Analysts at finnCap said the crypto miner’s energy use will become “increasingly important as global governments and investors scrutinise Bitcoin mining powered by non-renewables”
Argo Blockchain PLC’s new facility in Texas will allow the crypto miner to differentiate itself in the market through its access to “very low cost, renewable power”, according to analysts at finnCap.
In a note on Thursday, the house broker, which has a 220p target price on Argo, said the company’s energy source will “become increasingly important as global governments and investors scrutinise Bitcoin mining powered by non-renewables” while also predicting that the firm will “continue to benefit” from the recent crackdown on crypto mining in China.
finnCap also said Argo may benefit from the ongoing decline in the Bitcoin mining network’s difficulty as a result of the Chinese crackdown, which makes it easier for players in the market to acquire Bitcoin while using less computing power.
“As the medium-term impacts of the changes in China become clearer through H2 21, we will closely watch the development of the three key variables for Argo: the hash rate/network mining difficulty, the cost of mining machines, and the Bitcoin price”, the broker said.
Argo’s new facility is planned to be completed in the first half of 2022 and will be provided access to up to 800MW of electrical power.
Shares in the company were up 7.1% at 118.9p in late morning trading.