Member Info for Wmsjames

https://twitter.com/ArgoBlockchain

Argo loves a Tuesday RNS so i would say 8th December at the latest for the update.

I really believe we will hear about GPU or dual listing by Christmas, for me this is an easy hold until early 2022, 2021 is going to be an amazing year for bitcoin and ARGO..

I know a lot of traders are saying there will be a 30% pull back in btc price, but i just dont see it, paypal, cashapp, greyscale, all buying more coins than are being mined, more digital funds coming on board in early 2021 and then you have the occasional billionaire buying.

Paypal is making it easier to buy bitcoin, this has always been a barrier for retail investor but more importantly Paypal is a trusted brand and this minimizes the issue of being hacked and losing your life savings. So I believe btc will fly.

ARB is perfectly placed for investors who want exposure to bitcoin through their ISA or SIPP.

Perfect storm

Duke -

Did you read that paypal and cashapp are buying more coins than are being mined and paypal is only offering this service to 20% of its customers.. in 2021 they are going to offer it to other 200 million customers on their books.

Then you have greyscale buying anything they can get their hands on ..

Good luck

The HODL figure of ARGO has gradually gone up, which is a good sign, but they balance their hodl figure against working capital expenses, LTH's are expecting to see a gradual increase in HODL for at least 12 to 18 months.

One thing i would say , if the HODL decreases, this could be due to the GPU Purchase or costs towards duel listing.

Hi

They mine mainly (75%-85%) bitcoin but also mine Zcash , Argo mine 5% of the Zcash network .

Poptimist -this is not healthy, mate you need to sell up and wind down for Christmas.

It is not worth holding shares in any company, if it causes this much stress .

Stay safe

I believe FOMO will happen then, so my prudent estimate 18p onwards

Since Peter took over we have seen a number of significant changes, changes in personnel, old directors being replaced with more competent directors. It was a shame James the FD left, but he chose to work with David Beckham instead of Peter (who would do that).

Since April, the management have made a conscious decision to make the business margin led instead income led. This means tighter control of costs and from an investors point of view, music to our ears. Sometimes the number of mined coins was lower than we expected but the margins were higher and our margins exceeded most if not all of our peers.

This decision was mentioned three times in the interim accounts, ‘increasing our margin operations’, ‘improve average mining margin’ and ‘development of proprietary machine optimisation tools’.

3rd Party managed services
I haven’t got a good knowledge of crypto miner rigs or optimisation and I always assumed our margin was better than the rest as we had the latest rigs and therefore an advantage over our competition. But in the latest RNS, a 3rd party has probably spent upwards of $8milllion dollars on new rigs and Argo are managing these rigs, my educated guess is that we are using the ‘in house optimisation tools’. For me this is a fantastic secondary income stream, one I expect to grow.

I am prudently estimating a monthly income of $75k and minimal associated costs it is likely the manual labour costs will be covered by looking after our own machines.

For a wealthy company to start mining, buying the rigs is relatively easy, finding someone to host them isn’t rocket science, but to start from scratch and maximise margins is difficult.

Argo has proof of the optimisation tools from their monthly figures and soon it hopefully will have proof of optimisation from a 3rd party as well.

Lease Deal
This deal is perfectly timed (delivery in February) and per the RNS on ‘extremely competitive rates on hosting and power.’ Which implies to me that it is the same or better than we have now.

After looking at the numbers and based on a flat $20k btc price in 2021 and difficulty rising throughout 2021, I believe Argo will make a prudent net monthly profit of around £500k , so £6million in total for the year. Off course a lot of btc experts are predicting much higher bitcoin prices in 2021, which will increase the bottom line.

So from the managed service contract and the lease deal, I estimate £6million net profit

We obviously have the other 16,000 rigs and my best guess based on the same criteria as above and the enhanced margins from the GPU deal we could be looking at £ 7 million.

In Total £13 million, based on CONSERVATIVE estimates, if btc rockets earlier and stays high we could be looking at very silly figures

Since Peter took over we have seen a number of significant changes, changes in personnel, old directors being replaced with more competent directors. It was a shame James the FD left, but he chose to work with David Beckham instead of Peter (who would do that).

Since April, the management have made a conscious decision to make the business margin led instead income led. This means tighter control of costs and from an investors point of view, music to our ears. Sometimes the number of mined coins was lower than we expected but the margins were higher and our margins exceeded most if not all of our peers.

This decision was mentioned three times in the interim accounts, ‘increasing our margin operations’, ‘improve average mining margin’ and ‘development of proprietary machine optimisation tools’.

3rd Party managed services
I haven’t got a good knowledge of crypto miner rigs or optimisation and I always assumed our margin was better than the rest as we had the latest rigs and therefore an advantage over our competition. But in the latest RNS, a 3rd party has probably spent upwards of $8milllion dollars on new rigs and Argo are managing these rigs, my educated guess is that we are using the ‘in house optimisation tools’. For me this is a fantastic secondary income stream, one I expect to grow.

I am prudently estimating a monthly income of $75k and minimal associated costs it is likely the manual labour costs will be covered by looking after our own machines.

For a wealthy company to start mining, buying the rigs is relatively easy, finding someone to host them isn’t rocket science, but to start from scratch and maximise margins is difficult.

Argo has proof of the optimisation tools from their monthly figures and soon it hopefully will have proof of optimisation from a 3rd party as well.

Lease Deal
This deal is perfectly timed (delivery in February) and per the RNS on ‘extremely competitive rates on hosting and power.’ Which implies to me that it is the same or better than we have now.

After looking at the numbers and based on a flat $20k btc price in 2021 and difficulty rising throughout 2021, I believe Argo will make a prudent net monthly profit of around £500k , so £6million in total for the year. Off course a lot of btc experts are predicting much higher bitcoin prices in 2021, which will increase the bottom line.

So from the managed service contract and the lease deal, I estimate £6million net profit

We obviously have the other 16,000 rigs and my best guess based on the same criteria as above and the enhanced margins from the GPU deal we could be looking at £ 7 million.

In Total £13 million, based on CONSERVATIVE estimates, if btc rockets earlier and stays high we could be looking at very silly figures

Risk Adverse
Soon we will hear about the GPU deal, my best guess is that most of our rigs will be based in the two sites we are buying , this will naturally increase our margins further ( please the statement from the interims above), I would guess some rigs will remain under GPU , whilst to look to increase capacity in the two sites, which is possible from my reading.
Peter has not only increased his margin by cutting the middleman out, but also he has diversified his risk, he will host rigs , probably some with GPU and now rigs with Core Scientific. A shrewd move.

Overheads
I mentioned in my previous posts you should compare our overheads to our competitors, ours are tiny and there’s are large.

HODL
We all want Argo to hold more coins, it makes sense, but if you look at our cashflow position at the end of December 2019, most suppliers appeared to be paid after 3months, now from the interims, we are on 2 months. Peter inherited a crap cashflow and an even worse FD, he is now on top of this, with money in bank on 1st September 2020 being £1.22 m and hold worth £1.62m. We must remember the GPU Acquisition will affect our cashflow and possibly decrease our HODL in the short term. You could argue it is better to have cheap debt as BTC is going to the moon and there is a lot of merit in doing this, but to date Peter’s risk adverse approach has worked. Due to leasing machines we are not under pressure to purchase our own so more of the coins we mine can be HODL until such time new machines need to be ordered or dividends paid in the future.
Finally, throughout 2020, peter often says in his interviews that he is ‘cautiously optimistic ‘ in the interview last week, he said ‘ extremely optimistic’

Maybe Trek’s £1 will come in the next 2 years

Stay safe

Well said Argobull.

Fantastic buy in or top up price.

The fundamentals in this business are just too strong, its profit making , a cash cow, it is massively scaling up from Q1 and more than likely a maiden dividends in H2.

Lets sit back and enjoy the ride.

My understanding is that the brokers are being appointed to get institutional investors on board ..

Spot on, Sausage Dog as always

Hi L2

The court case is in relation to the deletion of the share premium account, which will more non distributable reserves to distributable .. We guess this means a maiden dividends in 2021

Risk Adverse
Soon we will hear about the GPU deal, my best guess is that most of our rigs will be based in the two sites we are buying , this will naturally increase our margins further ( please the statement from the interims above), I would guess some rigs will remain under GPU , whilst to look to increase capacity in the two sites, which is possible from my reading.
Peter has not only increased his margin by cutting the middleman out, but also he has diversified his risk, he will host rigs , probably some with GPU and now rigs with Core Scientific. A shrewd move.

Overheads
I mentioned in my previous posts you should compare our overheads to our competitors, ours are tiny and there’s are large.

HODL
We all want Argo to hold more coins, it makes sense, but if you look at our cashflow position at the end of December 2019, most suppliers appeared to be paid after 3months, now from the interims, we are on 2 months. Peter inherited a crap cashflow and an even worse FD, he is now on top of this, with money in bank on 1st September 2020 being £1.22 m and hold worth £1.62m. We must remember the GPU Acquisition will affect our cashflow and possibly decrease our HODL in the short term. You could argue it is better to have cheap debt as BTC is going to the moon and there is a lot of merit in doing this, but to date Peter’s risk adverse approach has worked. Due to leasing machines we are not under pressure to purchase our own so more of the coins we mine can be HODL until such time new machines need to be ordered or dividends paid in the future.
Finally, throughout 2020, peter often says in his interviews that he is ‘cautiously optimistic ‘ in the interview last week, he said ‘ extremely optimistic’

Maybe Trek’s £1 will come in the next 2 years

Stay safe

Since Peter took over we have seen a number of significant changes, changes in personnel, old directors being replaced with more competent directors. It was a shame James the FD left, but he chose to work with David Beckham instead of Peter (who would do that).

Since April, the management have made a conscious decision to make the business margin led instead income led. This means tighter control of costs and from an investors point of view, music to our ears. Sometimes the number of mined coins was lower than we expected but the margins were higher and our margins exceeded most if not all of our peers.

This decision was mentioned three times in the interim accounts, ‘increasing our margin operations’, ‘improve average mining margin’ and ‘development of proprietary machine optimisation tools’.

3rd Party managed services
I haven’t got a good knowledge of crypto miner rigs or optimisation and I always assumed our margin was better than the rest as we had the latest rigs and therefore an advantage over our competition. But in the latest RNS, a 3rd party has probably spent upwards of $8milllion dollars on new rigs and Argo are managing these rigs, my educated guess is that we are using the ‘in house optimisation tools’. For me this is a fantastic secondary income stream, one I expect to grow.

I am prudently estimating a monthly income of $75k and minimal associated costs it is likely the manual labour costs will be covered by looking after our own machines.

For a wealthy company to start mining, buying the rigs is relatively easy, finding someone to host them isn’t rocket science, but to start from scratch and maximise margins is difficult.

Argo has proof of the optimisation tools from their monthly figures and soon it hopefully will have proof of optimisation from a 3rd party as well.

Lease Deal
This deal is perfectly timed (delivery in February) and per the RNS on ‘extremely competitive rates on hosting and power.’ Which implies to me that it is the same or better than we have now.

After looking at the numbers and based on a flat $20k btc price in 2021 and difficulty rising throughout 2021, I believe Argo will make a prudent net monthly profit of around £500k , so £6million in total for the year. Off course a lot of btc experts are predicting much higher bitcoin prices in 2021, which will increase the bottom line.

So from the managed service contract and the lease deal, I estimate £6million net profit

We obviously have the other 16,000 rigs and my best guess based on the same criteria as above and the enhanced margins from the GPU deal we could be looking at £ 7 million.

In Total £13 million, based on CONSERVATIVE estimates, if btc rockets earlier and stays high we could be looking at very silly figures

This is a well researched post on ARB - https://twitter.com/Melendhar/status/1325697125611659264

For any newbie or LTH , a great read

So much potential upside with little downside.

The Operational RNS is an incredible RNS on so many fronts, the leasing costs of the deal is very good and more importantly we are getting the rigs relatively soon. For anyone new to this share, there is a delay in getting the latest rigs, as Bitmain the main supplier are/were having issues with their owners.

As ARGO are margin driven and have low overheads ( compared to peers) this will be a very profitable transaction for them. The profit next year could be easily the same as the Turnover this year. The scaling up of this operation is just incredible , ARGO haven’t taken on any debt and they haven’t done a placing.

Apart from a very small loan (due to be cleared in Feb 2021), we have no outstanding debt.
The second part of the RNS , shows a secondary income stream, but more importantly for me, demonstrates Argo reputation in this space, we are managing a third parties rigs. 3rd parties don’t come to you, unless you are good.

So what news is in the pipeline

The virtual roadshow with Finncap is due to start very soon, where Peter Ward and Finncap are trying recruit more investors
News on the legal approval for the Share premium account, resulting in a share buy back or maiden dividends in 2021.

We have the GPU acquisition, to manage expectations I would guess this will be delayed, as clearly staff resources have been used in recent weeks to get this across the line. So, I expect this to happen before Christmas or in the new year.

We have the November monthly update which is expected to be awesome, btc price up, difficulty and hashrate down.

If ARGO are pursuing a dual listing and I believe they are, I would imagine this wont happen until early 2021.

Finally for me, 2021 looks incredible for ARGO, the btc bull run, where figures of $50 to $100k are being mentioned for btc price.

Stay safe all

Arkonite - keep predicting ...