Member Info for BodRuncie

The share price will drop by 42p purely because of the traders who bought for the dividend and want to get out with whatever profit (dividend minus loss in share price). It's human nature.

However, I would expect the price to rebound pretty quick, so if you're looking to trade the share (i'm no trader) then wait for the exaggerated bottom on the day of the drop and buy at 8-13p. The company is worth more than that.

However, you searched using Bing, so all subsequent points are null and void ;)

edit: Vertical integration, that's the phrase I was looking for.

ARB should look into providing wallet services to hold cryptos.

Just to add to the debate, personally I am not in favour of dividend payments at this stage. ARB is a small company, and is looking to grow. Those profits should be used to do exactly the kinds of things ARB are doing: hodl cryptos, buying their premises, diversifying up and down the supply chain (i.e. hosting services for others).

Dividend payments can come at a later stage, once growth has maxed out in the mining industry, not while there are clear advantages to be gained.

Chill, Bill. It's all hypotheticals. An investor asked what could be done to mitigate ARB's share price against wild swings in BTC value, and one way would be to pay a dividend to attract a certain type of investor who is content to hold rather than trade.

It seems tempers on here are running a little high at the moment. The mis-typed RNS brought out a lot of rage from some posters, both before and after the correction.

Everyone relax and enjoy the ride :)

p.s. you could always use a cash dividend to buy cryptos anyway ;)

edit, sorry, typo... "BTC itself has NO utility, other than a store of value..."

It's a good question, and there are a few ways ARB can navigate the choppier waters of BTC volatility.

Firstly, ARB is a derivative of BTC, so although it will roughly track BTC prices, because a greater price can mean greater profit, an investment in ARB is an investment in a business that profits from mining BTC. BTC itself has utility, other than a store of value, so as long as profit efficiencies can be maximised from the mining operation, ARB should see a smoother ride than BTC (on both rises and falls).

Secondly, ARB mines other cryptocurrencies. A BTC fall shouldn't (ceteris paribus) equate to an equivalent fall in ARB. BTC is the largest part of ARB's operation, so it will have the biggest effect, but BTC falls can be offset by Z-cash rises etc...

Finally, paying a dividend. As it stands, ARB is purely for trading on the share price. Once dividends are being paid, IIs and longer-term PIs can buy in, and will be more willing to ride out temporary fluctations.

As impressive as these forward-looking figures are, it's important to consider that as BTC rises, and the profit from mining BTC rises, and this will attract more miners. Even if they aren't as efficient as ARB, they will still be producing BTC, thus increasing the difficulty of mining and increasing supply, so reducing ARB profit per month and putting a dampener on the ARB share price.

It is important to look out for ways that ARB can stay ahead of what will become a more cut-throat enterprise, by maximising every efficiency they can to stay ahead of the pack. The board have already shown that they are willing to buy used mining rigs, because they offer better returns on investment, they are offering hosting services for other facilities, and drawing a fee that way, and mining other cryptos apart from BTC.

The future is exciting for ARB, and the board seem to be making all the right moves in this regard, but be careful of simple extrapolations based on the BTC-to-$ ratio, because it won't play out like that.

The best ways to maximise shareholder value at this point are a dual-US listing (where cryptos are more highly valued by the market) and paying a dividend, which will attract IIs and PIs whose portfolio requirements demand dividend payments. A share buy-back is pointless.

you're clearly not buying enough, it's still dipping :)

I'd be tempted to part with mine for £1 each...

I'd vote no to a share buy-back vs a dividend. A share buy-back would in theory raise the share price by reducing supply, but liquidity is good in a share. It stops the share price becoming too volatile, on the buy side and the sell side. Churn is good as it allows PIs to take profit and creates a new layer of support at higher share prices.

A dividend would mean money in the pocket of those already invested, and would attract plenty of interest from the market and prospective PIs, raising the share price.

it feels good to break through that stubborn 8.5p :)

None of that is true. Trump lost fair and square and now he's continuing to act like a petulant child and a traitor to the democratic process.

Fortunately for EQT, a Biden presidency will be great for the Eco/Green Economy, and renewable/alternative energy sector will get the support to grow, meaning that companies like EQT will see greater demand for their services :)

A few things to consider:
- Nothing goes up in a straight line. Expect some speed bumps along the way.
- BTC is a chartist's dream, so expect self-fulfilling predictions like Fibonacci retracements and gaps being filled.
- If the herd are arriving, smart sellers will get out at the peak and buy back in lower down when the herd sell out at a loss and move on.
- the time to buy is when everyone is low on a share, the time to sell is when everyone is giddy on a share. Everyone is giddy right now on ARB and BTC.

I'm not a good trader, so I'm willing to hang on and ride out the bumps, but don't be surprised if ARB is back to 7p next week. A lot of people are now sitting on a big profit and may look to cash in on any sign of weakness.

Having said that, good luck to all LTH!

Congratulations! Your hard work is paying off.

The share price took a bit of a hit when September's report was released, due to the dispute over powering Argo's rigs leading to several days without mining.

By the same token, October's report (ceteris paribus) should look much rosier, just by virtue of being switched on all month. Fingers crossed!

ARB is shadowing BTC, so the main sp driver will be the BTC = dollar number.

However, the recent rise in difficulty also had an effect, as did the last RNS that said ARB had 4 days off-line, due to an infrastructure dispute (nowt to do with ARB, mind).

But in the long-term as long as BTC goes up, ARB goes up . As long as you believe BTC will rise, then hold on for the ride. :)

Definitely. A chance for NFX to sweeten the deal with IIs by offering a chance to get in at a very low price, to get them on board for a much larger raise at a later date at a higher price.

Also, the new CEO will have a nice glow to their CV if they can step in with a low sp, then see it rocket in the mid-term.

This raise seems all about laying the groundwork for future growth of the shareprice, rather than the product itself, weirdly.

It's a low amount of money being raised. Intriguingly low.

If the company were desperate for cash, they would raise more. It makes me think they just need a little boost to get them over the line, expecting a good RNS in the medium-term that will give a big boost to the sp.

edit: just realised 3, 5 and 9 don't add up to 17! oops!

Replace them with 3, 5 and 10 :)