This cryptocurrency stock popped over 80% in a week; Here’s why
The widespread acceptance and optimistic attitude towards the crypto industry have once again sparked a strong surge in the value of Bitcoin (BTC), pushing it above the $30,000 threshold for the second time in 2021.
Due to this revived excitement, one stock associated with Bitcoin witnessed an extraordinary surge in its price over the previous week.
Significantly, stocks of Argo Blockchain (LSE: ARB), a well-known Bitcoin mining company, experienced a remarkable surge of over 83% in the last week on the London stock exchange. This can be attributed to a boost in investor confidence, an increase in the price of BTC, and positive news regarding the company's operations.
Currently, the shares of Argo are being traded for £11.92, marking a 1.6% decrease for the day. In the past week, the value of ARB has increased significantly by 83.07%, soaring from £6.5 to its present value. As a result, the market capitalization of Argo has grown to almost £57 billion.
In another location, the shares of Argo, which are listed on the Nasdaq stock exchange in the United States, experienced a significant increase of more than 46% during that timeframe. The shares ultimately ended the week at a price of $1.61 each on Friday, June 23rd.
What's Driving Argo Blockchain's Stock Surge?
The recent surge in Argo's stock price is influenced by a combination of various elements.
In the month of May 2023, Argo, a company that mines Bitcoin, shared an update on its operations. During this period, the company successfully mined a total of 173 BTC, which averages to 5.6 BTC per day. This is a significant growth of 16% compared to the previous month, highlighting that Argo's mining fleet is functioning better and achieving higher efficiency.
Furthermore, the mining earnings of Argo in May reached a total of $4.75 million, indicating a 14% increase compared to the previously reported revenue of $4.17 million in April.
In recent times, and looking at the bigger picture, the recent resurgence of Bitcoin has also played a part in boosting the value of Argo's shares. Just last week, several significant players in traditional finance (referred to as TradFi) filed applications to launch a Bitcoin exchange-traded fund (ETF), following in the footsteps of BlackRock, the biggest asset manager globally.
This factor, along with the introduction of a fresh cryptocurrency platform supported by numerous institutional investors, contributed to a significant enhancement in the overall feeling within the market. Consequently, Bitcoin, as well as other digital currencies, witnessed a notable rise to reach their highest values recorded in the past month.
Currently, the biggest digital currency in the world is being exchanged at a price of $30,344. This marks a 13.5% increase in value over the course of the month and a whopping 82% surge since the beginning of the year.
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