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20 June 2021
15:27 hour

Should I buy Argo Blockchain stock after the share price crash?

The Motley Fool UK

17/05/2021 - 10:02

Argo Blockchain's share price has recently experienced a significant pullback. Ed Sheldon looks at whether he should buy shares in the Bitcoin miner now. The post Should I buy Argo Blockchain stock after the share price crash? appeared first on The Motley Fool UK.


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  1. Where will the Argo Blockchain share price go in June? (30/05/2021 - The Motley Fool UK)
    Argo Blockchain (LSE: ARB) has had a volatile 2021 so far. So where will the Argo Blockchain share price go in June? Now that’s a question, isn’t it? And I’ll give you my answer up front, right here: I have absolutely no idea. So if that’s all you wanted to know from me, you can stop reading now. But I hope you won’t. I hope you’ll stay with me while I explain why I don’t have a clue, and why Argo is in a class of shares that I would never buy. Sure, by not buying Argo Blockchain shares a year ago, I’ve missed out on a 3,700% profit. And that’s even after the stock has lost 55% of its value since its peak in March. But a year ago, I didn’t know anything about it. And even if I did, I had no way to guess at what was going to happen to the Argo Blockchain share price. Like almost everyone else, I only learned about the company after the shares had started soaring. And if I’d bought then, I’d have had every chance of getting in too late. Is Argo Blockchain different to any other stock? Now, not knowing where a share price is going is nothing exclusive to Argo Blockchain. But at least with most stocks, we can have a clearer forward view. For example, if I buy a FTSE 100 dividend stock, I expect to keep earning dividends over the long term. I’ll also hope for share price appreciation, but that’s a bonus. The reason I have such expectations is that I can see a company’s earnings. For companies producing essentials, like food, energy, raw materials, and the like, there’s pretty much a guaranteed long-term demand. But what about the Argo Blockchain share price? That’s dependent entirely, 100%, on the price of Bitcoin. And I have absolutely no idea where that is going either. Will it soar and beat its past highs? Will it enter a lengthy slump? What will Elon Musk say about it next? How can I possibly answer any of these questions? All I know is that if I can’t guess at the answers, I won’t buy the shares. The Argo Blockchain share price rise is nothing new The Argo Blockchain story repeats something I’ve seen time and time again during my investing career. A new growth stock appears, typically a technology one. Investors buy and push the price up, usually to valuations that can’t be justified by current revenue and profits. That’s usually because there’s little of one, and none of the other. The price almost invariably tops out and falls, just as has happened to Argo Blockchain in 2021. But what happens next? It will either be a washout and completely collapse. Or it will recommence its upwards climb and go on to ever better things. Which trajectory will the Argo Blockchain share price follow in June and beyond? I’ve already given my answer to that. And because I have no idea where it will go and no way to work out a rational valuation, buying for me would be a pure gamble. And I don’t do that. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy Argo Blockchain as the Bitcoin price rebounds? The Argo Blockchain share price crash: should I buy the stock now? What I’d do about the Argo Blockchain share price The Argo Blockchain (ARB) share price has halved. Can it recover? What does the crypto crash mean for the Argo Blockchain share price? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Where will the Argo Blockchain share price go in June? appeared first on The Motley Fool UK.
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  2. The Argo Blockchain share price crash: should I buy the stock now? (25/05/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price is up by 13% as I write, after the company reported that it had taken part in a meeting about sustainable Bitcoin mining with Tesla founder Elon Musk. Argo Blockchain was already working on plans for greener Bitcoin when Musk triggered a crypto crash by raising concerns about the environmental damage caused by Bitcoin mining. With the ARB share price now down by 50% from its February highs, I’m wondering, should I be buying Argo, ahead of a possible Bitcoin recovery? A good day for the planet? According to Argo Blockchain CEO Peter Wall, “today is a good day for the planet”. Wall says that he enjoyed speaking with Musk over the weekend. He agrees that the Bitcoin mining industry must “improve sustainable mining practices and take ESG concerns seriously”. As it happens, Argo was already working on a plan to decarbonise the Bitcoin industry. Earlier this year it signed the Crypto Climate Accord, agreeing to “achieve net-zero emissions from electricity consumption” by 2030. Interestingly, the company says that its mining facilities — which are in the US and Canada — are already “majority hydroelectric”. I see this as an encouraging sign Argo Blockchain may already be making good progress with its goals to cut emissions. Emissions are only half the problem Going green won’t help the Argo Blockchain share price if the Bitcoin price continues to fall. The company is investing in building new facilities in Texas. Argo also recently purchased two new data centres, which required the company to take on debt. The main risk I can see is that Argo continues to invest in expansion but isn’t able to generate payback due to changing conditions in the cryptocurrency market. This may not happen. But in my experience, when companies with limited revenue and profits take on debt to expand, the risk of financial problems increases significantly. Argo Blockchain share price: what next? Argo Blockchain’s share price has risen quickly over the last year, as it expanded its mining facilities and benefited from the higher Bitcoin price. The company reported its first ever profit in 2020, with earnings of 0.6p per share. Broker forecasts I’ve seen suggest that Argo’s earnings could rise to 8.3p per share in 2021. Based on the group’s £500m market cap, that would price Argo shares on about 16 times 2021 forecast earnings. I think that could be an affordable valuation for this business if it’s able to continue growing. The problem I have is that Argo Blockchain’s profits depend heavily on the Bitcoin price. I’m not sure anyone can forecast a year ahead accurately. Is Argo Blockchain’s share price cheap at current levels? Maybe. And maybe not. I don’t know yet. In the company’s monthly updates for May and June, we should learn more about how the Bitcoin crash has affected Argo’s performance. I’ll be watching with interest. But for now, this situation is still too speculative for me. I won’t be buying Argo Blockchain shares at this time. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading What I’d do about the Argo Blockchain share price The Argo Blockchain (ARB) share price has halved. Can it recover? What does the crypto crash mean for the Argo Blockchain share price? Why is the Argo Blockchain (ARB) share price still falling? What’s happening to Argo Blockchain’s (ARB) share price? Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price crash: should I buy the stock now? appeared first on The Motley Fool UK.
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  3. The Argo Blockchain share price is up 3,400%. Should I buy? (27/04/2021 - The Motley Fool UK)
    Warren Buffett famously described Bitcoin as “probably rat poison squared“. But how can I ignore it, after it soared eightfold over the past 12 months. And what about Argo Blockchain (LSE: ARB)? The Argo Blockchain share price has climbed a massive 3,400% in a year. Well, I have actually ignored the Argo story so far, but it’s silly not to take a look, right? But first, this seems like a perfect time to remember those key words of investing caution: Past performance is not a guide to future results. I know that from experience. I lived through the dot com boom around the year 2000. And I watched speculative Internet stocks crash by 90% and more when the bubble burst. Argo Blockchain is a cryptocurrency miner. It invests its cash in the computers to mine Bitcoins, and the energy to run them. According to Cambridge University researchers, world Bitcoin mining is consuming around 121 terawatt-hours per year, more than the whole of Argentina. Even at that cost, it’s still a profitable operation with Bitcoin priced at around $55,000 per coin. What drives the the Argo Blockchain share price? Argo told us that in March it “mined 165 Bitcoin or Bitcoin equivalent (together, “BTC”) compared to 129 BTC in February“. That brought in £6.57m in mining revenue for the month, after accounting for crypto prices and exchange rates. March took the total for the quarter to 387 BTC, with the firm holding 764 BTC at the end of the month. What are we looking at from an investment perspective? If I bought Argo Blockchain shares, I’d see it as an investment geared-up from the price of cryptocurrencies. So if crypto prices rise, I’d expect the profit margin for Argo to be boosted even more. Similarly, should prices fall, I could see Argo’s profits falling faster. And then I see the Argo Blockchain share price geared up even further by the enthusiasm of investors who see a bright future for cryptocurrencies. Right now, Argo Blockchain’s profits are clearly tied to cryptocurrency prices. That is way too speculative for me, as I see no way of guessing at a rational long-term valuation. It would simply be a gamble for me, and I don’t do that. The future of blockchain technology But, I do think we’re only just scratching the surface of blockchain technology. And we could see many more uses for it in the coming years. So maybe in future the Argo Blockchain share price could be driven by other flavours of blockchain mining? But does Argo have any unique selling points, or defensive qualities? There are many companies out there with presumably vastly more computing power at their disposal than Argo. And what’s to stop them turning their attention to blockchain mining should the demand increase? I don’t see any real barriers to entry. I already mentioned the thing about past and future performances, and there’s one other caution that I see as especially important for investors tempted by the Argo Blockchain share price: do your own research. And do it very carefully. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading If I could buy only 1 crypto stock, this would be it The Argo Blockchain share price is up 3,200%: should I buy now? The Argo Blockchain share price: what’s next and should I buy? Has the Argo Blockchain share price fallen too far? Why I think the Argo Blockchain share price is up 17% today Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price is up 3,400%. Should I buy? appeared first on The Motley Fool UK.
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  4. Should I buy Argo Blockchain as the Bitcoin price rebounds? (26/05/2021 - The Motley Fool UK)
    The direct correlation between the Bitcoin price and Argo Blockchain share price (LSE: ARB) is clear and irrefutable. Last week, Bitcoin crashed. So did Argo Blockchain. As I write, Bitcoin is recovering and guess what? Argo Blockchain is on the up too. The link is hardly surprising, given that Argo’s corporate mission is to mine the cryptocurrency, and benefit when it rises. I’ve never really understood the point of investing in the stock, rather than simply buying Bitcoin. But people do. The Argo Blockchain share price rises Investors will be happy this morning, with the Argo Blockchain share price up 7.14%, at time of writing. That’s on top of yesterday’s 12.71% gain. I could make a fast buck buying this stock. Naturally, I could make fast losses too. Argo Blockchain started the year trading at 35p. On 17 February, it peaked at 284p. If I had invested £10,000 on 1 January, I’d have had a juicy $91,143. Argo’s stock has since crashed, for exactly the same reason the Bitcoin price has crashed. Tesla owner Elon Musk called out the crypto as “dirty money”, because Bitcoin miners rely on fossil fuels, and reversed his move to accept it as payment until its green credentials improved. In a second blow, the Chinese authorities initiated what looks set to be a sustained crackdown on crypto. The Bitcoin price tumbled and, naturally, Argo followed. Despite that, investors have still almost quadrupled their money year-to-date, with the stock trading at 140p. Unless they piled in at the peak, when their stake has dropped by half. Clearly, this is a high risk stock, and will remain so for the foreseeable future. The Bitcoin price is highly volatile. That’s why traders like it, of course. Sometimes I think it’s only true purpose is to give them something to play with. The same goes with Argo Blockchain. I wouldn’t use it to trade Bitcoin’s volatility though, because the wide bid/offer spread will take regular bites out of any profit you’re lucky enough to make. Right now, investors buy at 145p and sell at 135p, with platform transaction fees on top. Bitcoin price growth could run dry The other option is simply to buy and hold for the long term. But that bid/offer spread would hurt even more if I did get lucky and end up making a large sum. Could that happen? The Bitcoin price could go anywhere from here. Two things scare me. First, it now faces a combined regulatory crackdown, with the People’s Bank of China, US Federal Reserve, and the Bank of England united in talking the Bitcoin price down. Second, I think the Bitcoin price has been driven up by today’s massive fiscal and monetary stimulus. If liquidity dries up, it could crash. As will the Argo Blockchain share price. At that point, I’d rather be holding shares. In proper companies, with proper business models. Like this one. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The Argo Blockchain share price crash: should I buy the stock now? What I’d do about the Argo Blockchain share price The Argo Blockchain (ARB) share price has halved. Can it recover? What does the crypto crash mean for the Argo Blockchain share price? Why is the Argo Blockchain (ARB) share price still falling? Harvey Jones holds a small amount of Bitcoin but has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Argo Blockchain as the Bitcoin price rebounds? appeared first on The Motley Fool UK.
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  5. The Argo Blockchain share price has fallen. Should I buy? (14/05/2021 - The Motley Fool UK)
    Argo Blockchain (LSE: ARB) has made a lot of money for investors interested in Bitcoin in 2021. Over the past 12 months, the Argo Blockchain share price has soared by more than 2,500%, and that’s mostly come this year. But it has been a lot higher. The shares exceeded 300p in February, but have since shed 55% of that valuation. That includes a loss of 7% on Thursday, ending the day at 135p, and it’s all down to Tesla and its CEO. On Wednesday, Elon Musk sent out a tweet telling us that Tesla would no longer accept Bitcoin as payment for its vehicles. That reversed a decision to accept the cryptocurrency in March. And it’s due to not wanting to be associated with the energy costs of crypto mining. But that’s the whole point of crypto mining. If it could be done quickly, with little in the way of costs, we could all be mining heaps of it every day. And then what would happen to its value? Argo Blockchain share price down But what of the Argo Blockchain share price crash? Does it tip the balance in favour of buying now? Argo’s business model is simple. It buys computers, and uses them to mine Bitcoin. So it’s a play on the Bitcoin price without buying the stuff itself. I suppose it can be seen as a bit like investing in gold miners, rather than the shiny metal itself, in the hopes of gearing up the profits when gold rises in value. So if Bitcoin should appreciate in price, then the profit margin for Argo Blockchain should grow by a greater percent (after paying for the resources to mine it). At least that seems to be the investing rationale behind the Argo Blockchain share price progress in 2021. The current share price values the entire company at approximately £515m. That’s the equivalent of around 14,400 Bitcoin. According to its April update, Argo mined 163 Bitcoin, or Bitcoin equivalent (BTC), in the month, down from 165 BTC in March. At the end of April, the company held 936 BTC. At today’s prices, that’s worth approximately 6.5% of the current valuation of the company. It seems there’s a long way to go yet, before asset values reach the Argo Blockchain share price. Future asset generation There are two ways for the company’s crypto holdings to grow. One is to keep mining, and it would take about another six and a half years to reach the equivalent of today’s market-cap. Or possibly longer if it has to sell some to pay the electricity bills. The other way is for the Bitcoin price to keep on rising. In reality, it’s going to be a combination of the two. Unless Bitcoin falls instead of rising, that is. Is this a good moment to remind myself that past performance is not an indicator of future performance? I think it is. Will I buy Argo Blockchain shares? In the right circumstances, I could well buy shares in a Bitcoin miner — just as I could buy gold mining shares without ever wanting to own the metal. But not in these circumstances, not at the current Argo Blockchain share price. Maybe if it falls further… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why the Argo Blockchain share price is crashing today What am I doing about the volatile Argo Blockchain share price? I own Bitcoin and Ethereum but I won’t be investing in Argo Blockchain (ARB) Here’s why the Argo Blockchain (ARB) share price is surging What’s in store for the Argo Blockchain share price in May? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price has fallen. Should I buy? appeared first on The Motley Fool UK.
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  6. The Argo Blockchain (ARB) share price has halved. Can it recover? (21/05/2021 - The Motley Fool UK)
    Back in February, shares in Argo Blockchain (LSE: ARB) were changing hands at over 280p. The Argo Blockchain share price is less than half of that now. Yet it still shows growth in excess of 2,600% over the last year. I’ve been considering whether the Argo Blockchain share price could reach its February highs again and looking at two reasons it might (plus a couple of less positive factors). Bull factor 1: crypto prices A key driver for the Argo share price has been cryptocurrency prices. Argo, as a Bitcoin owner, has seen its share price gyrate alongside the cryptocurrency. With key influencer Elon Musk sending out seemingly conflicting messages on crypto lately, Bitcoin prices have moved around sharply. That’s a continuing risk for Argo. If crypto falls, its share price could follow. But the flipside also holds. If Bitcoin prices recover, the Argo Blockchain share price could recover too — maybe even back to February prices, or beyond. Bull factor 2: strong management Argo’s current management is ambitious about growing the company. That has been shown this month, with two Canadian properties added to its portfolio.  A plan to build a new data centre in Texas also shows management foresight. The lean environmental footprint could help reduce costs. It could also help insulate the company from criticism about the heavy energy consumption of crypto mining, although I think that critique extends far beyond any one miner. Unusually, management provides shareholders with straightforward monthly updates. This openness has helped highlight the speed and thoughtfulness of the current executive team. That could help boost the share price in future. Bear factor 1: valuation concerns Of course, there are downsides too. What are investor in Argo paying for? The company has a market cap of £487m. But at the end of April, it only held 936 Bitcoin or equivalent. At today’s valuation, that’s worth under £30m. What accounts for the rest of the market cap? The balance sheet doesn’t explain the gap. The company ended last year with total debt of £7.4m. The data centre business and management may merit some premium. But can they justify a valuation close to half a billion pounds? I don’t see the financial logic in such a price so I worry that the share price could be vulnerable. Bear factor 2: speculation A share price that increased over 2,600% in a year sounds incredible. But such an astounding performance can reflect a speculative frenzy. It may well not just be about investors valuing a company on its underlying performance. I do think the business is performing well. Its triple-digit revenue growth impresses me. But I think the Argo Blockchain share price has been driven up partly by speculation. That can work both ways – while it could push the share price up to its former highs again, it could also bring it crashing down. The strong business performance may not offer enough support against determined sellers. As an investor, I prefer to stay away from shares that are subject to heavy speculation. Instead I would rather focus on shares where I see strong business prospects and an attractive entry level. So while I do think the Argo Blockchain share price could recover, I also reckon it could crash further, even after the recent fall. I won’t be touching it. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading What does the crypto crash mean for the Argo Blockchain share price? Why is the Argo Blockchain (ARB) share price still falling? What’s happening to Argo Blockchain’s (ARB) share price? Argo Blockchain shares are falling. Here’s what I’m doing Should I buy Argo Blockchain stock after the share price crash? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain (ARB) share price has halved. Can it recover? appeared first on The Motley Fool UK.
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  7. What am I doing about the volatile Argo Blockchain share price? (05/05/2021 - The Motley Fool UK)
    Argo Blockchain  (LSE: ARB) is a company focused on large-scale cryptocurrency mining and it has performed extremely strongly since December 2020. Indeed, since this date, the Argo Blockchain share price has climbed 1,500%. This is due to its rising productivity and the strong performance of many cryptocurrencies like Bitcoin. Nevertheless, the share price has been significantly more volatile recently, with some investors deciding to cash in profits but others still seeing a good opportunity to buy. As such, should I be buying, or is this stock now severely overpriced?  Recent trading update  The recent full-year trading update was strong and for many investors, it justified a higher share price. Indeed, compared to 2019, revenue rose 120% and the number of Bitcoins mined rose from 1,330 to 2,465. The trading update also revealed that the company delivered its first annual profit. Despite the fact that this was only £1.7m, it is still very promising to see profitability, and this bodes well for the future. The Argo Blockchain share price was therefore able to rise strongly on these positive results.  Recent activity for the company also looks promising. Indeed, it has acquired 320 acres of land in Texas for $17.5m, with access to low-cost clean energy. This land will be used for the construction of a 200-megawatt cryptocurrency mining facility. As such, this should help the company increase production and capitalise on the industry’s growth. This is the main reason why I would buy the stock. Risks for the Argo Blockchain share price While the company has performed strongly, there are a number of risks that come with the stock. First, I feel that it is overpriced. Indeed, due to the Argo Blockchain share price rising so strongly over the past few months, the shares now have a price-to-earnings ratio of 323! This suggests that future growth is already factored in to the price, and Argo Blockchain will have to deliver on these expectations. A failure to do so is likely to lead to large share price losses.  Furthermore, profits are also highly dependent on the value of its core assets, in this case cryptocurrencies. Although this is true for traditional mining companies as well, for Argo Blockchain, the value of cryptocurrencies is extremely volatile. Of course, this can be beneficial for the crypto miner, yet it can also lead to negative consequences. As this is completely out of the control of the company, it is a major risk to consider.   My outlook for the stock price I’m personally not going to buy Argo Blockchain shares. Although the stock does have a lot of potential, and looks set to increase profits in the future, I still don’t think that this warrants its very high share price. Indeed, I believe that a further correction is required to make the Argo Blockchain share price more reasonable. As such, investing right now seems too risky for me.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading I own Bitcoin and Ethereum but I won’t be investing in Argo Blockchain (ARB) Here’s why the Argo Blockchain (ARB) share price is surging What’s in store for the Argo Blockchain share price in May? Can Argo Blockchain shares keep climbing? The Argo Blockchain (ARB) share price is up 300% this year. Should I buy? Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What am I doing about the volatile Argo Blockchain share price? appeared first on The Motley Fool UK.
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  8. What does the crypto crash mean for the Argo Blockchain share price? (21/05/2021 - The Motley Fool UK)
    When I last covered Argo Blockchain (LSE: ARB), the crypto market looked very different. Bitcoin has since fallen over 30%, with many other popular coins following a similar bearish trajectory. With Argo relying so heavily on Bitcoin prices, a bearish crypto market doesn’t bode well for the Argo Blockchain share price. Argo Blockchain share price history The share price has skyrocketed in the past six months, delivering 1,200% returns. However, shorten this trajectory to three months and the stock has more than halved in value. Today alone the stock has fallen over 6%! So, what’s going on? This volatility is largely in line with the crypto market’s movements – upon which Argo’s business is heavily reliant. I had a closer look at its business in my previous article, but in a nutshell, the firm mines and sells crypto. To be more specific, it uses thousands of high-powered computers to solve cryptographic problems and earn Bitcoin and Zcash in reward. It then sells these coins on exchanges, making a profit. Hence, if the price of Bitcoin and Zcash go down, so do Argo’s revenues. Crypto market problems Tesla CEO Elon Musk has a big part to play in all of this. In the past, Musk has been a keen advocate of cryptocurrency, publicly announcing Tesla’s $1.5bn holdings of Bitcoin. However, his past optimism seems to have turned sour, as he recently highlighted the environmental concerns of the coin are too great to continue allowing Tesla to take it as a payment option. It seems odd that one person can influence such a huge market, but in the 24 hours after releasing the statement, Bitcoin’s price tumbled over 10%. The fact that the Argo Blockchain share price is so heavily reliant on the crypto market, and the crypto market can be so easily influenced by Musk, is a big warning sign for me. In addition to this, the Chinese government announced it would be banning banks and payment firms from using cryptocurrencies. This news coupled with Musk’s concerns sent the markets haywire, and led to falling Bitcoin prices. Positive future outlook? Argo Blockchain has since announced it will be joining the Crypto Climate Accord, which aims for zero net emissions from electricity consumption by 2030. This is a definite positive for investors moving forward. The firm has also announced the purchase of two additional mining centres, which are likely to help it massively ramp up production. However, the constantly fluctuating price of the asset it mines and sells means that revenue is always subject to change, regardless of the actual amount of currency mined. This can be seen by April results, where the amount of Bitcoin mined fell from 165, but revenues were raised by £130k. This revenue instability is another red flag for me. My verdict The crypto market has since staged a short-term recovery, pushing up the Argo Blockchain share price. It’s clear Argo has its eyes set on expansion in the coming years, but even if production is upped tenfold, this means nothing if crypto prices aren’t stable. For this reason, I will be maintaining my scepticism and steering clear of Argo Blockchain for the foreseeable future. Government’s Green Dossier Exposes £400Billion Opportunity It was released November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully… Access this special "Green Industrial Revolution" presentation now More reading Why is the Argo Blockchain (ARB) share price still falling? What’s happening to Argo Blockchain’s (ARB) share price? Argo Blockchain shares are falling. Here’s what I’m doing Should I buy Argo Blockchain stock after the share price crash? Why has the Argo Blockchain share price been falling? Dylan Hood owns shares in Tesla. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What does the crypto crash mean for the Argo Blockchain share price? appeared first on The Motley Fool UK.
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  9. Why I think the Argo Blockchain share price is up 17% today (21/04/2021 - The Motley Fool UK)
    When I saw Bitcoin miner Argo Blockchain’s share price increase today, I was in awe of investors in cryptocurrency and stocks related to it. Here’s why.  Volatile trends for the Argo Blockchain share price The Argo Blockchain share price is up 17% in today’s trading. That is a serious increase in a day. But for the likes of this Bitcoin miner, share price volatility is quite common.  Consider this.  In the last two weeks, the share has dropped 37%. In February, the share had risen by 198%. As someone with a preference for relatively predictable FTSE 100 or FTSE 250 stocks, this is a lot of stock price movement. I think it takes real nerves. Future unknown Even volatility would be acceptable for me, if only I could project what comes next. Unfortunately that is not the case here. The Argo Blockchain share is tied to Bitcoin prices. But we never know where they will go next.  Unlike other currencies, Bitcoin is not widely used. It does not have backing from authorities like all other currencies do. It is gaining legitimacy, but it is not driven by the fundamentals of a country or even its prospects.  Why the share is up today Argo Blockchain’s share price is partly linked to its own performance though. Its latest update was positive and pushed its share price up. But ever since, there has been little or no news flow on the stock (at least none that I can find) that would explain its share price movements.  Which brings me to why I think the Argo Blockchain share price is up today. It is partly the rising Bitcoin price and part speculative purchases of the stock.  Alternatives to the Argo Blockchain share If I were to buy the stock at all, the allocation would be a sliver of my total investment. Anything more than that would be playing around with financial security, I reckon.  Instead, I can invest in stocks that, like Argo Blockchain, can grow significantly but are still at a relatively nascent stage. Small pharmaceutical stocks that are developing products that are yet to hit the markets, like Futura Medical, are one example.  We do not know how well its treatments will be received yet, but we can make an educated guess. That is not entirely possible for Bitcoin-related stocks, because the market itself is limited and may not even exist tomorrow.  Even cannabis stocks like Cellular Goods are a better investment to consider, in my view. Even though there are no numbers available on the just-listed company, and even though the UK’s cannabis wellness market is unexplored, we still have something to work with.  The market has seen some development in North America, that can give some indication of the potential for the UK. Further, we know that the regulatory environment for cannabis is improving for now, which is helpful in making projections. I see no signs of that for Bitcoin.   The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Will the Argo Blockchain share price triple again in 2021? Argo Blockchain’s share price has crashed. Should I buy the stock now? Should I buy Argo Blockchain shares at the current price? Why is the Argo Blockchain (ARB) share price crashing? Why is the Argo Blockchain share price falling as cryptocurrency moves higher? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think the Argo Blockchain share price is up 17% today appeared first on The Motley Fool UK.
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  10. Why is the Argo Blockchain (ARB) share price still falling? (19/05/2021 - The Motley Fool UK)
    Would I buy Bitcoin? No. Would I buy shares in Argo Blockchain (LSE: ARB)? Maybe. That might sound strange, so I’ll explain. To me, it’s similar to gold. I won’t buy gold, because it’s a straight gamble on where the gold price might go next. But a gold miner is different. Based on a range of possible gold prices, we can estimate some sort of base level for the long-term profits a miner might make. Similarly, it should be possible to come to some sort of rational valuation for the ARB share price, shouldn’t it? It’s not easy right now. Rather than any fundamental valuation based on profits, the Argo Blockchain share price is really just following where cryptocurrencies are going. Bitcoin has soared in 2021, but it’s fallen back some way since its high in April. And that’s what ARB shares have done too. It seems it’s all down to Elon Musk. Tesla accepts Bitcoin in payment for cars? Buy Bitcoin. Oh, Tesla won’t take it any more? Sell Bitcoin. He says Tesla might sell its Bitcoin holdings, then he says it hasn’t… you get the picture. It seems crazy to me to value something based on whatever one person happens to tweet in any one day, even someone as successful and charismatic as Musk. But that’s the way the cryptocurrency world seems to work. ARB share price down again Argo Blockchain ended Tuesday down 5.8%, at 130p. That’s still a climb of more than 2,500% over the past 12 months. But the price hit a peak of 360p at on 26 March, and has since plunged 65%. That suggests it’s hugely risky buying into a crypto mining stock, way more than a gold mining stock. To get back to my gold miner comparison, I’d value a mining stock based largely on the cost of extraction per ounce. I’d examine historical gold prices, and work out what margins the miner might make at various levels. And if I think there’s still decent profit even if gold falls significantly, I’ll seriously consider buying the shares. I’d want to see the share price trading at a discount to what I think the underlying profits might be like. But that’s not happening with the ARB share price. Speculative valuation At the end of April, Argo held a total of 936 Bitcoin, or Bitcoin equivalent (BTC). And it was mining at a rate of around 1,970 BTC per year. The company’s current market-cap stands at a fraction under £500m, or about the equivalent of 16,600 Bitcoin. Mining at current rates would take around eight years to generate enough BTC to match the firm’s valuation. Well, presumably longer, as it costs money to run all the computers. I know Argo plans to raise its production rate, but that will cost more money. And, right now, the ARB share price still appears to value the company based solely on the speculative future value of Bitcoin. It’s not based on any proven sustainable profits the company might make. Should that happen, that’s when I’ll consider buying. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading What’s happening to Argo Blockchain’s (ARB) share price? Argo Blockchain shares are falling. Here’s what I’m doing Should I buy Argo Blockchain stock after the share price crash? Why has the Argo Blockchain share price been falling? This is what I’m doing about the Argo Blockchain share price! Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why is the Argo Blockchain (ARB) share price still falling? appeared first on The Motley Fool UK.
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  11. The Argo Blockchain share price: what’s next and should I buy? (23/04/2021 - The Motley Fool UK)
    Argo Blockchain (LSE:ARB) is at the forefront of a new world. With so much buzz and activity surrounding the Argo Blockchain share price recently, I want to know what’s next on this digital rollercoaster ride? And should I invest my hard earned money? A brave new world Cryptocurrency mining is a sign of the new tech-based world we live in. Argo Blockchain owns banks and banks of specialised computers that work day and night looking to identify and capture cryptocurrency transactions. They then aim to add them to a blockchain ledger. There is a lot of complex mathematics involved hence the need for so much computing power. Argo Blockchain share price activity Argo Blockchain became the first company of its type to be listed on the London Stock Exchange back in 2018. It’s share price was just 15p per share in December 2020. By the time February 2021 arrived, it was at an all-time high of 284p per share. That’s close to an 1,800% increase. As I write, the Argo Blockchain share price is trading for close to 165p per share. Since its high a couple of months ago, its share price has experienced quite the rollercoaster ride with highs and lows. A positive first quarter trading update last month and news of the first clean energy mining pool boosted Argo Blockchain. It was set back recently by Coinbase, the crypto exchange operator, being listed on the stock exchange too. In addition to that, regulatory uncertainty will always affect the crypto sector and that weighs heavily on the share price in my opinion. Fight or flight? The Argo Blockchain share price could rise once more. It has had some positive news recently as well as mining success too. Firstly, it announced a partnership with crypto mining building specialists Navier to build a new facility in Texas. This project could boost Argo’s profit and performance massively in my opinion if it takes off. Next, Argo Blockchain has recently committed to a green energy crypto mining facility. There is concern about crypto mining and its impact on the environment,  therefore this may go some way to appeasing concerns. Argo will no doubt look to see an upside to profit and performance as well as reducing its carbon emissions.  My concerns with the Argo Blockchain share price and its prospects are linked to the rising costs of its facilities as well as regulatory issues. Mining rigs currently have an average lifespan of just three years and the depreciation value can be somewhat high. For example, the first half of 2020 saw depreciation reported at 26% of its revenue. It also costs money to buy, house, and maintain all these computers. Not to mention the electricity bills! My verdict on the Argo Blockchain share price Overall, I am not buoyed by the current Argo Blockchain share price. I do believe it could experience a gain, albeit a modest one. My hesitancy in investing is related to high costs and regulatory uncertainty. I won’t be surprised if the Argo Blockchain share price does meander up and down over the coming months, I just won’t be buying. Here is one more established FTSE 100 stock that I think is cheap right now. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Has the Argo Blockchain share price fallen too far? Why I think the Argo Blockchain share price is up 17% today Will the Argo Blockchain share price triple again in 2021? Argo Blockchain’s share price has crashed. Should I buy the stock now? Should I buy Argo Blockchain shares at the current price? Jabran Khan has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price: what’s next and should I buy? appeared first on The Motley Fool UK.
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  12. Argo Blockchain shares: should I buy for my portfolio today? (17/02/2021 - The Motley Fool UK)
    Argo Blockchain (LSE: ARGO) is one of the hottest stocks on the London Stock Exchange right now. Yesterday, it was up nearly 30%. Over the last 12 months, it has gained a staggering 3,600%. Here, I’m going to look at why Argo Blockchain’s share price is skyrocketing right now. I’m also going to discuss whether I’d buy the stock for my growth portfolio today. Argo Blockchain’s share price is on fire There are a few reasons Argo Blockchain’s share price has surged recently. The first is that the price of Bitcoin has continued to rise. As a large-scale miner of cryptocurrencies, Argo is essentially a leveraged play on the price of Bitcoin in the same way that gold miners are leveraged plays on the price of gold. A month ago, Bitcoin was trading at around $36,000. Yesterday, however, it hit $50,000. This rise in the price of BTC has boosted Argo’s share price significantly. The second reason Argo Blockchain stock has jumped is that a number of major companies have embraced cryptocurrencies recently. Last week, payments giant Mastercard announced that it plans to facilitate crypto payments in the near future. Meanwhile, Tesla announced that it bought $1.5bn worth of BTC and said that it plans to accept the cryptocurrency as payment in the future. Finally, recent trading updates from Argo have been encouraging. On 29 January, for example, the company advised that it had just brought 1,295 new mining machines into production. More recently, on 10 February, it advised that it plans to acquire 320 acres of land in West Texas and build a new 200mw mining facility in the next 12 months. ARB shares: should I buy? While Argo Blockchain appears to be growing rapidly, there are a few issues that concern me about the shares. The first is the fact that it’s hard to calculate a fair value for the stock. Argo’s revenue ultimately depends on the price of Bitcoin. And this is notoriously hard to predict. So, like an oil or gold miner, its revenue growth is really out of its hands. The second is the fact that the stock is so leveraged to the price of Bitcoin. Obviously, this is a great feature when the Bitcoin price is rising. However, it’s not so good when the price of Bitcoin is falling. When BTC fell around 25% in January, for example, Argo Blockchain’s share price roughly halved. Finally, the current market cap of £856m looks too high, in my view. If we take January’s mining revenue of £2.48m and multiply that by 12 to get a revenue forecast for the year, the annual forecast is £29.76m. That puts the stock on a forward-looking price-to-sales (P/S) ratio of about 29. That’s nearly twice as expensive as Tesla, which is generally regarded as a very expensive stock. It’s also worth pointing out that the current market cap equates to a valuation of £1.7m per Bitcoin held at the end of January. Weighing everything up, I don’t see Argo Blockchain as a great fit for my portfolio. There’s too much uncertainty for my liking in terms of revenue projections and it’s hard to know how much this stock is really worth. All things considered, I think there are safer growth stocks for me to buy right now. Like this one… “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Argo Blockchain share price: 3 reasons why it’s up 90% in the past week Argo Blockchain: here’s how much £5k in 2020 would be worth today Argo Blockchain’s share price is up 25%: should I buy today? Argo Blockchain shares: here’s what I’m doing Argo Blockchain: exciting or irrational? Edward Sheldon owns shares in Mastercard and has no position in Bitcoin. The Motley Fool UK owns shares of and has recommended Mastercard and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares: should I buy for my portfolio today? appeared first on The Motley Fool UK.
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  13. Argo Blockchain shares are falling. Here’s what I’m doing (18/05/2021 - The Motley Fool UK)
    As I write, Argo Blockchain (LSE: ARB) shares are down 8% in a week. It’s a stark contrast from the impressive 190% increase since the beginning of the year. But is this a buying opportunity? I think so. I’ve covered Argo Blockchain shares through the highs and lows. And I reckon as a long-term investor, this company is at the forefront of its field. Why are Argo Blockchain shares falling? I’m not surprised that if the price of Bitcoin falls then this will impact Argo Blockchain shares. After all, the company is a cryptocurrency miner. Elon Musk , the boss and founder of Tesla has been at it again. Last week, he announced that the electric car company will no longer accept payments for vehicles in Bitcoin due to concerns over climate change. Of course, the price of the world’s leading cryptocurrency took a tumble and Argo Blockchain shares fell too. It’s worth noting here that in February, Musk highlighted that Tesla has purchased $1.5bn of the world’s largest digital currency. This sent the crypto market into a spin. And a raft of companies followed suit, making the digital assets more acceptable. But there were concerns that Musk may have dumped Tesla’s cryptocurrency holding. This resulted in the price of Bitcoin falling and has had a knock-on effect with Argo Blockchain shares. The stock was trading on a very high valuation and so it was going to be sensitive to any negative news. Of course, this is just investors reading between the lines. Musk has recently tweeted that “to clarify speculation, Tesla has not sold any Bitcoin”.  My view I think it’s obvious that Musk’s tweets carry huge influence, but I’m not reading too much into this. In fact, I take these with a pinch of salt as there are too many conflicting messages. Despite this, many other large companies have now accepted cryptocurrency. And I reckon there’s a wider acceptance of digital assets happening. This may slow down, but it’s still gaining traction. I also don’t think that these same firms that have accepted cryptocurrencies, will backtrack on their decisions. To me, this would look somewhat unprofessional and would give the impression that a strategic decision can’t be made. Should I buy Argo Blockchain shares now? I think it’s encouraging that Argo Blockchain has adopted climate change very early on in its business journey. Last week, the company announced that it has signed a Crypto Climate Accord (CCA) in partnership with DMG Blockchain Solutions. This is to reduce emissions in the cryptocurrency industry. This comes after the company has teamed up with DMG to launch the first Bitcoin mining pool powered exclusively by clean energy. So while Musk stopped cryptocurrency payments due to climate change, Argo Blockchain is already on top of this. It’s using renewable energy to power its mining. Hence reducing its carbon emissions. On this basis, I’d buy Argo Blockchain shares on this dip as a long-term investor. But it’s not for the faint-hearted. The stock is volatile and I’d expect this to continue. I’d also only invest what I could afford to lose. But as part of a very diversified portfolio, I think things look promising for the company. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Argo Blockchain stock after the share price crash? Why has the Argo Blockchain share price been falling? This is what I’m doing about the Argo Blockchain share price! The Argo Blockchain share price has fallen. Should I buy? Why the Argo Blockchain share price is crashing today Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares are falling. Here’s what I’m doing appeared first on The Motley Fool UK.
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  14. The ARB share price has crashed 20% in a week. Is this a buying opportunity? (08/06/2021 - The Motley Fool UK)
    We’re only eight days into June and Argo Blockchain (LSE: ARB) shares have already fallen 20%. And since a 2021 peak of 360p, we’re looking at a 65% fall. Am I looking at rat poison here, or have I been handed an unmissable buying opportunity? After all, the ARB share price is up 2,800% over the past 12 months, so some investors have struck it rich. There’s clearly one big driver of the Argo Blockchain share price, and it’s the price of Bitcoin (and other cryptocurrencies). That’s very volatile, and has been in a bit of a slump. At the time of writing, the price of one Bitcoin has dropped to $33,000. Folks who bought some a few years ago are very much in the money. But, right now, those who bought at this year’s all-time high of over $63,000 are looking at a big loss. In turn, the big driver of Bitcoin seems to be celebrity comments. Crypto prices have famously been hanging on Elon Musk’s every tweet in recent months. And the latest big name to talk it down is Donald Trump. In the week that we heard of El Salvador’s plan to make cryptocurrency legal tender, the ex-president has called Bitcoin a scam. He told Fox Business he doesn’t like it “because it’s another currency competing against the dollar.” Understandable volatility With the value of Bitcoin so volatile and hanging on the latest headline, I’m not at all surprised that the ARB share price is also so volatile. But could Argo Blockchain actually be a good way to play the cryptocurrency market? In a way, yes, I think it could. It’s similar to the way I might buy a gold miner but I would never buy gold. Wherever Bitcoin goes, providing Argo can mine it for a lower cost, it can make a profit. And right now, it looks like Argo can mine the stuff for a lot less than the market price. Argo’s latest update told us the company mined 166 Bitcoin or Bitcoin equivalent (BTC) in May. That brings the year-to-date total to 716 BTC. Mining revenue for May came in at £5.51m. That’s down from April’s £6.7m, as prices have declined. But here’s the profitability thing — Argo achieved an average mining margin of 82%. ARB share price valuation At the end of May, Argo held 1,108 BTC. At today’s price, that’s worth approximately $36.6m, or £25.8m. And what’s the valuation of the company? Argo Blockchain’s current market capitalisation stands at £486m. So investors are paying almost 19 times the value of the underlying Bitcoin assets when they buy Argo shares at today’s share price. On a trailing basis, Argo shares command a P/E of 318. That’s huge. Admittedly, though, I do expect it to fall this year as profits are on the up. But will earnings growth push the valuation down to something I see as reasonable? I very much doubt it. So, I can see the value in the Argo business model. And, just like gold miners, it can be a profitable business. It’s just that I rate the ARB share price as way too risky, with little safety margin, even after recent falls. No, it will never be one for me. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading 3 high-profile UK shares I’m avoiding Where will the Argo Blockchain share price go in June? Should I buy Argo Blockchain as the Bitcoin price rebounds? The Argo Blockchain share price crash: should I buy the stock now? What I’d do about the Argo Blockchain share price Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The ARB share price has crashed 20% in a week. Is this a buying opportunity? appeared first on The Motley Fool UK.
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  15. Should I buy Argo Blockchain shares at the current price? (20/04/2021 - The Motley Fool UK)
    I think most investors know by now that Argo Blockchain (LSE: ARB) shares can be volatile. Over a year the stock is up 3,000%, but it has fallen more than 35% in the past month. I reckon this blip in the stock price could be an opportunity to snap up some Argo Blockchain shares. Here’s why. Operational update I’ve been bullish on the cryptocurrency miner for some time and continue to be. Its recent operational updates for March and the first quarter of 2021 were impressive. Argo Blockchain’s total mining revenue for the first three months of the year was £13.4m. In fact, this was the company’s most profitable quarter since its inception. But I’m not surprised by this. It has been a busy period for the company and cryptocurrency in general. What’s pleasing to see is that the income was “generated at an average mining margin of approximately 80% during Q1 2021”. To me, such numbers are fantastic. It indicates that the cryptocurrency market is a fast-growing one. And so far, Argo Blockchain has managed to capitalise on this opportunity efficiently. I think this could continue. The innovator I see Argo Blockchain as an innovative company. It’s the first of its kind to list on the London stock market. It’s also a relatively young firm operating with technology that I believe is in its infancy. I like that it has embraced sustainability early on in its journey. I’ve commented on how the company has appointed Guidehouse as its climate strategy advisor. This comes after the cryptocurrency miner announced that it has teamed up with DMG Blockchain Solutions to create Terra Pool. This is the first Bitcoin mining pool that will powered by clean energy. When a company is an innovator in its field, I don’t expect everything to be smooth sailing. The road will be full of twists and turns. But I think if Argo Blockchain can execute its recent endeavours successfully, it could be transformational for the company and thereby the shares. Risks Cryptocurrencies can be volatile and so I’d prepare for the same with Argo Blockchain’s share price. For instance if the value of popular cryptocurrency Bitcoin falls, then it’s likely the stock will decrease too. With that fact in mind, I’d only invest what I could afford to lose. Countries including the US are looking to increase regulation of cryptocurrencies. Turkey has banned the use of such assets for the payment of services and goods. This could impact Argo Blockchain. Recent news I’m optimistic on the long-term prospects for cryptocurrencies and hence Argo Blockchain shares. It’s encouraging to see Coinbase come to the market through an initial public offering (IPO). Coinbase is a platform where users can buy, sell and store many cryptocurrencies. It makes cryptocurrency investing more accessible to both institutional and retail customers. If the demand for these digital assets increases then there will be a greater need for cryptocurrency mining. This should be positive for Argo Blockchain shares in the long term and hence why I’d buy at the current price. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why is the Argo Blockchain (ARB) share price crashing? Why is the Argo Blockchain share price falling as cryptocurrency moves higher? The Argo Blockchain share price is crashing. Should I buy now? Here’s what I’d do about the Argo Blockchain share price right now Argo Blockchain’s (LSE: ARB) share price is falling, should I buy? Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Argo Blockchain shares at the current price? appeared first on The Motley Fool UK.
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  16. The Argo Blockchain share price is crashing. Should I buy now? (16/04/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price has crashed this week. The stock has fallen in value by 30% since 12 April. And since reaching an all-time high of around 248p on 17 February, shares in the cryptocurrency miner have lost more than 40% of their value. However, from a longer-term perspective, the stock has still generated outstanding returns for investors. Over the past 12 months, the Argo Blockchain share price has gained 4,500%.  Considering this and the company’s performance over the past seven days, I’m starting to wonder if now could be an excellent time to begin buying Argo shares to take advantage of the recent price decline.  Long-term potential Before I buy into a company that’s seen its value fall dramatically, I always try and understand why the stock has performed in the way it has. With the Argo Blockchain share price it isn’t entirely clear why the shares have fallen recently. The company’s latest trading update was incredibly positive. Mining revenues reached a record high, and the amount of Bitcoin and bitcoin equivalents (BTC) on the group’s balance sheet also rose to an all-time high.  What’s more, earlier this week, the Bitcoin price hit another all-time high. This should translate into higher mining revenues for the company and increase the value of the assets on its balance sheet. From a fundamental perspective, it seems to me as if the company’s outlook has only improved over the past seven days. If this is the case, why has the Argo Blockchain share price performed poorly over the past week? I think its valuation is to blame. As I’ve noted before, as investors have rushed to buy into the company over the past 12 months, the stock’s valuation has reached stratospheric levels. And while its underlying fundamental performance has improved, it doesn’t seem as if it’s improved enough to justify the high valuation. Argo Blockchain share price outlook  One of the big problems with investing in high growth businesses such as Argo is that they’re challenging to value. As long as they continue to grow, investors may be willing to continue to pay a high price. But when growth stutters, the value of these companies can drop quickly. I think that’s precisely what’s happening with Argo today.  Unfortunately, this implies the shares may continue to fall in the long term. However, if the company’s fundamentals continue to improve over the next 12 months, I think the shares should begin to reflect this growth sooner or later.  As such, I’d use the recent decline to start buying a small number of shares. The Argo Blockchain share price may continue to fall in the near term, which is why I’d only build a small position. Nevertheless, if its revenues continue to increase, I think its long-term potential could be exciting.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Here’s what I’d do about the Argo Blockchain share price right now Argo Blockchain’s (LSE: ARB) share price is falling, should I buy? The Argo Blockchain share price is up 6,215% in a year! Would I buy it today? Is the Argo Blockchain share price too low? Why I think the Argo Blockchain share price could keep climbing Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price is crashing. Should I buy now? appeared first on The Motley Fool UK.
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  17. Argo Blockchain: here’s how much £5k in 2020 would be worth today (15/02/2021 - The Motley Fool UK)
    Bitcoin miner Argo Blockchain (LSE: ARB) has seen a stunning rise in 2021.  And UK investors who want to gain exposure to the rocketing Bitcoin price without having to buy the underlying asset are turning to Argo Blockchain in droves.  It remains one of the most viewed UK shares on Hargreaves Lansdown‘s website, and one of the companies with the highest number of shares bought and sold.  Bitcoin boom The company has exploded into the public consciousness over the last 12 months.  So how much would a £5,000 investment in Argo Blockchain in mid-February 2020 be worth today? I’ve worked it out. The AIM-listed company doesn’t pay any dividends. So for this calculation we’re only concerned about share price growth.  On 12 February 2020, the Argo Blockchain share price was 7.2p. Over the next nine months almost nothing happened. By 12 November, the Argo Blockchain share price was just 12% higher at 8.1p.  But that’s sometimes what happens with conviction buys. Often it takes a while for the rest of the market to catch up.  Argo Blockchain soars  Shares in Argo Blockchain started to go parabolic as the Bitcoin price climbed sharply towards the end of 2020. Because Argo Blockchain mines new Bitcoins and also holds cryptocurrencies on its balance sheet, when the value of these cryptos rise, so does the company’s market value. So at today’s 140p share price? A £5,000 investment held for 12 months would be worth a little over £92,000. That equates to a 1,844% rise. In Motley Fool terms, we’d call that an 18-bagger. So where could Argo Blockchain go in future? Could it multibag again? Argo does have competition from some very large private and public American and Chinese Bitcoin mining companies. Canaan and Riot Blockchain come to mind. There’s no direct competition on the UK stock market. Regulated future If you believe that cryptocurrencies will be around for the long term, then Argo Blockchain is likely to continue to grow. If, however, you believe that Bitcoin will be regulated out of existence, Argo Blockchain would struggle to function.  There are other risks: Bitcoin mining gets exponentially more difficult the longer it goes on. To compete, mining companies are locked in a never-ending arms race to buy ever-more expensive machines. That means high and growing fixed equipment costs in future.   If the Bitcoin price falls — as it has done, sharply, in the past — it’s highly likely the Argo Blockchain share price will crash along with it. That said, we are in quite a different situation than the last Bitcoin boom and bust scenario of 2017.   Four years ago, Bitcoin had its first major public rocket ride. Its price jumped 19 times in a year from $1,000 to $19,650. Then it dumped hard. Over the next 12 months prices fell 80% to $3,950. Investors were crushed. What’s the difference between then and now? I believe the previous cycle was driven by small retail investors. And that’s why sentiment deflated so quickly. The 2020–21 Bitcoin price rally has been largely driven by institutional buying.    With Elon Musk’s Tesla buying $1.5bn in Bitcoin, and the Morgan Stanley investment bank chief strategist Ruchir Sharma admitting that Bitcoin could replace the US dollar as the world’s reserve currency? I say the cryptocurrency is less likely than ever to simply disappear.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Argo Blockchain’s share price is up 25%: should I buy today? Argo Blockchain shares: here’s what I’m doing Argo Blockchain: exciting or irrational? The Argo Blockchain share price has jumped! Should I buy the shares? Stock market bubble? This is how I’m investing my cash TomRodgers has no position in any of the shares mentioned. In terms of cryptoassets he owns Bitcoin, Ethereum, Polkadot, Chainlink, and Dogecoin. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain: here’s how much £5k in 2020 would be worth today appeared first on The Motley Fool UK.
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  18. Would I buy the Argo Blockchain share (ARB) after its price drop? (19/06/2021 - The Motley Fool UK)
    So far, I have had my reservations about buying cryptocurrency-related stocks, like Argo Blockchain (LSE: ARB). This was mainly because of regulators’ concerns about virtual currencies. This in turn meant that their usage could be restricted at anytime, leaving investors high and dry. Increasing legitimacy for virtual currencies But times are changing. El Salvador’s government recently recognised Bitcoin as legal tender. Now I know that it is a small country, with limited economic influence. And this has not been a popular move for the country either. The World Bank, which supports development projects around the world, has declined the country’s request to assist with Bitcoin implementation.  Still, it shows that thinking around virtual currencies is changing. A few months ago I pointed out that some of the biggest names in finance like JP Morgan and Goldman Sachs were increasing their exposure to cryptos as well.  Argo Blockchain share price underwhelms If this trend continues, it can bode well for the Argo Blockchain share over time. Right now its share price chart is underwhelming. It has seen some upward swings in the last month but it is now almost back to where it started.  I reckon this is because of the recent trend in Bitcoin prices. The virtual currency has seen little progress over the past month, after its crash in early May. Since Argo Blockchain’s mining revenues are measured in terms of Bitcoin prices, it follows that weakness in Bitcoin damages investor sentiment for the miner too. Indeed, the company’s revenues fell in May compared to the month before. The Bitcoin price was higher during April and even in March. In line with this, Argo Blockchain’s share price has more than halved over the past thee months. Of course, past performance is not an indication of future results.  My takeaway Basically this shows that the company’s fortunes are linked with a currency that is still at a nascent stage. At this stage, it tends to be volatile because the future is unknown. China, for instance, clamped down on virtual currencies recently sending the price into a downward spin. And Elon Musk’s tweets are known to impact it. I think this would be less likely if there were stronger fundamentals in place. At the same time, I cannot look away from the fact that over the past year, the Argo Blockchain share price has risen by over 30 times. And this is after the share price drop over the past month and a half. Also, in my mind, cryptocurrency is beginning to gain more credibility. If enough investors buy them and enough people and companies start trading them, to borrow a phrase I first heard during the 2008 financial crisis, Bitcoin may become “too big to fail”. I’m now thinking about making a tiny speculative investment in the Argo Blockchain share.  The post Would I buy the Argo Blockchain share (ARB) after its price drop? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Here’s what I’m doing about the Argo Blockchain share price Will the Argo Blockchain share price keep falling? The ARB share price has crashed 20% in a week. Is this a buying opportunity? 3 high-profile UK shares I’m avoiding Where will the Argo Blockchain share price go in June? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  19. I own Bitcoin and Ethereum but I won’t be investing in Argo Blockchain (ARB) (04/05/2021 - The Motley Fool UK)
    I don’t have to buy Bitcoin or other alt-coins to join the crypto revolution. Instead, I could invest in the shares of a company like Argo Blockchain (LSE:ARB).  Given that crypto is red hot right now, I can see why the UK’s only publicly-traded blockchain technology company is in demand. The Argo Blockchain share price has multiplied from 5.5p a year ago, to 180p today. That’s an increase of 3,172%. If I’d invested £1,000 a year ago, I’d have £32,720 today. I’m not going to see that kind of return by investing in a FTSE 100 blue-chip. Naturally, when things rise that quickly, they can fall just as fast. As Zaven Boyrazian explains here, Argo Blockchain operates like a mining company, but with a twist. Instead of extracting minerals and metals from the ground, it mines cryptocurrencies – specifically Bitcoin and Zcash. I’d rather buy actual Bitcoin and Ethereum This involves firing up powerful computers to solve complex financial attractions in return for digital tokens, which it hopes will rise in value. It’s a simple business model. The Bitcoin is out there. Argo Blockchain mines it. The costs are pretty low too, so the main risk is what happens to the Bitcoin (and Zcash) price. Cryptos have been on a roll this year. Bitcoin is up 412% over 12 months. Ethereum is up 1,259%. Dogecoin is up 16,190%. Zcash is a relative sluggard, up just 235% in a year. When the Bitcoin price rises, so do Argo Blockchain’s profits. And when it falls, down comes its stock, as we’ve recently seen. Argo Blockchain mined 918 BTC during the first three months of this year, double its previous three-month tally. It’s looking to have capacity, ordering 1,000 mining machines. If the Bitcoin price stays high, profits seem assured. Of course, that’s a big ‘if’. Today, Argo Blockchain reported revenues of £6.7m in April, up slightly from £6.57m in March, with an average monthly margin of 85%. It mined another 163 Bitcoin and now holds 936 BTC and equivalents.  I don’t trust cryptos, or like them particularly, but I do hold a smattering of Bitcoin and Ether myself. I want some exposure to this racy sector, but not enough to inflict any damage on my portfolio if they all crash to zero. I’m not investing in Argo Blockchain The market has become more established, as institutional investors dive in. Crypto will remain volatile, but if you know the risks and limit your exposure, it’s arguably worth a punt. I’d never invest more than 5% of my portfolio in this high-risk area, with the vast majority of my money going into shares. I’d rather buy actual crypto than Argo Blockchain. Its total market-cap is £706m. At time of writing, its 936 Bitcoins are worth just over $52m. That’s quite a premium. It’s adding to its haul at the rate of around 165 coins a month, so that will grow. However, I’m not convinced that’s fast enough to justify today’s valuation. My biggest worry is that Argo Blockchain management is helpless in the face of its biggest risk. A crypto crash. Personally, I’d rather buy a business on more solid foundations. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Here’s why the Argo Blockchain (ARB) share price is surging What’s in store for the Argo Blockchain share price in May? Can Argo Blockchain shares keep climbing? The Argo Blockchain (ARB) share price is up 300% this year. Should I buy? The Argo Blockchain share price is up 3,400%. Should I buy? Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I own Bitcoin and Ethereum but I won’t be investing in Argo Blockchain (ARB) appeared first on The Motley Fool UK.
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  20. Is the Argo Blockchain share price too low? (09/04/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE:ARB) share price has risen an incredible 582% year-to-date, and it’s only four months into the year. This follows a 489% rise in 2020. It has been an incredible journey for shareholders, and one that is likely to continue, in my opinion. Now and again, an exciting new growth company comes along that shows much promise. I think this cryptocurrency miner could be placed in that category. Is the Argo Blockchain share price too low? I think Argo Blockchain is among the best Bitcoin miners in the world. Recent weakness in the Argo Blockchain share price could be an opportunity to add more shares to my new 2021–22 Stocks and Shares ISA. Despite the triple-digit return year-to-date and a recent positive update, the share price has drifted more than 20% lower from its highs in February. In its most recent update for March, Argo reported that it has mined 165 Bitcoin or Bitcoin equivalent (together, “BTC”) compared to 129 BTC in February. The total mined in Q1 is now 387 BTC. Mining revenue increased by 51% in March to £6.57m, from £4.34m in February. The company experienced its most profitable quarter to date with total revenues of £13.4m for Q1. Business momentum has continued to increase with mining revenue increasing 52% from December to January, and 75% from January to February. In the words of Chief Executive Peter Wall, “These numbers are incredible”. I agree! It’s even more impressive that mining margin increased to 84% in March. Margins also grew month-on-month, from 81% in February, and 71% in January. Not for the faint-hearted At the end of March, Argo held 764 BTC. The nature of the business makes it particularly reliant on the underlying price of Bitcoin. After a doubling in the price of Bitcoin this year, it has more recently stalled. As a highly speculative instrument, the underlying price of Bitcoin can be volatile and difficult to predict. Like all cryptocurrency miners, Argo Blockchain is a higher-risk stock. And although I do own some shares, it forms just a small part of my portfolio. In recent months, the Financial Conduct Authority (FCA) even warned investors on the financial risks of owning cryptocurrencies. However, there have been some high-profile transactions, including a $1.5bn purchase by Tesla. In addition, there are technology risks. Argo will need to keep up with technological requirements over the coming years. The useful life of a Bitcoin mining computer could be three years so the company will need to invest to prolong efficiency. A cryptocurrency miner won’t be for everyone. And the strength of the Argo Blockchain share price might put off value investors. But overall I believe Argo is an efficient miner focused on smart growth, and run by an entrepreneurial management team. It’s also innovative and recently announced plans with DMG Blockchain Solutions to launch a Bitcoin mining pool completely powered by clean energy. With the recent dip in the Argo Blockchain share price, I’m tempted to add a few more shares to the speculative part of my portfolio. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I think the Argo Blockchain share price could keep climbing Should I buy Argo Blockchain shares now it’s using clean energy? Argo Blockchain shares: here’s why I would and wouldn’t buy this UK share Hargreaves Lansdown investors are still buying Argo Blockchain. Should I? The Argo Blockchain share price: this is when I’ll buy the stock Harshil Patel owns shares in Argo Blockchain. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the Argo Blockchain share price too low? appeared first on The Motley Fool UK.
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  21. Argo Blockchain share price: 3 reasons why it’s up 90% in the past week (16/02/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price has grown in value in both the short and longer term. Over the past week, the share price has moved up over 90% and is currently trading around 244p. If we look at the performance over the past year, it’s even more impressive. The share price in early February 2020 was around 6.5p. For much of last year, it stayed around this mark, before really taking off in December.  My colleague Tom Rodgers wrote only yesterday that a £5,000 investment made a year ago would be worth £92,000 now. But the Argo Blockchain price has spiked significantly even since then. Of course, this situation is very rare, and I shouldn’t expect this kind of return on all of the stocks that I buy. So what are the reasons behind this bump higher recently? Argo shares and cryptocurrency correlation The first reason why the share price has gained, and particularly this week, is its correlation with cryptocurrency. Argo Blockchain is basically a software company that facilitates the mining of cryptocurrency. It also builds on blockchain technology, which helps to record and facilitate transfers and payments. Due to the nature of business, it has started to show a strong similarity to the performance of currencies like Bitcoin and altcoins.  Bitcoin is closing in on $50,000 after gaining in the past week. Altcoins such as Dogecoin have also delivered high percentage returns in a matter of a few days. Without commenting on the viability of cryptocurrency in general, it’s logical to assume that the Argo Blockchain share price performance will continue to mirror to some degree the movement in cryptocurrency. Of course, we mustn’t forget that those movements could be sharply down as well as up. The second reason why Argo Blockchain shares have gained is recent news on more mainstream adoption of blockchain and cryptocurrency. Last week, Tesla announced that it had bought $1.5bn worth of Bitcoin and that soon it would allow customers to buy cars using Bitcoin as a payment method. MasterCard also has confirmed that it will start to facilitate cryptocurrency payments this year. These payments need to operate on blockchain technology, hence why Argo Blockchain will see demand. Expansion plans Finally, Argo Blockchain shares have gained on news of expansion in the US. Argo is planning on establishing a 200MW facility in Texas, that will allow it to boost mining capacity. This is seen as a positive move, not only as more capacity is needed, but also as this long-term investment (costing $17.5m) is perhaps a sign of a sustainable business.  It’s also planning to raise some of these funds via a new share issuance. Such a share fundraising usually happens when a company has confidence that investors want to buy it. Otherwise it could seek finance through debt markets instead. The Argo Blockchain share price has potential to rally even further, if more companies announce acceptance of blockchain. However, I need to be aware that if major cryptocurrency markets have a slump, Argo shares will likely follow suit. It’s a volatile stock and should be treated as high-risk. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Argo Blockchain: here’s how much £5k in 2020 would be worth today Argo Blockchain’s share price is up 25%: should I buy today? Argo Blockchain shares: here’s what I’m doing Argo Blockchain: exciting or irrational? The Argo Blockchain share price has jumped! Should I buy the shares? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Mastercard and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain share price: 3 reasons why it’s up 90% in the past week appeared first on The Motley Fool UK.
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  22. Argo Blockchain shares: have I missed the boat to invest? (08/03/2021 - The Motley Fool UK)
    One of the shares that has generated the most interest over the past six months has been Argo Blockchain (LSE:ARB). I see the shares as a good way to mirror the movements in the growing sector of blockchain technology and general crypto-mania. But given the share price move from 5.35p a year ago to 220p today, have I missed the boat? Insider stock selling This is actually a very topical question due to recent developments. On Friday, the share price fell almost 12% to 220p following news that some insiders had been selling stock. More specifically, CEO Peter Wall and chairman Ian Macleod sold around 1.5m shares between them. When insiders sell stock, it doesn’t usually help the share price. After all, if people who know the business well are selling, does this mean the share price is overvalued? Or that those people think the share price won’t head much higher? This could be the case, but for Argo Blockchain shares specifically, I don’t think it’s a cause for concern. Firstly, Wall sold the bulk of the shares (1.4m) back in December with an average sale price of 29p. The share price is significantly higher than this now, so I’m not overly worried. Also, a lot has happened since December! Secondly, insiders sell stock for many reasons. It could be that those involved needed cash for some reason. Or that they felt that their stock portfolio was overly concentrated with those particular shares. So although the Argo Blockchain share price reflected the news with a drop, I’m personally not too worried about this news. In fact, I think it represents a dip that’s worth buying. Long-term potential for Argo blockchain shares It’s important to remember what Argo Blockchain does. It’s a blockchain mining company, generating revenue from the value of the coins it mines. For example, in February the company mined 129 Bitcoins (or other coin equivalents). When we translate that into fiat (real) money value, it came in at around £4.34m in revenue. This was a record month for the business, following up on a strong January.  Although Bitcoin itself will become harder to mine as the supply is technically capped, other coins can be mined that have plentiful supply. With the growing value of a lot of these other coins (known as altcoins), I think Argo Blockchain shares have a lot of potential to move higher. In a similar way to a gold miner being more profitable if the gold price rises, Argo will be more profitable if Bitcoin and altcoins rise in value. The risk to my view is that the sector could be more speculation than actual value. It’s no surprise that in this low-interest-rate world we live in, a lot of cash is trying to find a home. So the price of the coins could be overinflated. If this is the case and the bubble burst, Argo Blockchain shares would likely take a tumble. For me, it’s a risk I’m happy to take, and so would look to buy Argo Blockchain shares on this recent dip. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Why I’d ignore the Argo Blockchain share price and buy other UK shares Argo Blockchain shares are up 165% in a month. Should I buy? The Argo Blockchain share price: is it too late for me to buy the stock? Argo Blockchain shares: here’s what I’m doing now Argo Blockchain shares are rising again: should I buy now? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares: have I missed the boat to invest? appeared first on The Motley Fool UK.
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  23. The Argo Blockchain (ARB) share price is up 300% this year. Should I buy? (29/04/2021 - The Motley Fool UK)
    Since the start of 2021, the Argo Blockchain (LSE: ARB) share price has increased an incredible 300%. Over the past year the performance has been even dizzier, putting on around 3,350% in that period. Here I analyse what has driven this performance. I also explain what I plan to do next. Growth recipe The company has a fairly standard sounding business model – running data centres. But it also has a specific customer focus: cryptocurrency miners. As well as offering services to customers, Argo itself mines cryptocurrency. The company announced its full year results today. They showed growth on many fronts. Revenue was up 120%. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose from £1.4m to £7.9m.The company turned a net loss of £0.7m the prior year into a net profit of £1.7m. Those results cover 2020. But the company also noted that the first quarter of 2021 has been its most profitable ever. Revenues jumped to £13.4m. Argo Blockchain share price drivers Clearly the company has been performing well lately. But I think there is more to the share price jump than that. As well as operating the data centres, the company holds some cryptocurrency itself. At the end of last month, its 764 Bitcoin and equivalents were valued at almost £33m based on the market price. So I think investors have been buying into more than one investment thesis when it comes to Argo Blockchain. One is about its potential as a targeted data centre operator. Alongside that is an investment case based on the company’s own cryptocurrency holdings. Taken together, does this justify a market cap of £720m? Argo Blockchain share price valuation On a conventional metric such as price-to-earnings, the Argo Blockchain share price looks overblown to me. The current P/E ratio using the net earnings released today would be 424. Historical earnings are not necessarily a guide to future ones, especially in a fast moving space such as this one. How else might one value Argo Blockchain? Future earnings are hard to estimate in my view, as they rely to some extent on demand for cryptocurrency mining and pricing for such digital currencies. Both may swing wildly. That could drive the Argo Blockchain share price much higher – or lower. Investment or speculation Looking at the recent returns on the Argo Blockchain share price, I am reminded of the ‘tulip mania’ that gripped the Netherlands in the seventeenth century. Charles Mackay describes it in his book Extraordinary Popular Delusions and the Madness of Crowds. Then as now tulips were attractive flowers. But pricing stopped being about how much one thought the flower was worth. Instead it switched to being determined by what one thought the next buyer might pay for it. People ignored whether they were overpaying for tulips because they thought they could quickly sell them on at a profit. That isn’t investment. It’s speculation. I think there are some investment characteristics to Argo Blockchain – it is a growing business with a proven model. However, barriers to entry in the industry are low. That adds competitive risks. The share run up looks more driven by speculation than investment to me. As an investor I will stick to finding stocks based on well-defined investment principles. I won’t be buying Argo Blockchain shares. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The Argo Blockchain share price is up 3,400%. Should I buy? If I could buy only 1 crypto stock, this would be it The Argo Blockchain share price is up 3,200%: should I buy now? The Argo Blockchain share price: what’s next and should I buy? Has the Argo Blockchain share price fallen too far? christopherruane has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain (ARB) share price is up 300% this year. Should I buy? appeared first on The Motley Fool UK.
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  24. Why has the Argo Blockchain share price been falling? (15/05/2021 - The Motley Fool UK)
    The Argo Blockchain (ARB) share price has been falling lately, shedding 50% from its February high at one point this week. But it is still up over 2,900% in the past 12 months. Why has the Argo Blockchain share price been falling? Here I consider two explanations – and what they could mean for the shares. The Musk effect Argo isn’t the only cryptocurrency company to have suffered in the markets this week. After Tesla chief executive Elon Musk made widely publicised comments about the environmental impact of crypto mining, the markets took fright. The car company said it would stop taking payment in Bitcoin, which dented confidence in the cryptocurrency. That matters for Argo, as it held 936 Bitcoin or their equivalent as of last month. I see Musk as a loose cannon whose conflicting messages on cryptocurrency impact markets. That could weigh on the Argo Blockchain share price in future. Yesterday, Argo announced that it has signed the Crypto Climate Accord. That may reassure some investors. But I don’t think it is enough on its own to counteract the impact of Musk’s comments. Valuation concerns The wild ride of the Argo Blockchain share price over the past year also reflects questions about how best to value the company. On one view, it is essentially a property landlord, as it operates a series of data centres in which clients can rent space. Indeed, on Thursday it confirmed the completion of its purchase of a couple of data centres in Canada. A property landlord is often valued by looking first at it net assets and using that as a basis to judge its future likely income streams. But an alternative way of looking at this company in particular is to emphasise the possible value in its current and future cryptocurrency holding. Like a farm owner who has tenant farmers but continues to work some of his land himself, Argo is actively mining for cryptocurrency. That is why it currently has a market cap of £580m while cash and digital assets at the end of its last financial year were only £6.7m. Its cryptocurrency assets increased in value in the first quarter, to £32.6m at the end of March, but that is still a significant valuation gap. Bulls could argue that the valuation reflects the company’s fast growth rate and growing pile of Bitcoins. Bears might point to a risk of the share price falling if cryptocurrency prices drop, but also if the market decides to value Argo Blockchain based more on its reported assets. I previously explained my valuation concerns about the Argo Blockchain share price. Even after the recent falls, investors like me maintain value concerns. There is a risk the share price could keep falling. Where next for the Argo Blockchain share price The Argo Blockchain share price looks to me like it could keep on falling. The Musk effect isn’t the only reason it fell lately. I think underlying concerns about the valuation could also be in play. Given the risks, I don’t see the pullback as a buying opportunity for my portfolio. Government’s Green Dossier Exposes £400Billion Opportunity It was released November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully… Access this special "Green Industrial Revolution" presentation now More reading This is what I’m doing about the Argo Blockchain share price! The Argo Blockchain share price has fallen. Should I buy? Why the Argo Blockchain share price is crashing today What am I doing about the volatile Argo Blockchain share price? I own Bitcoin and Ethereum but I won’t be investing in Argo Blockchain (ARB) christopherruane has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why has the Argo Blockchain share price been falling? appeared first on The Motley Fool UK.
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  25. Here’s what I’d do about the Argo Blockchain share price right now (14/04/2021 - The Motley Fool UK)
    The last time I covered the Argo Blockchain (LSE: ARB) share price, I noted that the stock could keep climbing if the value of Bitcoin continued to increase. In the last few days, the value of the cryptocurrency has continued to grow. However, the stock has not responded as expected. Instead of climbing in line with Bitcoin, shares in Argo have fallen. Over the past month, shares in the cryptocurrency miner have declined by 16%.  Why is the Argo Blockchain share price falling?  This doesn’t seem to reflect the company’s recent successes. Earlier in the month, the organisation reported it had achieved record cryptocurrency mining revenues in March. This was the third month in a row the group had recorded record sales.  With total mining output coming in at 165 during March, a higher cryptocurrency price could translate into significant sales growth. What’s more, at the end of the month, the company said it held 764 Bitcoin and equivalents (BTC) on its balance sheet.  This level of output at the current Bitcoin price of around $64,000 could generate revenues of as much as £7.8m a month. That’s up from about £6.5m in March. Of course, these are only back-of-the-envelope-type figures. They’re not designed to be an accurate revenue projection for the company.  As well as this, the IPO of Coinbase, one of the world’s largest crypto exchanges, should help increase the visibility of cryptocurrency to the world. This could help drive the Bitcoin price higher, ultimately having a positive knock-on effect on Argo.  Victim of its own success It seems to me as if Argo has become a victim of its own success. Shares in the company have increased in value by more than 5,400% over the past 12 months as investors have bought into the growth story. As I’ve mentioned in the past, the stock has surged in value despite having limited revenues. While revenues are now growing, even with sales of nearly £8m a month, the stock is selling at a price-to-sales ratio of around 10. That’s significantly higher than the market median of 2.7.  That being said, it could be argued that this growth business deserves a higher valuation than the rest of the market. But a multiple of 10 times sales implies investors are expecting a lot. If the company doesn’t live up to expectations, the Argo Blockchain share price could drop substantially. As well as this risk, if the Coinbase IPO ends up becoming a flop, it could hurt sentiment towards Argo.  As the price of Bitcoin is highly dependant on investor sentiment, anything that damages sentiment could hurt companies connected with the asset.  After considering these risks and challenges, I’d still buy the stock for my portfolio. However, I’d limit my exposure to the Argo Blockchain share price with a small position.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Argo Blockchain’s (LSE: ARB) share price is falling, should I buy? The Argo Blockchain share price is up 6,215% in a year! Would I buy it today? Is the Argo Blockchain share price too low? Why I think the Argo Blockchain share price could keep climbing Should I buy Argo Blockchain shares now it’s using clean energy? Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s what I’d do about the Argo Blockchain share price right now appeared first on The Motley Fool UK.
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  26. Here’s why the Argo Blockchain (ARB) share price is surging (04/05/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE:ARB) share price is back on the rise. After tumbling by 50% between March and April this year, the stock has since started to recover and is now trading at around 181p. What caused this sudden recovery? And should I be adding this business to my portfolio? ARB share price surges on earnings Since the last time I looked at Argo Blockchain, two primary developments have occurred. The first is a signed partnership with Navier Inc. Under this agreement, Navier will be developing a new mining facility for the business in Texas that can support an electrical capacity of up to 200MW. The firms will also be working together in adding new immersion technology that should increase the working lifespan of mining rigs and thus reduce Argo’s maintenance expenses. The second development, and seemingly most influential on the ARB share price, is the release of its 2020 full-year results. Given the stock jumped by more than 25% on the news, I think it’s fair to say investors were pleased. And I can see why. The company successfully increased its mining volume by 85%, collecting a total of 2,465 Bitcoin throughout last year. This, in turn, led to revenue more than doubling from £8.6m in 2019 to £19m. And earnings before interest, tax, depreciation and amortisation (EBITDA) also surged from £1.4m to £7.9m year-on-year. This ultimately led to the business becoming profitable for the first time, with final net income landing at £1.7m versus a loss of £0.7m in 2019. Needless to say, this is incredibly positive news. So seeing the ARB share price surge is not at all surprising to me. The risks that lie ahead While 2020 may have been the best-performing year for the business so far, it hasn’t been entirely smooth. Like a traditional mining company, Argo Blockchain has no control over the value of its core assets. And when dealing with Bitcoin, which is notoriously volatile, price fluctuations can substantially impact the business’s profit margins as well as the ARB share price. Another unavoidable threat is the Bitcoin halving process. Never heard of that? Here’s a quick and simplified explanation. For every 210,000 blocks processed by miners, the Bitcoin reward per block is cut in half. This actually happened in May last year, which saw the Bitcoin reward per block drop from 12.5 to 6.25. Consequently, this reduces the yield from the mining process by 50%. And Argo Blockchain’s profit margins fell from 60% in 2019 to 41% in 2020. The last time this happened was in 2016. And given there are far more mining rigs set up today, the next Bitcoin halving will likely occur within less than four years. And naturally, it will once again affect Argo Blockchain’s profit margins unless the Bitcoin price increases sufficiently to compensate. The bottom line I can’t deny that Argo Blockchain’s performance is impressive. The rising ARB share price is proof of that. But as I’ve explained in other articles, I’m still not personally tempted to invest in this business due to the high level of risk. I believe there are far more promising companies available today that can achieve a higher level of growth. And so, I’m still not adding it to my portfolio.  For example… “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading What’s in store for the Argo Blockchain share price in May? Can Argo Blockchain shares keep climbing? The Argo Blockchain (ARB) share price is up 300% this year. Should I buy? The Argo Blockchain share price is up 3,400%. Should I buy? If I could buy only 1 crypto stock, this would be it Zaven Boyrazian does not own shares in Argo Blockchain or Bitcoin. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why the Argo Blockchain (ARB) share price is surging appeared first on The Motley Fool UK.
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  27. What I’d do about the Argo Blockchain share price (24/05/2021 - The Motley Fool UK)
    The Argo Blockchain  (LSE:ARB) share price is up 2,468% over 12 months. That return is all the more incredible when considering the Argo share price has fallen 63% from its February 2021 all-time high of 341p per share, all the way to 117p today. Just as a gold miner’s share price might fluctuate with the price of gold, Argo’s share price is exposed to the movements in the price of Bitcoin and other cryptocurrencies. Argo Blockchain share price Argo used to mine for Bitcoin and other cryptocurrencies as a service for other companies. Now, it mines for itself and keeps the coins (which are overwhelmingly Bitcoin) it receives. I wrote about Argo back in January of this year. At the time, I thought investing in Argo might be a way to get exposure to the cryptocurrency market due to its size and efficiency as a miner. However, I thought it was too expensive to buy, given the volatility of cryptocurrency prices and the risks in the space in general. The coins Argo receives for mining are held as digital assets or sold to fund operational expenses. Argo’s balance sheet thus swells and shrinks with cryptocurrency prices. Also, it will have to sell more or fewer coins to fund its operations if cryptocurrency prices fall or rise. Cryptocurrencies have demonstrated their volatility and risks all too clearly recently. Individual people or entities can move the price. China recently banned banks and payment platforms from providing cryptocurrency transactions, which led to a collapse in Bitcoin and equivalents. Then there are the growing concerns around the energy intensity of maintaining cryptocurrency networks, which have negatively impacted prices.  Sustainable crypto mining To its credit, Argo has long acknowledged that it can do more to make its operations greener. Over a month before Elon Musk said Tesla would no longer accept Bitcoin as payment over climate concerns, Argo appointed a climate strategy advisor and had plans for clean energy-driven mining pools. It recently signed the Crypto Climate Accord and committed to a 2030 target for net-zero emissions. Mining for Bitcoin is getting harder and less profitable. Cryptocurrency mining is the process of verifying transactions and adding new blocks to the blockchain ledger. Miners make the network work. However, every four years or so, the number of Bitcoin they receive for mining block halves–miners also collect transaction fees, but block rewards currently dwarf them. The last halving event occurred in 2020 and affected Argo by reducing the number of coins it mined per pentahash of computing power. Since all miners have breakeven prices, a higher Bitcoin price will be required to incentivise miners to mine each time a halving happens. Or, transaction fees will have to rise to keep the miners in business. Now, Argo, as a large-scale and eventually net-zero miner, could win substantial market share and be profitable on transaction fees alone. But along the way, the company’s profits will fluctuate with the price of cryptocurrencies. A single tweet from the right person can move the Argo share price. China cracking down further or other countries taking a tougher stance on the crypto industry could be disastrous. If I wanted exposure to the cryptocurrency market, I would look at Argo. Since I’m not looking for that exposure, the current Argo share price doesn’t tempt me. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The Argo Blockchain (ARB) share price has halved. Can it recover? What does the crypto crash mean for the Argo Blockchain share price? Why is the Argo Blockchain (ARB) share price still falling? What’s happening to Argo Blockchain’s (ARB) share price? Argo Blockchain shares are falling. Here’s what I’m doing James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What I’d do about the Argo Blockchain share price appeared first on The Motley Fool UK.
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  28. The Argo Blockchain share price: this is when I’ll buy the stock (25/03/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price has become a proxy for the Bitcoin price over the past 12 months. Investors have clamoured to get their hands on the shares as a way to invest in the cryptocurrency, as buying Bitcoin directly can be challenging.  Unfortunately, in my opinion, this rush to buy the stock has distorted the company’s value. At the time of writing, the corporation has a market capitalisation of £878m. With revenues of £4.3m for the month of February, or just under £52m a year, Argo’s current market value suggests that the business is one of the most richly valued tech stocks globally.  Argo Blockchain share price outlook  Argo is a one-stop-shop for cryptocurrency and decentralised finance (DeFi) investments. Its core business is Bitcoin mining. This is the group’s primary revenue generator.  However, it also owns a stake in Pluto Digital Assets, a crypto venture capital and technology company. Argo owns 25% of the business and recently invested a further £7.3m to maintain its stake following a funding round from the venture capital firm. Argo raised £27m from shareholders to help fund this investment. The company will use the balance to pursue strategic opportunities in crypto mining.  The company aims to become the world’s largest, most efficient crypto miner. It is making substantial progress towards this goal. In February 2021, Argo reported it mined 129 Bitcoin (or equivalent) in February, up from 93 in January. As the group continues to invest and build out its Bitcoin mining operation and its investments in other crypto firms, the underlying value of the business should increase. However, at this point, I think the Argo Blockchain share price is far above the fair value of the enterprise.  I think a value of around 10 times sales is a more appropriate multiple for this business. As such, I’d buy the stock if its valuation falls in the near term or if its revenues grow substantially.  Potential risks  Of course, this may mean I miss out on the company’s growth if the price of Bitcoin suddenly takes off. This is the biggest risk investors face. The Argo Blockchain share price is linked to the Bitcoin price. If the price of the cryptocurrency suddenly falls, the stock could go with it. At the same time, if the value of the crypto asset suddenly jumps, the value of the shares may also increase. Another risk is overpaying for the stock. If Argo fails to live up to its lofty growth expectations, investor sentiment towards the business may sour. This could leave shareholders who bought at higher levels nursing large losses.  There’s never a single right time to buy a stock. However, I’m going to avoid the Argo Blockchain share price for the time being until the firm’s valuation reaches a more attractive level.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Should I buy Argo Blockchain shares today? This is what I’m doing about the Argo Blockchain share price right now! 4 reasons I could buy Argo Blockchain shares… but will I? Argo Blockchain shares have surged in the last month. But I’d still buy Why is the Argo Blockchain share price up 4,500% in a year? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price: this is when I’ll buy the stock appeared first on The Motley Fool UK.
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  29. If I could buy only 1 crypto stock, this would be it (25/04/2021 - The Motley Fool UK)
    There’s been a lot of talk about Argo Blockchain (LSE: ARB) in recent weeks. The crypto mining firm has seen its share price soar more than 4,000% in the past 12 months, from 6p to more than 200p. Of course, past performance is not an indication of future results, but I’m still excited about what’s next for this interesting crypto play. A look at Argo Blockchain’s financials First, you might be wondering how exactly Argo makes money? The popular blockchain uses massive banks of computers to mine large amounts of cryptocurrency. It then sells this mined currency for fiat money. With cryptocurrency’s popularity on the rise, as evidenced by Coinbase‘s recent direct listing in the US, I’m excited to buy this stock.  As for its current financials, in early April, Argo released a very promising operational update. This top stock to buy had successfully mined 165 Bitcoin and equivalents. This represented a 28% increase over the previous month, and brought its total holdings to £6.57m. What’s more, due to the low-cost nature of the company’s operating expenses, roughly 84% of this revenue was pure profit. Why is Argo’s price so volatile? But why do Argo shares seem so volatile? Having tripled this year, they’ve also dipped at times. Argo Blockchain’s entire revenue stream is based solely on the cryptocurrency market and its largest asset, Bitcoin. In fact, the two are so intrinsically linked, that it’s hard to look past the fact that by investing in Argo, I am essentially investing in the performance of the hugely volatile crypto market.  However, I choose to look at this as a positive, as I am a fan of Bitcoin. Although Argo is linked to the crypto market as a whole, Bitcoin is the biggest player. The bullish arguments for both are one and the same. Although that is a point of concern for many, for those investing in Bitcoin, it’s a positive. Of course, my optimism could be misplaced, and should the crypto market collapse, my Argo investment will fall with it. My biggest concerns about Argo Blockchain’s share price Cryptocurrencies appear to be getting banned by state governments left and right. In 2021 alone, both Turkey and India (one of the largest markets in the world) outright banned all things crypto. They join a growing group that also includes the world’s fastest-growing economy, China, along with Saudi Arabia, Bolivia, and more.  Much of these states’ concerns derive from the lack of regulation surrounding the currency, upon which Argo Blockchain relies. We’ve got a long road ahead of us before cryptocurrencies will be embraced as a major global new asset class. Prices could still plummet as they have in the past. Growth potential But despite bans, its popularity is growing elsewhere, particularly in the US. With Tesla, Square, and more taking stakes in Bitcoin, it is becoming more and more mainstream. Tesla even allows customers to purchase its vehicles now using Bitcoin. This is why I’m all the more excited about Argo’s plans to open a state-of-the-art mining facility in Texas. By exposing itself to the US market with a top-range facility, it is opening up a whole new world of growth for itself. If I could only buy one crypto stock right now, it would be Argo Blockchain.  “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Argo Blockchain share price is up 3,200%: should I buy now? The Argo Blockchain share price: what’s next and should I buy? Has the Argo Blockchain share price fallen too far? Why I think the Argo Blockchain share price is up 17% today Will the Argo Blockchain share price triple again in 2021? Jamie Adams has no position in Argo Blockchain. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post If I could buy only 1 crypto stock, this would be it appeared first on The Motley Fool UK.
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  30. The Argo Blockchain share price is up 3,200%: should I buy now? (24/04/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price is up about 3,200% in the past year. Yes, it is true. Imagine the pride and the joy of any investor who gets this type of return. However, a word of caution — past performance is not an indication of future results. I would like to analyse the stock carefully to understand if it’s still a good investment for my portfolio. The bull case  The crypto miner’s recent revenues have been strong. In the month of March, it mined 165 Bitcoin or Bitcoin equivalent (together, “BTC”), taking the total amount of BTC mined in the first quarter to 387. The company’s first-quarter mining revenue was £13.4m, compared to £6m in the same period last year. It was the company’s most profitable quarter to date.  The company recently announced its plan to develop a new mining facility in the US. It has also hired currency miner Navier on a monthly retainer to provide consulting services. It wants to build a cost-effective and power-efficient facility. This is a good initiative since mining otherwise requires huge amounts of electricity.  There is growing interest in blockchain technology due to its various advantages. Recently, a number of big international companies like Visa, Paypal, and Tesla, among others, expressed their intentions to use cryptocurrencies. Big investment banks are also eyeing the lucrative cryptocurrency and blockchain technology. This is positive news for Argo Blockchain’s share price. Blockchain technology allows cryptocurrencies to function. Many believe the decentralized nature of blockchains might change every aspect of the economy. If this becomes a reality then there is a good chance for Argo Blockchain to benefit in the long term.  The bear case for Argo Blockchain’s share price Even though there is a lot of hype regarding blockchain technology, there is no assurance that governments across the globe will accept cryptocurrencies. If this is the case the company would not be a beneficiary. There is also a good chance that each government might plan its own digital currencies and use different technology. I would like to highlight the Chinese case. The country has been at the forefront of starting to use digital currency. In the words of Michael Sung, co-director of the Fintech Research Center at Fudan University, “You have central bank digital currencies (CBDC) developed on various platforms such as enterprise blockchain Corda or Hyperledger, and the digital yuan is technically not even on a blockchain“. So, technically speaking it is not on the blockchain. If Bitcoin is not widely used then the stock might hit the floor. The company’s shares are volatile. Its financials are dependent on Bitcoin prices. Also, if the regulatory rules negatively impact cryptocurrencies, that would have a direct impact on the company’s operations.  Final view The Argo Blockchain’s share price is currently trading at about 25 times its trailing 12 months sales. I feel it is overvalued now. So, I am not a buyer of the stock today. However, I will have the stock on my watchlist. If there is a sell-off then I would be happy to buy the shares. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Argo Blockchain share price: what’s next and should I buy? Has the Argo Blockchain share price fallen too far? Why I think the Argo Blockchain share price is up 17% today Will the Argo Blockchain share price triple again in 2021? Argo Blockchain’s share price has crashed. Should I buy the stock now? The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price is up 3,200%: should I buy now? appeared first on The Motley Fool UK.
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  31. Argo Blockchain shares have surged in the last month. But I’d still buy (10/03/2021 - The Motley Fool UK)
    I wrote about Argo Blockchain (LSE: ARB) just last week, but the company released further announcements a few days ago. So given the recent news released on Monday, I thought the shares deserved another look. I don’t think frequently reviewing the investment case for a stock is such a bad thing. I reckon it makes me a better investor. For now, I’m still bullish on Argo Blockchain shares as a long-term investor. Here I consider the the two key announcements released by the company earlier this week. #1 – Land purchase I have previously commented on Argo Blockchain’s intention of buying land in Texas, US. The purpose of this potential acquisition is to build a new mining facility in the next 12 months. Well on Monday, Argo Blockchain confirmed that the purchased of 320 acres of land in the western part of the state has completed. The company also highlighted that it will use renewable energy to power the mining facility. I like the fact that it’s using green energy from the start. I reckon this will place Argo Blockchain shares on the radar for sustainable investors. To me this is a key milestone for the company. It boosts Argo Blockchain’s infrastructure so that it can become a bigger player as a cryptocurrency miner. I think it gives the company better control over its mining operations. This means it could have a competitive edge compared to its peers. The fact that it’s using renewable energy means that its costs could be lower. To me, this screams out the potential of higher margins and better profitability going forward.  #2 – Fundraising The cryptocurrency miner also announced on Monday that it has successfully raised £27m through a share placing. The funds will be used for several thing including capital investment and pursuing strategic opportunities in the cryptocurrency space. The key thing that stood out to me is that approximately £8m of the fundraising is being used as a top-up investment in another cryptocurrency firm, Pluto Digital Assets. Argo Blockchain’s initial stake was a 25% investment. Pluto is clearly raising money, so in order for Argo Blockchain to maintain its shareholding, it needed to provide follow-up capital. This makes sense to me. I like that Argo Blockchain is diversifying its mining capabilities by investing in early stage companies. This will take sometime to bear fruit, but I believe it’s taking steps in the right direction. The risks I know that Argo Blockchain shares can be volatile as they are linked to the price of Bitcoin, which can rise as well as fall. Because of this, I’d only invest what I could afford to lose. In fact the UK financial regulator, the Financial Conduct Authority (FCA) has warned investors against cryptocurrencies. I should emphasise that Argo Blockchain is still a small company and is undergoing heavy investment to boost its infrastructure. As a result, I’d expect this to weigh on profitability and possibly the share price. I recognise that the cryptocurrency miner has a long way to go. It will also be a bumpy ride. But I think the company is taking the right steps, as seen in its recent announcements. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why is the Argo Blockchain share price up 4,500% in a year? Argo Blockchain shares: have I missed the boat to invest? Why I’d ignore the Argo Blockchain share price and buy other UK shares Argo Blockchain shares are up 165% in a month. Should I buy? The Argo Blockchain share price: is it too late for me to buy the stock? Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares have surged in the last month. But I’d still buy appeared first on The Motley Fool UK.
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  32. Argo Blockchain shares: here’s what I’m doing (13/02/2021 - The Motley Fool UK)
    Argo Blockchain (LSE: ARB) shares are in the limelight again. I’ve written about the cryptocurrency miner a few times but a lot has happened to the shares since my last analysis. Here I’ll provide an update on the company. I’ll also highlight why I’m still happy to buy Argo Blockchain shares as a speculative purchase in my diversified portfolio. Latest developments I should first point out that Argo Blockchain shares are linked to cryptocurrencies, especially the popular one, Bitcoin. So if Bitcoin is performing well then it’s most likely that Argo Blockchain shares will rise. This also works the other way as well. If Bitcoin is falling it’s most likely the shares will tumble.  Recently, Elon Musk purchased $1.5bn of Bitcoin through his car firm, Tesla. This caused the price of the digital currency to spike. But what does this all mean for Argo Blockchain shares? Initially this is great for the company. It’ll mine more cryptocurrencies, which in turn should increase revenue. But at present, Argo Blockchain is a small loss-making company. Its infrastructure will need to be scaled up to handle large cryptocurrency mining. This means higher costs, which could impact profitability and thereby the share price. Will others follow? Let’s be frank, cryptocurrencies are a relatively new technology. But I think that we could be at the start of something here. Now Tesla has purchased a significant portion of Bitcoin, will other firms follow? I reckon it’ll take some time for wider acceptance of cryptocurrencies. But I think things look promising for digital currencies. Of course, this would be positive news for Argo Blockchain shares, as it would mine more, thereby boosting revenue and profitability.  There are risks I should stress that the stock isn’t without risk. The UK financial regulator, the Financial Conduct Authority (FCA) has warned against cryptocurrencies. It has stressed that consumers should be prepared to lose all their money if they invest in such digital currencies like Bitcoin. Cryptocurrencies are extremely volatile, and I’d expect Argo Blockchain shares to exhibit this trait too. This means that I’m only prepared to purchase an amount I can afford to lose. What’s Argo Blockchain been up to? The company’s January operational update was positive. According to CEO Peter Wall, the company delivered one of its best months in its history in both mining revenue and profits. At the beginning of this month, Argo Blockchain announced that it had made an investment in a digital asset company. I like the fact that it’s diversifying its future revenue streams by buying stakes in early stage cryptocurrency firms. This will take time, but as a long-term investor, I think this is great news for Argo Blockchain shares. Just a few days ago, the company also announced that it had entered into an agreement to acquire land in Texas, US, to build a mining facility in the next 12 months. It’s clearly bullish on the future of cryptocurrencies as it’s accessing a $100m credit facility to fund the project. While it’s still early days for Argo Blockchain, I think it’s taking the right steps to building its cryptocurrency platform. The stock doesn’t come without risks, which I’ve mentioned above. But as a long-term investor, I’d still buy Argo Blockchain shares in my diversified portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Argo Blockchain: exciting or irrational? The Argo Blockchain share price has jumped! Should I buy the shares? Stock market bubble? This is how I’m investing my cash Argo Blockchain shares: 5 things I’d consider before buying The Argo Blockchain share price is falling: should I buy? Nadia Yaqub has no position in any of the shares or cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares: here’s what I’m doing appeared first on The Motley Fool UK.
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  33. Will the Argo Blockchain share price keep falling? (09/06/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price has crumbled by more than 50% from its all-time high of 284p, printed in the middle of February. However, despite this performance, the stock is still up more than 3,000% over the past 12 months.  Shares in the cryptocurrency miner have been falling even though its underlying fundamental performance has improved. Mining output has increased steadily over the past six months. In its latest trading update, Argo said it mined 166 Bitcoin or Bitcoin equivalent (BTC) in May, compared to 163 in April. This brought the total amount of BTC mined year-to-date to 716 BTC and the total BTC it holds to 1,108. Unfortunately, the company has been hurt by the falling Bitcoin price. As a result, despite the increase in mining output for May, revenue was just £5.5m, down from £6.7m in April. Improving fundamentals  Cryptocurrency prices have been under pressure over the past few weeks following crackdowns in countries like China. In addition, concern about the environmental impacts of mining assets like Bitcoin has also hurt sentiment. And, as the price of Bitcoin has declined, sentiment towards the Argo Blockchain share price has also deteriorated.  Companies like Argo are working towards creating a more environmentally friendly Bitcoin mining network. Last month, Argo and cryptocurrency tech firm DMG Blockchain Solutions signed a “crypto climate accord” to promote industry decarbonisation. The company has also acquired two data centres in Quebec, Canada, powered almost entirely by hydroelectricity. This should lower its carbon footprint.  These initiatives should help reduce the overall carbon impact of Bitcoin mining on the environment. However, it’s impossible to say whether these initiatives alone will reverse the declines in the cryptocurrency price. Argo Blockchain share price outlook Since the end of May, the price of Bitcoin has only continued to fall. Unfortunately, this suggests Argo’s revenue may disappoint once again in June.  This implies the Argo Blockchain share price may continue to fall. Despite the company’s higher BTC output, the lower selling cost will mean the corporation will earn less for each coin produced. At the same time, the group is having issues expanding its output. Production delays have impacted its purchase of mining machines. This has held back the firm’s expansion plans. The new machines are expected to be delivered later than the original order for between September and October. Having said all of the above, if BTC prices suddenly spike higher, the company’s fortunes could change dramatically. This would have a substantial positive impact on the business and its prospects. Not only would revenues increase, but the value of the BTC on Argo’s balance sheet would also rise. This double tailwind would likely lead to a positive outcome for the Argo Blockchain share price.  Still, with so much uncertainty hanging over its share price, I think it could continue to fall. As such, I wouldn’t buy the stock for my portfolio today. I believe other small-cap stocks on the market offer the potential for higher rewards with a lower level of risk.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The ARB share price has crashed 20% in a week. Is this a buying opportunity? 3 high-profile UK shares I’m avoiding Where will the Argo Blockchain share price go in June? Should I buy Argo Blockchain as the Bitcoin price rebounds? The Argo Blockchain share price crash: should I buy the stock now? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Argo Blockchain share price keep falling? appeared first on The Motley Fool UK.
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  34. Should I buy Argo Blockchain shares now it’s using clean energy? (06/04/2021 - The Motley Fool UK)
    2021 has been a busy year for Argo Blockchain (LSE: ARB) shares. And the company has released more announcements. This time the focus is on climate change and clean energy. I can’t deny that cryptocurrency has been a topical issue throughout the pandemic. Hence there has been a lot of buzz surrounding Argo Blockchain shares. But I think the company has ramped up the euphoria even further by addressing the topical issue of climate change. I’m still bullish on the stock as a long-term investor. But here’s my take on the recent announcements. Clean energy I believe clean energy and sustainable living is the future. After all, we have only one planet, so let’s preserve it. It’s pleasing to see that Argo Blockchain believes “addressing climate change is a priority”.  The company has recently completed the purchase of 320 acres of land in West Texas to build a new mining facility. This will be powered by ‘clean energy’. And then at the end of March, the company announced that it’s joining forces with DMG Blockchain Solutions to launch Terra Pool, a Bitcoin mining pool powered by clean energy. This pool will initially consist of both Argo’s and DMG’s computational power, which is mostly generated by hydroelectric resources. They’ve partnered and combined their computational resources to mine cryptocurrencies. Simply put, clean energy will fuel its power so that it can mine. In my opinion, Argo Blockchain is going one step further to emphasise that it’s concerned about climate change by stating that Terra Pool represents the first ever opportunity for the creation of ‘green bitcoin’. That said, I think it’s somewhat excessive to classify it as ‘green bitcoin’. I reckon at some point in the near future most people will be using clean energy so the ‘green’ is likely to lose its exclusivity. But Argo Blockchain has first-mover advantage in a relatively new industry. This certainly helps and should be positive for the shares. Climate change adviser Argo Blockchain has also announced that it’s appointing Guidehouse as its climate strategy adviser. The firm aims to be a net zero greenhouse gas company, but it needs some guidance to achieve that. And it says it would like to be a “climate-friendly cryptocurrency miner”. I think if it continues with these steps, then it’s heading in the right direction. My view on Argo Blockchain shares I’d buy the shares as a long-term investor. I think it’s great to see a relatively young company embracing sustainability so early on in its journey. I believe it will place the stock on the radar for sustainable investors. The fact that it has released two climate-change-focused announcements close together is likely to do that. But I should warn that Argo Blockchain shares do carry risk. The stock is correlated to the price of the popular cryptocurrency Bitcoin and so it can be volatile. This means I’d only put in what I can afford to lose. I’m also wary that the UK financial regulator has warned against cryptocurrencies, which could impact Argo Blockchain shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Argo Blockchain shares: here’s why I would and wouldn’t buy this UK share Hargreaves Lansdown investors are still buying Argo Blockchain. Should I? The Argo Blockchain share price: this is when I’ll buy the stock Should I buy Argo Blockchain shares today? This is what I’m doing about the Argo Blockchain share price right now! Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Argo Blockchain shares now it’s using clean energy? appeared first on The Motley Fool UK.
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  35. Why the Argo Blockchain share price is crashing today (13/05/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price has crashed in early deals this morning. At the time of writing, the stock is off around 13%. Unfortunately, this means that since reaching its all-time high of 284p in the middle of February, the Argo Blockchain share price has lost 55% of its value.  However, to put this into perspective, over the past 12 months, the stock is still up 2,550%.  It seems that shares in the company are falling today after Elon Musk announced Tesla would no longer accept Bitcoin as payment for its vehicles. This has sparked a dramatic sell-off across the cryptocurrency market. Over the past five days, the price of Bitcoin has slumped more than 15%.  As a cryptocurrency miner, this decline will have a significant impact on Argo Blockchain’s revenues.  Revenues may decline  As the Bitcoin price charged to an all-time high in April, the company reaped the benefits. According to its April mining update, the firm reported that it had mined 163 Bitcoin or Bitcoin equivalent (BTC) over the month compared with 165 BTC in March. As a result, it reported revenues of £6.7m in April compared to £6.6m in March on higher mining output and prices.  The company has been investing in its mining capacity to increase output. For example, today, the firm announced it had completed the acquisition of two data centres in Quebec, Canada, which already house a significant proportion of the group’s cryptocurrency mining equipment. The facilities are also almost entirely powered by hydroelectric power. Argo’s shift to renewable energy comes at a delicate time for the crypto industry. Indeed, Musk cited Bitcoin’s high energy consumption as one reason why Tesla would stop accepting it as payment for vehicles.  In the past, I warned that the elevated valuation of the Argo Blockchain share price made it hard for me to value the business. It also assumed the group’s high growth rate would continue indefinitely. This was never guaranteed.  Unfortunately, I now think we are seeing what happens when a high-growth business fails to live up to expectations. Investors become spooked and start to sell the stock.  Argo Blockchain share price risks  Due to these risks, the company may not be suitable for all investors. I’m comfortable with the level of risk involved here, but some investors may not be.  However, this does not mean that Argo is necessarily a bad investment. The company’s valuation may continue to fall, but if its fundamentals improve, as they have been doing for the past 12 months, sooner or later, the market should recognise the value.  As such, my view of the enterprise has not changed. I still think Argo has potential and would buy a small number of shares as a result. Nevertheless, as the market continues to re-evaluate the business, I reckon the Argo Blockchain share price may continue to fall in the near term.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading What am I doing about the volatile Argo Blockchain share price? I own Bitcoin and Ethereum but I won’t be investing in Argo Blockchain (ARB) Here’s why the Argo Blockchain (ARB) share price is surging What’s in store for the Argo Blockchain share price in May? Can Argo Blockchain shares keep climbing? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why the Argo Blockchain share price is crashing today appeared first on The Motley Fool UK.
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  36. Why is the Argo Blockchain (ARB) share price crashing? (19/04/2021 - The Motley Fool UK)
    The price of Bitcoin continued to rise past $60,000 this month (before its most recent decline). And yet, despite this rising trend, the Argo Blockchain (LSE:ARB) share price dropped by 40% since the start of March. (although it’s still up at 176p from just 4.2p a year ago). What’s going on? And is this an opportunity to buy the business at a discount? A cryptocurrency mining business I’ve previously explained how Argo’s business model works. But as a quick reminder, it is a cryptocurrency mining company. Using an extensive collection of powerful computers, it processes complex financial transactions and is rewarded with digital tokens, such as Bitcoin. These tokens can then be sold or traded on cryptocurrency exchanges like the one provided by Coinbase. In early April, Argo released an operational update that actually showed some promising performance. It had successfully mined 165 Bitcoin and equivalents. This is a 28% increase compared to the previous month and amounted to a total value of £6.57m. What’s more, since operating expenses are fixed and relatively low, around 84% of this revenue was pure profit. Needless to say, these are some pretty impressive figures. So why is the ARB share price falling? The falling Argo Blockchain (ARB) share price As far as I can tell, the poor stock performance is most likely linked to its valuation. Over the last 12 months, the firm’s market capitalisation has grown by over 4,000% to £640m. This is quite a lofty premium when compared to the 764 Bitcoin on the balance sheet, which, based on today’s fluctuating price, are worth around £40m-£50m. Another contributing factor appears to stem from uncertainty surrounding regulation. The US Treasury has already begun proposing new legislation to prevent illicit activities. Turkey has joined the list of countries that have banned the use of cryptocurrencies to complete payments. And just this weekend, the Bitcoin price dropped by nearly 15% due to rumours of financial institutions receiving fines for money laundering using these digital assets.  A company worth owning? Despite the recent impressive operational performance of Argo Blockchain, it is still not a company I am interested in owning. Why? Because it doesn’t appear to me to have any notable competitive advantages. After all, beyond the initial cost of equipment, the barriers to entry for the cryptocurrency mining sector aren’t high. The business doesn’t have any control over the value of its core assets. It doesn’t hold any patents on its mining process. And speaking from experience, setting up a cryptocurrency mining system is not particularly difficult. In other words, there doesn’t appear to be anything stopping another firm from simply copying Argo’s business model. And so, as I see it, over the long term, the ARB share price will ultimately be determined by the value of its cryptocurrency assets – something that is entirely out of its control. Personally, I think there are far better businesses out there today. And so I won’t be adding any shares to my portfolio, even at the currently reduced share price. I’d much rather invest in… “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why is the Argo Blockchain share price falling as cryptocurrency moves higher? The Argo Blockchain share price is crashing. Should I buy now? Here’s what I’d do about the Argo Blockchain share price right now Argo Blockchain’s (LSE: ARB) share price is falling, should I buy? The Argo Blockchain share price is up 6,215% in a year! Would I buy it today? Zaven Boyrazian does not own shares in Argo Blockchain. Zaven Boyrazian owns Bitcoin. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why is the Argo Blockchain (ARB) share price crashing? appeared first on The Motley Fool UK.
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  37. Will the Argo Blockchain share price triple again in 2021? (21/04/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price is up by 14% as I write, after the company said it had engaged a crypto specialist Navier to design its new mining facility in Texas. Argo’s share price has tripled so far in 2021, but the stock has seemed weaker recently. However, the company’s latest trading update revealed record income during the first quarter. The Texas facility — when complete — should provide a step up in mining power. Should I consider buying shares in Argo today for long-term growth? Best-in-class facility Argo Blockchain says that its planned facility in Texas will be able to support 200MW of mining. According to US government data, that’s equivalent to the amount of electricity required to power around 165,000 homes. Navier specialises in building crypto mining facilities and Argo says that the firm will be retained on a consulting agreement to help design the facility. This will apparently include “next-generation immersion technology” designed to boost productivity and increase the lifespan of its mining rigs. Interestingly, Navier will be paid partly in cash, and partly with stock warrants. These will give Navier the right to buy up to 223,821 Argo shares at a price of 135p. If the Texas project helps to boost Argo Blockchain’s profits and its share price, Navier should benefit. Green Bitcoin? There’s growing concern about the environmental impact of cryptocurrency mining, which requires vast amounts of electricity. Much of this is said to come from coal-fired power stations in China. Argo Blockchain is taking steps to address this problem. It’s recently agreed plans with technology firm DMG Blockchain Solutions to launch Terra Pool, a Bitcoin mining pool that will be powered exclusively by clean energy. As cryptocurrency becomes more mainstream, I expect the industry to face more scrutiny and regulation. This could potentially include environmental restrictions, such as carbon permits. By acting now, Argo has the opportunity to take a lead on this issue. I reckon that producing ‘green Bitcoin’ could be good for Argo Blockchain’s reputation. Argo Blockchain share price: what next? The Bitcoin price has continued to rise this year. Argo’s mining activities are scaling up too. The company mined 165 Bitcoin in March, compared to 129 BTC in February. As a result, monthly revenue rose by 51% to £6.57m last month. This is good news, but I do have a couple of concerns. Higher Bitcoin prices will have generated some of this growth. If Bitcoin weakens for any period of time, then I’d expect Argo’s revenue to flatten out or even fall. My other concern is that Argo’s costs are quite high. The mining margin of 84% reported by the company for March is impressive, but my understanding is that this doesn’t include the depreciation costs of mining rigs. During the first half of 2020, depreciation — which represents future replacement costs — accounted for 26% of Argo’s revenue. Broker forecasts suggest Argo will report revenue of £25m in 2021 and generate maiden earnings of 0.7p per share. That values the stock on 200 times forecast earnings. I think these forecasts are probably too low. Even so, I think a lot of growth is already priced-in to this stock. I don’t expect to see Argo Blockchain’s share price triple again this year, but I wouldn’t rule out more modest gains. As for me, I won’t be buying. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Argo Blockchain’s share price has crashed. Should I buy the stock now? Should I buy Argo Blockchain shares at the current price? Why is the Argo Blockchain (ARB) share price crashing? Why is the Argo Blockchain share price falling as cryptocurrency moves higher? The Argo Blockchain share price is crashing. Should I buy now? Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Argo Blockchain share price triple again in 2021? appeared first on The Motley Fool UK.
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  38. The Argo Blockchain share price: is it too late for me to buy the stock? (04/03/2021 - The Motley Fool UK)
    At the time of writing, the Argo Blockchain (LSE: ARB) share price is trading at an all-time high. The stock is up more than 500% year-to-date, and more than 5,100% over the last 12 months.  Some analysts predict that this could be just the start of an extended run higher for the stock. With that in mind, I’m wondering if it should buy the shares today, based on the company’s long-term potential.  Argo Blockchain share price outlook Argo Blockchain has become somewhat of a proxy for the Bitcoin price in recent months. The group mines and owns cryptocurrency, which means its profits and sales track the price of the commodity produced just like any traditional mining business.  And as the value of Bitcoin has surged, so has the Argo Blockchain share price.  This could continue if the cryptocurrency’s biggest bulls are proven correct. Some analysts have speculated that the price of Bitcoin could hit $500,000 in the long run. If this sort of growth materialises, shares in Argo could rise substantially from current levels.  However, that’s a big IF. As Bitcoin is only worth as much as other investors are willing to pay for it, it’s impossible to tell what the future holds for the cryptocurrency. We can only go on what we know today.  What we do know is that Argo Blockchain has tens of millions of dollars worth of Bitcoin on its balance sheet, and it’s ramping up mining activity.  What we know  According to its latest trading update, Argo has mined 129 Bitcoin, or Bitcoin Equivalent (BTC), generating revenues of $6.8m in the process for the year so far. It also owns 599 BTC. This could be worth as much as $32m, although the company didn’t break down the split between Bitcoin and Bitcoin Equivalent, making it difficult to calculate an exact value.  These figures imply the corporation can generate around $84m, although this is only an estimate. If it can reach $100m a year in revenues, the company, which currently has a market capitalisation of £1bn ($1.4bn), doesn’t look cheap. But it doesn’t look expensive either. There’s no guarantee the firm will be able to hit this revenue target.  These figures suggest the Argo Blockchain share price is changing hands at around 14 times sales. The entire US technology sector is changing hands at six times sales. This suggests Argo looks expensive, but the valuation doesn’t consider potential growth, as I mentioned above.  The bottom line  Overall, at the time of writing, the Argo Blockchain share price looks expensive. That’s based on what we know already. Unfortunately, it’s impossible to predict the future. The business faces a host of other risks as well. Mining cryptocurrency is highly competitive and energy-intensive. These challenges may push up costs for the group, which would hit profits. Management is also spending a lot on growth at the moment. This may also weigh on profitability in the long term.  As such, I don’t know if the company will be able to grow into its valuation. If the Bitcoin price continues to rise, the stock may be cheap today. If it falls, the stock will likely decline in value.  Considering this level of uncertainty, I wouldn’t buy the stock for my portfolio today.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Argo Blockchain shares: here’s what I’m doing now Argo Blockchain shares are rising again: should I buy now? Here’s why I’m bullish on Argo Blockchain shares 2 popular UK and US blockchain stocks: should I buy shares in them today? Argo Blockchain shares: should I buy now or are they a bubble waiting to burst? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price: is it too late for me to buy the stock? appeared first on The Motley Fool UK.
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  39. Argo Blockchain’s share price has crashed. Should I buy the stock now? (20/04/2021 - The Motley Fool UK)
    Argo Blockchain (LSE: ARB) shares have fallen recently. Since I last covered the stock on 11 March, and discussed two UK growth stocks I’d rather buy, the ARB share price is down about 50%. That compares to gains of 17% and 15% for the two stocks I mentioned in that article. Is this share price weakness a buying opportunity for me? Let’s have another look at the stock. Argo Blockchain: latest news News from Argo Blockchain has actually been quite encouraging recently. For example, in the company’s Q1 operational update posted on 7 April, Argo advised it had mined 165 Bitcoin or Bitcoin Equivalent (BTC) in March, compared to 129 BTC in February. Based on FX rates and crypto prices, this generated revenue of £6.6m for the month. That represented an increase of 50% on February revenue. Overall, revenue for Q1 was £13.4m, making the period the best quarter since the company’s inception. “These numbers are incredible, and they highlight our continued commitment to smart growth, efficiency, and delivering meaningful value to our shareholders,” commented CEO Peter Wall. Argo also recently announced it has partnered with DMG Blockchain Solutions to launch the first clean energy Bitcoin mining pool. This represents the first opportunity for the creation of ‘green Bitcoin’. This is another positive development, in my view. So why has the ARB share price fallen? So why the share price fall if news has been good (and the price of Bitcoin has risen)? Well, there are a few reasons. Firstly, crypto exchange operator Coinbase has listed on the stock market. This means investors now have a new way to get indirect exposure to crypto. I imagine this has resulted in capital flowing out of Argo Blockchain shares. Secondly, there’s been a recent shift towards high-quality tech shares. A lot of money has been going into stocks such as Apple, Alphabet, and Microsoft. Speculative small-cap tech stocks like Argo Blockchain have suffered. Third, there continues to be regulatory uncertainty in the crypto space. For example, just recently, Turkey banned people from paying for goods with crypto. Finally, the stock had had a huge run (up 33p to 245p in the first two months of the year) and its valuation was very high. When I covered ARB in February, for example, its market-cap was £856m. A significant pullback was always a possibility. Argo Blockchain shares: should I buy now? Looking at the investment case, Argo Blockchain still isn’t a buy for me, even after the big share price fall. My main concern here is that there’s a lot of uncertainty around the future of Bitcoin. Is Bitcoin mining still going to be a booming industry in five years? I’ve no idea. It’s hard to make growth forecasts, which means the stock is very speculative.  Another concern is the lack of durable competitive advantage. As far as I can see, there’s nothing to stop competitors launching a similar Bitcoin mining businesses. Additionally, the company isn’t yet profitable. As I explained yesterday, I like to invest in growth companies that are already profitable as I’ve found this reduces risk significantly. All things considered, I think there are plenty of other growth stocks that are a better fit for my portfolio. Like this one… “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Argo Blockchain shares at the current price? Why is the Argo Blockchain (ARB) share price crashing? Why is the Argo Blockchain share price falling as cryptocurrency moves higher? The Argo Blockchain share price is crashing. Should I buy now? Here’s what I’d do about the Argo Blockchain share price right now Edward Sheldon owns shares in Apple, Alphabet, and Microsoft. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares), Apple, and Microsoft and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain’s share price has crashed. Should I buy the stock now? appeared first on The Motley Fool UK.
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  40. Argo Blockchain shares: should I buy now or are they a bubble waiting to burst? (23/02/2021 - The Motley Fool UK)
    The price of Bitcoin is on the rise again, with the cryptocurrency having topped $50,000 last week. As a result, crypto mining company Argo Blockchain (LSE:ARB) has seen its shares go through the roof as well. When the shares reached their peak of 284p last Tuesday, they had climbed 269% in less than a month as investors rushed to jump on the latest story stock. And the year-on-year rise is huge. A year ago the price was 6.35p. However, in today’s trading, Argo Blockchain shares have fallen over 20% so far. That shows the volatility of shares related to the crypto industry, and while returns can be great there’s also a significant risk of loss. So would I buy shares in Argo Blockchain today? Or is it likely that the share price has grown into a bubble that will burst in the near future? Why have Argo Blockchain shares boomed? The Argo Blockchain share price is closely linked to the value of Bitcoin. Argo is a company whose expertise is in the mining of the cryptocurrency, and it mined around 2,400 BTC in 2020. Since late summer last year, the price of Bitcoin has rallied to figures that completely eclipse what had been seen during its previous peak in December 2017. As that price has risen, so has the value of Argo Blockchain’s assets. According to the company, it currently holds 501 BTC in its assets. On the current price of Bitcoin, that means it holds almost $24m worth of BTC. It’s reasonable to assume that if the price of Bitcoin continues to rise, Argo Blockchain shares are likely to follow.  What has also boosted the share price is the increasing adoption of crypto assets by major companies. Elon Musk’s Tesla purchased $1.5bn worth of Bitcoin last month and said the company would be accepting the cryptocurrency as payment for its cars in the future. Crypto-sceptic For all the incredible growth that both Argo Blockchain shares and Bitcoin have seen in recent months however, I’m still quite sceptical about future price movements. As recent history has shown, the crypto markets and associated shares can be massively volatile. If I were to invest today, I would have to take the risk that tomorrow I could be subject to a massive loss. As an investor who looks for long-term growth and income opportunities, I’m just not entirely comfortable with that. I do believe that the technology behind Argo Blockchain and crypto assets has a lot to offer the economy and society as a whole, I’d just like to see a little more in terms of stability and regulation of the industry before making a decent investment in it. In terms of Argo Blockchain specifically, I’m not convinced how sustainable its business model is given how closely tied its share price has been to the value of Bitcoin. That kind of dependence isn’t healthy for a business, in my opinion. Of course, I could miss out on a massive opportunity as Argo Blockchain shares could resume their upward trajectory if Bitcoin continues to head in that direction. But I won’t be buying Argo Blockchain shares right now. Whether the share price is in ‘bubble’ territory now remains to be seen, and in true stock market fashion the truth is only likely to be revealed after a potential ‘bust’. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading The Argo Blockchain share price: should I buy the stock or stay away? The Argo Blockchain price jumps above 300p! Can the rally continue? Argo Blockchain shares: should I buy for my portfolio today? Argo Blockchain share price: 3 reasons why it’s up 90% in the past week Argo Blockchain: here’s how much £5k in 2020 would be worth today conorcoyle has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares: should I buy now or are they a bubble waiting to burst? appeared first on The Motley Fool UK.
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  41. The Argo Blockchain share price has jumped! Should I buy the shares? (09/02/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price has surged in value since the beginning of 2021. Shares in the cryptocurrency miner are up 176% year-to-date and 1,800% over the past 12 months. The stock has added to this performance in early deals today, rising by more than 10%. This staggering performance has made the stock one of the best performing investments on the London market over the past 12 months.  However, past performance should never be used as an indicator of future potential. So with that in mind, today I’m going to take a closer look at the business to establish whether or not the Argo Blockchain share price is an interactive investment at current levels, or if the market has become overexcited.  Bitcoin boom  The surge in investor interest in Argo Blockchain in can be traced back to the rising price of Bitcoin. The asset’s value has increased by 355% over the past 12 months.  At the beginning of February, the company reported that its cryptocurrency mining revenues for January were £2.5m, up from £1.6m in December. Its average monthly mining margin rose to 71% from 60% a month ago. Within the same update, management informed the market that the business had signed a share purchase agreement with GPU.one, a Canadian data centre provider, for the strategic purchase of two data centres in Quebec. This agreement would provide the business with “long-term stability and direct control over the facilities.“ As well as this operational expansion, Argo said it held 501 Bitcoin and Bitcoin Equivalent. Following the recent rally in the price of Bitcoin, I estimate the value of these coins held by Argo is worth £23m.  So, it’s clear to me that Argo owns a substantial asset on its balance sheet in the form of cryptocurrency. The acquisition of data centre assets is also positive.  However, this business isn’t without its risks. Bitcoin is a highly volatile asset. Its value can move by 10% or more every day. As such, while it is easy to place a value on Argo’s Bitcoin reserves right now, it’s impossible to even guess how much they will be worth in 12 months’ time. The same goes for the company’s revenue projections and, as a result, the Argo Blockchain share price. Argo is primarily a mining company. Like any mining business, it cannot control the price at which its output is sold. The organisation has to accept the price buyers are willing to pay.  Argo Blockchain share price challenges  So. while shares in the company might have put in a good performance this year, considering the volatile nature of cryptocurrency, it is impossible for me to value the business. It has a market capitalisation of £463m at the time of writing, which seems excessive considering the group’s minimal revenues.  Then again, if the price of Bitcoin continues to surge, the business’s top and bottom lines may continue to grow as well. However, considering the uncertainty level here, this isn’t a company I’d be comfortable holding personally.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Stock market bubble? This is how I’m investing my cash Argo Blockchain shares: 5 things I’d consider before buying The Argo Blockchain share price is falling: should I buy? Here’s why I’d buy Argo Blockchain shares right now The Argo Blockchain share price has fallen: should I buy or sell? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price has jumped! Should I buy the shares? appeared first on The Motley Fool UK.
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  42. Can Argo Blockchain shares keep climbing? (01/05/2021 - The Motley Fool UK)
    It’s been a very busy year so far for Argo Blockchain (LSE: ARB). Since the start of 2021, the cryptocurrency miner has released a plethora of announcements. And this week it announced its full-year results. I reckon Argo Blockchain shares can keep climbing and I’d buy the stock. But I think its worth taking a closer look at the 2020 numbers. The results I’m not surprised with the overall positive set of figures. Last year was transformational for the company. Total revenue for 2020 increased by 120% to £19m. But its mining margin for the year was 41%, down from 60% in 2019. Argo Blockchain puts this down to “challenging market conditions, including Bitcoin halving in May 2020 and the global impact of the COVID-19 pandemic”. What I think should boost Argo Blockchain shares is that for the first time since the company’s inception, it has generated a net profit of £1.7m. This comes after it made a loss of £0.7m in 2019. This gives me some comfort that the miner is not only increasing its revenue but also keeping its costs at bay. In fact, it even highlights that its “administrative expenses were reduced by £1.1m to £2.4m as a result of series of cost reduction efforts”. This should help with profitability in the long term. Outlook So far the outlook for the company looks rosy, which should be positive for the Argo Blockchain share price. I’ve previously commented that the first three months of 2021 have been the most profitable quarter for the miner to date. It generated £13.4m in revenue during this period alone along with a mining margin of 81%. That’s impressive. I think the backdrop for cryptocurrencies remains positive. Even Argo Blockchain highlights that it’s being “driven by rising global demand, growing acceptance and confidence in digital currencies as a new asset class”. And I’d agree with this statement. The credibility of cryptocurrency has been boosted by the likes of Tesla, the electric car maker, investing into Bitcoin and accepting payments for its vehicles in the digital asset. Online payment companies, such as PayPal are now supporting digital currencies and there’s growing interest from blue-chip asset managers. I believe this confidence and momentum in cryptocurrencies will continue to grow over the long term, which should increased the value of Argo Blockchain shares. Risks That said, the stock is volatile and investors need to be prepared for this. I don’t think it will be smooth sailing for the share price, so I’d only invest what I can afford to lose. The shares are linked to the price of Bitcoin. So if this falls, it’s likely the stock price will decrease too. While 2020 was the first ever profitable year for the miner, there’s no guarantee this will continue. Even the company admits that “mining margins are expected to ease back from the 80% average level seen in the first quarter of this year”. It’s a relatively new technology so profitability is likely to be volatile. The mining facility The company has appointed Navier to help develop its Texas facility. When finished, it will allow Argo Blockchain to expand its mining capacity and have greater control over its operations. I’m bullish on the long-term prospects and hence I’d buy Argo Blockchain shares in my portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Argo Blockchain (ARB) share price is up 300% this year. Should I buy? The Argo Blockchain share price is up 3,400%. Should I buy? If I could buy only 1 crypto stock, this would be it The Argo Blockchain share price is up 3,200%: should I buy now? The Argo Blockchain share price: what’s next and should I buy? Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin, PayPal Holdings, and Tesla and recommends the following options: long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Can Argo Blockchain shares keep climbing? appeared first on The Motley Fool UK.
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  43. 2 popular UK and US blockchain stocks: should I buy shares in them today? (24/02/2021 - The Motley Fool UK)
    With Bitcoin and Ethereum rising in popularity, interest in blockchain stocks is building momentum too. Over the past few weeks, NASDAQ-listed Riot Blockchain (NASDAQ:RIOT) and London-listed Argo Blockchain (LSE:ARB) have both seen their share prices soar (and dip too). Both companies are involved in large-scale cryptocurrency mining. It’s a resource-intensive business and costs a lot of money to maintain the data centres required. Riot is one of the largest Bitcoin miners in North America, and Argo’s operations are based there too. Blockchain stocks endure rollercoaster ride Riot started the year with a share price around $16.50 and by February 17, it hit a high of $77.90, a whopping 372% jump. Argo Blockchain started the year at £47, rising to £284 in February, which was an even more impressive 504% gain. But as the price of Bitcoin plummeted over the past two days, so did the price of these blockchain stocks. With each of them losing over 26% in a day. Bitcoin has been skyrocketing as more and more institutional investors get on board. However, fear has been building, that it’s getting too high too quickly, based on speculation rather than good fundamental reasoning. Perhaps that’s why it’s now pulled back so dramatically. Have Argo and Riot got staying power? As Argo is the only blockchain stock available on the London Stock Exchange, it has a first mover advantage. Fear of missing out (FOMO) has been rife this past year, and this is exactly the kind of tech stock that generates hype and speculation. Unfortunately, in these circumstances a price rise is only as good as it lasts, and the downward drop can be even more dramatic than the climb. It has a market cap of around £766m compared with Riot’s £1.3bn. Earnings per share are negative, and neither company offers a dividend. During the first nine months of 2020, Riot generated $6.7m in revenue and produced a $16.6m net loss. It also produced 730 Bitcoin. With no profits, it doesn’t have a competitive edge. There are many other Bitcoin miners operating in North America, China and elsewhere in the world. Riot has been investing in the latest mining equipment to stay ahead of the game. Argo is doing the same. This is great if it can keep it up, but in the fast-changing world of crypto mining this equipment can date quickly, and staying competitive becomes very costly. With Bitcoin enjoying a new level of credibility and rising price momentum, it’s quite possible these blockchain stocks will continue in the same vein. So for momentum investors, I can see the appeal. Speculation and fluctuation I can understand the speculation surrounding these blockchain stocks. For many traditional investors, it’s easier to get on the crypto bandwagon via a stock investment than buying the individual coins directly. However, it’s still open to considerable price volatility and difficult for many novice investors to understand. These are highly speculative stocks, and not something I’d consider a safe addition to my own portfolio. I don’t think I should buy shares in either of them today.  For regular stock market investing ideas and help choosing the best shares to buy now, sign up to The Motley Fool today. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Argo Blockchain shares: should I buy now or are they a bubble waiting to burst? The Argo Blockchain share price: should I buy the stock or stay away? The Argo Blockchain price jumps above 300p! Can the rally continue? Argo Blockchain shares: should I buy for my portfolio today? Argo Blockchain share price: 3 reasons why it’s up 90% in the past week Kirsteen owns shares of Bitcoin. The Motley Fool UK has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 popular UK and US blockchain stocks: should I buy shares in them today? appeared first on The Motley Fool UK.
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  44. Argo Blockchain shares are up 165% in a month. Should I buy? (05/03/2021 - The Motley Fool UK)
    I can’t deny the phenomenal run Argo Blockchain (LSE: ARB) shares have had. While there’s been some volatility, the stock is up 460% year-to-date and over 4,400% in 12 months. Yes, they’re more expensive now. But as a long-term investor, I’d still buy the shares. Here’s why. Recent news Argo Blockchain is in the limelight again having released its February operational update. Overall, it was positive, but what stuck out for me was the CEO’s pay. Its top executive, Peter Wall, is now being paid in the most popular cryptocurrency, Bitcoin. I like that he now has further ‘skin in the game’. Wall is also a shareholder in Argo Blockchain, a further incentive for him to make the company a success. I should also mention that Wall seems to like diving deep into disruptive companies. There’s nothing wrong with this and I commend his bold actions. Wall is also the Non-Executive Chairman of the recently-listed consumer cannabinoid products firm, Cellular Goods. Other events Since the beginning of the year, Argo Blockchain has been very busy. The past two months have seen plenty of news from the company in terms of mining cryptocurrency and profitability. But there’s more news too. At the beginning of February, Argo Blockchain announced that it had made a 25% investment in Pluto Digital Assets. This is a cryptocurrency and venture capital company. I like the fact that Argo Blockchain is diversifying its future revenue streams by buying stakes in early-stage cryptocurrency firms. It will take time to do pay off (if it ever does), but as a long-term investor, I think this is future focus is a good thing. On that subject, it has also entered into an agreement to acquire land in West Texas, USA, to build a crypto-mining facility in the next 12 months. Argo is using its shares to pay for the land. But it has a $100m credit facility to fund the mining facility project. It’s a bold move but a necessary one as the technology on which it relies needs continual updates. With that in mind, last month, it also announced a partnership with ePIC Blockchain Technologies to supply it with state-of-the-art mining machinery. And it has also announced that it has installed 4,500 new mining machines. What does this all mean? To me, it says that Argo Blockchain is boosting its infrastructure to better compete as a global cryptocurrency miner.  The risks But it also means the firm has to invest heavily to stay ahead, something that comes under the risk column. Argo Blockchain is clearly incurring costs to grow its infrastructure. This could impact profitability and thereby the share price. Also risky is that the shares are in many ways a proxy for cryptocurrencies, especially for the price of Bitcoin. Given how volatile cryptocurrencies can be, I’d expect the stock to exhibit this trait too. Even the UK financial regulator, the Financial Conduct Authority (FCA) has warned against cryptocurrencies. Hence I’d only ever invest what I could afford to lose. As a long-term investor, I acknowledge all the risks that come with a young company adopting a relatively new technology. It won’t be smooth sailing, but I think the company is taking the right steps. Hence I’d buy Argo Blockchain shares in my diversified portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Argo Blockchain share price: is it too late for me to buy the stock? Argo Blockchain shares: here’s what I’m doing now Argo Blockchain shares are rising again: should I buy now? Here’s why I’m bullish on Argo Blockchain shares 2 popular UK and US blockchain stocks: should I buy shares in them today? Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares are up 165% in a month. Should I buy? appeared first on The Motley Fool UK.
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  45. The Argo Blockchain share price: should I buy the stock or stay away? (23/02/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price has plunged this week. At the time of writing, shares in the cryptocurrency miner are dealing at around 213p, down from their 52-week high of 340p reached only a few days ago.  However, despite this performance, the stock is still up more than 3,400% over the past 12 months. Could the latest pullback be an opportunity for me to buy this high-flying stock at a lower price? What’s behind the Argo blockchain share price decline?  Past performance should never be used as a guide to future returns. Therefore, while the stock has been a winning investment over the past 12 months, it doesn’t guarantee it will continue to be so.  One of the things I always try to get my head around before buying an investment is the reasons behind its recent performance. I want to understand why the stock has performed the way it has. This could give me some insight into what the future holds for the business.  When it comes to the Argo Blockchain share price, it seems the stock’s become somewhat of a proxy for Bitcoin. As the price of the cryptocurrency has surged in recent weeks, shares in the cryptocurrency mining business have jumped as well.  As Argo both owns and mines Bitcoin, this makes sense. The higher the price of the cryptocurrency, the more revenues the business can produce. The value of Bitcoin on its balance sheet will also increase. This should translate into a higher share price.  However, Bitcoin can go up as well as down. In the past few days, its value has fallen from an all-time high of over $58,000 to around $48,000 at the time of writing.  Therefore, it seems to me the price of Bitcoin will dictate the outlook for the Argo Blockchain share price. That makes it especially challenging for me to put a value on the shares.  Bitcoin price troubles Bitcoin is incredibly volatile. The latest sell-off was triggered by Elon Musk tweeting that he thought the value of the cryptocurrency seemed “high.” That said, the rally in the first place was inspired by Musk’s electric car manufacturer Tesla’s decision to invest $1.5bn in the cryptocurrency.  If other companies follow the electric vehicle manufacturer, it could continue to increase and recover from current levels. That would be positive for the Argo Blockchain share price. What’s more, as companies like Tesla start accepting cryptocurrencies, they may become mainstream, which would drive a virtuous cycle. User growth would attract more users, increasing prices and driving more interest in Bitcoin and its peers. That’s the best-case scenario.  On the other hand, Bitcoin’s volatility could damage its reputation. The fact that a single tweet could cause it to fall in value by more than $10,000 is notable. I think this kind of volatility makes it impossible for me to place a value on the Argo Blockchain share price. It suggests the company’s own fundamentals are irrelevant. Instead, its fortunes could be tied to the success or failure of Bitcoin. As such, I’m not going to buy the stock for my portfolio today. Other investors may be comfortable with the level of uncertainty here, but I’m not.  A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Argo Blockchain price jumps above 300p! Can the rally continue? Argo Blockchain shares: should I buy for my portfolio today? Argo Blockchain share price: 3 reasons why it’s up 90% in the past week Argo Blockchain: here’s how much £5k in 2020 would be worth today Argo Blockchain’s share price is up 25%: should I buy today? Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Argo Blockchain share price: should I buy the stock or stay away? appeared first on The Motley Fool UK.
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  46. Here’s why I’m bullish on Argo Blockchain shares (24/02/2021 - The Motley Fool UK)
    Argo Blockchain (LSE: ARB) shares have been falling recently. But the stock has grabbed the attention of many investors, myself included. As a long-term investor, I’d buy the stock — but there are risks.  The story so far In a nutshell, Argo Blockchain is a cryptocurrency miner. In fact, it’s one of the first of its kind to list on the London Stock Exchange. I reckon this is one of the reasons why the stock has risen so quickly. It’s an indirect way to access cryptocurrencies, particularly Bitcoin, the most popular one. I should stress that Argo Blockchain shares are linked to the price of Bitcoin. The higher the price of the cryptocurrency, the more the company mines the digital asset, thereby boosting the share price. It also works the other way. So if Bitcoin falls, then the stock would likely fall too. The cryptocurrency boom Cryptocurrencies have made a comeback, especially during the coronavirus crisis. Buy why? Well, I think a seismic change is happening in sentiment towards these digital assets. I reckon many investors are starting to view cryptocurrencies as a portfolio diversifier and alternative asset. Large institutions are latching onto the cryptocurrency trend. At the beginning of this month, Elon Musk’s Tesla purchased $1.5bn of Bitcoin. Other companies have started to buy cryptocurrencies as well. To me, this highlights a wider acceptance of the digital asset. In time, I expect more institutions to be buying cryptocurrencies as a diversifier. Risks The UK financial regulator, the Financial Conduct Authority (FCA) has warned against cryptocurrencies. It has stressed that consumers should be prepared to lose all their money if they invest in digital currencies like Bitcoin. Cryptocurrencies are extremely volatile, and I’d expect Argo Blockchain shares to exhibit this trait too. This means that I’m only prepared to purchase an amount I can afford to lose. What’s Argo Blockchain doing now? A lot has been happening at the company. January was a great month for Argo Blockchain in terms of mining and profitability. At the beginning of February, the firm announced that it had made a investment in a digital asset company. I like the fact that it’s diversifying its future revenue streams by buying stakes in early stake cryptocurrency companies.  It has also entered into an agreement to acquire land in Texas, US, to build a mining facility in the next 12 months. Argo Blockchain is using its shares to pay for the land. But it’s taking a $100m credit facility to fund the mining facility project. To me, this is a bold move and one that highlights the company is bullish on the future of cryptocurrencies. If that wasn’t enough, Argo Blockchain announced a few days ago an agreement with ePIC Blockchain Technologies to supply it with state-of-the-art mining machinery. The company believes that to be a big cryptocurrency player, its infrastructure will need to be scaled up to handle large mining. This means higher costs, which could impact profitability and thereby the share price. As a long-term investor, I recognise there needs to be a period of capital expenditure and it won’t be smooth sailing. But I think the company is taking the right steps. Hence I’d buy Argo Blockchain shares in my diversified portfolio. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 popular UK and US blockchain stocks: should I buy shares in them today? Argo Blockchain shares: should I buy now or are they a bubble waiting to burst? The Argo Blockchain share price: should I buy the stock or stay away? The Argo Blockchain price jumps above 300p! Can the rally continue? Argo Blockchain shares: should I buy for my portfolio today? Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why I’m bullish on Argo Blockchain shares appeared first on The Motley Fool UK.
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  47. Argo Blockchain shares are rising again: should I buy now? (03/03/2021 - The Motley Fool UK)
    The Argo Blockchain (LSE: ARB) share price is up a further 10%, as I write this morning, after the company said CEO Peter Wall would start receiving his salary in Bitcoin. The company also said the number of Bitcoin (BTC) mined in February rose by 38% to 129 BTC. Shares in this cryptocurrency miner have now risen by about 5,000% in one year, valuing the business at £1bn. This is an incredible result that’s probably made some lucky investors very wealthy. I admit that I’ve stayed out of the cryptocurrency market so far. But with a growing number of big financial companies buying BTC, I’m wondering if I need some crypto exposure in my portfolio too. Should I buy Argo Blockchain shares now, or is it too late to enjoy big gains? Mining revenue up 75% In today’s update, Argo said that it mined 129 BTC in February, compared to 93 BTC in January. Mining revenue — the value of the coins mined during this time — rose to £4.34m. That’s a 75% increase on the £2.48m reported for January. Importantly, Argo’s mining profit margin rose from 71% to 81%. This suggests the new mining machines added in January are doing their job and generating more BTC more efficiently. That’s good news, I think. But the company has one big cost which isn’t included in this mining margin figure. Machines need replacing Mining machines are expensive and don’t last long before becoming outdated. This is reflected in the depreciation charge for the machines in Argo’s accounts. In 2019 and during the first half of 2020, depreciation costs were around 25% of revenue. This non-cash charge isn’t included in Argo’s mining margin, but it gives me an idea of what the replacement cost of machines might be in the future. As the BTC price rises, more computing effort is required to be awarded new BTC. This suggests to me that replacement equipment costs will always be a significant pressure on Argo Blockchain’s profits and the value of its shares. Argo has added 4,500 new Bitmain Antminer machines to its network over the last couple of months. These have added 430 Petahash (a hash is part of a calculation that’s needed to verify a BTC transaction) to the company’s computing power, taking the total to 1,075 Petahash. What I don’t yet know is how these new machines will affect Argo’s depreciation costs. I suspect there will be a significant increase in this charge in the 2021 accounts. Argo Blockchain shares: my decision What’s a fair price for Argo Blockchain? At the end of February, the company held 599 BTC. These were worth about $31m (£22m), at the time of writing. The latest broker forecasts I can find suggest Argo could make a full-year profit of £2.4m in 2021. This money comes from selling a proportion of the BTC it mines. If the BTC price rises further in 2021, then the value of Argo’s stash and its profits could rise more quickly than expected. However, even if I value ARB shares at 30 times profits and double the value of the firm’s BTC holdings, I still only get a market-cap of around £120m. Argo Blockchain’s share price of 290p values the business at about £1bn. For me, that’s too much. I’m still interested in BTC, but I won’t be buying Argo shares today. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Here’s why I’m bullish on Argo Blockchain shares 2 popular UK and US blockchain stocks: should I buy shares in them today? Argo Blockchain shares: should I buy now or are they a bubble waiting to burst? The Argo Blockchain share price: should I buy the stock or stay away? The Argo Blockchain price jumps above 300p! Can the rally continue? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares are rising again: should I buy now? appeared first on The Motley Fool UK.
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  48. Argo Blockchain shares: here’s what I’m doing now (04/03/2021 - The Motley Fool UK)
    Argo Blockchain (LSE:ARB) shares are on my radar again. The share price is up over 750% so far this year, the third-highest gain in the London Stock Exchange. Argo Blockchain shares are in the limelight this week after a supportive operational update for February and an announcement that CEO Peter Wall will receive his salary in Bitcoin. This could be seen as a sign of confidence in this digital cryptocurrency. The operational update highlighted that Argo Blockchain mined 129 Bitcoin or Bitcoin equivalent (together, “BTC”) in February, compared to 93 BTC in January. BTC mined year-to-date is now 222, and the company hold a total of 599 BTC. So what does mean for revenues? Mining revenue increased 75% from £2.48m in January to £4.34m in February. This follows a 52% increase from December. It’s great to see such strong business momentum, but I was even more impressed to see mining margin grow to 81%. This was an already impressive 71% in January. Mining revenue is likely to increase further, in my opinion. Argo Blockchain is expanding operations and in recent weeks announced its intent to buy 320 acres of land in Texas to build a new 200 megawatt mining facility in the next 12 months. Argo believes this will provide access to “some of the cheapest renewable energy worldwide”. What I’m doing with Argo Blockchain shares Most of my top share ideas are not linked to speculative assets. But I do currently own some Argo Blockchain shares. I bought a small amount in January in a speculative portion of my long-term investment portfolio. After several encouraging updates over the past few months, I would consider buying some more. However, at an almost £1bn valuation, I’m more hesitant than I was a few months ago. The performance of Argo Blockchain shares could rely on the highly volatile Bitcoin price. Bitcoin has gained over 70% year-to-date at time of writing, but that has included two near-30% declines during the period. Bitcoin and cryptocurrencies, in general, have gained in popularity in recent months. Aided by central bank quantitative easing that has weakened the value of fiat currencies, digital currencies have started to gain traction.  They have also been supported by some high-profile CEOs and companies making purchases. In February, Tesla announced it had bought $1.5bn of Bitcoin. Elon Musk also remarked that Tesla could one day start accepting payments with Bitcoin. The risks Bitcoin is highly speculative and carries great risk. In recent months, the Financial Conduct Authority (FCA) warned that investors should be “prepared to lose all their money” should their investment’s value collapse. As such, owners of Argo Blockchain shares should be aware of the link to the Bitcoin price. It works both ways, in my opinion. Additionally, there are technology risks. Argo Blockchain would need to keep up and stay ahead of competitors by investing in its technology. I understand that the useful life of a Bitcoin mining computer is three years, so more investment could be required over the coming years to sustain current mining efficiency. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Argo Blockchain shares are rising again: should I buy now? Here’s why I’m bullish on Argo Blockchain shares 2 popular UK and US blockchain stocks: should I buy shares in them today? Argo Blockchain shares: should I buy now or are they a bubble waiting to burst? The Argo Blockchain share price: should I buy the stock or stay away? Harshil Patel owns shares in Argo Blockchain and Tesla. The Motley Fool UK owns shares of and has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Argo Blockchain shares: here’s what I’m doing now appeared first on The Motley Fool UK.
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  49. Hargreaves Lansdown investors are still buying Argo Blockchain. Should I? (29/03/2021 - The Motley Fool UK)
    Bitcoin miner Argo Blockchain (LSE: ARB) continues to be in demand from retail investors. In fact, it was the fourth most popular buy on investment platform Hargreaves Lansdown last week. Only Rolls-Royce, Cineworld, and IAG were attracting more interest. Should I be joining the queue? 72-bagger! It’s not hard to see the attraction. Regardless of what anyone thinks of Bitcoin, the performance of the Argo Blockchain share price has been staggering. This is a company that’s traded at 3p a pop within the last year. At the close of play last Friday, the very same stock was valued at 220p each. Put another way, a £1,000 investment last July would now be worth around £72,000! This kind of return clearly illustrates the extent to which anything related to cryptocurrencies has captured the investing community’s attention. It’s also more evidence that catching an emerging theme early on can, with a fair dollop of luck, be life-changing.   Argo Blockchain: opportunity knocks? There are a few general reasons why Argo Blockchain might remain on the ‘top buy’ list. For one, the share price is actually 20% below where it was in mid-February. This arguably provides any prospective buyers with a golden opportunity to ‘buy the dip’. As strategies go, this has worked brilliantly in many (most) shares over the last year. It’s also worth bearing in mind that the forthcoming ISA deadline (5 April) could see a huge amount of cash hit the market and be invested in popular stocks. This could be compounded a day later as people take advantage of their 2021/22 ISA allowance! The arrival of investment banks on the scene could also provide support for the cryptocurrency’s price going forward.  Bitcoin’s value may rise and fall by double-digit percentages in a single day, but having JP Morgan and co now fighting its corner has given it a shot of credibility in the market.  Beware the spike Naturally, no investment is risk-free and Argo Blockchain is no exception. While further gains definitely can’t be ruled out, I think it’s vital to keep a few things in mind. First, the recent volatility of ARB’s share price suggests only those with exceptionally strong stomachs should consider getting involved at this stage. At some point, all but the most bullish investors will want to take profit. Actually, it’s worth noting that ARB was the second most popular sell on Hargreaves Lansdown last week too. An orderly exit could quickly become a stampede.  Second, Argo Blockchain’s valuation is closely associated with the Bitcoin price. In practice, this means the company can execute its strategy perfectly and still get into difficulties if the cryptocurrency craze were to pass. Although 2020 reminded us that no company is ever fully in control of its fate, this correlation concerns me.  A third thing to be aware of is the growing unease over the environmental impact of Bitcoin mining. While the move to renewable energy sources should help address this, it may not come quick enough for some investors. And that may come to haunt Argo. Quite where the Argo Blockchain share price goes over the next few weeks and months is impossible to say. Even so, I wouldn’t buy the shares now with money I couldn’t afford to lose. The time to be greedy, I think, was last year. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Argo Blockchain share price: this is when I’ll buy the stock 1 FTSE 100 stock I think could soar on the retail investing boom! Should I buy Argo Blockchain shares today? This is what I’m doing about the Argo Blockchain share price right now! 4 reasons I could buy Argo Blockchain shares… but will I? Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Hargreaves Lansdown investors are still buying Argo Blockchain. Should I? appeared first on The Motley Fool UK.
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