1/10. I thought it would be a good opportunity to review the financial and operational performance of #Bitcoin miner @ArgoBlockchain during 2021. Listed on the LSE #ARB and NASDAQ $ARBK they currently have #Bitcoin mining operations in N America.
See thread below 👇
2/ From the financials, 2021 was a great year. Revenues up 388% and Net Profit currently estimated to be over 2000%, YOY, based on #Bitcoin price of $46.3k as at the 31 Dec 2021. I’ve also provided 2022(E), based on Texas, #Bitcoin price of $50k and including mining difficulty.
3/ The LSE SP for @ArgoBlockchain closed at 33p on 31 Dec 20 and closed at 97.8p on 31 Dec 2021, YOY increase of 296%. It reached an intra-day ATH of £3.60 in February, but has since declined to a current price of 70p. #Bitcoin reached ATH of $69k but is currently at $37.5k.
4/ @ArgoBlockchain have a current #Bitcoin hash rate of 1605PH and have confirmed machine orders to take them to 3.7EH once installed, at their flagship Helios facility, Dickens County, Texas. They also mine #Zec with a hash rate of 280MS.
5/ @ArgoBlockchain mined 2,045 #Bitcoin and equivalents during the year and have a total hodl of 2,595 #Bitcoin.
6/ Gross Mining Margins have been excellent achieving 86% in recent months. However, their S17 miners have not performed at optimum levels throughout the year, and the Petahash required to mine a #Bitcoin has generally been 20-25% higher than peers, $HIVE and $BITF.
7/ The current forward PE ratio for #ARB is 5.6 which for a technology company is extremely low, when an average ratio in this sector would be closer to 20 to 30. The value of miners on the Balance Sheet gets overlooked as prices have been increasing on the secondary market.
8/ Works are progressing well and on plan at the Flagship Helios site, Dickens County, Texas. 20k new S19 miners will be delivered and installed using ‘Immersion Cooling’ Technology, the end of Q3 2022. Early studies have identified energy savings as well as operational benefits!
9/ Using this technology, studies have identified that #Bitcoin mining rigs can be run faster as heat is removed from the system by circulating liquid into direct contact with hot components, then through cool heat exchangers. This could provide a benefit up to 50% more HR!
10/ 2022 looks likely to be another good year ahead for @ArgoBlockchain and CEO @PeterGWall has indicated that further miner purchases could be made as Phase 1 becomes ready providing 200MW of power and potential for over 6.0EH.
Onwards and upwards….
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