Correlation Between Argo and Bitcoin12 Mar 2021 11:41
Posters often ask if Argo SP should follow Bitcoin. Obviously there are a lot of factors involved, such as this week's fund raise or the latest monthly mining numbers.
As a reasonable guide, I simply divide the Bitcoin value (in $), by the Argo SP (in pence). If the answer is above 200, Argo is undervalued and if it's below, it's overvalued. At present $56,700 versus 240p gives a factor of 236.25 so I would be looking to buy.
Over time, the factor will change when Argo rallies (it was nearer 2,000 last year and 400 in January) but as rough guide, it seems to have served me well. I should probably map Bitcoin to the current MCAP, but I'll leave that to someone else!