Cloud-based crypto mining firm Argo Blockchain PLC (NASDAQ: ARBK) disclosed to have mined about 163 Bitcoins or its equivalents in March 2022, up 20.7% from the earlier month. Regardless of reporting an increase in Bitcoins mined, shares of ARBK dropped ~2.6% on Friday’s buying and selling session and are down one other 3% at this time.
The corporate knowledgeable that it earned mining income of £5.22 million ($6.92 million) in March, up from £4.15 million ($5.58 million) in February 2022. Income was calculated on the premise of each day international change charges and cryptocurrency costs within the reported month.
As of March 31, 2022, Argo owned 2,700 Bitcoin, of which 259 had been BTC equivalents.
Alongside the mining replace, ARBK introduced the addition of Seif El-Bakly as the corporate’s COO. He brings 16 years of expertise within the capital markets and buying and selling sectors.
Additionally, Argo stated that it tasks to begin operations in Helios, its 200MW flagship cryptocurrency mining facility positioned in Texas, within the second quarter of 2022.
Chief Govt and interim Chairman of Argo, Peter Wall, stated, “As we method the opening of our Helios facility and considerably scale up our owned and operated mining operations, Seif will probably be integral in driving the operational efficiency of Argo.”
Wall Road’s Take
Final month, Stifel Nicolaus analyst Suthan Sukumar initiated a Maintain score on Argo with a worth goal of $11 (25% upside potential from present ranges).
Sukumar is of the opinion that Argo is actively rising the dimensions and capability of its bitcoin mining operations. Additionally, he mulls that it could be troublesome for the corporate to boost capital for funding expansions given its smaller scale and already excessive leverage relative to friends.
Total, the remainder of the Road has a bullish outlook on the inventory, with a Robust Purchase consensus score primarily based on 4 Buys and one Maintain. The common Argo Blockchain price target of $19.40 implies upside potential of about 120.5% from present ranges.
TipRanks’ Inventory Traders device reveals that investors currently have a Very Positive stance on Argo, with 10.3% of traders rising their publicity to ARGO inventory over the previous 30 days.
Shares of Argo have declined 27.4% to this point this yr. Although the corporate’s Bitcoin manufacturing had fallen within the first two months of 2022, it grew once more in March.
Additionally, the opening of the Helios facility ought to present a lift to its operations. Each elements are doubtless to supply some assurance to the traders going ahead.
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