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Out of this guy for 20% loss, was only in a short run for 2 weeks, you can say it's bad luck, but bad luck won't come by chance, the company could have some serious capital issue underneath, won't touch ever again.
Attactive price, but yes or no in long term? Anyone?
Attactive price, but yes or no in long term? Anyone?
It just shows the world bitcoin is too successful to make communists scared. Old saying in China everyone know to heart is "cut people off wealth is like killing their parents", Communists risk losing a lot of popular votes (still count in factional politics) just proves BTC is so successful to force them take the risk
This is very good news as mining in inner mongolia is 100% powered by fossil fuel. There is 0% hydro power in that particular province.
As the industry moves towards more renewable energy possibly self-regulating at mining pool level, this will be a big argument towards environmentalist who argue against bitcoin's carbon footprint.
Remember Sichuan in China is 100% hydro power and that province accounts 60% of global hashing power.
Inner mongolia is 100% fossil fuel and only a very small fraction of global hashing power.
https://www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm
The coinbase $100billion IPO filing has bitcoin 113 times and Satoshi 4 times, and it copies to Satoshi Nakamoto at 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
In general 200MW is able to host additional 5.7 Exahash/s.
And $100million debt facility at current market rate can either do:
1) Lease 25000 - 30000 Antminer S19 pro from core scientific ~ 2.75 - 3.3 EH/S
2) Buy 15000 Antminer S19 pro ~ 1.65 EH/S
And this expansion will be mainly financed through debt not share issuance (big relief taking off the table).
So we are looking 3.5 EH/s to 5EH/s in 12 months time with this deal and subsequent expansion using the credit facilities.
Pricing against rivals, once this expansion is concluded, it should take market cap to $2-2.5billion usd at current BTC price~45k.
(If you 're in doubt, then just follow my advise, you will make big money, check my threads for 10x track records with no minimum drawdown endurance)
I think the share price drop would put Argo on hold for any further cash raising near term, they need and will protect share price for the time being - thus my concern is eased. Back 50% shares with 30% capital in at 65p, was a good ride from 11p-114p in anticipation of cash raising (see my previous post)
Well, this raising is no surprise to me as I've been asking this very question of how/when Argo will get more cash since early Jan (check my thread). It's not a bad deal but dilution is dilution, not debt or leasing that people almost shouted at me back then. So the next more important questions is, when and how / what source do you think Argo will get its next batch of cash from? Raising or mining operation?
I would hope the company is issuing the warrant to itself and sold at market , so they would have more than 10m cash as of today's price, which can buy 3k-4k antminers. If it's someone / director is cashing at this time/supply the shares to the market, I would have go away for not being helpful at all lol..
Warrants
The Company has issued warrants over 22,872,053 Ordinary Shares which remain outstanding, some of which
are conditional upon Admission, pursuant to the Warrant Agreements as described in paragraph 11 of Part VII of
this document. The Warrants have an exercise price of between 8 pence and 16 pence (being the Placing Price)
and have exercise periods ranging from 3 years to 5 years from grant. Assuming exercise of all of the
outstanding warrants in full, the warrants represent an additional 7.79 per cent. over the Enlarged Share Capital.
These are total possible (un-issued that can be issued) warrant at 0.16p, not much, a dilution of 7% if used in full, which is unlikely. I'm not sure whether yesterday and today's warrant is part of these or other holder who already got issued is exercising, which would be mean how the shares / capital if shares sold is going to be used, buying equipment or someone's wallet.. Anyone's guess.
I agree, argo could have 2x upside to reach a fairer price for more offering, I think once the mining rigs becomes available to buy again, having some cash in hand would be handy (Argo's current strategy is hoarding all bitcoins after cost, so almost no extra cash at hand, only source for cash is from the capital market, only my guess though)
Argo initial placing (IPO) raised about 25 million pounds and all used on the 18k T17 antminers so they probably need to raise more capital for next stage expansion, when do you think this will happen and at what price (obviously the higher the better)?
I'm a bit heavy in this since 11p and intend to offload a bit in front of new shares issuance/sells. Or they probably won't need the cash and just opt for leasing more miners from core scientific which would have much lower margin than self-owned ones but no availability in the buying here as bitmain is now having 2022-delivery time only.