Argo Blockchain Share Price Forecast July 2021 – Time to Buy ARB?
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Cryptocurrency miner Argo Blockchain (LSE: ARB) has been in the news lately, as the shares have decreased by more than 25% in the past month. Despite this, ARB shares have been up by more than 140% since the beginning of this year. During the past year, they have increased by 2700%, attracting investor attention.
Argo Blockchain – Technical Analysis
Argo Blockchain PLC’s financial statement reveals the market cap of the company at £381.761 million with total assets worth £32.643 million. Revenue for 2020 was at £18.96 million with a profit margin of 7.61%. This is a massive improvement from its 2019 revenue of £8.62 million. ARB shares closed on July 14th at £95.0 with a downtrend of -5.10%.
Moving averages for Argo Blockchain PLC such as Exponential Moving Average (100)(143.24), Simple Moving Average (100)(180.28), Exponential Moving Average (200)(120.12) and Simple Moving Average (200)(112.7) are pointing towards selling. The majority of oscillators such as Bull Bear Power(−36.8) and Ultimate Oscillator (7, 14, 28)(40.4) are pointing towards neutral.
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Recent Developments
As a cryptocurrency mining company, Argo Blockchain was affected by a series of crackdowns initiated by the Chinese government. The Chinese government has been doing everything in its power to strongly control cryptocurrency activity in the country. This is evident by the fact that the nation has banned financial institutions or payment processors from accepting transactions in crypto.
The market is concerned that such regulatory tendencies can spread to other countries. This is already evident in a recent ruling by the Financial Conduct Authority of the U.K. which has blocked Binance from carrying out regulated activities in the country. With an already large fleet of ASIC miners, Algo disclosed that it mined 167 Bitcoin tokens in June, bringing it to 883(year-to-date). The total value of tokens mined in June is estimated to be somewhere around £4.36 million.
Should You Buy ARB Shares?
Investors aiming for the long-term should rest assured that cryptocurrency has a bright future. However, the path to mainstream adoption will not be easy as it’s still an unproven asset class. This will bring with it uncertainty and new regulations as is the case with any new financial instrument issued in the market. Investors however have numerous positive points to consider when picking up ARB shares.
The company’s statistics reflect its immense potential, such as its positive operational update for June. However, mining revenue for June decreased to £4.36 million compared to May’s £5.51. Its monthly mining margin during the same period was 78% compared to May’s 82% There is a chance that the company will list shares on NASDAQ, which would improve its liquidity, allowing investors the opportunity to buy on this dip.
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