Argo Blockchain Share Price Forecast December 2021 – Time to Buy ARBK?
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The global interest in crypto, specifically in Bitcoin is not a mystery anymore after the world’s first and largest cryptocurrency broke its own all-time high record after several years.
Now international investors are on the lookout for profitable investment opportunities within the crypto mining industry. At this point, Argo Blockchain Plc., a global leader in its relevant sector has proved to be one such opportunity that should be on your radar.
Argo Blockchain – Technical Analysis
The London-based crypto mining company is known for its efficient and eco-friendly operation that is powered by clean energy. Argo’s financial statement reveals that the total market capitalisation reached by the company is around $576 million with a P/E ratio of 198.23. Investors can expect the upcoming earnings report to be released on April 21 of next year.
The income statement shows that Argo Blockchain’s net income has come a long way since the past two years and it was at a 7.61% profit margin by the end of 2020. The total assets owned by the company however is just under $44.62 million for the same time period.
As per the technical viewpoint, Argo shares are not in the BUY zone based on the analytical data of 9 different technical indicators which experts rely on to get an idea of where the market is headed. Oscillators and moving averages like MACD (-1.38), RSI (41.54), EMA (13.01), and SMA (12.65) point towards a Sell action.
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Recent Developments
In the past, Argo Blockchain has worked to improve the company’s productivity by expanding its capacity despite the rise and fall suffered by the crypto markets. A common preconception among crypto mining investors is that their returns might be affected by a bullish or bearish run. Argo Blockchain is a good option for all who see that it is basically an undervalued gem that comes with certain risks.
During the first half of the year 2021, this company’s mining capacity kept growing substantially but it went down abruptly in the last couple of months. By the end of November, Argo announced an additional 310 PH/s to its total capacity. Now the company’s net total mining capacity has exceeded 1.6 EH/s.
Argo Blockchain has been one of the leading global mining companies for quite some time and it took a $40 million net debt issued last month to help with the fund required for expansion. Argo has also been in news for setting up a new facility in Texas with potential acquisitions in suitable businesses.
Should You Buy ARBK Shares?
The company’s direction is undeniably positive but as the crypto market grows cold typically during the holiday season, there is not a profitable entry zone for investors. Argo’s new strategy of selling crypto for the exchange of cash is going to keep its total crypto holdings in check. However, a lot of market experts would not consider converting theoretical balance sheet assets into hard cash this way.
If the global crypto market is close to another high in the months ahead then it might be disadvantageous for companies like Argo Blockchain to reduce their digital asset holdings for cash. It would end up lowering Argo’s valuation and risk ARBK price fall with little chance of recovery.
Though ARBK presents opportunities alongside certain risks, that is nothing new for crypto investors who have grown accustomed to the rise and fall of digital currencies.
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