Argo Blockchain Stock Dips Despite Higher Mining Revenues
Market News

Argo Blockchain Stock Dips Despite Higher Mining Revenues

Cloud-based crypto mining company Argo Blockchain PLC (NASDAQ: ARBK) disclosed to have mined about 163 Bitcoins or its equivalents in March 2022, up 20.7% from the previous month. Despite reporting a rise in Bitcoins mined, shares of ARBK dropped ~2.6% on Friday’s trading session and are down another 3% today.

The company informed that it earned mining revenue 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 basis of daily foreign exchange rates and cryptocurrency prices in the reported month.

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

Alongside the mining update, ARBK announced the addition of Seif El-Bakly as the company’s COO. He brings 16 years of experience in the capital markets and trading sectors.

Also, Argo said that it projects to start operations in Helios, its 200MW flagship cryptocurrency mining facility located in Texas, in the second quarter of 2022.

Chief Executive and interim Chairman of Argo, Peter Wall, said, “As we approach the opening of our Helios facility and significantly scale up our owned and operated mining operations, Seif will be integral in driving the operational performance of Argo.”

Wall Street’s Take

Last month, Stifel Nicolaus analyst Suthan Sukumar initiated a Hold rating on Argo with a price target of $11 (25% upside potential from current levels).

Sukumar is of the opinion that Argo is actively increasing the scale and capacity of its bitcoin mining operations. Also, he mulls that it might be difficult for the company to raise capital for funding expansions given its smaller scale and already high leverage relative to peers.

Overall, the rest of the Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on four Buys and one Hold. The average Argo Blockchain price target of $19.40 implies upside potential of about 120.5% from current levels.

Investors Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Argo, with 10.3% of investors increasing their exposure to ARGO stock over the past 30 days.

Takeaway

Shares of Argo have declined 27.4% so far this year. Though the company’s Bitcoin production had fallen in the first two months of 2022, it grew again in March.

Also, the opening of the Helios facility should provide a boost to its operations. Both factors are likely to provide some assurance to the investors going forward.

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