Argo Blockchain (LSE:ARB) is a miner of cryptocurrency through its operations in Quebec and Texas. This cryptocurrency includes Bitcoin and Ethereum. Currently trading at 55p, the Argo Blockchain share price has fallen nearly 40% since the start of 2022. I want to know if it is now too cheap for me to miss. Let’s take a closer look and see if I should add it to my long-term portfolio.
Cryptocurrency and production figures
The first thing that I note about the Argo Blockchain share price is that it is closely tied to the movements in cryptocurrency markets.
For instance, the price of Bitcoin has fallen from $47,000 to $30,500 since the start of 2022.Â
The Argo Blockchain share price has similarly declined by 39% over the same time period. This demonstrates the impact that underlying cryptocurrency prices have on the share price.
The company also publishes its production figures on a monthly basis. For April, it mined 166 Bitcoin (and equivalent). This was slightly higher than the March figure of 163.
Despite this, the April production result is still below January, which was 172. Additionally, in the final months of 2021, the firm exceeded 200 Bitcoin and equivalent in a month.
I will be watching production figures closely in the coming months.
Why the Argo Blockchain share price could be cheap
I also suspect the Argo Blockchain share price is undervalued. By referring to price-to-earnings (P/E) ratios, I can better understand if it is cheap.
The company has a forward P/E ratio, found by dividing the share price by forecast earnings, of 20.92.
On its own, this doesn’t tell me all that much. By comparing this number to competitor Riot Blockchain, which has a much higher forward P/E ratio of 88.5, I can see that the current Argo Blockchain share price may be a bargain.  Â
Improving financial results
The business also recently released its 2022 results. Revenue grew to £74.2m from £19m in 2020. This was an increase of around 291%.
Furthermore, delivered net income surged 2,033%, from £1.4m to £30.8m. As a potential shareholder, this improvement in financial results is very appealing. It should be noted, however, that past performance is not necessarily indicative of future performance.
Argo Blockchain also invested in the new Helios Project in Texas, which will become operational this month.
In addition, it upgraded mining machines by purchasing 20,000 new machines that will be installed throughout 2022.
The firm was able to expand its operational capacity through three successful raises in 2021, amounting to nearly £180m. There is always the risk, however, that future raises will dilute my shareholding if I decide to invest.
Overall, financial results are improving and the company is gaining some consistency in its production figures. As the Argo Blockchain share price may be cheap, I think this business could be a good addition to my portfolio as a long-term growth stock. I will be buying shares soon.