Argo Blockchain share price badly lags Riot Blockchain, MARA

Argo Blockchain (LON: ARB) share price has moved sideways in the past few days even after Bitcoin surged to the highest level in months. The stock was trading at 12.38p on Wednesday where it has been in the past few days. It has jumped by ~14.93% this year while its bigger counterparts like Riot Blockchain and Marathon Digital have jumped by ~142% and ~218% this year.

Bitcoin could retest its all-time high

Argo Blockchain is a leading cryptocurrency mining company that operates in Quebec and Texas. It has some of the most advanced operations in the world. Also, it is one of the few publicly traded mining companies in the world. Its stock is listed in London and New York.

Bitcoin mining companies are having a good year as the overall pice of BTC and other digital currencies like Litecoin and Ethereum have jumped. Like other mining companies, Bitcoin miners do well when Bitcoin price is rising.

This has been a good year for Bitcoin as its price has jumped by over 80%. And some analysts believe that the year will only get better. In an interview on Tuesday, Mike Novogratz of Galaxy Digital said he expects that Bitcoin price will jump to its all-time high. 

The case for more upside is mostly because of the actions of the Federal Reserve and fear of missing out (FOMO). Economists believe that the Fed will end its hiking cycle soon. And after that, the bank will likely start cutting interest rates in 2024 in a bid to stimulate the economy. In most periods, Bitcoin tends to do well when the Fed is not hiking rates. 

The bond and forex markets have all priced in these actions of the Fed. In the currencies market, the US dollar index has plunged to almost $100 while bond yields have dropped from their highest point this year.

What next for the Argo Blockchain share price?

ARB chart by TradingView

It is not clear why Argo Blockchain share price is not rising as fast as other companies in the industry. A likely reason is that the company’s business is not doing well. For one, it almost went bankrupt in December. Therefore, the company needs BTC prices to remain higher for longer.

Another reason is that the company’s mining seems to be struggling. In a note, the firm said that it mined 161 BTC equivalents in March, a 10% drop from the previous month.

Therefore, in the near term, I suspect that Argo Blockchain’s stock will continue rising albeit at a slower pace than Riot and Marathon Digital. If this happens, the shares will rise to 21.35p, the highest point on February 7. This price is about 60% above the current level.