I'm little bit less concerned now about BTC price, it is trading sideways with maybe longer term momentum to the downside but AUD decline has helped if they are selling stock/inventory. All things being equal I should hold DCC sometime this week but I still need to resolve a few things in my mind. I generally post on HC to clear my thoughts so ignore my babble.
Firstly, the speeding ticket reversal said they had revenue $10m revenue in 9 months. The sept qtr said they had earnt 13340 BTC to date and held 8500 BTC on hand. Cumulative sales revenue was $3.2M USD. Average AUD/USD was 93c for that quarter so sales were AUD $3.4M. Stock was valued at $3.3M USD ( 8500 ) so average price was USD $388 or $4.1m AUD and average price $482 AUD. Current BTC price is close to $300 AUD but has been as low as $215AUD.
We know sure as anything they didn't sell all the BTC stock straight away so assuming they sold all stock ( 8500 ) at say $325 AUD then sales revenue would be $2.7M AUD and total sales revenue would be $6.1M AUD. That means a difference between quoted $10M revenue and what is known and surmised from Sept qtr is about $4M. This figure is quiet high given a) the current BTC price and b) that generally they hold BTC on hand as stock for numerous reasons. General trend had been for about 2000 BTC mined a qrtr sometimes a little bit more. Assuming they got $300AUD ( which is generous especially considering they would have had to sell stock as well ) for each bitcoin mined, to get to $4M AUD that is over 13000 BTC in around 3.5 months or 3800 per month. That is a huge increase and makes me suspect that the quoted $10M sales in 9 months is in a different context to what I'm thinking or I've got my timing or figures incorrect.
On top of this and maybe supported by the latest announcement ( 22/1 non-price sensitive ) is that they signed a deal to reduce power costs by 20% and increase processing capacity by 40%. Maybe management have been a little bit lax in holding on to this for a while and is all that more confusing because they advised the market in Sept quarterly that they had signed a deal to reduce power by 40%. So is this another 20% on top of 40%.
Anyway , no more time left got to go for run.
DCC Price at posting:
9.7¢ Sentiment: Buy Disclosure: Not Held
