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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.
I hope you're right it feels like it would be a simple exercise based on that and we just own c.4+% of the new 'merged' business.
£100m would be realistic if they have a growth narrative of 'crypto'.
GLA
Somebody has to put the £50m into the company to create the new shares at a positive value.
If no extra cash comes in then the £2m company is still only worth £2m no matter how many shares are issued.
R8 have to raise £50m for the RTO, its still not clear how they are doing this.
Thanks I had forgotten that they had stated that it's shares not debt.
But how do the new shares come into existence to generate £50m the funding must come from either existing shareholders (us) or new shareholders which is more likely.
This is a kids ISA gem, as UK listed.
Not much else in the UK that will give you such good exposure to Blockchain blue chips......... This should be a must have in any Kids ISA, at least for the next 1yr to 18 months.
GLA
Nobody can say that as we don't know where the £50m is coming from for the RTO.
New institutional shareholders (on what terms)
Retail Shareholder H fund raise (probably too small to move the dial)
Debt (on what terms)
Another method
We just have to wait and see but I am hoping for something that doesn't dilute us into insignificance.
GLA
Everybody is taking on maximum risk with this so would like a significant return on the risk taken when buying at 2-4p.
Lets see if the Crypto narrative plays out, the UK are still very far behind other parts of the world (no ETF's, no relaxed tax rules, no airdrops, no staking, no on/off ramps, no green lights for any CEX's or DEX's)........ They have a long way to go and its not really on the UK agenda.
GLA
Interesting comparison using very crude numbers Redwood has about 5% of the Tesco Bank Assets (£570m vs £9.9bn) & Deposits (£4870m vs £8.5bn).
Tesco just sold for £600m which would crudely put Redwood at £30m.......
In reality banks are more complex than this but £50m RTO feels like top £ for whoever is selling out of that side.
GLA
Sold some to remove my initial investment today so ARB is now a free ride. I will reinvest that into CLSK, DABG & TESLA for the longer term.
GLA should be a good afternoon if BTC holds.
A good move for a BTC miner now would be to lead the trend = mine BTC, but switch 100% of HODL to SOL and stake it for 7% yield and create a node for additional yield.
This would help ARB stand out from the crowd and give them a better chance of attracting investment and reducing debt if the cycle plays out as expected.
I'm concerned about the second dip yesterday, it shows that people are willing to sell even after digesting the figures. I did top up and am still happy with that decision and will top up again if we go lower. Great company with a great future, looks after shareholders, customers and staff.
GLA
Manage your risk if you are new, ARB is very risk........Best to spread your bets and buy the 'Van Eck Blockchain innovators ETF' (Ticker DAGB). this way you get exposure to crypto/miners and you will be less likely to lose your money.
This could be shaping up to look very promising for the summer RTO. I don't think they are going to have any issues raising the capital (if things continue as they are), I just hope its doesn't dilute existing shareholders to nothing.
GLA