The Rise and Fall of Argo Blockchain Share Price: A Comprehensive Analysis
Cryptocurrencies are rapidly gaining traction in the financial world. With Bitcoin leading the fray, investors are flocking to get a piece of the lucrative pie. However, it’s not just about the Bitcoin price anymore. Cryptocurrency mining companies are experiencing massive growth, but their stock prices are volatile. Argo Blockchain is one such company whose stock has recently experienced a significant fall. In this article, we will analyze the rise and fall of Argo Blockchain’s share price.
Argo Blockchain- A Brief Overview
Argo is an established cryptocurrency mining company that was founded in 2017. It specializes in providing low-cost, green electricity to mine Bitcoin and other cryptocurrencies. The company went public in 2018 and has seen a massive increase in demand for its services.
The Rise of Argo Blockchain
Argo’s share price recorded a massive surge in December 2020, soaring from 4p per share to an all-time high of 280p per share. The main reason for this surge was the increase in the value of Bitcoin, which rose from $20,000 to $40,000 in just a few weeks. Additionally, Argo reported a significant increase in revenue, recording a 23% month-on-month increase in November 2020.
The Fall of Argo Blockchain
Despite the impressive performance in 2020, Argo’s share price has taken a dive in 2021. The share price has gone from the high of 280p per share to just 128p as of August 2021. The primary reason for this downward trend was the regulatory crackdown on Chinese mining companies in May 2021. Argo’s share price took a hit because of its reliance on Chinese mining partners.
The Impact of China’s Regulatory Crackdown
China’s crackdown on cryptocurrency mining companies had a massive impact on Argo. The regulatory crackdown caused several Chinese mining companies to halt their operations, leading to a reduction in the mining hash rate, which, in turn, led to a fall in the value of Bitcoin.
Argo’s share price not only fell because of this but also because of its partnership with Chinese mining companies. This regulatory crackdown led to Argo needing to find new mining partners, which caused quite a bit of disruption.
The Future of Argo Blockchain
Despite the current price fall, the future of Argo Blockchain looks promising. The company has made efforts to diversify its mining capacity by partnering with companies in the United States. It has also increased its production capabilities.
Furthermore, Bitcoin has shown resilience, bouncing back from its May lows to above $45,000 in August 2021.
Conclusion
Argo Blockchain is one of the leading cryptocurrency mining companies that have seen massive growth in recent years. However, its stock prices are volatile and subject to regulators’ whims. Although its recent price fall had a lot to do with its reliance on Chinese partners, Argo has taken steps to diversify. There are still uncertainties surrounding the regulatory landscape of cryptocurrency mining, but with the increasing demand for cryptocurrency investment, Argo Blockchain has a bright future ahead.
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