Should I buy Argo Blockchain shares today?

first_img Dylan Hood | Wednesday, 17th March, 2021 | More on: ARB Should I buy Argo Blockchain shares today? Simply click below to discover how you can take advantage of this. See all posts by Dylan Hood “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Argo Blockchain (LSE:ARB) shares have shot up in value by nearly 5000% since the tail end of 2020, peaking at 286p in February. So, what’s all the hype about? With the cryptocurrency and blockchain industry rapidly expanding, let’s take a deeper look at whether this stock is worth investing in today.What does Argo Blockchain do?Argo Blockchain is a cryptocurrency mining company. This means it uses high-power computers to solve complex mathematical problems. In return, a cryptocurrency reward like Bitcoin is received. These rewards can then be sold, using the profits to scale up operations, thus mining more currency. The company currently focuses on the mining of Bitcoin and Zcash, using predominantly hydroelectric power to cleanly drive its operations.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Why the share price has surgedThere are a number of reasons why Argo Blockchain shares have exploded in value in recent months. First, the company recently announced the acquisition of a new 320-acre plot of land in Texas. The company will use this space to construct a new 200-megawatt crypto mining facility, 10 times more powerful than its current facilities combined. Argo’s CEO Peter Wall explained that it will offer the company “significant capacity for expansion”.Second, the company mined a record of 129 Bitcoins or Bitcoin equivalents throughout February. This added up to handsome revenue of $6.06m, topping January’s $3.46m sum. In addition to this, on February 26, Argo completed the installation of 4,500 new pro-mining computers, originally leased from Celsius Network back in November.The company also demonstrated its ambitions by raising £26.8m earlier this month. This was achieved through a share placing and a discounted share price subscription offer of 200p on 3.4m shares by PrimaryBid. Argo plans to invest £7.3m of this into Pluto Digital Assets, a company that invests in and advises crypto projects. This highlights Argo’s confidence in its own sector. The remaining funds will likely be used to scale up facility space further.A crypto dominant future?The cryptocurrency market is growing at an astounding pace. Bitcoin and Zcash saw 530% and 200% increases in share values last year respectively (although such past performances aren’t an indication of future results). Tesla CEO Elon Musk also announced earlier this year that his company had purchased $1.5bn worth of Bitcoin, emphasising his personal confidence in the currency.The progress does sound encouraging. However, there are risks. Argo Blockchain has no unique advantage setting it aside from competitors. Anyone can set up a crypto mining facility with enough capital, regardless of knowledge. What’s more, Argo has no patent protection to prevent any new firms from copying its entire business’s blueprint.While the Bitcoin price is seemingly still on the rise, it’s still an incredibly volatile stock. The absence of regulations in the crypto market has always been a red flag for me. With Argo Blockchain shares relying so heavily on the Bitcoin price I think the stock is too risky for my portfolio.Though the company has made recent strides in the crypto world, I won’t be buying shares any time soon.center_img Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Dylan Hood has no positions in any shares mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img read more