The Motley Fool

Here’s what I’m doing about the Argo Blockchain share price

Image: Argo Blockchain

Bitcoin miner Argo Blockchain‘s (LSE: ARB) share price has more than halved in value from where it stood back in February. That’s despite yesterday’s estimate from the Financial Conduct Authority that cryptocurrency continues to attract new investors. Roughly 2.3 million adults in the UK now hold Bitcoin and the like.  

So, why is Argo Blockchain’s share price down?

The behaviour of Argo Blockchain’s share price looks even odder when one considers the progress made by the company. In its most recent update, ARB stated that it had mined more Bitcoins last month than in April. A strategic investment in financial tech firm Wonderfi was also announced, along with steps the company had taken to address concerns over the impact of mining on the environment.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Unfortunately, this hasn’t been enough to stop the company’s shares falling alongside the price of Bitcoin itself. The recent decision by China to ban banks from providing services relating to cryptocurrency transactions is partly responsible. Elon Musk’s on-off love affair with Bitcoin probably hasn’t helped either.  

On top of this, I’m confident the significant fall in Argo Blockchain’s share price over recent months can be attributed to some good, old-fashioned profit-taking. If I’d achieved the incredible gains made by some since last December, I might be doing the same.

So, does a 50% tumble in ARB now make it my cup of crypto tea and worthy of a crafty trade? The quick answer is ‘no’. As a long-term investor, I’m not interested in jumping in and out of stocks. I know I can’t predict the Argo Blockchain share price over the next few days or weeks with any certainty. The same goes for Bitcoin.

An alternative to ARB

All that said, I am increasingly bullish on blockchain technology in general and its ability to revolutionise finance, as well as providing certainty in events such as elections. This being the case, I’ve found an investment that suits my risk profile: The Invesco Elwood Global Blockchain UCITS ETF.

As its name suggests, this passive fund is charged with tracking the performance of a group of companies in both developed and emerging markets. Some of these, such as GMO Internet and Hive Blockchain Technologies, are already involved in this ecosystem. Other members are deemed likely to participate in it in a major way in the future.

Naturally, this means the make-up of the index is fluid. Companies will be removed and replaced every three months as blockchain technology develops. These changes will be reflected in the fund as well. 

So, this is a guaranteed winner? 

Absolutely not! The Invesco fund still has the potential to fall hard in the event of more negative cryptocurrency news. The same can be said for the Argo Blockchain share price, of course.

Since its £1bn in assets is spread over 51 holdings, however, I think the Invesco fund offers a safer way of tapping into this potential megatrend. The management fee of 0.65% also feels reasonable for a specialised fund, albeit a passive one.

To be clear, this holding is speculative; most of my cash remains in proven, high-quality stocks from elsewhere in the market. If blockchain doesn’t succeed in disrupting many industries, the rest of my portfolio should offset losses here.

And I’ll be leaving ARB to those with stronger stomachs.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Paul Summers owns shares in Invesco Elwood Global Blockchain UCITS ETF. The Motley Fool UK has no position in any of the shares mentioned. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.