Argo Blockchain Share Price
The Argo Blockchain share price (LON:ARB) took a dive on Thursday, down 12.25% early in the afternoon. Argo now stands at 127.24p per share, more than 50% below its all-time-high of 284p, reached in February. Having said that, the stock remains up by 286% since the turn of the year, and over 2500% up over the past 12 months.
Elon Musk, Bitcoin and the Environment
It would seem that today’s fall which, similar to bitcoin, can be put down to the Tesla chief’s announcement that the electric car company will not be taking payments via bitcoin over environmental concerns. Following the announcement by Musk, the price of bitcoin is down by over 10% to $50,376. The news has been the catalyst for a sell-off across the cryptocurrency market, which includes miners, such as Argo Blockchain.
The decline of the value of bitcoin will see a fall in the revenue of Argo Blockchain. In an update provided by the company in April, Argo said that it had mined 163 bitcoin, two fewer than in March. Its revenues, as a result, fell from £6.7m to £6.6m over the same time period.
The crucial issue from Musk’s Twitter statement, and for the industry in general, revolves around bitcoin’s substantial energy consumption. Argo Blockchain confirmed today that it purchased data centres in Canada, as part of its wider mining vision.
“Argo’s purchase of data centers in Canada represents another milestone for the company as we seek to take greater control over our mining production and mining cost base, while also laying solid foundations for long-term growth,” Argo CEO, Peter Wall said in a statement.
The two data centres will generate a combined power capacity of 20MW. They will also be run almost solely by locally generated hydroelectricity. This is a positive step for Argo and a sign of its intentions moving forward. Argo, as will as the wider bitcoin community, may have some way to go to convince investors that it is an industry which is able to clean up its act.
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