Member Info for Hexam

Laudable effort speel and worth trying but let's just say I have more confidence in arb being successful than a lot of people sticking to this (especially from the recent evening crowd). As to the guidelines I would have thought not having personal insults in the first place would be better than just not responding to them (though that's good too). And presumably you mean arb in number two rather than BTC?

Personally though I think a charter is a bit OTT and can instead be summed up by saying let's just talk arb, about other things that affect the sp and be respectful towards each other.

Sadly though, like all social media, some people (from both 'sides') only seem to want to post to do the very things you are trying to stop (e.g. to fight with one another) so I think you need more than just good luck with this!

But good luck anyway :-)

"But IF all of that comes to fruition it's already in the price!"

I wasn't taking you very seriously before but am certainly not now. So much wrong there with so few words. Bizarre.

"Full year net profit will be less than £10M"

How? Half-Year net profits were £7m. Double it. Factor in BTC which has increased by around 35% since June 30th. Factor in that ARB will mine at least 50% more BTC in second half of 2021.

Either your maths is very bad or you think BTC is going to collapse. If it's the latter then fair enough but then why not just say that?

"I'm working on the latest available figures"

No you're not. The interim results have been published. £31m revenues for the first half of 2021 and £10m gross profit.

£420m doesn't seem so unreasonable now does it?

I'm more than hopeful you'll get the kind of RNS you're looking for very soon Monk. This is simply because for the IPO to be as successful as possible the current sp needs to be as high as possible - so I imagine they will get as much good news out as they can ahead of setting the terms.

So I would expect at the very least least confirmation of the 530PH expected in September/October as well as the 80PH that was expected for July (unless I missed that already) - and maybe much more. Would also expect more concrete details on Texas.

On the flip side I can't believe they would even be thinking about an IPO if they didn't have such good news up their sleeves so at the moment am not too concerned about the current silence.

Agree Sprog - If someone new really does have 200,000 machines this must include coffee machines, lawnmowers and antiquated fax machines. It's the power that counts.

"6.2 million investment write down write off"

This is simply the reduction in HODL value due to the fall in BTC up to the end of June so is not a 'write-off' (in fact as of today have got this all back plus some) and so not sure this has has much impact. After all MARA recently announced over a $100m reduction in its HODL value in Q2.

"

Most of us I think have lost our cool over things said but hopefully the sobering, recent posts will help lead to more tolerance on this board.

In particular it may make those who throw accusations around like confetti and then treat them as fact think twice. And those who only seem to post here to insult the board or the people on it to stay away.

Must admit I am not that hopeful though as emotions will continue to run high but there should be room for all opinions and sensible debates without crossing lines. We are all fragile though to some degree so it is hard to know what impact our words will have so can we at least try?

Yes, some impressive growth numbers but they still made an overall loss of over $25m for the first half of the year (ARB made over £10m PBT).

Not the whole story obviously and found more detail on figures here if anybody interested.

https://www.stocktitan.net/news/MARA/marathon-digital-holdings-reports-second-quarter-2021-mqchkkk50oln.html

"Message boards usually have like minded people with different viewpoints, it's good to discuss them to gain greater knowledge on the subject especially if a viewpoint is based on something you've previously misunderstood."

Exactly as it should be - sadly, often this one isn't.

Does it matter why - unless you want to trade? Certainly if it is something that is also likely to affect the company and price long term that would be worrying but I have seen nothing posted (and credible) to suggest anything like this other than future BTC value - which is of course unknown - but as investors if we weren't confident in that then we shouldn't be here in the first place.

So whether it is uncertainty over IPO, shorters, MMs, FUD spreaders, weak hands etc. I'm not concerned but if anybody can come up with a reason why the sp won't eventually take off that's different.

To be clear I was not arguing that the IPO is not a dilution (technically of course it is by definition) but my gripe was with how this is portrayed - either outright alarmist or casually dropping it in without context to create concern. This is not some failing company that needs propping up but a young, vibrant company with exciting and lucrative looking growth plans that need funding.

So whilst strictly speaking it may be putting lipstick on a pig in this case I think it makes it a much, much more attractive one.

Apologies for the long post but I've got a bit fed up with the regular mentioning of the word 'dilution' in relation to the dual listing. I agree that part of the reason (there are no doubt others) why the sp is struggling despite BTC rising is the uncertainty around the IPO but hopefully the following may help in at least dealing with the dilution point. Also sorry that it is in the dreaded FAQ format and if it comes across as patronising but couldn't think of a better way and just cheesed off with the misinformation doing the rounds.

1. Is ARB raising money by issuing new shares as part of the dual listing? Yes, the RNS clearly states the route they are choosing is an IPO but as yet we don’t know how much and at what price
2. So that means there is a dilution? It’s not that simple. Texas is a huge expansion and ARB only have £16m in the bank so the money for this growth has got to come from somewhere. So whilst there will be more shareholders there will also be more profits. The potential huge returns from Texas means that there are likely to be much more profits per shareholder than if the IPO and Texas didn’t happen – does that sound like ‘dilution’?
3. Wouldn’t it be better though raising the money for Texas another way like selling BTC, utilising the £100m loan facility etc.? Hard to say but would expect ARB to choose the best options at a given moment and so adopt a mix and match approach over time
4. So what will happen to the share price? Anybody that says that they KNOW the answer to this should not be trusted. The market is unpredictable but most of us I think can agree that Texas is a good thing and so however they raise the money then this should be a very good thing for ARB and the sp in the long run but in the short term it’s anybody’s guess
5. How can I find out more? Suggest start by DYOR!
6. Anything else? Yes, GLA

Nicely summed up CaneToad. I think the new money raised will more than increase the revenue/profitability proportionately and much more so (Argobull's numbers on what 200mW could give ARB amply illustrated this).

So with this, and the better exposure it gives ARB to US investors, I'm extremely positive about the upcoming IPO and dual listing but that's just my view and of course we don't know the terms yet.

Everybody will have a different view though so, as you say, how the market reacts (especially in the short term) is very hard to predict - and I suspect part of the reason why the sp is struggling to break free despite the recent uplift in BTC is because many are waiting to see what the exact terms are before making up their mind. But again, just my view.

Agree Nat - but sadly many still think that.

“I am saying the monthly profit margin is not the groups bottom line profit….”

Correct - it doesn’t pretend to be as I tried to make clear so really not sure what your point is. Some people think it is but that’s their fault not ARBs.

All I was saying that there is nothing mystical about the value placed on machines but read it how you will.

Chaebol my point is that depreciation of machines is NOT included in the mining margin each month. It is only the hosting and electricity costs.

By the way as for depreciation of machines in the accounts they use cost and straight line so simple approach rather than any mystical fair value.

So your concerns in these respect are unfounded.

Chaebol,

Which part of the monthly margin do you doubt?

Do you think they are lying about the number of coins mined?

Do you think they are using made up BTC prices?

Do you thing they are lying about the hosting and electricity costs that make up the mining costs and which they subsequently publish in their full accounts?

If not then there is no reason to doubt them as the margin is just a simple calculation using the above three things.

Many think this margin is their profit margin. It is not - there are other costs that need to be allowed for to get this and to then calculate PE ratios etc. But as far as mining margins go the numbers are correct unless you are accusing ARB of false accounting?

I agree Blubay. It seems all this conjecture on funding for Texas ignores the imminent IPO and so why not just wait to see how much ARB intend to raise from this? We already know from ABs excellent post the sort of sum that will be required and the scale of benefits that investing this sum can bring. I think this will not crash the SP, quite the opposite, as I think many will be doing the same kind of sums that AB has done and realising what a great investment opportunity this is.

That's just my view but we will see soon enough how much of the costs are likely to be met from the IPO and how the market reacts - and maybe then can talk about how they might raise the rest if more looks like it will be needed (assuming we haven't already been told).