2021 has been a busy year for Argo Blockchain (LSE: ARB) shares. And the company has released more announcements. This time the focus is on climate change and clean energy.
I can’t deny that cryptocurrency has been a topical issue throughout the pandemic. Hence there has been a lot of buzz surrounding Argo Blockchain shares. But I think the company has ramped up the euphoria even further by addressing the topical issue of climate change.
I’m still bullish on the stock as a long-term investor. But here’s my take on the recent announcements.
I believe clean energy and sustainable living is the future. After all, we have only one planet, so let’s preserve it. It’s pleasing to see that Argo Blockchain believes “addressing climate change is a priority”.
The company has recently completed the purchase of 320 acres of land in West Texas to build a new mining facility. This will be powered by ‘clean energy’.
And then at the end of March, the company announced that it’s joining forces with DMG Blockchain Solutions to launch Terra Pool, a Bitcoin mining pool powered by clean energy. This pool will initially consist of both Argo’s and DMG’s computational power, which is mostly generated by hydroelectric resources.
They’ve partnered and combined their computational resources to mine cryptocurrencies. Simply put, clean energy will fuel its power so that it can mine.
In my opinion, Argo Blockchain is going one step further to emphasise that it’s concerned about climate change by stating that Terra Pool represents the first ever opportunity for the creation of ‘green bitcoin’.
That said, I think it’s somewhat excessive to classify it as ‘green bitcoin’. I reckon at some point in the near future most people will be using clean energy so the ‘green’ is likely to lose its exclusivity. But Argo Blockchain has first-mover advantage in a relatively new industry. This certainly helps and should be positive for the shares.
Climate change adviser
Argo Blockchain has also announced that it’s appointing Guidehouse as its climate strategy adviser. The firm aims to be a net zero greenhouse gas company, but it needs some guidance to achieve that.
And it says it would like to be a “climate-friendly cryptocurrency miner”. I think if it continues with these steps, then it’s heading in the right direction.
My view on Argo Blockchain shares
I’d buy the shares as a long-term investor. I think it’s great to see a relatively young company embracing sustainability so early on in its journey.
I believe it will place the stock on the radar for sustainable investors. The fact that it has released two climate-change-focused announcements close together is likely to do that.
But I should warn that Argo Blockchain shares do carry risk. The stock is correlated to the price of the popular cryptocurrency Bitcoin and so it can be volatile. This means I’d only put in what I can afford to lose. I’m also wary that the UK financial regulator has warned against cryptocurrencies, which could impact Argo Blockchain shares.
Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.