5 Jul

Can Argo Blockchain shares keep climbing?

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Simply click below to discover how you can take advantage of this. Can Argo Blockchain shares keep climbing? Nadia Yaqub | Saturday, 1st May, 2021 | More on: ARB “This Stock Could Be Like Buying Amazon in 1997” Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin, PayPal Holdings, and Tesla and recommends the following options: long January 2022 $75 calls on PayPal Holdings. 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.center_img It’s been a very busy year so far for Argo Blockchain (LSE: ARB). Since the start of 2021, the cryptocurrency miner has released a plethora of announcements. And this week it announced its full-year results.I reckon Argo Blockchain shares can keep climbing and I’d buy the stock. But I think its worth taking a closer look at the 2020 numbers.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…The resultsI’m not surprised with the overall positive set of figures. Last year was transformational for the company. Total revenue for 2020 increased by 120% to £19m.But its mining margin for the year was 41%, down from 60% in 2019. Argo Blockchain puts this down to “challenging market conditions, including Bitcoin halving in May 2020 and the global impact of the COVID-19 pandemic”.What I think should boost Argo Blockchain shares is that for the first time since the company’s inception, it has generated a net profit of £1.7m. This comes after it made a loss of £0.7m in 2019.This gives me some comfort that the miner is not only increasing its revenue but also keeping its costs at bay. In fact, it even highlights that its “administrative expenses were reduced by £1.1m to £2.4m as a result of series of cost reduction efforts”. This should help with profitability in the long term.OutlookSo far the outlook for the company looks rosy, which should be positive for the Argo Blockchain share price. I’ve previously commented that the first three months of 2021 have been the most profitable quarter for the miner to date. It generated £13.4m in revenue during this period alone along with a mining margin of 81%. That’s impressive.I think the backdrop for cryptocurrencies remains positive. Even Argo Blockchain highlights that it’s being “driven by rising global demand, growing acceptance and confidence in digital currencies as a new asset class”. And I’d agree with this statement.The credibility of cryptocurrency has been boosted by the likes of Tesla, the electric car maker, investing into Bitcoin and accepting payments for its vehicles in the digital asset. Online payment companies, such as PayPal are now supporting digital currencies and there’s growing interest from blue-chip asset managers.I believe this confidence and momentum in cryptocurrencies will continue to grow over the long term, which should increased the value of Argo Blockchain shares.RisksThat said, the stock is volatile and investors need to be prepared for this. I don’t think it will be smooth sailing for the share price, so I’d only invest what I can afford to lose. The shares are linked to the price of Bitcoin. So if this falls, it’s likely the stock price will decrease too.While 2020 was the first ever profitable year for the miner, there’s no guarantee this will continue. Even the company admits that “mining margins are expected to ease back from the 80% average level seen in the first quarter of this year”. It’s a relatively new technology so profitability is likely to be volatile.The mining facilityThe company has appointed Navier to help develop its Texas facility. When finished, it will allow Argo Blockchain to expand its mining capacity and have greater control over its operations.I’m bullish on the long-term prospects and hence I’d buy Argo Blockchain shares in my portfolio. 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. Enter Your Email Address 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. See all posts by Nadia Yaqublast_img read more