Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
As someone that constantly bought the dip,
I think the dry up in liquidity is an issue, Argo Share Price is not only showing the risk of the sector, but simply lack of appetite for risk.
Debt is a major issue, But I believe Argo will be able to cover majority of the Debts in the case of Bankruptcy,
That is why I've hedging my Argo Shares by buying Senior Notes.
Regarding Bonds Debt, They can not be partially bought until Oct 2023, (1 year mark), and they need to be bought at $25, 100% + 3% or 2% or 1% until 2026. From now to Q3 2023, Argo has option to only buy the full 1.6M shares, after Q3 2023, Argo can buy some Bond shares back anytime.
Disclaimer: I own ARBKL Senior Notes in my IBKR, Current Price $6
There is also a prioirty for the Galaxy loan, I beleive they are meant to start being bought back from June 2023. So paying off $1M of the $30M galaxy loan is a good start, As the Galaxy Loan is 11% + SOFR Rate (5% atm).
Interest each Quarter, ~900k Interest to Senior Notes (8.25%), ~1.2M Galaxy Loan (16%), ~60k Mortgages (9%)
Galaxy loan is the highest Interest rate so the best debt to pay down,
If Bitcoin price continues within the $25k range, and argo is able to sustain, they'll be able to pay off half of the Galaxy loan by the end of the year. If they are truly committed.
THIS IS DISGUSTING. FEELS LIKE THEY'RE LITERALLY SIPHONING MONEY TO THEIR POCKETS. WHAT DOES MATHEW SHAW EVEN DO.
Key management compensation
Key management includes Directors (executive and non-executive) and senior management. The compensation paid to related parties in respect of key management for employee services during the period was made from Argo Innovation Labs Inc., amounting to: £118,030 (2021 - £36,769) paid to POMA Enterprises Limited in respect of fees of Matthew Shaw (Non-executive director); £182,759 (2021 - £566,591) due to Vernon Blockchain Inc in respect of fees of Peter Wall (CEO). Maria Perrella and Raghav Chopra (Non-executive directors) were paid £121,391 and £105,492 as at year end respectively.
From Argo Blockchain PLC, Alex Appleton (CFO) through Appleton Business Advisors Limited was paid £378,161 (2021 - £308,359). Sarah Gow was paid £70,399 as at year end.
Does this mean they gave DPN another 8M????? what on earth./
Acquisition of DPN LLC
On 8 March 2021 the Group completed the acquisition of DPN LLC to acquire 160 acres (with option to purchase a further 157 acres) of land in West Texas for the construction of a 200MW mining facility for completion mid-2022.
The acquisition of DPN LLC, effectively comprising the land acquisition in West Texas, has been treated as an asset acquisition in the financial statements. The consideration for the acquisition was an initial price of GBP 3.6m, satisfied by the issue and allotment to the shareholders of DPN LLC of 3,497,817 new ordinary shares in Argo, with up to a further 8.6m of shares payable if certain contractual milestones related to the facility are fulfilled.
Initial issue and allotment of GBP 3.6m has been recognised based on estimated fair value of assets received at acquisition in line with IFRS 2 Share based payments. Contingent consideration balance of this business combination has been subsequently measured at fair value with changes recognised in profit and loss in line with IFRS 9. Fair value of assets acquired was assessed in line with independent valuations of site by CBRE as well as external financial due diligence and financial modelling. Financial models used historical power purchase assumptions for the area and the Company's internal hash rate and Bitcoin pricing assumptions to help the Company evaluate the financial benefits of developing a Bitcoin mining operation on the land. Work performed by DPN LLC from August 2019, when it purchased the land, to March 2021, when it sold the land to the Company, to prepare for a Bitcoin mining operation added to the value of the land for that purpose.
Consideration at 8 March 2021
£'000
Share based payment
3,521
Contingent consideration to be settled in shares
8,659
Total
12,180
Allocated as follows
£'000
Tangible fixed assets (Asset under construction)
12,180
Total
12,180
This might be the nail in the coffin,
They sold $60M worth Machines last year, for $12M,
Epic Machines yet to be up and running, and the Intel Chips are a little difficult to use to create machines,
2.5EH is 2+ years old
Waiting for next months RNS and the End of Year Annual Reports,
But I don't see how Argo can become a major player before next years Bitcoin Halving.
Where do they get the capital for new reliable machines that will likely take 1 year to arrive?
Liquidity and Growth issue persists,
I think we will find the answer by July.
Big blow for Argo,
Guess the Epic Machines are unlikely to be outperforming,
Unsure why Intel would discontinue it other than this.
https://www.coindesk.com/tech/2023/04/18/intel-discontinues-bitcoin-mining-chip-series/
With the New CFO in place,
I'm expecting the Annual Report to be published on time, May 5th - May 12th, similar to the last 3 years. ...
My expectation:
Revenue $100M
Expensese $150M
Loss $50M
Balance Sheet
Asset $100M
Liabilities $100M
Equity $0M
Anyone else have guestimates?
I put it down to hedging,
Mara has a ton of convertible equity debt, and people buy the debt and sell the underlying.
ARBK Doesnt have much momentum either though, Argos problem is liquidity and I'm guessing the NAV is around 50M,
Need BTC to push to 50K before Argo pushes back to £2
Does this mean the new CEO just bought 47M shares for $7M, or did the company planning to give employees 47M shares, worth $7M ????
https://capedge.com/filing/1841675/0001104659-23-030169/ARBK-S8/file/8
Argo is in the same position as we were back in Mid 2019...
with 2020 halving coming up in Mar 2020, and then a push in end of 2020 to 2021 Mar.....
If Argo can survive 2023.... with May 2024 Halving... 2024-2025 Push might be interesting to be apart of...
Very difficult to see happening again,
One by One, The Chiefs are leaving,
2023 will either be the year of Argo Re-Emergence or Bankruptcy....
I suspect, CTO left because of 800PH offline in Canada, CFO left because of Poor money management, CEO left because he ran the company in the wrong business direction.
COO took over, with a CFA and runs the Investment side, It will be interesting to see what direction he takes and whether he can keep Argo afloat with $40M owed to 3Yr Senior Notes, $35M owed to 2Yr Galaxy. The new CEO needs to be efficient spending. The Revenues stay constant at $3M/Month, OpEx $2M?/Month. Little room to play Unless, Gross Profit $1M can be used for the correct investments.........
Can Epic send Argo Machines by Q1 ends, in 2 months??
Can Pluto - Emergent IPO this year?
Those are the remaining two big questions....