Argo Blockchain set to continue to benefit from global mining disruption, says broker finnCap

Argo Blockchain PLC, the cryptocurrency miner, is expected to continue to benefit from the disruption to global mining caused by the Chinese government’s crackdown on Bitcoin mining, according to broker finnCap.

The Chinese government’s May announcement that it would restrict mining of the cryptocurrency has materially reduced mining difficulty and led to a drop in the hash rate.

“As the impacts of the changes in China become clearer through H2 21, we will closely watch the development of the three key variables for Argo: the hash rate/network mining difficulty, the cost of mining machines, and the Bitcoin price,” finnCap said in a note on Tuesday.

Earlier today, Argo announced that it has become the first publicly-traded cryptocurrency miner to become climate positive from scope one, two and greenhouse gas (GHG) emissions and that it is now a participant in the UN’s Climate Neutral Now initiative.

READ: Argo Blockchain first listed crypto miner to become climate positive

The company also said its transformational new Texas facility will be predominantly powered by wind and solar power.

“We look forward to Argo highlighting further milestones for the build of its Texas facility, updating on its potential Q3 listing on Nasdaq in the US, and announcing new machine orders,” finnCap said.

The broker has a target price of 240p on Argo. The shares fell 3.7% to 120p in midmorning trade.

Story by ProactiveInvestors