Argo Blockchain expects positive results in its first quarter earnings report
Several companies in the crypto market have seen an uptrend after the results release. Shares in crypto mining companies are no different. Argo Blockchain (NASDAQ: ARBK ), a Bitcoin (BTC) mining and technology-focused company, recently announced in a press release that it will release its Q1 2023 earnings report on June 6.
Earlier incomes went down
ARBK missed EPS by a whopping 923% in the last quarter. They estimated earnings at $0.502 per share versus the final disclosure of ($4.135). However, they expect $0.63 EPS in their upcoming report. Other mining stocks including Hut 8 Mining Corp (NASDAQ: HUT ) and Marathon Digital Holdings (NASDAQ: MARA ) rose around 3%, while Riot Blockchain (NASDAQ: RIOT ) rose 10%.
Also, HUT 8 beat its last earnings by 406% and Marathon Digital by 41%. However, Riot Blockchain missed EPS by 129%. The win is potentially due to a potential shutdown of Texas State Bill 1751 in the House of Representatives. The law, if implemented, will be a challenge for crypto miners as it could limit their participation in the cost-saving online program.
ARBK share price analysis
The Williams Alligator is currently moving in an open-ended downtrend, but it appears to be closing. If the lips cross over the jaw, a positive movement can be shown. ARBK stock has maintained momentum between $1.25 and $1.1 while changing hands at $1.2 at the time of writing.
The Gann box shows the price moving between 0.618 and 0.75 with resistance and support near the aforementioned levels. The average true range fell sharply, indicating less likelihood of a trend. Chop zone supports the scenario as the indicator highlights that ARBK stock lost its strength during April 2023.
Crypto mining is becoming difficult not only due to halving events, but due to increasing regulatory pressure on the sector globally. A study shows that mining is potentially harmful to the environment due to large carbon emissions. Authorities are taking initiatives to limit possible risks associated with mining. Bitcoin is by far the most preferred digital asset to be mined by crypto miners.
Ethereum (ETH), the second largest crypto asset by market capitalization, switched its consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS) last year. The idea was to eliminate carbon emissions to become an environmentally friendly blockchain. The event was titled “The Merge” and is reported to have reduced greenhouse gas emissions by over 99%.
Tether, issuer of the USDT stablecoin, announced its plans to operate in Uruguay for Bitcoin mining. The country generates 94% of its electricity using renewable resources. In March 2022, the Biden administration issued an executive order to assess the risks and benefits associated with cryptoassets. Also, the US is planning to become carbon neutral by 2050, which could make it challenging for crypto miners to operate in the US.
The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.