkonite....was trying to understand if the data centres could accomodate a lot more capacity ?
Trigger - this is from last August 2019. Maybe someone can enlighten us on the Equihash/MW calculations. But I see there being almost a 100% capacity increase possibility as we’re at 35MW at the mo. So extrapolate from there, but for me the upside is massive. GLA DYOR.
————————————
Argo Blockchain PLC
('Argo' or 'the Company')
New Agreement Signed to Expand Power Capacity by 357%
Argo will also have an option to boost mining capacity by up to 1360 petahash (PH), or 1.36 exahash (EH), positioning it to be the world's largest publicly listed crypto miner by 2020
Argo, a UK-based provider of enterprise scale cryptocurrency mining services (LSE: ARB), is pleased to announce it has entered into a new agreement that will increase its electricity supply by 357 per cent.
Under the terms of the agreement with GPU.one, a leading Canadian data centre provider, the Company's access to clean power supplies increases from 14 megawatts to 64 megawatts, on similar terms to its existing agreement, at its two data centres in Quebec and its new data centres in Eastern Canada.
The agreement covers a three-year period from June 25th, 2019, with an option to extend thereafter for an additional two years.
Does anyone know what percentage of the capacity ARB use of the 2 data centres looking at buying ? Just wondering what spare capacity they would offer as we know still got a lot of capacity on the potential power agreement.
If anyone wanted to take this over I would have though they would already have done so given the MCAP is only £20m.
The Americans only want bleeding edge kit and most of the Canadians have no cash. Why bother with a takeover when you can buy 2nd gen kit from bankrupt miners at firesale prices just as Peter did with the ZEC miners? Maybe the data centres are worth buying? Maybe there's plenty of capacity. I don't know.
Being listed in the UK (not really crypto savvy yet in the uk) and arguably having a greater value than the sum of it's parts must make Argo a takeover target ?
Exactly. And London doesn't like it either way and will also hinder us leveraging more aggressively to boot. Lose, lose, lose.
Damned if we buy new machines.
Damned if we hoard bitcoin
Damned if we leverage
It's (almost) a no win situation in London.
agree HODL figure needs to increase and hopefully we will be able to do this month as margin must reach 60% ?? Therefore, if nothing else happening we should have increased revenues.
But on the flip side if we don’t get more rigs our PH will start to effectively go backwards as more miners increase.
I think people are terrified of the depreciation and without deeper analysis most investors take a quick look at Argo and surmise that they are not making profits because they are caught in a kind of Malthusian trap where they are constantly mining and spending all their profit on new machines ad infinitum.
Argo do have their holding strategy to counteract this - 126 held BTC - but to date this has not swayed the market. A few months ago I suggested that 400-500 BTC would be enough to convince the market that Argo has escaped the crypto-miner's trap but who really knows? 126 smells of desperation to me. It's the kind of level that a troubled miner would hold to convince the market they weren't going bust. But what happens when you need to buy new machines, the market asks? Those 126 BTC will be gone overnight.
However you look at it the problem it can only be solved in one of two ways, BTC rising significantly or a dual listing in the US. That's my opinion but I would be interested if anyone here could illuminate me as to how Argo goes about it any differently? For my money it could take years to reassure London.
Bill...Good summary of the current situation, you would hope people would look at the half year EBIDTA and reach the right conclusion but seems to pass them by. For most the very mention of crypto scares them to death.
Of course if BTC rises then Argo will go up in step but what the SP really needs is some nice Fiat profits declared officially HY/FY to convince the technophobes in London that there is money to be made here. With the current strategy of using revenues to scale up the operation, London will be waiting a while for their booked profit. Meanwhile, in America, Robinhood investors are speculating on what Riot and Mara etc could be and sending their MCAPs sky high. This is a problem with the London market and not Argo's zero profit scaling up strategy. Indeed, in a less risk averse market Argo would be free to leverage much more aggressively than they currently do.
Looking at the stocko page Argo looks like a non entity with red all over the place, no analyst coverage and qualifying for no screens. Most investors would not touch this with a bargepole. Furthermore, they wouldn't even bother to research Argo further. A small positive today is the aggregate stocko score has risen to its highest ever - 27 (out of 100). So it's going in the right direction.
We talk about re-rates here and Argo needs one of three things to make this happen:
1. BTC rocketing towards $100k
2. Wait a few years to book a profit for the London dinosaurs
3. Dual listing in the US
In time I hope we will see all three but any one of these would be enough to send this to £1