Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Knew*
Thanks! New there was a more up-to-date one somewhere!
Based on the cointracking portfolio (link here: https://cointracking.info/portfolio/8699e611339066a72040, which is admittedly a little out of date and doesn't have all assets on there, and also doesn't include staking revenue), I thought I'd have a look at the share price vs NAV in the last 3 months.
3 months ago on 29/7/21:
NAV: £104m
Share price: 132.50p
Now: £264m
Share price: 151.5p
So in short, NAV up 152% in that time and share price up 14% although there was a small bit of dilution too. Even with the 6% dilution, who are the people selling their shares at these prices?
The discount to NAV at the moment really does defy logic. The only conclusion I can come to is that most investors here don't really understand what they are investing in as it really is hard to fathom why KR1 trades at such a discount to NAV.
NAV is somewhere between £40m-£100m more than market cap depending on how you want to calculate/include staking etc. If all things were equal and if we imagine that as a private investor you understood the market as well as Keld/George, you still would not have the opportunities that they do with the money and connections they have behind them. Surely that should come at a premium otherwise you could just invest in the assets themselves? Put on top of that they are some of the smartest minds in this space at the moment and can seek out absolute gems, it really is shocking that this is at a discount at to NAV at all.
Why this share would trade at a premium/discount is really because of market sentiment/management/future expectations. For all of these, I'm incredibly bullish and I for one am going to be hoovering up all the KR1 I can at these prices. Fully expect this to be trading at a premium to NAV once the inevitable altcoin run comes after BTC does it's thing in the next few weeks.
It's not their fault that the company is undervalued compared to the NAV. The fact the MCAP is currently 10-30% under NAV is driven by sentiment - people are more wary of a crash now than they were 6 months ago when KR1 traded at 10-30% above NAV.
An uplisting might lead to slightly more demand, but the value of this stock is always going to follow the NAV. If you're an investor, and not a trader, then it shouldn't really matter what stock exchange this is on: the NAV is the NAV.
Interesting article from 6 months ago about Turkey's fears about hyperinflation of the lira:
https://news.bitcoin.com/bitcoin-adoption-turkey-inflation-lira/
People can take the news about Turkey banning purchases with Cryptocurrencies as bad news but to me it is good news. Bitcoin is such a better store of wealth than the lira that the local residents have more trust in a crypto than their own currency.
It’s definitely more an act to prevent hyperinflation in the lira than a move against Bitcoin IMHO. Is it shocking that a struggling economy doesn’t want Bitcoin to take over?
As another Matt, I second this point and also congratulate you on a great name. I’m invested big here because I believe ARB will be at the forefront of one of the fastest growing industries in the coming years. I’m a LTH so all this short-term FUD doesn’t upset me too much, but I’m sure there will be investors/potential investors who listen to some of the cr*p people post and although I may be able to see through it, I worry that not everyone can.
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@mysteryguy you are probably the first person ever to doubt BTC (insert sarcasm here). Your predictions of us being at the top will be just as wrong as everyone else who predicted we were at the top for the past 12 years.
The amount of market manipulation here is very obvious and I feel like it not unexpected. Hedge funds make money from MM and a stock that is largely funded by relatively uneducated retail investors in a particularly volatile market seems an obvious choice to short and manipulate.
The Coinbase IPO was widely touted as likely being one of the breakout moments for crypto-currencies. Seems like some banks and hedge funds weren’t happy enough to sit there and let crypto currencies take up profits and headlines that could be theirs and have decided to fight back!
With that being said we mined 387 BTC last quarter which is worth £17.5m today. Ignoring Texas, ignoring BTC HODLed, ignoring Pluto, ignoring being the first green crypto miner, ignoring our open and intelligent CEO, we are only at a P/E ratio of ~10.
ARB will rebound but only if we HODL and learn to stop paper handsing at the first sight of adversity! This company is massively undervalued and whether you keep your shares or decide to sell off, ARB will be rebounding back in the next few weeks for sure with or without you.
I can't be the only one frustrated by the SP here at times. I know there has been talk about KR1's NAV and the SP and how the Market Cap is at a discount to the NAV. I know this is market practice at times, but to me this seems rather counterintuitive given that KR1 have a knack of picking winners over-and-over again when it would be almost impossible for the retail investor to find similar wins. How they keep being at the forefront of the biggest and best new cryptocurrencies is actually amazing. That they have never made a loss on any investment made since the company's inception (that I'm aware of) is actually amazing.
Personally, I would be paying a premium to the NAV to be in this stock as GM and KVS know a lot more about investing in Crypto than 99.999% of investors and have opportunities that retail investors couldn't find. By this logic, I would say KR1 is massively undervalued and in my eyes, I would view this as a solid entry point anywhere up to ~£3.
I back KVS and GM to keep picking winners, and I would love to be able to look back on this post in two years time and say "I told you so" to the people doubting this company. DYOR GL HODL etc etc.
It's frustrating that the SP isn't higher, yes. But we should all have an idea as to why this is happening:
1. US economic outlook and worries about inflation has led to SPs tanking it across the whole tech industry. Just take a look at AAPL or TSLA and it's obvious that there is less institutional investment in the tech industry as a whole than there was 2 months ago. SPs seem to be based on smaller P/E ratios across the whole tech industry, not just the crypto-miners. Institutional investors will be pricing our SP in the same way, and even if BTC had stayed static at its ATH, I would have expected our SP to drop in line with the wider market.
2. BTC has lost momentum and is struggling to break 60k. When BTC was flying, investors had far less FUD.
3. There seems to be some intra-day fun that is being had with the SP, but as a long-term investor that doesn't bother me too much.
In short, the whole picture is different now to what it was when we were at our ATH.
This comment section has become rather frustrating to read. Majority of commenters seem to have the attention span of a goldfish. Argo saw huge rises in the last BTC run in February and as uncertainty driven by the US economic outlook and BTC struggling to break 60k has led to a lack of momentum in all crypto-mining stocks, not just Argo. Have a look at HIVE or Hut 8 who are probably our most comparable competitors and will see we have actually been doing alright. MARA are the only miner to have performed well due to some good news and the fact that US investors can trade MARA shares with relative ease.
When it comes to the NASDAQ listing for Argo, my guess is it's in the pipeline. The date that Argo met the requirements for a NASDAQ listing was 7-8 weeks ago by my watch. Since then PW and the board have dropped a few hints that they plan to list and typically these listings take 6-12 weeks. My guess is the RNS will be coming out in the coming weeks as BTC breaks 65k-70k off the back of the Coinbase IPO and some renewed interest state-side. If PW times it right we could see huge jumps in the share price and he hasn't let us down so far.
Also if people can't see what is happening here, go back through the comment section and look at comments on here from 14th Jan to 1st Feb. All the same FUD that people are spouting today, and we all know what happened to Argo's share price in Feb.
Thanks for posting, watched this earlier today - it does annoy me when people blame BTC price drops on paper hands or lack of trust. It is all just supply and demand: demand is near enough the same as it was yesterday but if F2Pool decide to sell thousands of BTC, then supply goes up massively. Price goes down. People then panic sell. Guys at F2Pool aren't idiots it seems. Does make you realise how much influence they have in the market though, which is quite scary.