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Ah yes, the notes do go to 30 then start again 1-6 for some reason that I can't make sense of.
Employees = 30, wages = 6mil, indicating average salary of $200k.
So for 2023 they mined on average 4.8 bitcoin per day, for the 1st qtr 2024 they mined on average 3.5 bitcoin per day, thats a drop off of 25% albeit sold at a much higher average price. this is BEFORE the having, that will drop to around 2 bitcoin per day. with the best will in the world revenues will be $70 mill for the year. will it break even on the year I doubt it
I don't know what that table is at the end but the earlier (!) note 10 gives 30 as the number of employees.
If $31k really is their pre-halving cost of electricity/hosting only per BTC then heaven help them.
The $18m quoted falls due between now and June 25, rather than this year, not that that makes everything hunky dory - far from it!
I see they've finally had to mention the Emergent write off, hidden pretty deep into the results considering the company raised money from shareholders for this.
More weirdness with altcoin reporting, like-for-like looks very different as they've grouped most of them together now including NFTs. Given a value of $500k+ which is a lot of shtcoins to hold for a company that has material uncertainty over it's ability to continue. And how can 31.7k USDC be worth $55k? Are auditors asleep?
I don't think the 31 includes depreciation Hexam, but like you this is out of line with previous reports and unclear on some items, and as I said it seems to be truncated.
"Something that stood out for me was the sky high direct bitcoin costs in Q1, $31k direct mining costs in Q1, that's a huge jump and would suggest that cash break even is actually more like $100k post halving right, Hexam?"
I'm struggling to make sense of some of their numbers including this one. $31k direct mining cost is ridiculously high for Q1, and before halving, and much higher than last year (it was less than $12k in the last reported figures). One possibility is that this includes depreciation which some companies include in 'direct' costs but ARB hasn't before - but their description of costs in the financials of 'power and hosting costs' instead of 'direct costs' suggests they do now?
In addition their Q4 numbers seem inconsistent with end Q3 with depreciation of mining hardware only going from $18.2m to $18.7m but their cost of mining has shot up from $24m YTD Q3 to $36m full year. This implies virtually no depreciation for Q4 and a 50% uplift in mining costs. I can't see any notes though of a change in treatment/methodology.
My best guess is that the $31k DOES include depreciation and that this change of approach has somehow screwed up the presentation in the financials (hopefully it is just presentation/me missing something and not an actual mistake)!
So I think the $60-70k still holds but if the direct cost does only includes electricity and hosting then it doesn't and they are in big trouble - especially as they say they have $18m of further debt service obligations to be met before the end of June.
In the meantime if anybody can make more sense on what on earth is going on with their numbers then please shout - hopefully I've just missed something or messed up somewhere?!
The report seems to be truncated stopping at note 6, which suggests only 6 employees - which doesn't sound right. Anyone got the full report?
The question is what's the cash burn now from May onwards, with BTC at $65k and hash rate at all time highs - $2m? That would mean runway only until Q4.
Hopefully Thomas answers that and a few other testing questions I've put forward for the Investor Meet
A very clean (easy to understand) set of results. Better than most would have expected, still doesn’t make them sustainable post halving……….
Hash rate at all time highs, but going to be a while before these companies admit the inevitable and switch off rigs.
Yes end game is coming. Everyone knows that, at least that is those with more than half a brain cell.
Quick glance makes me think they are losing money mining now HC.
Fees back down below 1. Think end game is coming.
Cash position solid at $12.4m as of end of March and pre halving, buys them time one would think.
Something that stood out for me was the sky high direct bitcoin costs in Q1, $31k direct mining costs in Q1, that's a huge jump and would suggest that cash break even is actually more like $100k post halving right, Hexam? Or do the non mining cost reductions counteract that enough?