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“Personally though I’d prefer they achieved such growth by other means for now.”

And as if by magic :)

Think this is a good sign and move, and best route available at the moment.

@Canetoad

I didn’t misquote. I even referenced the compensation part in my reply.

I think we just have a different view of what dilution means. Anything that reduces the earnings per share is in my view dilution and every equity raise does that immediately - though hopefully over time the funds can be put to good use and eventually EPS can eventually increase.

You appear to be defining it in terms of the proportion of shares held by an individual in which case I agree with you but the same impact can be got with any share raise by just buying more shares whether taking up rights or buying in the open market - the only difference is the discount.

It’s not the most interesting of debates so let’s just agree to disagree.

Regardless of the definition I’m with Amanensia on this one. An equity raise would likely kill the sp at this point even though I think ultimately it would be beneficial to the company and, eventually shareholders, as increasing hashrate is key. Personally though I’d prefer they achieved such growth by other means for now.

@Canetoad

Sorry, have to disagree as per investopia:

“Dilution occurs because a rights offering spreads a company’s net profit over a wider number of shares. Thus, the company’s earnings per share, or EPS, decreases as the allocated earnings result in share dilution.”

https://www.investopedia.com/terms/r/rightsoffering.asp

The issue of rights ‘compensates’ for this but this really relates to the discount offered and I agree with you that a RI is preferable as at least here the existing holders benefit from the discount (whether they take part or sell the rights - so that in immediate terms they are theoretically no worse off) - rather than just the institutions or whoever the shares are placed with who are then the only ones that benefit from the discount while the sp drops for existing shareholders.

Any equity raise is a dilution by definition. Only difference with a rights issue is you can choose whether or not to increase your investment on the terms of the issue. You just then get a bigger slice of the diluted stock - it’s no less diluted.

It’s more the other way round.

@MacF1 - the most plausible explanation is simply a purchase though if this is the case it is odd they haven't announced it. Of course they don't need to announce every sale and purchase of BTC but I think they have in the past.

"So they mined 167 Bitcoins but also mined the equivalent of 125 Bitcoins from elsewhere."

They have not mined 125 bitcoin equivalents from elsewhere. Apart from being implausible in itself if they had mined 125 equivalents it would show up in the revenue as worth an additional 125 BTC - and it doesn't.

“Hmm they seem to struggle to improve the numbers mined month to month.”

That’s because difficulty is increasing every month.

167 mined - pretty much as expected but good to see the extra hash rate added so far officially confirmed.

"What is this proposed taxation? I would have thought it’s already taxed on income for traders and capital gains for holders."

Wolf - I think you're right. From memory from when this was discussed at length earlier in the year this is nothing to do with a new tax at all. It is to do with increased reporting requirements that are designed to lead to more of the existing taxes being collected. The big question at the time was what the scope of this reporting is and in particular who is responsible for producing it. Personally I can't see it being a big issue - not directly for ARB anyway - but I know others disagreed.

Differing numbers for cost per BTC mined are quoted in this thread but it depends on what it is being used for and hence what costs are included. The info is all readily available from the Q3 numbers which show:

Coins mined = 597
Direct Costs (hosting and electricity) = $3.76m
Depreciation of mining equipment = $3.24m
Other Costs (wages etc.) = $3.41m

So Cost per BTC for Q3 works out at about $6k if looking at 'mining efficiency' (consistent with Sprog's number) and $12k if the cost of machines is included (consistent with Flowerpot's 'full cost' number). If looking at overall profitability then $18k is probably more suitable.

Chaebol - if increasing the number of machines the $6k and $12k shouldn't change much as obviously both the costs and coins mined will increase. The $18k though may reduce as this includes an element of 'fixed' costs but this depends on how much they are impacted by growth and besides they fluctuate month to month anyway due to things like consultancy fees.

If nothing else though all these numbers will increase as difficulty increases though things like immersion, cheaper electricity and anything else that helps efficiency will clearly act the other way.

Why the Pfizer pill should have moved the market when molnupiravir didn't is a moot point as it seems clear that this is what happened. All the travel and leisure stocks rose suddenly and sharply at the same time as the release of the Pfizer news and it would seem just being contrary for the sake of being contrary to believe it was something else.

The more pressing question is whether it was an overreaction or not. I suspect not and agree with you Mary in pretty much everything you said - so hopefully the next few months or so will be good for IAG and similar stocks - if still a little bumpy at times.

Much more importantly though it seems great news in fighting the virus itself.

"220 - it was 211 one day on the way down did you not buy then?"

Because I'm an idiot! I realised I was wrong not to and didn't think we'd see quite that price again so set 220 as a top-up figure come what may after the rights became tradeable. Wrong again! My average is well over £3 so could still average down at the current price but it feels too much like a missed opportunity. Instead I'll just sit on my hands now and enjoy the ride as really exposed enough already on travel stocks. So I will wait for the profits to hopefully emerge on what I have - and give up on the sp going back down the tempting bargain basement levels that we've seen recently.

Pretty sure it's the news on the effectiveness of the pfizer treatment for Covid. All travel stocks suddenly shot up and many other recovery stocks too.

https://edition.cnn.com/2021/11/05/health/pfizer-covid-antiviral-pill/index.html

Glad I bought in last week :)

I think the uptick is due to the news about the pfizer pill which seems to be very effective in treating people contracting Covid. All travel stocks and plenty of other recovery plays have seen a sudden, significant boost to sp.

Vaccine and now an effective treatment adds up to a very promising outlook.

https://edition.cnn.com/2021/11/05/health/pfizer-covid-antiviral-pill/index.html

Yes hp, I was about to post similar. It's not just the airline industry but there seems to have been a 5% or so sudden swing to the upside for many recovery stocks. Whether it is sustained is another matter but the news seem very positive and the uplift welcome.

Respectfully disagree HC. There are trolls that do post endless negativity, often with no substance, but what Chuz does appears more a reaction to counterbalance the endless positivity much of which is every bit as misleading as what the real trolls get up to. I just don't like the lynch mob mentality.

It's not just IAG - loads of travel and other recovery stocks are going crazy. Is this the reason?

https://edition.cnn.com/2021/11/05/health/pfizer-covid-antiviral-pill/index.html

Dignified post Chuz to childish posts. I know your posts aren't needed, wanted or welcomed by some but such people, whatever they think, don't speak for everybody and it is incredibly arrogant to think they do.

I don't agree with all your posts and yes, you can be very negative, but at least you are honest and all your posts are based on fact - unlike many of the ramping crew. I've just got so tired of the endless nonsense posted by some who seem to think ARB can do no wrong, find excuses for everything or just spend their time bashing other people rather than saying anything meaningful or constructive about the company. It's actually this that makes me consider disinvesting more than any of the actual news. But then I think why should that be - I still believe in this company despite some recent missteps so I'll keep the faith based on the fundamentals not the fingers in the ears fan club.

Agree Blubay - it's the sort of information we've been crying out for, most of it very positive and all very useful.

I still can't get my head around why three such senior people in the company were discussing such things with an obscure company/individual and what they expected to gain out of it but hopefully it's a lesson leaned the hard way for them and for PW may encourage him to communicate more of this sort of stuff officially. Though to be fair some of it shouldn't really have been discussed at all (commercially sensitive, confidential etc.) so can't expect too much perhaps.