Argo Blockchain, Capita & Darktrace: 3 tech stocks for long term growth

HIGHLIGHTS

  • In September, Argo Blockchain inked a purchase agreement for 20,000 Bitmain Antminer S19J Pro machines for the expansion of its mining capacity.
  • Capita’s adjusted revenue was £1,584.7 million in H1 2021 compared to £1,582.1 million in H1 2020.
  • Darktrace’s customer base was 5,975 as of 30 September 2021, representing an increase of 42.7% year-on-year. 

Revolutionary technology solutions and services have been playing a pivotal role in reshaping almost every aspect of our lives. Businesses across all sectors have been focusing on adopting new and advanced technology solutions to increase the security and efficiency of business processes. Advanced technology solutions such as blockchain form the basis for the most sought-after cryptocurrency mining.  

Rising remote working culture and growing need to safeguard confidential company data accessed across unprotected networks are fuelling the demand for smart and advanced technology-based cybersecurity solutions. Businesses outsource various operations to specialist professional services providers to focus on their core capabilities and enhance their strengths. Here is a detailed review of the investment potential in three technology companies - Argo Blockchain, Capita and Darktrace.

Market cap of Argo, Capita & Darktrace

(Data source: Refinitiv)

Argo Blockchain Plc (LON: ARB)

Argo Blockchain plc is a leading cryptocurrency mining company based in the UK. Last month, the company mined 165 Bitcoin or Bitcoin Equivalent (BTC) compared to 206 BTC in August 2021. The company owned 1,836 BTC as of September 2021.

The shares of Argo Blockchain are currently trading at GBX 112.50, down by 0.44% at 11:26 AM BST on 13 October 2021. The market cap of the company is £527.80 million. In the last one year, the shares of Argo Blockchain returned 2,077.55% to shareholders.

In September, Argo Blockchain inked a purchase agreement for 20,000 Bitmain Antminer S19J Pro machines aimed at the expansion of its mining capacity. The new machines will increase the company’s hash rate by more than 2 Exahash and is expected to be 1.7 Exahash by mid-Q4 2021 and 3.7 Exahash by Q3 2022. 

Capita Plc (LON: CPI)

Capita is a global provider of business process outsourcing and professional services. Early this month, Capita inked an agreement with NEC Software Solutions UK Ltd. to sell its Secure Solutions and Services business for £62 million ($83.5 million).

The shares of Capita are currently trading at GBX 46.89, up by 2.90% at 11:41 AM BST on 13 October 2021. The market cap of the company is £767.52 million. In the last one year, the shares of Capita returned 56.34% to shareholders.

Capita’s adjusted revenue was £1,584.7 million in H1 2021 compared to £1,582.1 million in H1 2020. Its adjusted profit before tax rose by £56.4 million to £45.3 million in H1 2021 compared to a loss of £11.1 million in H1 2020.

Darktrace Plc (LON: DARK)

Darktrace is a provider of artificial intelligence-powered cybersecurity solutions. Recently, it received recognition from AWS for its cloud-native and serverless architecture capabilities. Darktrace’s customer base was 5,975 as of 30 September 2021, representing an increase of 42.7% year-on-year. 

The shares of Darktrace are currently trading at GBX 879.00, up by 4.64% at 12:03 PM BST on 13 October 2021. The market cap of the company is £5,860.15 million.

Darktrace recorded annualised recurring revenue (ARR) of $24.1 million for Q1 FY 2022, an increase of 63.8% year-on-year.

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