Crypto fans, take notice. Argo Blockchain (OTCMKTS:ARBKF) rallied higher by more than 40% on heavy trading volume, and this could just be the start. So what caused the jump in ARBKF stock? And what else do you need to know?
To start, investors should know that Argo Blockchain is all about creating an infrastructure for cryptocurrency mining. In doing so, it wants to support continued growth and innovation in blockchain markets.
The company primarily trades on the London Stock Exchange under the ticker ARB. However, its over-the-counter shares have been attracting quite a bit of attention. That OTC listing is actually part of the reason for the jump in ARBKF stock today.
Up until Wednesday, Argo Blockchain traded OTCQB Venture Market. According to CEO Peter Wall, this middle-tier exchange is typically for small foreign issuers and penny stocks. With a market capitalization of $1.6 billion and big ambitions, Argo Blockchain is looking for bigger things. And so, starting today, ARBKF stock started trading on the OTCQX. Wall says this is the highest-tier exchange in the OTC world. For investors, this should give the blockchain an added layer of legitimacy in a red-hot market for all things crypto.
Plus, Wall has other ambitions. He has said previously that he would consider a dual listing on the Nasdaq Exchange and the LSE. This would make the company one of the only pure-play blockchain companies with such a U.S. listing. And given the popularity of Riot Blockchain (NASDAQ:RIOT) and Marathon Patent Group (NASDAQ:MARA), that could be a huge boost for Argo.
So with a nearly 40% rally in the rear-view mirror after the closing bell, what else do you need to know?
What to Know About ARBKF Stock Now
The bullish story for Argo Blockchain goes beyond its new OTC listing. Just a few days ago, the company released some other news that should support its infrastructure goals. According to that release, Argo is receiving priority access to new miners from ePIC, a Canadian company. As part of this deal, it will start off by investing $8 million in ASIC mining machines. Deliveries should begin in the fourth quarter of 2021, and ramp up throughout 2022.
Once again, Wall saw this as a great sign of growth. He says the deal with ePIC gives Argo Blockchain access to top-of-the-line mining infrastructure. He also sees it as a reason for Argo to maintain its strong reputation in the popular blockchain sector.
All things considered, it makes a lot of sense why InvestorPlace Markets Analyst Thomas Yeung is keen on ARBKF stock. Earlier this week, he commented on its 6,000%-plus rally. Instead of saying it has come too far, too fast, he said that could just be the start. In fact, he says he could see Argo Blockchain hitting $40 per share. That is because the blockchain company exists within a $5 trillion market opportunity.
Although the Bitcoin (CCC:BTC) price has wavered in recent weeks, ARBKF stock should be on your radar. This is a blockchain play that could have serious potential.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.