Argo Blockchain stock price forecast

Argo Blockchain stock price forecast

The share price of Argo Blockchain has fallen by more than 90% since the beginning of the year. Where to go? Photo: rafapress/Shutterstock

British cryptocurrency miner Blockchain Argo (ARB) has experienced a 91.67% drop in its share price since the start of the year as cryptocurrency prices plummeted, resulting in a reduction in the company’s earnings. At the end of October, a £24 million financing deal collapsed.

Can the company survive the turbulence of the crypto market? Is there potential to profit from buying ARB shares on the dip?

Let’s take a look at the stock’s recent performance and potential long-term outlook.

What is the Argo blockchain?

Argo Blockchain is an enterprise cryptocurrency and smart contract mining service provider. The company aims to provide “affordable” cryptocurrency mining through a subscription service. To limit the environmental impact of mining, Argo is focusing on using renewable electricity to support the growth of blockchain technologies.

The company was founded in 2017 by technology entrepreneur Peter Wall, who serves as its CEO, and Mike Edwards, who served as executive chairman until January 2020, when he left to focus on his role as CEO of Pioneer Media Holdings.

Argo was listed on the London Stock Exchange in a £25 million Initial Public Offering (IPO) in August 2018, marking the first public listing of a cryptocurrency firm on the exchange. The shares were valued at £0.16 per share, giving the company a £47 million valuation.

In September 2021, Argo floated 75 million U.S. Depositary Shares (ADSs) on the Nasdaq Global Market at $15 under the ticker “ARBK”, raising $112.5 million.

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ARB share price plummets in bearish crypto environment

ARB share price chart

Argo’s share price fell from a peak of £2.82 in February 2021 as the crypto market rallied. But while stocks have followed a cryptocurrency volatility pattern, they have not kept pace with the scale of the Bitcoin (BTC) market growth, with shares trading as high as £1.73 in September and £1.44 on November 12, after bitcoin traded to an all-time high above 68,000. dollars November 11th.

In July 2021, Argo announced the start of construction on a bitcoin mining facility in Texas. However, the share price came under pressure as investors were concerned about the facility’s value. In August 2021, short seller Boatman Capital warned investors: “We believe that Argo Blockchain has acquired land in Texas for what appears to be 100 times its value, raising serious management questions about why this deal was made.” and who won.

“We are particularly concerned that the nine beneficiaries of this transaction are shareholders of Argo. We are also concerned that the apparently unrecorded multi-million dollar legal dispute between Argo and Celsius Network could jeopardize future bitcoin mining capacity and revenue. Argo leases about 40% of its mining fleet from Celsius.”

The insider said the facility could be worth between $1.5 billion and $2 billion, which the company subsequently confirmed in a November 5 statement.

Shares ended the year at £0.98 and have been falling ever since amid the turmoil in the cryptocurrency market. The share price halved by May 2022 to £0.50 when Argo started bitcoin mining on the Texas site as a strong US dollar and the collapse of the Terra Luna cryptocurrency caused turmoil in the markets.

Argo’s shares fell to £0.30 in mid-June before turning back higher to hit £0.50 in mid-August as the company announced an increase in BTC mining revenue and the completion of a machine swap with Core Scientific. In addition, the broader financial markets have created a more favorable environment for risk.

But the share price tumbled after Argo announced a 14% drop in first half revenue compared to the first half of 2021 to £26.7m, “primarily due to the decline in the price of bitcoin and an increase in global hashrate and the associated level of network complexity.

In addition, the company revised its hash power forecast to 3.2 EH/s by the end of 2022 and 4.1 EH/s in the first quarter of 2023, noting:

“We have worked closely with ePIC and Intel to redesign the machine to improve overall mining efficiency, which has delayed our expected rollout schedule. In addition, we retain choice by reducing the overall capital cost of these machines as market conditions remain volatile. We remain confident in the performance of the custom machines and are excited to roll them out starting in the first quarter of 2023.”

The stock price continued to decline throughout September, and on October 11, Argo reported a decrease in BTC mined in September to 215 BTC or BTC equivalent from 235 BTC in August. The decline was mainly due to a 12% increase in the average complexity of the Bitcoin blockchain network in September, and the company continued to reduce operations at the Texas facility during times when electricity prices were high.

ARB’s share price fell from £0.36 in early October to £0.14 on 13 October. Although the price jumped from £0.11 on October 21st to £0.21 on October 26th, it failed to sustain the rise and fell to a new low of £0.07 on November 2nd. Since then, shares have fluctuated between £0.07 and £0.08 per share. In November, cryptocurrency prices were again under pressure due to the rapid collapse of the FTX exchange.

On 7 October, Argo announced plans to sell 3,400 mining machines for a cash proceed of £6m and raise £24m through a proposed share subscription with a strategic investor. But on October 31, the company said the deal fell through and “continues to explore other funding opportunities.” The company added that it sold 3,843 new mining machines for £4.8m in cash.

On November 8, Argo announced that its October mining revenue was £3.55 million. This is a 51% decrease from £7.24m in October 2021. Argo mined 204 BTC in October, up from 215 BTC in September, as the complexity of the Bitcoin network continued to rise.

Lack of funding and falling cash flow raise questions about Argo’s long-term future.

“While Argo is exploring other funding opportunities, there is no guarantee that any definitive agreements will be signed or any deals will be completed. If Argo fails to complete any further funding, Argo will go into negative cash flow in the near term and will have to reduce or cease operations,” the Oct. 31 statement said.

“The Company seeks to complete such financial transactions in order to provide the Company with sufficient working capital for its current needs, that is, at least within the next twelve months from the date of this announcement.”

Where do analysts see stock trading in the future? What do some of the latest Argo Blockchain stock price predictions point to?

Argo Blockchain Share Price Prediction: Will the Company Survive in the Long Term?

At the time of writing (November 21), the two analysts’ average 12-month share price forecast for ARB was £0.0730 per share, with one recommending the stock as Buy and the other as Neutral. This will result in a marginal change in the share price from the current level of £0.075.

Argo Blockchain Stock Price Prediction by Algorithm-Based Forecaster Investor wallet at the time of writing, the stock was forecast to fall from £0.08939 to £0.0559 in December and then fall further from £0.01 to £0.0000212 in May 2023. Argo Blockchain Wallet Investor’s 2023 stock price prediction showed that the stock could actually drop to zero by the middle of the year.

However, the Argo Blockchain share price forecast for 2025 from Pickup AI showed shares rebounded to an average of £6.806 from £0.7553 in 2023.

Meanwhile, according to data collected MarketBeatTargets for Nasdaq-listed ARBK stock ranged from $8 from HC Wainwright on August 26 to $3 from Barclays on October 10. On November 1, Jefferies Financial and Canaccord Genuity downgraded the stock from Buy to Hold, while Stifel Nicolaus downgraded the stock from Hold to Sell. On November 18, ADS price closed at $0.82.

Argo Blockchain Stock Price Prediction from Government Capital for ADS shares, it is estimated that the price could fall to zero as early as December 2022.

If you are looking for Argo Blockchain stock price prediction to inform your trading strategy, it is important to remember that the high volatility in the cryptocurrency and stock markets makes it difficult for analysts and algorithm-based forecasters to accurately predict the future. from the share price.

We recommend that you always do your own research. Read the latest market trends, news, technical and fundamental analysis and expert opinion before making any investment decision. Keep in mind that past performance is not a guarantee of future earnings. And never invest money that you cannot afford to lose.

Frequently asked Questions

Is Argo Blockchain a good stock to buy?

Whether ARB stock is a good fit for your portfolio depends, among other things, on your risk tolerance, trading strategy and the amount you intend to invest. Always be sure to do your own research.

Will Argo Blockchain share price rise or fall?

The direction of ARB’s share price is likely to depend on the price of bitcoin, as well as whether the company can generate sufficient liquidity to continue its operations, among other factors. Keep in mind that past results are not a guarantee of future results.

Should I invest in Argo Blockchain shares?

The decision on whether to invest in ARB is up to you. You should do your own research to get an informed market view.

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