With the recent fall in the price of Argo Blockchain share price, many investors will understandably be questioning what’s next for Argo Blockchain. In a series of comprehensive YouTube Q&As with investors over the past few days, CEO Peter Wall answered many probing questions and we believe provided 10 reasons for investors to still believe in the long-term prospects.
Here’s what ShareBuyers took away from what the ever open and transparent Peter Wall had to say:
10 reasons for investors to believe in Argo
- Crypto is a long-term play: Wall noted that he feels there are times where he feels ‘everyone needs to chill’ – if you are interested in this space, you believe cryptocurrency is the future and its still early days. It will take time to embed into the financial system. Although like any investment, he appreciated that there is a temptation to check the day-to-day movements.
- Short- and long-term revenue streams: Cryptocurrency mining is currently where things are at for Argo and a good place to be in right now. However, Argo is looking to engage in the wider ecosystem as much as possible, opportunities change on a quarterly basis and it is open to different possibilities. Investments such those in Pluto are an example of looking to diversify revenues in the long-term.
- Won’t attempt FTSE 250 inclusion: Wall highlighted that UK has and will continue to be important to Argo. However it has made a decision not to try and upgrade its listing and seek inclusion to the FTSE 250 index for a variety of reasons including hoops that would need to jump through.
- NASDAQ listing: “Can’t say anything”.
- Texas is an ideal choice to expand operations: The state is home to tonnes of low-cost renewable power and a competitive grid structure which allows for lower power purchasing agreements. Things are progressing well and no concerns.
- Surplus land can be utilized ‘smartly’: 320 acres of land is more than needed for mining operations. Will look to use what’s not needed in a ‘smart way’.
- No price in mind for HODL: Argo is bullish on Bitcoin and believe it is a better store of value than any other asset. Thus makes sense to increase balance sheet by holding Bitcoin.
- Strong cash position: Investors should not fear dilution, raises have helped to cover operating costs and given how Bitcoin appreciates, it is more logical to not sell Bitcoin now.
- Mining margins cover the main costs: Argo’s strong mining margins cover the majority of direct costs in terms of power and hosting costs.
- M&A does not make sense for Argo: For Argo to make an acqusition of another miner doesn’t make sense – they’d be buying their machines (including depreciated ones) and these companies come with excess valuations. Makes more sense to invest in their own operations.
Investing is full of ups and downs – long term trends matter most; Argo and Crypto is no different
Investing is full of ups and downs. Even the biggest companies of today would have had a series of ups and sharp downs.
The long-term trend is what is important. Peter Wall appeared to emphasized this in the majority of his answers – Argo is confident in the long-term appreciation and influence of Crypto.
A holding or new position in Argo Blockchain shares is a nod to the same view.