how so many peeps blame the SP here on the company. Others blame the MM/regulators etc. Personally, I think it is simply down to this share being a paradise for traders and shorters, in which case, none of these is to blame.
The concern I have is will this never come to an end. If not, how will we ever achieve fair value? I accept we are late in obtaining new machines but on the other hand, we are still a very young company and consequently are still building long term relationships with any suppliers. The pre-fab building is mainly on-site now with the final container load arriving this week and the concrete slab is not yet complete but on target.
Unlike some here, I was not happy with PW brushing aside the question on disclosing the price paid for our rigs. Both MARA and RIOT disclosed the price they paid Bitmain and therefore I believe we chose not to; it was less likely that Bitmain didn’t want this information out in the public domain. I do believe we have a very smart BoD.
As some here have said, every time we get good news the SP drops which is not logical but there again. Logic is not reality. At some point, this will surely reverse, and we will be rewarded for our investment in ARB. I for one truly hope so because I have invested far more than I would normally have committed but committed I am. Fingers crossed, the fundamentals and the leadership are not in question by me. GL argonauts/true believers, 600
There is all manner of ways to interpret the stats here. Depending on your position, a ramper, a de-ramper, or somewhere in between. I’ll content myself with the direct cost of $6,293/£4,673 and wait and see what the price of bitty is each month. With a price of $40k, $50k, $60k, $70k or more, it is a tidy old gross profit. I also believe we will get more machines, better efficiency leading to greater profitability. It is really a question of time and timing. On that note, it’s a bit like my old school reports ‘could do better’! GL argonauts/true believers, 600
Let’s not forget why ARB isinvested in web3.0
https://velocitypartners.com/blog/why-b2b-folks-need-to-learn-about-web-3-0-now/
For the whole announcement https://www.accesswire.com/670623/Argo-Blockchain-PLC-Announces-Q3-2021-Results-and-Conference-Call
@flowerpot999, yep, an interesting article. For months now I look at RIOT and think they are way ahead with building this 200MW site. BUT, we should pip them when Phase 2 and 800MW are in full flow.
Back on 6 June 2021 I posted "The building of Helios is underway and on target. We already have a Grid Interconnection Agreement with the Wind Energy Transmission of Texas (WETT) and American Electric Power (AEP) for 200 MW of power plus two 90 MVA 345kV transformers scheduled to be delivered to the site in February 2022. Previous news was that the first phase of Helios (200MW) would be up and running by the end of June 2022. With the Galaxy funding recently announced, can we expect an earlier completion of this phase? The link https://www.prnewswire.co.uk/news-releases/cryptocurrencies-ascend-the-global-stage-856296535.html provides a lot of interesting info regarding competition and some are also looking at 200MW." Maybe you didn't realise we have this aspect covered? ATB and GL argonauts/true believers, 600
@strontiumdog, yes, I agree, it is great to read a good write-up. That said, I can’t make my mind up whether it does us justice. I hasten to add, I’m not a fan of inflated figures.
I note Jonathan Petersen sees Argo in a strong position generally in the bitcoin mining world, writing: “We expect ARBK to increase its market share of the global BTC mining market to 1.8% by YE22, from 0.7% today, which should drive a 3x increase in their revenue run-rate.” Can we assume Phase 2 of Texas is not yet included in his forecast? There is no mention of our diversification with such things as Pluto. So again, this is not included in his forecast? MORE GOOD THINGS TO COME.
Taking the average of the 4 analysts at 44%, we should see 174p, which to be honest, I think is on the low side but WTFDIK! I do know I want a lot more than 174. With the recent options at 157p, if we assume they were to get the magical 20% discount, then the SP for these would be equivalent to 196p. In any event, my real interest is September 2026, not December 2022 so I do think by then we will be worth multiples of today’s SP. ATB
@flowerpot999, thanks for your reply. I’m not clear on some of the figures quoted. “They have a contract of two cents or three cents...and they can sell it for $9 a kilowatt hour.” What are they getting for their two cents or three cents? What I’d like to know is exactly how much our electricity will be costing when Helios Phase 1 is up and running. I could then compare it to the $9.36 cost of electricity to run one Bitmain Antminer S19 Pro a day. I feel there should be a considerable saving on 20,000 let alone 60,000 such rigs. (Info contained in my post @ 11:56 yesterday).
My questions for the conference call tomorrow:
1) What is the unit cost of our clean, renewable energy going to be at Texas - Phase 1, and how does this compare to our other mining facilities?
2) With the expense, and delays, in acquiring mining rigs, is it economically, and practical, to consider moving our existing rigs to Texas and using the existing facilities to provide hosting revenues?
3) What is the timeline for Texas Phase 2?
4) The order for the 20,000 Bitmain Antminer S19J Pro machines will use 65MW of power; where will the remaining 135MW be coming from for Phase 1 and what are the plans for Phase 2?
5) The Priority Supply and Collaboration Agreement Between Argo and ePIC announced on 22 February 2021 has been amended but is there an extension to the original agreement for 2021 & 2022?
6) With the COP26 climate change meeting currently in progress, could we be mounting a PR campaign on comparing the power used by mining rigs to say different aircraft?
I’m looking forward to tomorrow. GL argonauts/true believers, 600
Hopefully many here will be able to listen in to the conference call at 12 noon on Tuesday next week or take part. Hopefully too, we will get some decent answers to questions submitted as per the RNS. The link is https://www.investormeetcompany.com/argo-blockchain-plc/register-investor
I sure hope this will see the start of some great news where the SP will head north. GL argonauts/true believers, 600
Some might not have seen this: https://www.asicminervalue.com/miners/bitmain/antminer-s19-pro-110th
Whatever happens, I stick by my belief that any purchase will come down to the individual negotiations at the time.
So much to come on the associations with Galaxy, ePIC, Luxor etc, etc. Let the news roll from Tuesday and let's find out where new technology takes us. GL argonauts/true believers, 600
@Matt121 For me, one of the most important RNS's is https://www.lse.co.uk/rns/ARB/priority-supply-agreement-between-argo-and-epic-vp95wrj3tvclrgo.html
I am convinced that this Priority Supply and Collaboration Agreement Between Argo and ePIC is a really good piece of negotiation and the reason why we left them sitting on the deposit. Time will tell. ATB
Just to add; I think the relationship with Galaxy is critical with the way bitty has performed and more importantly, will perform. We are building a solid relationship with Galaxy and I think we will get excellent terms for financing the rigs we need for Phase 1 AND 2.
@LongInvestor, thanks for this, very useful info.
It is a bit of a conundrum, IMO, as each purchase order is a matter of negotiation which will consider all manner of things - such as track record/past relationships (a two-edged sword). The thing to consider is that we are unlikely, in my view, to purchase all our rigs from Bitmain. Very keen to hear about ePIC! It might well be we buy rigs from three suppliers (65MW + 65MW + 65MW) for phase 1. All speculation at this juncture but I think if we work on $400m to kit Phase 1 out, we might see some change. We need this news!! ATB
@Blubay, I totally agree with “A $20m loan is a very small amount for a $1bn growth company with Argo’s assets.”
Looking at our competitors: “For instance, in December 2020, Bitcoin.com News reported on Marathon’s record-breaking acquisition of 70,000 high-performance bitcoin miners from Bitmain for $170 million. That same month, Riot Blockchain bought 15,000 Antminers from Bitmain.” “During the first week of August 2021, Marathon purchased 30,000 miners from Bitmain.” So, in December 2020 $170m bought 70,000 high-performance bitcoin miners from Bitmain! 70,000 would kit out Texas phase 1 with a few to spare. I will be very interested to see what ePIC comes up with and whether this will be in time for Phase 1 or Phase 2. In the meantime, let’s wait and see what our news flow starts with on 2 November. Let’s not forget our diversifications - we are not solely interested in mining crypto! GL argonauts/true believers, 600
Whilst not everyone will be a fan of Warren Buffett, some of his quotes provoked my thinking about what similarities are there between WB, Michael Saylor, and our PW.
1) “Do not save what is left after spending, but spend what is left after saving.”
2) “The one thing I will tell you is the worst investment you can have is cash. Cash is going to become worth less over time.”
3) “Rule #1 is never lose money. Rule #2 is never forget Rule #1.”
4) “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
5) “Price is what you pay. Value is what you get”
6) “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
7) “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”
Whether ‘ETA’ stands for exciting times ahead or expected time of arrival, I think time will tell which of the above aligns with MS and PW’s thinking. No matter what I think the good times are nearly upon us IMHO. I certainly hope so!
GL argonauts/true believers, 600
I am hoping that the ending of the quiet period and the news of Tuesday’s conference call is a positive signal, and we are in fact heading into some exciting times ahead. Not before time! The operational update for October may not be as great as I had hoped earlier but it definitely needs to be an improvement with some new rigs online and bitty being worth that much more.
We should learn what happened with the loan arrangement with Galaxy that needed repaying on 29 October - although we were subsequently told this was only going to be partly repaid. IMO, the BoD is busy building an excellent track record with Galaxy and I am fairly sure we will see substantial funding arrangements to kit out Helios courtesy of Galaxy. I can’t help thinking that PW is also building a sound relationship with Michael Saylor. These two seem to speak the same language and so I wonder whether they will come up with an arrangement that is mutually beneficial.
Let’s not forget the Texas Timeline:
Building erecting start Oct 18th 2021
Building erection completion Dec 18th 2021
Underground Electrical start Oct 13th 2021
Main building completion Feb 10th 2021
Electrical infrastructure completion March 2022
Testing and Commissioning April 2022.
GL argonauts/true believers, 600
https://www.youtube.com/watch?v=9p-iIZx1lAc I've been busy finding funds to keep topping up here of late. My average is now down to £1.32 and I can't see the trend of it going down continuing with news to flow from next Tuesday. Sooner or later ARB will climb and Microstrategy's continued buying of bitcoin is, for me, reassuring. Have a great w/e all. GL argonauts/true believers. 600
@morton 256, thanks for this. A different set of values then. Time will tell but things are at least feeling better here this week, it just needs to continue northwards - overall!. ATB
@Amanensia, thank you. I couldn't make any sense of it unless that price is for Friday next week, or maybe sooner the way NAS is going today! ATB
Can someone explain what is meant with our stock price of 161 as shown here, please?