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Agree ratherbelucky though they did buy 172 BTC in January, presumably just after the first fund raise. So they might invest some again if they feel by doing so that they can create additional profit and/or increase the amount they have available for Texas development etc.?

Actually it’s about double that if you allow for all costs and not just mining costs.

Not the best of days but I just console myself that even with BTC at $35k ARB makes more profit in a month than it did the whole of last year. Not too shabby as growth goes. Just topped up. GLA

@Reldas20 - My take FWIW is that the ups and downs of the last 8-10 weeks that you describe just reflects the stage the company is at i.e. a young company traded more on sentiment - particularly on hope and fear including those sparked by BTC movements. Until its track record is more firmly established I suspect this will continue to be the case. In other words it is traded on more on belief than substance although in my view there is already plenty of substance (exciting developments and the company is already turning a profit) but this isn't being recognised widely - yet.

Once the company starts posting the sort of large profits (later this year and early next year) that are already suggested by the monthly updates, and that should be boosted further by recent and upcoming activities, then I think we will see a more stable and much higher sp. That's just my opinion though and obviously DYOR. In the meantime however the road is likely to remain bumpy and further exaggerated by any more sharp movements in BTC. Good luck whatever you decide to do.

It’s tempting but if they say things that are factually wrong and may therefore mislead then I think they should be called out. Otherwise I just ignore any de-ramping (or ramping).

@Xenor - one of the (many) good things about ARB is that doesn't need BTC to go any sort of run to make decent profits, let alone get anywhere near the dizzy heights of $300,000.

At current BTC levels it is making a mining margin of nearly £6m per month and this is still £4m-£5m after allowing for all the other costs that I'm aware of. If right this gives ,even with no BTC increases, a PE ratio that is already well under 20. And that's before the improved mining capacity that kicks in very shortly. Of course what the 'right' PE is for ARB is a matter of opinion and whether the SP actually moves to give that PE ratio is even more questionable given the way the share price has been buffeted lately.

So the one thing I am confident about is the profitability - just hope the SP catches up with it sooner rather than later.

Excellent post JTF.

The only thing I'd add is that we may not have to wait that long for the revenues and profit you speak about to be more visible to the market. ARB publishes monthly updates but these only contain the mining revenues/margins and numbers of coins held, not the full profit figures (including appreciation on holdings, other costs etc.). However, we don't have to wait until next year for these as they also publish interim results in September. This should be the first time the market sees, in black and white, the kind of "phenomenal" figures you refer to.

Whether this is enough to lift and stabilise the SP though is less clear as this share is so influenced by day-trader activity, sentiment and raw emotion (just look at the love-in then hate-in then love-in going on with Musk at the moment).

But whether it is this year or next year (can't see it being longer) one day this share will be traded more on its financials and that it is when I believe we will really reap the benefits of holding. GLA.

*one seven = ones even!

Dan tbh I wasn't sure of the point of the question. Assets per share is a fairly pointless number unless you are expecting the company to cease operating. Companies are valued much more on future profits than existing assets (though in ARBs case that is blurred as part of future profits will come from changes in value on the coins held - which can be plus or minus of course).

For ARB the current monthly profits are great and the expected one seven better. I think the current rate of profit is around 20p a share which is very impressive for such a young company and is why I think the SP is so undervalued - but that's a judgement call.

Read my reply properly. I said you wouldn’t use it to pay dividends. It makes no sense.

More lies.

I really don’t think you’re anybody’s mate.

I see you’ve started early today with the lies Saby.

ARB have sold plenty of coins e.g. they used DOT sales to fund the first investment in Pluto and used BTC to fund expenses etc (if they hadn’t how do you explain them only holding 900 when they’ve mined thousands).

Also they have plenty of cash at the moment but this is mainly from share issues in Q1 so it would be perverse to use it for dividends and anyway it makes much sense for a growing company to invest capital rather than hand it back to shareholders.

De-ramp all you like but at least get your facts straight.

sorry - should read subsequent changes in fair value recognised directly in profit or loss

That's correct Xenor. I must admit it was a surprise to me as I thought it would just sit on the balance sheet too but to quote the wording in the accounts it "acts as in the capacity of a commodity-broker-trader" which allows it to value BTC at fair value when it is mined with subsequent changes in gains and losses recognised directly in profit or loss.

In this way it recorded £0.3m of loss in 2019 and £2m of profit in 2020 from such changes in value. It is also uses futures, swaps and options to mitigate risk.

Like you I am frustrated by the SP at the moment as it is so driven by sentiment/fashion and people chasing rainbows to use your phrase. What keeps me reassured though is that the financials are so strong and in the end the SP should reflect these. I have projected estimated profits for ARB which I would never dream of doing for more traditional companies but here the business is so simple and the information so available. Of course you have to make assumptions (most notably future BTC value) but my own estimates suggest this stock is very undervalued. I could be wrong of course but I can only go on my own judgements. Good luck with yours and whatever you decide.

Rory - agree but as I mentioned below they also have plenty of normal cash as well to pay overheads at the moment. Also these overheads are currently small (only £2.4m in the whole of 2020).

No problem Mittenator.

I must admit I had the same questions too, especially around its level of expenses and if, how and why it can recognise changes in the value of BTC. The answers though are in the company's detailed report and accounts along with lots of other interesting stuff (like breakdown of crypto assets held and the fact they use futures to hedge against HODL value). So well worth a read if you get a moment - though lots of dry bits as well to navigate!

To be clear - ARB does have cash to pay expenses at the moment (from £49m of share issues in Q1). Some has been spent but most not and operational expenses are comfortably covered.

In the past it HAS sold BTC to pay operational expenses (else it would have a lot more now given how much it has mined).

Also it does not hold on to all BTC indefinitely anyway (though has held on to most of what it has mined this year). If it did this it would NOT be able to show any appreciation through its P/L.

Sorry, should add that they also of course show all the value of BTC when it is actually mined in their P/L - so all counts and overall PBT should be c£100m this year and P/E ratio will be very healthy- especially at today’s sp.

Not the case. It doesn’t have to sell BTC to count is as income. They show any appreciation or depreciation in their P/L.

Not sure I'd agree. Just bought before the close no problem. Cheap at twice the price (and I think that's actually not far off the case)!