Argo Blockchain’s largest lender, Growler Mining, is taking management of the embattled crypto miner by means of a debt-for-equity swap that leaves current shareholders with solely a small stake within the firm.
The restructuring, filed below the UK Corporations Act, revealed that Growler will convert round $7.5 million into secured loans and supply new financing in change for 87.5% of Argo’s recapitalized capital.
Holders of Argo’s $40 million unsecured bonds will collectively obtain 10%, whereas present shareholders will retain simply 2.5%. The deal, a part of a court-supervised restructuring plan known as Undertaking Triumph, is designed to keep away from insolvency and protect the miner’s Nasdaq itemizing.
“Except the Plan Firm (Argo) implements a restructuring of its stability sheet, the Plan Firm won’t be able to acquire the financing it wants and might be bancrupt from each a money stream and stability sheet perspective,” Argo mentioned.
Argo restructuring plan timeline abstract. Fountain. argo
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Argo will stop buying and selling on the LSE
Argo may also delist from the London Inventory Alternate, ending a six-year run as one of many few publicly traded crypto corporations within the UK. Its shares will proceed to commerce on Nasdaq, so long as the corporate meets compliance circumstances, together with a deliberate reverse inventory cut up earlier than January 2026.
The corporate stays integrated and headquartered in London, however its capital market focus will shift totally to america. In 2018, Argo grew to become the primary cryptocurrency firm to checklist on the London Inventory Alternate, elevating round $32 million for a valuation of $61 million.
The submitting revealed that Argo’s Bitcoin (BTC) manufacturing has plummeted over the previous two years, from practically six cash a day in 2022 to only two in 2024, as ageing machines and excessive power prices crushed profitability.
The miner bought its Helios amenities in Texas to Galaxy Digital, leaving operations concentrated on the Canadian Baie-Comeau website and US internet hosting facilities in Tennessee and Washington state.
Associated: Argo Blockchain Cuts 2022 Debt in Half, As much as $75 Million
Finish of Argo’s period as a British public firm
The acquisition of Growler features a plan to inject new capital, known as “Exit Capital”, and switch possession of Growler USCo, a subsidiary with new mining belongings, to Argo in change for brand spanking new shares. The transfer provides the lender operational management and the means to improve Argo’s ageing fleet earlier than it turns into out of date in 2026.
If authorised by the Excessive Court docket of England and Wales, the restructuring will erase most of Argo’s debt load, rescue its Nasdaq itemizing and hand management of the corporate to its collectors. For buyers, it’s a near-total demise and the top of Argo’s period as one of many pioneers of cryptocurrencies in Britain’s public market.
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