The crypto-mining space has been in some hot water recently. For investors in industry-leading miners such as Argo Blockchain (OTCMKTS:ARBKF) and ARBKF stock, this has not been a pleasant environment of late.
Indeed, some high-profile tweets from Elon Musk reprimanding crypto miners over energy usage has taken its toll on the sector. In mid-May, Elon Musk accelerated an already steep decline in the valuations of crypto miners with a single tweet. The CEO cited the need for crypto miners to shift to more sustainable forms of energy as a key reason for disallowing Bitcoin (CCC:BTC-USD) purchases for Tesla (NASDAQ:TSLA) vehicles.
Musk later reneged on this view, reinstating Bitcoin purchases for Tesla vehicles. However, this take pushed sustainability to the forefront for investors considering crypto miners as investments.
However, Argo is looking to change this narrative. The company announced today it intends to become the “first climate positive cryptocurrency mining company.” Accordingly, Argo followed up with a climate strategy that has some investors excited.
That said, ARBKF stock is currently trading down more than 6% today. This move comes amid a rather red day for growth stocks in general. Accordingly, a portion of today’s move may be related to today’s overall price action.
Let’s dive into what the implications are of this new strategy for Argo.
ARBKF Stock Down on Climate Strategy Update
Argo announced that the company’s crypto-mining operations have reached a “climate positive” level. The company defines “climate positive” as taking steps to monitor and mitigate emissions. The company focuses on scope 1, 2 and 3 greenhouse gas emissions as part of the strategy. Scope 1 refers to direct emissions from the company’s operations. Scope 2 covers indirect emissions through electricity purchases. And scope 3 covers all other indirect emissions resulting from the company’s value chain.
The company says it plans on becoming carbon neutral in the future and potentially make its carbon-reduction strategy more aggressive. However, a specific timeline for this was not given.
For now, it appears investors are largely viewing this news as a non-event. That said, Argo’s move toward becoming more sustainable is noteworthy. Investors may indeed focus on ESG-related concerns more moving forward. Argo plans on being the crypto miner of choice for such individuals.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.