Argo Blockchain can benefit from Chinese BItcoin crackdown suggests broker

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Uncertainty around Bitcoin mining in China might provide a boost to Argo Blockchain PLC (LON:ARB) according to broker finnCap.

Market estimates suggest over 50% of Bitcoin is mined in China, and the Chinese government’s May announcement that it will crackdown on mining the cryptocurrency could materially reduce mining difficulty and benefit Argo.

The company’s transformational new facility in Texas also highlights that it is making strong progress towards differentiating by mining with very low cost, renewable power, said the broker.

Argo Blockchain unveils DeFi investment, updates on mining and infrastructure

FinnCap has updated its forecasts after today’s trading update due to the fall in the Bitcoin price and mining difficulty with forecast revenues this year and next reduced by 13% and 17% respectively.

The broker’s target price is 220p compared with 162.5p, up 1% today.

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