Argo Blockchain (ARBK) AI Stock Analysis

• Market Cap: $20.54M
• Dividend Yield: N/A
• Average Volume (3M): 14.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: 71,725,040
• 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: 2.52
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 32.07
• Enterprise Value/Ebitda: -1.69
• 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: 40 Underperform
• Price Target: $0.20 ▲(4.21% Upside)

Argo Blockchain's overall stock score is heavily impacted by its poor financial performance, characterized by declining revenues, high leverage, and negative cash flow. Technical analysis indicates bearish momentum, and valuation metrics are unattractive. While the company is making strategic efforts to diversify and reduce debt, these have not yet offset the core challenges in its Bitcoin mining operations.

Positive Factors

Debt Reduction

Reducing debt improves financial stability and cash flow, enhancing the company's ability to invest in growth opportunities.

HPC Expansion

Exploring HPC expansion diversifies revenue streams and reduces reliance on Bitcoin mining, tapping into AI market growth.

Dismissal of Lawsuit

Dismissal of the lawsuit removes legal uncertainties, allowing management to focus on strategic initiatives and operational improvements.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in the core business, potentially impacting long-term profitability and market position.

Negative Profitability

Sustained net losses can strain resources and limit the company's ability to invest in growth, affecting long-term sustainability.

High Leverage

High leverage and negative equity indicate financial instability, increasing risk and limiting flexibility in capital allocation.

Argo Blockchain Business Overview & Revenue Model

Company Description

Argo Blockchain (ARBK) is a leading cryptocurrency mining company headquartered in London, UK. It specializes in the mining of Bitcoin and other cryptocurrencies through its advanced mining facilities. Argo operates in the blockchain sector, focusing on harnessing renewable energy sources to power its mining operations, thus positioning itself as a sustainable player in the rapidly evolving cryptocurrency landscape.

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, with declining revenues, high leverage, negative equity, and poor cash flow generation. These factors collectively suggest financial instability and highlight the need for strategic improvements.

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

Argo Blockchain Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 0.19 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.38, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 32.26 is Neutral, neither overbought nor oversold. The STOCH value of 8.66 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	$5.66B	46.44	5.24%	―	103.62%	49.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUFU	66 Neutral	$484.43M	7.83	38.27%	―	29.96%	66.09%
BTBT	63 Neutral	$770.35M	6.13	22.44%	―	9.52%	496.04%
GREE	41 Neutral	$25.55M	-1.04	―	―	-3.52%	83.39%
ARBK	40 Underperform	$20.54M	-0.35	―	―	-13.86%	-32.19%
MIGI	37 Underperform	$5.34M	―	―	―	-11.39%	79.96%

Argo Blockchain Corporate Events

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.

Argo Blockchain Announces CFO Termination and Share Issuance Update

On September 12, 2025, Argo Blockchain announced the immediate termination of Jim MacCallum from his position as Chief Financial Officer, with a replacement to be announced later. Additionally, the company reported the issuance of 1,171,754 new ordinary shares following the vesting of restricted stock units, bringing the total voting rights to 720,658,568 shares. This update could impact shareholder calculations under the FCA’s Disclosure Guidance and Transparency Rules.