Argo Blockchain (ARBK) AI Stock Analysis

• Market Cap: $7.71M
• Dividend Yield: N/A
• Average Volume (3M): 14.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• 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: 6.75
• 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: 39 Underperform
• Price Target: $6.50 ▲(32.92% Upside)

Argo Blockchain's overall stock score is primarily impacted by its poor financial performance, which is the most significant factor. Technical analysis also indicates bearish momentum, and valuation metrics are unfavorable with a negative P/E ratio and no dividend yield. These factors collectively contribute to a low overall score.

Positive Factors

Sustainable Energy Use

Argo's focus on renewable energy for mining operations positions it as a sustainable player in the cryptocurrency industry, appealing to environmentally conscious investors and potentially reducing energy costs long-term.

Restructuring Plan

The sanctioned restructuring plan strengthens Argo's financial position, providing a more stable foundation for future growth and operational efficiency, enhancing its long-term viability.

Strategic Partnerships

Strategic partnerships in blockchain technology can diversify revenue streams and foster innovation, potentially leading to new growth opportunities and competitive advantages.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and operational efficiency, which could hinder long-term growth and profitability if not addressed.

High Leverage

High leverage and negative equity suggest financial instability, limiting Argo's ability to invest in growth opportunities and increasing vulnerability to market fluctuations.

Negative Cash Flow

Negative cash flow indicates operational inefficiencies and potential liquidity issues, constraining Argo's ability to fund operations and strategic initiatives without external financing.

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: 4.89
• 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 4.89 is below the 20-day moving average (MA) of 36.58, below the 50-day MA of 69.79, and below the 200-day MA of 74.21, indicating a bearish trend. The MACD of -15.85 indicates Positive momentum. The RSI at 20.77 is Positive, neither overbought nor oversold. The STOCH value of 1.47 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	$5.01B	38.48	5.24%	―	103.62%	49.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUFU	66 Neutral	$433.86M	6.96	38.27%	―	29.96%	66.09%
BTBT	64 Neutral	$679.72M	5.08	22.44%	―	9.52%	496.04%
GREE	48 Neutral	$25.75M	-6.99	―	―	-3.52%	83.39%
MIGI	41 Neutral	$4.78M	-0.35	―	―	-11.39%	79.96%
ARBK	39 Underperform	$7.71M	-0.02	―	―	-13.86%	-32.19%

Argo Blockchain Corporate Events

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.