Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Hexam, we all appreciate this breakdown of the current all in costs but would you be happy to put out your 'best estimate' for how things will be looking in October, perhaps leaning towards the more conservative end to account for the risks of execution?
Helios Phase 1 will be live in the not too distant future so focusing on today's costs when this is what Argo have been building up to for a long time now is less meaningful for an investor looking further than the end of their nose.
Just in case anyone missed this fantastic post from 'Hexam' All in costs $33,904.00, prior to this detailed breakdown the belief amongst many was the costs of 7k per BTC thankfully now that has been laid to rest by the superb accounting skills of 'Hexam' 470 coins mined for Q1 1.6 million gbp net income, If these low prices continue in btc Q2 will be worse.
Thanks 'Hexam'
Direct Costs $4,596k
Depreciation of mining equipment $6,961k (actually described elsewhere by ARB as also being a 'Direct Cost')
Consulting Fees $208k
Professional Fees $1,262k
General and administrative $2,908k
Total Costs excluding share based payments (as lumpy) and before interest = $15,935k
Coins mined = 470
Cost per BTC = 15,935k / 470 = $33,904
Agree, there is some adoption, however, still very speculative
One thing I do know though is we are in a downward trend currently, BTC has retraced 85% from ATH last two bear markets, currently about 60%, so still potential downward trend
For every argument surrounding more adoption, there is a counter one that retail is exhausted, people have no money, QT, interest rates, etc
In any case, my advice now, after trading crypto related stocks for 2 yrs, is be mindful of the trend and the current trend is down and while central banks say there will be pain take note - like we all should have 6 months ago when FED staff dumped all their stocks
'there is limited, if any, new money coming into Crypto, regardless of what influencers tell you'
Fidelity Investments made history this week when it announced that it would give participants in employer-sponsored 401(k) plans options to invest in Bitcoin.
Fidelity is the largest retirement plan provider in the U.S., and it becomes the first to add Bitcoin as a 401(k) plan investment option. Roughly 23,000 companies use Fidelity to administer their retirement plans, and Fidelity currently has more than $11 trillion in assets under administration (AUA).
https://www.forbes.com/advisor/investing/cryptocurrency/bitcoin-401k/#:~:text=Fidelity%20to%20Allow%20Bitcoin%20in%20401%20%28k%29%20Accounts
+ Two bitcoin ETFs in Australia are set to launch this Thursday, May 12.
The 21 Shares Bitcoin ETF will offer direct access to bitcoin backed by BTC in cold storage.
The Cosmos Purpose Bitcoin Access ETF will allow investors to invest in shares of Purpose Investment’s spot-bitcoin ETF located in North America.
Some of this I agree with, some I don't. In at least the short to medium term BTC going as low as you're describing is v unlikely, there are millions HODLing who are still not budging even as the nasdaq looked to be crumbling earlier this week (has recovered a bit since). Luna looked like it could bring down the whole crypto ecosystem and the nasdaq falling 5% was another huge test but to be sitting above $30k following both those events is quite impressive.
My thesis is in the very near term, $40k is more likely than $25k now.
The reality is:
* there is limited, if any, new money coming into Crypto, regardless of what influencers tell you
* there will be continued QT, Bitcoin (and crypto) has benefitted from continous QE, with rate rises and inflation there will be less money coming into Bitcoin
* is Bitcoin speculative now? it is an asset now which has benefitted from QE and when was $100 was more just a punt, but now at $30k it is speculative as to whether it will be the store of value (or whatever), so will industry look to put a speculative store of value on their balance sheet during economic, geo political and environmental uncertainty?
* Technical Analysis points to a retest in low $10k's
* ARGO itself requires, at present moment in time, BTC to be around $30k to breakeven, when/if Texas is fully up and running I expect the breakeven point to be around $20k, maybe lower if zero down time
Just in case you missed this most excellent post yesterday from 'Hexam' This post should be at the top of our forum, ill try and keep it there x
Argobull if you have any questions on the calcs id just like to remind you they come from 'Hexam' so it probably advisable to ask Hexam, its nice to see discord and the rampers talk about real costs yday, actually talking about depreciation and costs of machines, find it incredible that miners keep this number so secretive, well its a secret because its so high.
Also BTC in its 7th week of declines first time in history its done this, so id say 69k to 28k is showing us winter times a hard bear market is coming, people like argobull will tell you we are on the cusp of a blow off top! lol be warned these people will tell you the sp is going to 3 quid 8 quid and the possibly 12 pound. 12 pound is about 6 billion quid last quarter argo made net income of 1.6 mill q2 will be worse. if noobs wanna buy this wait until September it will work well x
Occe again thanks 'Hexam"
Direct Costs $4,596k
Depreciation of mining equipment $6,961k (actually described elsewhere by ARB as also being a 'Direct Cost')
Consulting Fees $208k
Professional Fees $1,262k
General and administrative $2,908k
Total Costs excluding share based payments (as lumpy) and before interest = $15,935k
Coins mined = 470
Cost per BTC = 15,935k / 470 = $33,904