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We’ll have to wait until tomorrow. LSE will digest today and US hopefully trace this forward tomorrow after today’s public holiday. Again, I like to think this is good timing on PW behalf.
Riot has 70m shares. Argo 350m. Let’s multiply the current SP x 5 so we’re talking the same language.
Riot trades at $26, while Argo at $7. Still quite a gap to fill, no? This is prior to any change in BTC price.
Argo Blockchain PLC
('Argo' or 'The Company')
Appointment of Communications Advisor
Argo, the leading cryptocurrency miner based in the UK (LSE: ARB), is pleased to announce that it has appointed Wachsman, the US public relations firm specialised in technology, to expand its communications in the North America.
Peter Wall, Chief Executive of Argo Blockchain, said: "We are delighted to appoint Wachsman. Following our listing on the OTCQB market earlier this week, we are seeking to strengthen our visibility in the US market and build our relationships. Wachsman is perfectly placed to help us achieve our goals."
https://listingcenter.nasdaq.com/assets/initialguide.pdf
Stumbled across above document which suggests closing price $3 (or bid price $4), rather than $2 as many have been voicing these last weeks.
If you look at PH rate / market cap ratio, RIOT translates to approx 0.5. With current cap Argo would is approx. 2.2.
If we align Argo to this metric with the expected 1075 PH by Feb we end up with following:
- Market Cap of £2.1bn
- 5-6x current SP eg c$6.5-7
- Any increase in BTC will further inflate this multiple
- 10x current SP should be doable assuming further increase to BTC (eg 70-80k range)
Thanks for that, appreciate it.
So then we simply adjust and dived by 4 (10000ph over the 25000ph). At current BTC levels that would be a $3-4 SP which aligns to what has been said repeatedly. Every multiple in BTC should roughly be a multiple on the $3-4 SP.
Still nothing to panic about :)
I stumbled across this announcement from Mara:
If all the miners were deployed immediately, at a bitcoin price of $28,000, "we would produce approximately $618 million in revenue annually and approximately $523 million in gross profit annually,” said Marathon’s chairman and CEO, Merrick Okamoto, citing numbers from mining profit calculators.
I believe Marathon is basing above statements on the completion of purchased miners in 2021 which would put it at 2500ph.
Argo will be c1000ph following upgrades. Let’s do a very simple calculation.
$618m/2.5 * 70% (margin) = c$175m @ 28,000BTC. At a PE ratio of 25 this equates to a share price $13.4 for Argo which would translate to c$4bn market cap ($13.4 x 327m shares).
Am I missing something here?
Even with the current BTC correction to >$30k, miners should have a $4bn market cap at a minimum.
As long as we hold BTC we are more than fine. Nothing to panic about.
Please correct me if I’m wrong here.
Final attempt.
https://community.**************/t/add-ticker-arbkf/36451
https://community.**************/t/add-ticker-arbkf/36451
True, however ARB would still see the upside. The catchup effect to peers and current undervaluation, the improved mining capabilities, Zcash performance and index upgrades. I’m quietly confident nothing can shake this.