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Argo Blockchain Share Price: signs of a recovery after sharp dip

ArgoBlockchain Share Price

The Argo Blockchain share price (LON:ARB) is moving upwards again. Having fallen from a record high of 284p in mid-February to 135p by 19 April, Argo appears to be at the early stages of a recovery. Now at 179.9p per share, still well down from its all-time-high, investors will be curious as to whether or not the company represents good value moving froward.

Bitcoin

The performance of the Argo Blockchain share price is closely correlated to the performance of bitcoin, the cryptocurrency which it focuses most of its attention on as a mining company. As UK Investor Magazine has previously outlined, if the price of bitcoin falls, then Argo’s share price is likely to do the same.

From the middle of April, when bitcoin was priced at just under $65,000, through to the end of the month, bitcoin’s price fell dramatically, getting below $48,000. It amounted to a slump of more than 25%, similar to the fall seen in the value of Argo Blockchain’s shares.

At the time of writing, and similar to the value of Argo Blockchain stock, bitcoin is showing signs of a recovery.

Argo Blockchain’s Mining Revenue’s Continue Rise

Argo Blockchain has reported higher revenues in April as the company continues its bitcoin mining, in addition to seeing raised margins. In a monthly update, Argo has disclosed revenues of £6.7m, an increase from £6.57m in March, while its average monthly margins are around 85%.

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The company also said it has mined 163 bitcoin during April, compared to 165 bitcoin in March, bringing its holdings to 935 bitcoin.

“I’m thrilled that Argo has generated a fourth consecutive month of record mining revenue and profits. I’m also pleased to have engaged Navier in the development of our Texas facility, a partnership that will enable us to expand our mining infrastructure significantly and efficiently,” Argo chief executive Peter Wall said in a statement.

“I am also delighted to have announced the second year of triple digit growth in our 2020 full year results. Our team has laid an excellent foundation for 2021 and our strong performance in [the first quarter] of this year highlights we are executing it in line with expectations,” he added.

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