Argo Blockchain’s largest lender, Growler Mining, is taking management of the embattled crypto miner by a debt-for-equity swap that leaves current shareholders with only a small stake within the firm.
The restructuring, filed underneath the UK Firms Act, revealed that Growler will convert about $7.5 million in secured loans and supply new funding in alternate for 87.5% of Argo’s recapitalized fairness.
Bondholders of Argo’s $40 million unsecured notes will collectively obtain 10%, whereas present shareholders will retain solely 2.5%. The deal, a part of a court-supervised restructuring plan dubbed Challenge Triumph, is designed to stop insolvency and protect the miner’s Nasdaq itemizing.
“Except the Plan Firm [Argo] implements a restructuring of its steadiness sheet, the Plan Firm will probably be unable to acquire the funding it wants and will probably be bancrupt on each a money move foundation and a steadiness sheet foundation,” Argo mentioned.
Argo’s restructuring plan timeline overview. Supply. Argo
Associated: Bitcoin miner Argo repays $35M Galaxy bailout mortgage
Argo to delist from LSE
Argo may even delist from the London Inventory Change, ending a six-year run as one of many UK’s few publicly traded crypto corporations. Its shares will proceed to commerce on Nasdaq, supplied the agency meets compliance situations, together with a deliberate reverse inventory cut up earlier than January 2026.
The corporate stays included and headquartered in London, however its capital-market focus will shift completely to america. In 2018, Argo turned the primary cryptocurrency firm to record on the London Inventory Change, elevating round $32 million for a valuation of $61 million.
The submitting revealed that Argo’s Bitcoin (BTC) output has plunged over the previous two years, from practically six cash a day in 2022 to barely two in 2024, as getting older machines and excessive power prices crushed profitability.
The miner has offered its Helios facility in Texas to Galaxy Digital, leaving operations concentrated in Canada’s Baie-Comeau website and US internet hosting facilities in Tennessee and Washington State.
Associated: Argo Blockchain cuts 2022 debt by half, all the way down to $75M
Finish of Argo’s period as Britain’s public firm
Growler’s takeover features a plan to inject new capital, dubbed “Exit Capital,” and switch possession of Growler USCo, a subsidiary with contemporary mining belongings, into Argo in alternate for brand new shares. The transfer offers the lender operational management and the means to refresh Argo’s outdated fleet earlier than it turns into out of date in 2026.
If permitted 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 traders, it’s a near-total wipeout, and the top of Argo’s period as considered one of Britain’s public-market crypto pioneers.
Journal: Sharplink exec shocked by stage of BTC and ETH ETF hodling — Joseph Chalom
