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- H.C. Wainwright on Wednesday downgraded Argo Blockchain (OTCQX:ARBKF) to Neutral from Buy over debt concerns and broader headwinds in the cryptocurrency industry.
- The research firm also discontinued its price target on the stock given uncertainty in the crypto miner's prospects.
- "... with yesterday's halted trading action, a delayed September quarter report, tangential news handicapping crypto (like the FTX implosion), and continued depressed bitcoin mining environment, it may be that the waterfall of sourness comes too heavy and too fast for investors to consider swinging positively any time in the near future," analyst Kevin Dede wrote in a note to clients.
- Wainwright also reduced its revenue estimates for Argo (OTCQX:ARBKF): 2022 estimate $60.5M vs. $84.3M prior on poorer mining economics (consensus estimate $83.82M); 2023 estimate $43.5M vs. $95.6M (consensus estimate $127.33M) prior due to greater risk to hash rate expansion.
- Earlier this week, Argo (OTCQX:ARBKF) said it was in advanced talks with a third party to sell certain assets.