Argo Blockchain Stock Dips Despite Higher Mining Revenues

Cloud-based crypto mining firm Argo Blockchain PLC (NASDAQ: ARBK) disclosed to have mined about 163 Bitcoins or its equivalents in March 2022, up 20.7% from the earlier month. Despite reporting an increase in Bitcoins mined, shares of ARBK dropped ~2.6% on Friday’s buying and selling session and are down one other 3% at the moment.

The firm knowledgeable that it earned mining income of £5.22 million ($6.92 million) in March, up from £4.15 million ($5.58 million) in February 2022. Revenue was calculated on the premise of every day international change charges and cryptocurrency costs within the reported month.

As of March 31, 2022, Argo owned 2,700 Bitcoin, of which 259 have been BTC equivalents.

Alongside the mining replace, ARBK introduced the addition of Seif El-Bakly as the corporate’s COO. He brings 16 years of expertise within the capital markets and buying and selling sectors.

Also, Argo mentioned that it initiatives to begin operations in Helios, its 200MW flagship cryptocurrency mining facility positioned in Texas, within the second quarter of 2022.

Chief Executive and interim Chairman of Argo, Peter Wall, mentioned, “As we strategy the opening of our Helios facility and considerably scale up our owned and operated mining operations, Seif will probably be integral in driving the operational efficiency of Argo.”

Wall Street’s Take

Last month, Stifel Nicolaus analyst Suthan Sukumar initiated a Hold ranking on Argo with a value goal of $11 (25% upside potential from present ranges).

Sukumar is of the opinion that Argo is actively rising the size and capability of its bitcoin mining operations. Also, he mulls that it is perhaps troublesome for the corporate to lift capital for funding expansions given its smaller scale and already excessive leverage relative to friends.

Overall, the remainder of the Street has a bullish outlook on the inventory, with a Strong Buy consensus ranking based mostly on 4 Buys and one Hold. The common Argo Blockchain value goal of $19.40 implies upside potential of about 120.5% from present ranges.

Investors Sentiment

TipRanks’ Stock Investors software reveals that traders at present have a Very Positive stance on Argo, with 10.3% of traders rising their publicity to ARGO inventory over the previous 30 days.

Takeaway

Shares of Argo have declined 27.4% to date this yr. Though the corporate’s Bitcoin manufacturing had fallen within the first two months of 2022, it grew once more in March.

Also, the opening of the Helios facility ought to present a lift to its operations. Both elements are probably to offer some assurance to the traders going ahead.

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https://www.tipranks.com/information/argo-blockchain-stock-dips-despite-higher-mining-revenues/

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