5 Jul
2021

Would I buy the Argo Blockchain share (ARB) after its price drop?

first_imgSimply click below to discover how you can take advantage of this. 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. Manika Premsingh | Saturday, 19th June, 2021 | More on: ARB So far, I have had my reservations about buying cryptocurrency-related stocks, like Argo Blockchain (LSE: ARB). This was mainly because of regulators’ concerns about virtual currencies. This in turn meant that their usage could be restricted at anytime, leaving investors high and dry.Increasing legitimacy for virtual currenciesBut times are changing. El Salvador’s government recently recognised Bitcoin as legal tender. Now I know that it is a small country, with limited economic influence. And this has not been a popular move for the country either. The World Bank, which supports development projects around the world, has declined the country’s request to assist with Bitcoin implementation. 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…Still, it shows that thinking around virtual currencies is changing. A few months ago I pointed out that some of the biggest names in finance like JP Morgan and Goldman Sachs were increasing their exposure to cryptos as well. Argo Blockchain share price underwhelmsIf this trend continues, it can bode well for the Argo Blockchain share over time. Right now its share price chart is underwhelming. It has seen some upward swings in the last month but it is now almost back to where it started. I reckon this is because of the recent trend in Bitcoin prices. The virtual currency has seen little progress over the past month, after its crash in early May. Since Argo Blockchain’s mining revenues are measured in terms of Bitcoin prices, it follows that weakness in Bitcoin damages investor sentiment for the miner too. Indeed, the company’s revenues fell in May compared to the month before. The Bitcoin price was higher during April and even in March. In line with this, Argo Blockchain’s share price has more than halved over the past thee months. Of course, past performance is not an indication of future results. My takeawayBasically this shows that the company’s fortunes are linked with a currency that is still at a nascent stage. At this stage, it tends to be volatile because the future is unknown. China, for instance, clamped down on virtual currencies recently sending the price into a downward spin. And Elon Musk’s tweets are known to impact it. I think this would be less likely if there were stronger fundamentals in place.At the same time, I cannot look away from the fact that over the past year, the Argo Blockchain share price has risen by over 30 times. And this is after the share price drop over the past month and a half. Also, in my mind, cryptocurrency is beginning to gain more credibility. If enough investors buy them and enough people and companies start trading them, to borrow a phrase I first heard during the 2008 financial crisis, Bitcoin may become “too big to fail”. I’m now thinking about making a tiny speculative investment in the Argo Blockchain share.  Our 6 ‘Best Buys Now’ Shares Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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.center_img “This Stock Could Be Like Buying Amazon in 1997” Image: Argo Blockchain Would I buy the Argo Blockchain share (ARB) after its price drop? See all posts by Manika Premsingh 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. Enter Your Email Addresslast_img read more

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