If I could buy only 1 crypto stock, this would be it

There’s been a lot of talk about Argo Blockchain (LSE: ARB) in recent weeks. The crypto mining firm has seen its share price soar more than 4,000% in the past 12 months, from 6p to more than 200p.

Of course, past performance is not an indication of future results, but I’m still excited about what’s next for this interesting crypto play.

A look at Argo Blockchain’s financials

First, you might be wondering how exactly Argo makes money? The popular blockchain uses massive banks of computers to mine large amounts of cryptocurrency. It then sells this mined currency for fiat money. With cryptocurrency’s popularity on the rise, as evidenced by Coinbase‘s recent direct listing in the US, I’m excited to buy this stock. 

As for its current financials, in early April, Argo released a very promising operational update. This top stock to buy had successfully mined 165 Bitcoin and equivalents. This represented a 28% increase over the previous month, and brought its total holdings to £6.57m. What’s more, due to the low-cost nature of the company’s operating expenses, roughly 84% of this revenue was pure profit.

Why is Argo’s price so volatile?

But why do Argo shares seem so volatile? Having tripled this year, they’ve also dipped at times. Argo Blockchain’s entire revenue stream is based solely on the cryptocurrency market and its largest asset, Bitcoin. In fact, the two are so intrinsically linked, that it’s hard to look past the fact that by investing in Argo, I am essentially investing in the performance of the hugely volatile crypto market. 

However, I choose to look at this as a positive, as I am a fan of Bitcoin. Although Argo is linked to the crypto market as a whole, Bitcoin is the biggest player. The bullish arguments for both are one and the same. Although that is a point of concern for many, for those investing in Bitcoin, it’s a positive.

Of course, my optimism could be misplaced, and should the crypto market collapse, my Argo investment will fall with it.

My biggest concerns about Argo Blockchain’s share price

Cryptocurrencies appear to be getting banned by state governments left and right. In 2021 alone, both Turkey and India (one of the largest markets in the world) outright banned all things crypto. They join a growing group that also includes the world’s fastest-growing economy, China, along with Saudi Arabia, Bolivia, and more. 

Much of these states’ concerns derive from the lack of regulation surrounding the currency, upon which Argo Blockchain relies. We’ve got a long road ahead of us before cryptocurrencies will be embraced as a major global new asset class. Prices could still plummet as they have in the past.

Growth potential

But despite bans, its popularity is growing elsewhere, particularly in the US. With Tesla, Square, and more taking stakes in Bitcoin, it is becoming more and more mainstream. Tesla even allows customers to purchase its vehicles now using Bitcoin. This is why I’m all the more excited about Argo’s plans to open a state-of-the-art mining facility in Texas.

By exposing itself to the US market with a top-range facility, it is opening up a whole new world of growth for itself. If I could only buy one crypto stock right now, it would be Argo Blockchain.