Member Info for qwertyqwer25

Can anyone give me a short summary of the companies oil revenue? Are we paid a fixed fee per barrel or is the do we sell at the prevailing oil price. What is our breakeven price roughly? I'm looking to invest hopefully long term rather than a trade. Cash position is strong and excess cash being returned to shareholder is a big attraction to me.

Nope read the RNS again. If we had £10m cash the BoD would be nuts not to reinvest it in new machines or dividend/buyback

You are quite far off. The machine order change reduced the cost from $13m to $9.6m. There was only a $6.6m down payment so ARB had to pay an extra £2.3m to finish the order. So it’s June cash minus £2.3m for machines minus overheads plus profits of around £5m so I’d say cash of around £6m. I expect this cash will grow by £2m in March and April and then come halving will be time to reassess profit rate. BTW hash rates are still going up slightly even with this BTC pullback so I think our monthly profit will drop closer to £500k if BTC stays the same and difficulty stays the same. This will not happen in reality as difficulty will drop by 20% as per the podcast and BTC could rise to around $12k giving us a £900k monthly profit which is only a bit lower than currently.

I want a buyback not a divvy. We need to clear the seller and a buyback will do that. Buying more machines is better than a dividend so I hope there is no dividend until at least next year

Think about this. Mining difficulty has trebled in a year. So if you were breaking even early last year when BTC was $3000 you would now have a breakeven of $9000. Post-halving your breakeven would jump to $18000 per BTC assuming difficultt remains the same. We are either going to see a huge difficulty drop or a yuuuuuge BTC rally towards $20k or maybe something in between

So difficulty dropped slightly today which shows miners are not putting more machines on yet and this is good. Based on my prediction tool i am expecting based on 300 BTC mined this month revs of £2.25m with a 58% margin. This is £7500 per BTC realised and a gross profit of £1.3m. If we mine more BTC then even better. Bought £5k more on the drop today.

One thing that is confirmed is that during crisis like now on the markets the go to safe haven is gold and not Bitcoin. Good to see the SP holding up today amid the carnage

I think they have chosen explosive Lithium batteries instead. I was getting excited about the BMN price rise but i see the MMs have bashed it back down.

So dividends will do nothing imo. Reason is the market is not sure about ARB continuity of income although we know it will do fine. So even with a 5% dividend the share price won’t go anywhere. I strongly believe a share buyback is the correct step now to reduce free float while the market tries to understand the business. When the SP reaches realistic value I agree it’s best to keep a dividend

Be nice if this BTC drop picks up steam and dives to the $7000-8000 range. That would throw a huge spanner in the works of those who think BTC is going to moon hence are buying more machines while still losing money. Difficulty would start to drop and new machines would become cheaper allowing ARB to get the next machine order underway for a discount.

Is it Hive or Hut 8 that has a stash of around 4,000 bitcoins?

I disagree. If BTC were to crash to £3k ARB would still be raking in the money. Why? Because difficulty would plummet and ARB would be mining 3 times as much BTC so revenues would remain the same costs also the same. If ARB can keep cutting electricity costs the BTC price just doesn’t matter as long as they are not hoarding BTC and just selling as they mine

Difficulty adjustment tomorrow. A week ago it looked like it was going to increase by 4% but now looks like it will be flat which is good news for ARB. I wonder if they can take on debt to accelerate the purchase of new machines. Not that China will be making many machines at the moment

7p is too low and to me that mean no dividend as the BoD will not benefit until they exercise their options. I think sharebuyback more likely to get the SP up and the seller out so they can exercise options and reduce share count. If done correctly i think a SP of 50p+ is possible over the coming 2 -3 years.

No chance of £10m cash by Q1. More like £3-4m i think and growing by £1m a month. Remember if BTC price crashes mining difficultly will crash too and ARB will mine more BTC. Its the efficiency that matters.

i wonder if there might be issues with chinese miners is the virus spreads more. I guess not as you dont need humans to keep the machines running

Waheyyyyy we are red. Bonkers

Another great update and more importantly Jan mining was 11% more difficult than December and we had better margins. I think we could be able to easily add 500 new machines per month and use the spare cash to buy Mike shares off him and stop his drip selling.

been around for a while but great progress in the latest report. Share price still pretty stinky but one day things will get better how ever many months or years we have to wait we will breach 30p and 50p again.

Difficulty is projected to rise massively. This continual destruction of ARB margins is why the SP isn’t moving. Let’s see what Q1 results bring but I’m keeping feet grounded for now as my calcs suggest this isn’t going to be as big a cash machine as I expected. I’ll be very happy if the SP just doubled this year. Claims of £1 a share etc are years off if they even are realistic. We are up against miners who have $100m+ investment capability so we need to keep expectations in check. I suspect the SP won’t go up much unless BTC has a huge spike up of maybe 50% over a week or so