Some folks would say that cryptocurrencies like Bitcoin (CCC:BTC-USD) are the future of money. But if you’re in the crypto camp, then you might want to check out cryptocurrency-mining technologist Argo Blockchain (OTCMKTS:ARBKF). There has been a significant recent development concerning ARBKF stock.
Source: Marko Aliaksandr/ShutterStock.com
And when I say, “significant recent development,” I’m not just referring to the share price’s impressive increase — although we will certainly discuss that wild price movement.
Instead, I’m talking about the fact that Argo Blockchain recently inked a deal that could change the game in the cryptocurrency-mining space.
Frankly, this company and stock could be worthy of a place in your portfolio, even if you’re not a fan of Bitcoin. So, let’s take a look.
A Closer Look at ARBKF Stock
It’s probably pertinent to start with a breakdown of ARBKF’s recent price action.
First off, it should be noted that both cryptocurrency itself and the stocks related to it are prone to extreme bouts of volatility. Therefore, Argo Blockchain shares are only appropriate for a small-to-moderate position size.
But that said, it must be conceded that ARBKF stock has been on a bullish trajectory lately. As recently as January, the share price was below $1. In February, however, this name embarked on a real moon shot.
Believe it or not, by Feb. 17, the stock reached a 52-week high of $4.65. That means it quadrupled in less than a month. Moreover, before February was finished, the stock fell to $2.71, recovered to around $4 and then finally landed at $3.41. That’s quite the roller coaster ride, but the overall uptrend is still intact.
Finally, it’s worth mentioning that the price of this stock has a tendency to follow the Bitcoin price — at least to a certain extent. Personally, though, I wouldn’t consider this stock (or any stock for that matter) to be a perfect replacement for Bitcoin itself.
A Notable Promotion
Maybe more important than ARBKF’s price action, though, is it’s recent change of markets.
Let’s face it: some financial market exchanges are more prestigious than others. To be truthful, the lower tiers on the over-the-counter (OTC) markets just don’t get the same level of respect as the higher ones.
As InvestorPlace contributor Sarah Smith reported, Argo Blockchain shares traded on the OTCQB Venture Market until Feb. 24. Like CEO Peter Wall commented and as Smith put it, “this middle-tier exchange is typically for small foreign issuers and penny stocks.”
But let’s be fair here. While that sounds bad, there’s actually nothing inherently wrong with penny stocks. As defined by the U.S. Securities and Exchange Commission (SEC), any stock that trades under $5 per share is technically a penny stock.
So, unless ARBKF stock jumps above $5 before you read this, it’s a penny stock and that’s fine. Still, I can see the point. Getting Argo shares on a higher-tier exchange would represent a major promotion.
And that’s precisely what happened on Feb. 24, as ARBKF shares were upgraded from the the OTCQB Venture Market to the OTCQX Best Market.
An Epic Deal
Needless to say, this upgrade is exciting news for both the company and its investors. However, it’s not the only interesting recent development for Argo Blockchain and ARBKF stock.
On Feb. 22, the company revealed that it had signed a commercial agreement with ePIC Blockchain Technologies. That company is a supplier of ASIC cryptocurrency mining machines.
This is a big step for Argo Blockchain in its pursuit of power-packed mining operations. Here are some of the highlights of the deal:
- ARBKF will purchase $8 million worth of ePIC’s mining rigs to start
- Argo Blockchain will have “priority on all future production runs globally for 2021 and 2022”
- The company will start receiving the ePIC machines in the fourth quarter of 2021 with “larger scale delivery commencing in 2022”
Wall commented on the deal, “This partnership will not only give Argo priority in accessing the most advanced mining infrastructure available, but it also highlights our reputation within the sector as an innovative and forward-thinking cryptocurrency miner.”
The Bottom Line
Between the upgrade to the OTCQX and the deal with ePIC Blockchain Technologies, there’s a lot to be excited about if you’re an ARBKF stock stakeholder.
So, hopefully the bulls can push the Argo Blockchain share price out of penny-stock territory — and keep it there for good.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.