A NASDAQ listing for Argo Blockchain has been confirmed as a definite possibility by the UK-based cryptocurrency mining firm as it battles to catch-up to sky-high valuations of its US listed counterparts such as Riot Blockchain and Marathon Digital Holdings.
With both of the aforementioned peers valued at over $3bn a piece, Argo Blockchain has seen its valuation fall to around $650m on a constant basis.
As ShareBuyers highlighted previously, there is a large discrepancy between the valuation that London places on Argo Blockchain and the valuation NASDAQ places its on peers which which made it seem Argo Blockchain on NASDAQ seemed inevitable.
During its June operational update, Argo confirmed its intentions as it unveiled a slight dip in mining revenue for June at £4.36m (May 2021: £5.51m):
“The Company also announces that it is exploring a potential secondary listing on NASDAQ. Argo has not made any decisions regarding the timing or the terms of the potential secondary listing. Any proposed listing is subject to market and other conditions, and there can be no assurance as to whether or when the proposed listing may be completed.”
Our view: Argo Blockchain and NASDAQ is a no-brainer
Investors have long pushed for Argo Blockchain to obtain a NASDAQ listing and today this has all been confirmed.
When a business as performing as well its peers yet finds itself worth billions of dollars of less, it is hard to argue against the case for not joining the pack on NASDAQ.
This now appears to be a matter of when not if.