One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Argo Blockchain plc
ARBK · NCM · Financial Services · Capital Markets
Current price
$2.34
52-week range
$2.15 - $205.20
Market cap
$34.25M
Balance sheet
Distressed
-2.33x Concerning
Net debt $1.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
0 Risks
0 rewards · 0 risks
Highlights are unavailable right now.
What this company does
Argo Blockchain plc
Argo Blockchain is a cryptocurrency mining company, which is like being a digital gold miner, but for assets like Bitcoin. The company runs powerful computers that create new digital coins and makes most of its revenue (the total money brought in from sales) by selling the crypto it mines. This is important because Argo's success is directly tied to the often unpredictable market price of these digital assets.
How the company got here
Argo Blockchain was founded in 2017, initially offering a service that let people rent cryptocurrency mining power. [4, 5] The company soon shifted its strategy to owning and operating its own large-scale mining facilities, focusing primarily on Bitcoin. [4] To fund its growth, Argo became a publicly traded company, first listing on the London Stock Exchange and later on the Nasdaq in the U.S. [5, 13] After facing financial challenges, the company recently went through a major reorganization to reduce its debt and stabilize its finances for the future. [7, 9]
What it actually does
Argo Blockchain is in the business of creating new cryptocurrency, a process known as 'mining'. [3, 4] The company runs large data centers filled with powerful, specialized computers that work to solve complex math problems. [4, 16] Solving these problems helps to verify transactions and keep the cryptocurrency network secure. [1] As a reward for this work, Argo receives newly created digital coins, like Bitcoin, which it can then hold or sell. [2, 3]
Cryptocurrency Mining
This is Argo's main business and generates nearly all of its revenue (the total money it brings in before expenses). [2, 6] The company operates large facilities, primarily in North America, filled with computers dedicated to mining Bitcoin and other digital currencies like Zcash. [7, 13, 16] Argo earns revenue in the form of these cryptocurrencies for successfully verifying transactions on the blockchain (a shared, unchangeable digital ledger). [2, 3] The profitability of this segment depends heavily on the price of cryptocurrencies and the cost of electricity, which is why the company focuses on using low-cost, renewable energy. [2, 16]
Argo Labs
This is a small, experimental part of the company that acts like an internal innovation lab. [8, 11] Argo Labs uses a portion of the company's existing cryptocurrency holdings to invest in new and emerging projects within the broader digital asset world, such as decentralized finance (DeFi). [18] Instead of just mining, this segment aims to generate additional revenue through activities like 'staking' (pledging crypto assets to support a network and earn rewards). [8, 18] This represents a small but forward-looking slice of the business, designed to explore future growth opportunities. [18]
What management is betting on now
The company's main focus is on increasing its mining capability, often measured by its 'hashrate' (the total computing power used for mining). [7, 9] A major new bet is diversifying away from being purely a crypto miner by using its powerful data center infrastructure for other purposes, like artificial intelligence (AI) and high-performance computing. [6, 7] Management is also focused on maintaining a strong financial position after a recent restructuring reduced the company's debt. [7, 9] They continue to emphasize using sustainable and low-cost power to run their operations efficiently. [16]
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value — vs current price $2.34
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $1.3M. Interest coverage -2.3x.
Net debt
$1.30M
Interest coverage
-2.33x
Argo Blockchain plc's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
ARBK
BASELINE
Argo Blockchain plc
Total debt $3.50M Interest coverage -2.33x This is the baseline the peer rows are being compared against.
Total debt $2.47B Interest coverage -16.99x Neither company has much profit cushion over interest right now.
Total debt $877.80M Interest coverage -14.22x Neither company has much profit cushion over interest right now.
Total debt $1.79B Interest coverage -9.44x Neither company has much profit cushion over interest right now.
Total debt $7.67B Interest coverage -3.24x Neither company has much profit cushion over interest right now.
What you should know
The case for and against ARBK
0 Rewards
0 Risks
Rewards
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
0.47x
Forward P/E
-9.36x
P/B
2.42x
P/S
2.21x
EV/EBITDA
-5.06x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
18.0%
Operating margin
-42.7%
Net margin
32.8%
ROE
—
ROA
-28.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
0.51x
Quick ratio
0.35x
Total debt
$3.50M
Total cash
$2.20M
Growth
How the business has been compounding
Revenue TTM
$15.52M
Revenue 5Y CAGR
-35.8%
EPS TTM
4.97
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-25.01M
Free CF TTM
$-25.13M
FCF margin
-161.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—