This cryptocurrency stock popped over 80% in a week; Here's why
Institutional adoption and positive sentiment surrounding the cryptocurrency market have once again ignited a powerful rally in Bitcoin’s (BTC) price, propelling it beyond the $30,000 mark for the second time this year.
As a result of this renewed enthusiasm, one Bitcoin-related stock experienced a remarkable price surge in the past week.
Notably, shares of Argo Blockchain (LSE: ARB), a prominent Bitcoin mining firm, soared more than 83% over the past 7 days on the London stock exchange amid improved market sentiment, a rebound in BTC price, and a positive operational update.
At press time, Argo’s shares were changing hands at £11.92, down 1.6% on the day. Over the past week, ARB gained 83.07%, surging from £6.5 to the current price, driving its market cap to nearly £57 billion.
Elsewhere, Argo’s Nasdaq-listed shares in the US soared over 46% during that period, closing at $1.61 apiece on Friday, June 23.
Why is Argo Blockchain stock surging?
Argo’s latest stock price rally is driven by a mix of factors.
On June 7, the Bitcoin mining company released an operational update for May 2023, during which the firm mined a total of 173 BTC or 5.6 BTC per day. This figure represented a notable 16% month-on-month increase, indicating increased uptime and improved operational efficiency in Argo’s mining fleet.
In addition, Argo’s mining revenue in May stood at $4.75 million, 14% higher than the $4.17 million revenue reported in April.
More recently, and from a broader perspective, the recent Bitcoin rebound has also contributed to Argo’s share price jump. Last week, a number of major traditional finance (TradFi) firms filed for launching a spot for Bitcoin exchange-traded fund (ETF), following the footsteps of the world’s largest asset manager, BlackRock.
This, and the launch of a new crypto exchange backed by several institutional investors, led to a substantial improvement in market sentiment. As a result, Bitcoin, and other cryptocurrencies, surged to new monthly highs.
The world’s largest cryptocurrency currently trades at $30,344, up 13.5% on the month and more than 82% since the start of the year.