Argo is also known as Argo Blockchain PLC (LON: ARB), a newly developed blockchain technology company, focusing on a large-scale of cryptocurrency mining is currently booming within the Bitcoin market as their share price has astronomically risen over the recent weeks. Based on the great city of London (UK), the publicly-traded company’s value as rocketed by 1.200% in this recent month, according to Yahoo Finance. Currently, listing on the London Stock Exchange, the Argo Blockchain is the first of its type to ever listen on the LSE.
Although the crypto-company is based in London, England- it’s mining infrastructure is based within several locations all over North America. It currently has up to 18,000 mining machines in operation. Announced in November 2020, the company has plans of expansion and has ordered 4,500 leased cryptocurrency mining machines to be made. However, Chief Executive of Argo- Peter Wall has announced a promising start to the new year for the company as they have received 1,058 new cryptocurrency machines well ahead of schedule. It is anticipated that the remainder of machines (3,442) will hopefully be delivered and operating by mid-February.
As the Bitcoin market is currently booming, tripling in the last three months- the price of the Bitcoin currently values at a sky-high price of £30,000. There have been several factors involved as to why the share price has rapidly shot up, and one key factor was due to many private investors experiencing the Fear of Missing Out. Therefore, resulting in a so-called ‘self-fulfilling prophecy’ as the stock share prices were currently sitting at a potentially beneficial cost. However, within the world of cryptocurrency, this is not the first time we have seen stock prices increase so significantly. During 2017, there had been a huge boom in Bitcoin prices as prices skyrocketed and large sums of profit were made, leading other investors to follow the crowd, wanting to get a piece of all the action.
Argo Blockchain Stock Price Forecast
In a recent crypto-market update, dating to January 5th – it was reported that Argo Blockchain was expecting high revenues. Margins were much more improved by 60 per cent. Whereas, in comparison to November 2020, margins were only reaching to 57 per cent during cryptocurrency mining operations. The value of the Argo had increased as they had revealed that by the end of last year, they had mined 96 Bitcoins. The company already had 209 Bitcoins in possession, valuating to approximately £5.7 million ($7.8) in today’s current rate.
In a forecast for Annual Revenue Growth, it is expected that in the next three years ARB will be much more profitable in comparison to the savings rate which currently stands at one per cent. Furthermore, as Argo’s revenue is forecast to expand by 20 per cent per annum, it will benefit much more in the UK market, where it now stands at 6.4 per cent. According to simplywall.st, on Tuesday 12th January the stock share price currently sits at £1.01 (GBP). It has been labelled as an unstable stock share price as “ARB is more volatile than 90 per cent of UK stocks over the past three months, typically moving +/- 34 per cent a week”. As a result of this, Argo Blockchain’s weekly volatile has increased from 21 per cent to 34 per cent in this past year.
Is Argo Blockchain A Good Investment?
As stocks for Argo rose, the value of many companies such as Tesla (NASDAQ) and Scottish Mortgage Investment (FTSE-100) plummeted. This has led many investors and traders to question- why should I invest into Argo now?
Firstly, Argo is a listed company and due to being a cryptocurrency, it has a very high-security firewall in comparison to other digital wallets. In which, if abiding by the current stock price of Bitcoins, holders should be ready for all profits and losses in the double digits. However, it is having also been highlighted that there is more potential in selling shares of Argo, rather than buying as it is better to overturn the share as quickly as possible.
It is debatable as to whether investing in Argo is a good idea. The reason is that they are heavily associated with Bitcoins and the activity of Bitcoin is very impulsive and unforeseeable as we have already seen with the Bitcoin crash in 2018. Therefore, that goes to say whatever activity may happen with Bitcoins, it will inevitably impact the status of Argo Blockchains. Considering such risks and depending on the individual it may be advisable to not to invest, given their current valuation- but that does not mean one should completely avoid it as the long-term prospects for Bitcoin and blockchain technology have been fairly promising in the past few years.
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