Argo Blockchain share price analysis: could soon spike by 93%

Argo Blockchain (LON: ARB) share price had its best day since November 9th as Bitcoin price continued its recovery. The stock surged to a high of 10.50p on Monday, much higher than last month’s low of $7.50. Other Bitcoin mining companies like Riot Blockchain, Marathon Digital, and Hut 8 Mining have also soared.

Bitcoin mining companies are having a great year, helped by the surging cryptocurrency prices. In the United States, companies like Riot, Mara, and Cipher Mining have been the best-performing stocks in the Russell 2000 index.

Argo Blockchain, however, has been one of the worst-performing Bitcoin mining stocks this year. Its stock remains about 46% below the highest point this year as concerns about its viability continue. This is after the company avoided bankruptcy in December by raising $100 million from investors, including Galaxy Digital.

Argo Blockchain also diluted its existing shareholders when it raised 5.7 million pounds by selling shares in the open market. Raising capital via share sale usually dilutes existing investors by adding the number of outstanding shares.

Argo Blockchain share price jumped on Monday after the company updated investors on its activities in November. The firm mined 145 BTC in November, a 5% increase from the previous month. Its revenue came in at over $5.3 million, the highest monthly increase on record.

Argo’s November monthly operational update is out!

🔸Mined 145 BTC, or 4.8 BTC per day (5% increase from last month)⛏️
🔸$5.3m of revenue, which is the highest monthly revenue of 2023 and a 25% increase from Oct📈
🔸HODL still 21 BTC Equiv💰

Full RNS: https://t.co/sPpRBKp7yx

— Argo (@ArgoBlockchain) December 4, 2023

The other important news was that the company appointed Thomas Chippas as the new CEO. He is an experienced professional in the industry having served as the CEO of CBOE Digital. Before that, he worked at Citadel, Citigroup, and Barclays.

The most recent results revealed that the company’s adjusted EBITDA rose by 185% to $3.1 million as its mining margin rose by 58%. It also reduced its debt by $5 million.

Argo Blockchain share price forecast

ARB chart by TradingView

The daily chart shows that the ARB stock price has remained in a consolidation phase in the past few months. It has remained between the key support and resistance levels at 7.37p and 11p. At the same time, the Average True Range (ATR) has dropped to 1, signaling that there is no volatility.

Argo Blockchain shares are also consolidating at the 50-day and 100-day moving averages. Therefore, the outlook for the stock is neutral with a bullish bias. If the Bitcoin price continues rising, there is a likelihood that it will have a bullish breakout.

If this happens, the next price to watch will be at 19p, the highest swing in January. This price is about 93% above the current level. On the flip side, a drop below the support at 7.37p will lead to more downside.

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