Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Surely this has to fly on the next financial update because @ £14m mcap it must be massively undervalued. A profit making company which as of 30th June had £8.6m in cash/crypto, and new mining machines taking only 6 months for 100% payback of investment. On top of this, expecting to be the largest public miner during next year. I know that the reduction in BTC price takes cash straight off the bottom line, but ARB is still hugely profitable at these rates.
Looking forward to the Q3 operational update we were promised early this month - this has a chance of showing what the company is currently capable of. They have tended to do these in the first couple of days of a month, so fingers crossed for tomorrow morning!
I find this site very useful for showing difficulty charts;
https://www.coinwarz.com/difficulty-charts/bitcoin-difficulty-chart
It also has a online calculator to work out how many Btc can be produced.
@Woodaldo, your last calculation must have been less than a month ago. A month ago, 505 petahash would have brought in as many as 375 Btc. The difficulty rate changed both 30/31st August & on 13th Sept. (it is 18% different today since a month ago). Similar changes in difficulty (if not greater) are expected every month until Btc halves.
@squad - yes, they already had 5000, and placed the order for the further 7000 which were to be delivered & operational before the end of Q4. We have had the first 1000 of this order (which is a good start & early I agree), but it looks like the balance may be delayed into 2020 (as I read the wording of their statement).
Am I the only one here that thinks the interims will help push the share price? The expectation for them was set low, and I believe was achievable. JD has reiterated on many occasions that they are on track for everything they set out for, and they even have certain contracts that can't be announced yet. We all know revenue won't be massive, but the market fully expects that, and I believe there is still a very good chance Bidstack will match or beat the realistic targets it set.
"The Company expects to increase its installed base rapidly over the remainder of this year. The additional 6,000 machines are on order and are expected to be installed over the next two quarters."
Does this signal a delay?, or is it just badly worded? I thought all 7000 were supposed to be installed and operational during Q4 - I take this to mean they will not all be in place by the end of the year, and will stretch into Q1 2020.
not negative at all. I still think it will perform well given time - I just feel it is massively ramped (people talking about dividends, sp being over £1 by Christmas etc, share buybacks in Jan. - all have been mentioned numerous times on here). If it was that easy & was guaranteed to make millions quickly from mining, it wouldn't take the likes of google & amazon long to set up factories full of these machines! In truth, BTC is not yet fully understood & is also ramped massively - i read one newspaper saying it could be worth$100K by 2023! (if anyone is that confident, they perhaps need to re-mortgage everything they have & invest everything in Bitcoin)
Perhaps not at those rates, but mining BTC increased in difficulty by 10.38% this last weekend alone - the rate gets adjusted every 2016 blocks(approx every 14 days). Those sorts of changes will have a major effect on ARB & profitability of all miners.
The article is on about how many BTC can be mined per machine (revenue as opposed to profit). When purchased, the 2267 new S17 machines would have expected to mine $13.6m worth of bitcoin (or 1360BTC) per year. They can now however produce a maximum of $4.5m worth (or 453BTC), and this production rate is falling every day. This is what will affect the profitability of ARB (& hence SP) far more than the halving next year (if anything, the halving should reduce the number of miners & help).
@ajbennett - The 'generic article' was only about BTC mining with the exact same machines that Argo have recently bought, and how they are mining only a third of what they used to... but if you find that irrelevant then good luck to you.
I agree they are efficient, but remember that they only ever compare themselves with similar Canadian (or US) mining companies. Over 70% of BTC mining is done in China where electricity costs are far lower (especially in rainy season where hydropower becomes essentially free to many). ARB is my second biggest holding, so understand that I too am rooting for them.
My recent research shows most posts on this BB to be more than a little optimistic ;)
@chimers, see this below article. The new machines ARB bought in April/May now are only a third as profitable as they were when purchased.
"But the mining equation of Bitcoin is becoming more precarious. While only a few months ago utilizing an Antminer S17 brought upward of $6,000 per year, now, the profitability has fallen toward $2,000 per year."
The figures you quoted cannot possibly happen.
https://cryptovest.com/news/bitcoin-btc-mining-spikes-to-astronomical-heights/
sorry, missed the important bit:
https://cryptovest.com/news/bitcoin-btc-hashrate-out-of-the-park-will-price-follow/