Argo Blockchain (ARBK) AI Stock Analysis

• Market Cap: $7.66M
• Dividend Yield: N/A
• Average Volume (3M): 14.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -13.86%
• EPS Growth: -32.19%
• Country: US
• Employees: 30
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 333,638
• 10 Day Avg. Volume: 34,810,876
• 30 Day Avg. Volume: 14,346,985
• PEG Ratio: -0.38
• Price to Book (P/B): -1.18
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -0.78
• Enterprise Value/Market Cap: 6.79
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: -18.83
• Enterprise Value/Ebitda: -2.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 37 Underperform
• Price Target: $4.50 ▼(-5.66% Downside)

Argo Blockchain's overall stock score is severely impacted by its poor financial performance, bearish technical indicators, and unattractive valuation metrics. The company's financial instability, as evidenced by negative margins and high leverage, is the most significant factor driving the low score. Additionally, the technical analysis indicates strong downward momentum, and the negative P/E ratio highlights the lack of profitability.

Positive Factors

Restructuring and Recapitalization

The restructuring plan significantly improves Argo's financial position by converting debt to equity and increasing stockholders' equity above $10 million, stabilizing its operations and preserving its mining platform for future growth.

Expansion into AI and HPC

By diversifying into AI and HPC, Argo leverages its infrastructure expertise to create new revenue streams, enhancing its competitive position and supporting long-term growth beyond cryptocurrency mining.

Increased Hashrate Capacity

The increase in hashrate capacity strengthens Argo's competitive position in Bitcoin mining, potentially improving operational efficiency and profitability as it scales its mining operations.

Negative Factors

Negative Revenue Growth

Declining revenue growth reflects operational challenges and market volatility, which can hinder the company's ability to sustain profitability and invest in future growth opportunities.

High Leverage and Negative Equity

High leverage and negative equity indicate financial instability, limiting Argo's financial flexibility and increasing the risk of solvency issues, which could impact its long-term viability.

Poor Cash Generation

Negative cash flows suggest operational inefficiencies and challenges in generating sufficient cash to cover expenses, which could constrain Argo's ability to invest in growth and manage financial obligations.

Argo Blockchain Business Overview & Revenue Model

Company Description

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Argo Blockchain generates revenue primarily through cryptocurrency mining, where it earns Bitcoin rewards for validating transactions on the blockchain. The company operates its own mining hardware and has invested in efficient mining technologies to optimize operations. Additionally, Argo may generate income through hosting services for other miners, allowing them to utilize its infrastructure for a fee. The company also explores opportunities in blockchain technology and strategic partnerships to enhance its business model and revenue streams. Market fluctuations in cryptocurrency prices can significantly impact revenue, making effective risk management essential for sustained profitability.

Argo Blockchain Financial Statement Overview

Summary

Argo Blockchain is facing significant financial challenges. The income statement shows declining revenues and profitability, the balance sheet reveals high leverage and negative equity, and cash flow statements indicate poor cash generation. These factors collectively suggest financial instability.

Income Statement

Argo Blockchain has experienced a significant decline in revenue and profitability. The company reported a negative net profit margin of -113.58% and a gross profit margin of 3.00% for the most recent year. Revenue growth has been negative, indicating a challenging business environment. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet reveals high leverage with a negative equity position, as indicated by a debt-to-equity ratio of -1.36. This suggests financial instability and potential solvency issues. The return on equity is positive due to negative equity, but this is misleading as it reflects losses rather than profitability. The equity ratio is negative, indicating liabilities exceed assets.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is 1.0, suggesting that cash flow is aligned with net losses, but overall cash generation is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.05M	48.52M	57.72M	58.58M	98.75M	25.84M
Gross Profit	-2.76M	1.46M	3.10M	11.36M	69.22M	5.34M
EBITDA	-21.91M	-33.04M	-2.95M	-189.03M	68.65M	10.39M
Net Income	-36.69M	-55.10M	-34.64M	-228.96M	39.07M	1.97M
Balance Sheet
Total Assets	9.08M	19.26M	75.94M	110.23M	388.15M	44.49M
Cash, Cash Equivalents and Short-Term Investments	1.85M	8.63M	7.83M	20.54M	124.88M	9.12M
Total Debt	40.26M	40.16M	62.52M	75.88M	72.94M	10.22M
Total Liabilities	46.55M	48.74M	75.78M	85.66M	115.88M	11.33M
Stockholders Equity	-37.47M	-29.48M	158.00K	24.58M	272.27M	33.15M
Cash Flow
Free Cash Flow	-62.80M	-44.80M	-49.07M	-209.28M	-225.20M	970.33K
Operating Cash Flow	-62.79M	-44.80M	-47.96M	-101.24M	-37.02M	3.43M
Investing Cash Flow	53.19M	55.07M	50.80M	17.32M	-183.07M	―
Financing Cash Flow	5.93M	-9.32M	-15.78M	84.18M	233.06M	579.20K

Argo Blockchain Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARBK, the sentiment is Negative. The current price of 4.77 is below the 20-day moving average (MA) of 32.04, below the 50-day MA of 64.47, and below the 200-day MA of 73.45, indicating a bearish trend. The MACD of -16.31 indicates Positive momentum. The RSI at 20.73 is Positive, neither overbought nor oversold. The STOCH value of 0.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARBK.

Argo Blockchain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIOT	68 Neutral	$5.39B	43.05	5.24%	―	103.62%	49.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUFU	66 Neutral	$425.71M	6.85	38.27%	―	29.96%	66.09%
BTBT	64 Neutral	$721.79M	5.75	22.44%	―	9.52%	496.04%
GREE	46 Neutral	$26.70M	-7.72	―	―	-3.52%	83.39%
MIGI	39 Underperform	$5.20M	-0.36	―	―	-11.39%	79.96%
ARBK	37 Underperform	$7.66M	-0.02	―	―	-13.86%	-32.19%

Argo Blockchain Corporate Events

Argo Blockchain Hands 87.5% Stake to Growler in Court-Approved Restructuring

On December 11, 2025, Argo Blockchain plc’s court-sanctioned restructuring plan under Part 26A of the UK Companies Act became effective and was implemented on December 15, 2025, resulting in a comprehensive balance sheet and ownership overhaul. Under the plan, Growler Mining Tuscaloosa, LLC exchanged a previously secured $7.7 million loan claim, transferred $23.8 million of cryptocurrency mining and related assets via its US subsidiary, and injected $3.5 million in cash, in return for 11,690,030 restricted ADSs representing 25.25 billion newly issued ordinary shares, giving Growler approximately 87.5% beneficial ownership and a board seat for its nominee Ralfe Hickman. The restructuring also converted Argo’s 8.75% senior notes due 2026 into equity, with noteholders receiving ADSs representing roughly 10% of the company’s ordinary shares and the notes set to be delisted from Nasdaq, while Argo’s ordinary shares were delisted from the London Stock Exchange and moved to a matched-bargain facility with JP Jenkins for six months. Following completion of the transactions, Argo reported that its stockholders’ equity is now substantially above $10 million, signaling a significant recapitalization intended to stabilize its financial position and preserve its cryptocurrency mining platform for stakeholders.

Argo Blockchain Completes Restructuring and Expands into AI and HPC

On December 16, 2025, Argo Blockchain plc announced the completion of its UK restructuring plan, marking a pivotal step in its strategic transformation. The restructuring plan, approved by the High Court of Justice, enhances Argo’s competitive position in the Bitcoin mining sector by increasing its hashrate capacity to 2.4 EH/s and expanding its self-mining operations in Alabama. The company has also diversified its mining portfolio with the deployment of 1,400 Z11 miners for Zcash mining, and strengthened its balance sheet by equitizing $40 million in senior notes. Additionally, Argo is pivoting towards artificial intelligence and high-performance computing to diversify revenue streams and leverage its infrastructure expertise, positioning itself for long-term growth.

Argo Blockchain Announces Share Ratio Change and Note Redemption

On December 12, 2025, Argo Blockchain completed a significant change in the ratio of its ordinary shares to American Depositary Shares, adjusting it from 10:1 to 2,160:1. This adjustment coincides with the announcement by Nasdaq regarding the redemption and exchange of Argo’s 8.75% senior notes due in 2026, set to take effect on December 15, 2025. The redemption rate is set at 0.835001875 American Depositary Receipts per $25.00 in principal amount of notes, reflecting the new share ratio. These changes are part of Argo’s strategic financial restructuring, potentially impacting its market positioning and stakeholder interests.

Argo Blockchain Updates Restructuring Plan Ahead of December Meetings

Argo Blockchain plc announced updates to its proposed restructuring plan under Part 26A of the Companies Act 2006, including a supplementary circular to the explanatory statement. The updates address questions raised during a convening hearing and provide new information regarding Nasdaq’s determinations, which do not classify the restructuring as a bankruptcy or business combination. The company also announced options for shareholders to convert ordinary shares into ADSs, subject to Nasdaq compliance, and detailed the tax implications of such conversions. Key meetings for the restructuring plan are scheduled for December 2, 2025, with voting forms due by November 28, 2025.