4 reasons I could buy Argo Blockchain shares… but will I?

first_img Manika Premsingh | Monday, 15th March, 2021 | More on: ARB Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! 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. Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! Image source: Getty Images Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. 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.center_img The high-calibre small-cap stock flying under the City’s radar The past few months have seen a huge bounceback across stocks as investors turned optimistic. But there are few that can boast of the extent of increase that Argo Blockchain (LSE: ARB) has seen – its share price has risen by more than 38 times since the stock market rally of November last year. This is a vertigo-inducing climb indeed, but there seem to be four compelling reasons to still buy the shares now…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…#1. Cryptocurrencies’ rising legitimacyThe Bitcoin miner’s share price rally is directly correlated to the value of Bitcoin itself, which has doubled since the start of 2021. While the crypto is a volatile investment, it is gaining increasing legitimacy. Tesla’s Elon Musk has been making bullish tweets on cryptocurrencies for a while. Investment bank Goldman Sachs has restarted its cryptocurrency desk amid the Bitcoin boom, and JP Morgan is looking to launch a cryptocurrency exposure basket.#2. Argo Blockchain is expanding fast With Bitcoin’s growing popularity, Argo Blockchain is expanding too. Last week it completed a £27 million fundraise. It also acquired a 25% stake in a crypto venture capital fund and technology company, Pluto Digital Assets, last month. Additionally, it now intends to build a mining facility in Texas, which has a supportive regulatory environment. #3. A climate-friendly solutionArgo Blockchain’s move to Texas is also partly driven by the state’s renewable energy solutions at low rates. For those of us keen on clean investments, massive electricity usage required for mining cryptocurrencies is a downer. Much of this comes from polluting sources, making ARB stand out in that regard. #4. Argo Blockchain shares could benefit from strong performanceFinally, the company just reported an impressive month in Bitcoin mining. Its revenue increased by 75% in February to £4.3 million from the month before, and it reported an average monthly mining margin of 81%. Risks to ARBWhile these positives are impressive, the negatives cannot be ignored either.The biggest challenge to forecasting the trajectory for Argo Blockchain shares is the regulatory environment. Regulators around the world have expressed their discomfort with cryptocurrencies. Christine Lagarde, President of the European Central Bank, was quoted on Bitcoin’s role in money laundering in a Financial Times report. Also, the UK’s Financial Conduct Authority has warned that consumers could lose all their money from an investment in cryptocurrencies. I think the regulatory risk is big in this case. As in other relatively small, but high-growth potential industries, one regulatory change can bring them crashing down. Big names, like the ones mentioned above, can give cryptocurrencies a better chance at survival, but the risk persists nevertheless. Moreover, the volatile Bitcoin price is a risk in itself as well.What I would do nowAll in all, I think the risks to buying  Argo Blockchain shares are too important to ignore. However, I do not want to miss out on ‘the next big thing’ either… In this case, I would only invest as much as I am prepared to lose.  4 reasons I could buy Argo Blockchain shares… but will I? Enter Your Email Address 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. See all posts by Manika Premsinghlast_img read more

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