Terawulf Growing To 7.9eh/s. Argo Massive Dilution! To Pay Down Debt And Grow?

Introduction and Market Overview

In this section, the speaker provides an introduction and gives an overview of the market performance.

Market Performance

• The S&P was up 0.71%, Dow Jones was up 1.06%, and NASDAQ was up 0.76%.

• Bitcoin experienced a significant drop of approximately 0.93% and closed below the $30,000 mark.

• Bitcoin is currently trading below the 20-day moving average, which is acting as resistance.

• There is a downward directional movement in Bitcoin, possibly due to the upcoming FOMC meeting next week.

Analysis of Bitcoin's Price Movement

In this section, the speaker analyzes Bitcoin's price movement using charts and technical indicators.

Key Points

• Bitcoin's RSI indicates a downward trend in price over the past 24-48 hours.

• The upcoming FOMC meeting may have an impact on Bitcoin's price, as previous meetings resulted in rate hikes and subsequent drops in Bitcoin's value.

• If Bitcoin breaks below its current range, potential support levels include $28,600 (rectangle boundary), the 200-weekly moving average, and the 200-daily moving average.

Ethereum Analysis

This section focuses on Ethereum's performance and technical analysis.

Key Points

• Ethereum followed a similar pattern to Bitcoin with a decrease of 0.71%.

• Ethereum is bouncing off its 50-day moving average and is currently above its 20-day moving average.

Mining Stocks Performance

Here, the speaker discusses the performance of various mining stocks.

Key Points

• Most mining stocks experienced a decline in value.

• Argo, due to diluting shares in England, saw a significant drop of 20.5%.

• Other mining stocks such as Clean Spark, Digi Host, and DMG had mixed performance.

Terra Wolf's Performance

This section focuses on the performance of Terra Wolf.

Key Points

• Despite the news of Terra Wolf's growth plans, the stock experienced a decrease of 0.29%.

Network Analysis

In this section, the speaker provides an analysis of the network.

Key Points

• The seven-day average has decreased to 366 million Terra hashes.

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Distribution Details

The speaker discusses the distribution details of a company's shares, mentioning that it will not be distributed in certain jurisdictions.

• The distribution of shares will not include the United States, Australia, Canada, South Africa, Japan, or any other jurisdiction where it would be unlawful.

• Despite this restriction, the shares have still made their way into the United States.

Pricing and Discount

The speaker provides information about the pricing and discount of the new ordinary shares.

• The price for each new ordinary share is 10 pence.

• This price represents a discount of approximately 14 pence to the 30-day average trading price of the company's existing ordinary shares.

• It also represents a discount of 25.92% to the closing bid price or mid-price of the company's near shares on July 18th.

• The significant discount has caused a drop in the stock price by 20%.

Admission and Purpose

The speaker discusses when the admission is expected to take place and how the proceeds from placing and primary bid offer capital will be used.

• The admission is expected to take place on or before 8 A.M on July 24th.

• The proposed placing and primary bid offer capital will be used to reduce the company's outstanding debt and pursue strategic growth projects.

• This is seen as positive as it helps reduce interest expenses and strengthens the balance sheet.

Company Debt

The speaker highlights the amount of debt currently owed by the company.

• The company has approximately £59.1 million in outstanding debt.

• This includes around £25 million owed to Galaxy Digital under an asset-backed loan and approximately £31.4 million of senior unsecured notes.

Dilution and Placing Details

The speaker mentions the dilution caused by the proposed placing and provides details about the number of new ordinary shares.

• The company announces its intention to conduct a non-preemptive placing of a minimum of 47,750,000 new ordinary shares.

• This represents significant dilution for shareholders.

• It is unclear how many shares the company currently has in England.

Strategic Growth Projects

The speaker discusses the company's evaluation of novel opportunities with power generators and the use of proceeds for growth projects.

• The company is evaluating opportunities with power generators to capture economic value from stranded or underutilized energy.

• A portion of the proceeds from the capital raise will be used for growth projects in this area.

• These projects are expected to create long-term shareholder value.

Limitations for US Shareholders

The speaker mentions limitations faced by US shareholders due to restrictions on accessing certain information.

• Due to restrictions, US shareholders may not have access to certain information on the company's website.

• This limitation can impact their ability to make informed decisions about their investment.

Argo's Challenges and Production Decline

The speaker highlights Argo's challenges, including stagnant stock price and declining production.

• Argo has been stuck at 2.5 exahash since last year.

• Their production has continued to decline since August of last year due to increasing network hash rate.

• To address these challenges, Argo needs to grow its operations significantly before the next halving event.

Potential Growth and Additional Hashes

The speaker mentions potential growth opportunities and the addition of more petahashes to improve Argo's situation.

• Argo plans to add around 300 more petahashes in the coming weeks or months.

• However, this may not be enough to save them in the long run.

• The company needs to take further action to ensure its sustainability.

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Purchase of Next Generation Bitcoin Machines

The company has made a purchase of 18,500 Next Generation and minor s19 XP Bitcoin machines for a total price of $75 million. After coupons and credits, the expected payment is $53.4 million or $19.10 per Terra hash.

Purchase Details

• The company purchased 18,500 Next Generation and minor s19 XP Bitcoin machines for a total price of $75 million.

• After coupons and credits, the expected payment is $53.4 million or $19.10 per Terra hash.

• This purchase will increase the company's self-mining hash rate by approximately 58% from 5x to Hash to 7.9 extra hash.

Deployment at Lake Mariner Facility

The new x19 XPS machines will be deployed at the company's Lake Mariner facility in New York. Construction of building three, which will house 43 megawatts of capacity, is underway and targeted for completion by year-end 2023.

Deployment Details

• The new x19 XPS machines will be deployed at the company's Lake Mariner facility in New York.

• Construction of building three, which will house 43 megawatts of capacity, is underway.

• The target completion date for building three is year-end 2023.

Efficiency and Expansion Plans

The S19 XPS machines are known for their efficiency with a rating of 21.5 joules per Tera hash. The company's expansion plans with these machines aim to establish Terra wolf as one of the most efficient mining fleets in the sector with a fleet efficiency of 25.7 joules per Tera hash.

Efficiency and Expansion Details

• The S19 XPS machines have an efficiency rating of 21.5 joules per Tera hash.

• The company's expansion plans with the S19 XPS machines aim to establish Terra wolf as one of the most efficient mining fleets in the sector.

• The target fleet efficiency is 25.7 joules per Tera hash.

Cost of Power and Availability

The company benefits from a realized average cost of power at 3.5 cents per kilowatt-hour and an average availability in excess of 98%. This is due to their use of nuclear power, which helps reduce costs and ensure high availability.

Cost of Power and Availability Details

• The company benefits from a realized average cost of power at 3.5 cents per kilowatt-hour.

• They also have an average availability in excess of 98%.

• These favorable conditions are attributed to their use of nuclear power.

Revenue Analysis and Price Targets

Based on revenue analysis, the company may be undervalued or overvalued depending on different calculations. Future estimates take into account the installation of new miners later in the year, but there is also a potential revenue drop due to an upcoming event.

Revenue Analysis and Price Targets Details

• Based on backward-looking calculations using revenue from previous quarters, the company may be overvalued.

• Forward-looking estimates, considering current monthly revenue multiplied by 12, suggest that they may be undervalued.

• Installation of new miners can help offset revenue decreases caused by an upcoming event.

• Price targets for the company are based on these revenue analyses.

Revenue Growth and Future Outlook

The company has been ramping up production and installing more miners, resulting in revenue growth. As long as the network hash rate doesn't increase significantly, the company should be able to stay ahead and potentially see higher revenues with the installation of new miners.

Revenue Growth and Future Outlook Details

• The company has been generating more revenue due to increased production and installation of miners.

• Revenue in June reached 9.6 million, their best month so far.

• With continued miner installations and stable network hash rate, revenues are expected to remain steady or increase.

• Future estimates also consider the price of Bitcoin.

Pricing and Investor Perspective

Some investors are pricing miners based on future estimates, leading to higher stock prices. The speaker is looking at future estimates to determine potential price targets for the company.

Pricing and Investor Perspective Details

• Investors are pricing miners based on future estimates, causing stock prices to rise.

• Future estimates are being considered to determine potential price targets for the company.

The Potential for Growth

The speaker discusses the potential for growth in a particular company, highlighting their good facilities and cheap electricity. They express a desire to see the company grow even more.

Company's Potential for Growth

• The company has good facilities and cheap electricity.

• The speaker would like to see the company grow even more.

Conclusion and Call to Action

The speaker concludes the video by thanking the viewers and encouraging them to like, subscribe, and support their Patreon. They mention that updates will be available on Patreon later in the week.

Conclusion and Call to Action

• Thank you for watching.

• Please hit the like button and subscribe.

• Support on Patreon is appreciated.

• Updates will be available on Patreon later in the week.