Argo Blockchain shares: here’s what I’m doing now

first_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” 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. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Harshil Patel owns shares in Argo Blockchain and Tesla. The Motley Fool UK owns shares of and has recommended Tesla. 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 Argo Blockchain (LSE:ARB) shares are on my radar again. The share price is up over 750% so far this year, the third-highest gain in the London Stock Exchange.Argo Blockchain shares are in the limelight this week after a supportive operational update for February and an announcement that CEO Peter Wall will receive his salary in Bitcoin. This could be seen as a sign of confidence in this digital cryptocurrency.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 operational update highlighted that Argo Blockchain mined 129 Bitcoin or Bitcoin equivalent (together, “BTC”) in February, compared to 93 BTC in January. BTC mined year-to-date is now 222, and the company hold a total of 599 BTC. So what does mean for revenues?Mining revenue increased 75% from £2.48m in January to £4.34m in February. This follows a 52% increase from December. It’s great to see such strong business momentum, but I was even more impressed to see mining margin grow to 81%. This was an already impressive 71% in January.Mining revenue is likely to increase further, in my opinion. Argo Blockchain is expanding operations and in recent weeks announced its intent to buy 320 acres of land in Texas to build a new 200 megawatt mining facility in the next 12 months. Argo believes this will provide access to “some of the cheapest renewable energy worldwide”.What I’m doing with Argo Blockchain sharesMost of my top share ideas are not linked to speculative assets. But I do currently own some Argo Blockchain shares. I bought a small amount in January in a speculative portion of my long-term investment portfolio. After several encouraging updates over the past few months, I would consider buying some more.However, at an almost £1bn valuation, I’m more hesitant than I was a few months ago. The performance of Argo Blockchain shares could rely on the highly volatile Bitcoin price. Bitcoin has gained over 70% year-to-date at time of writing, but that has included two near-30% declines during the period.Bitcoin and cryptocurrencies, in general, have gained in popularity in recent months. Aided by central bank quantitative easing that has weakened the value of fiat currencies, digital currencies have started to gain traction. They have also been supported by some high-profile CEOs and companies making purchases. In February, Tesla announced it had bought $1.5bn of Bitcoin. Elon Musk also remarked that Tesla could one day start accepting payments with Bitcoin.The risksBitcoin is highly speculative and carries great risk. In recent months, the Financial Conduct Authority (FCA) warned that investors should be “prepared to lose all their money” should their investment’s value collapse.As such, owners of Argo Blockchain shares should be aware of the link to the Bitcoin price. It works both ways, in my opinion.Additionally, there are technology risks. Argo Blockchain would need to keep up and stay ahead of competitors by investing in its technology. I understand that the useful life of a Bitcoin mining computer is three years, so more investment could be required over the coming years to sustain current mining efficiency. Argo Blockchain shares: here’s what I’m doing now 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. Image source: Getty Images Harshil Patel | Thursday, 4th March, 2021 | More on: ARB See all posts by Harshil Patellast_img read more