Argo’s main creditor acquires majority stake in high-stakes equity swap

TLDR

• Growler Mining will gain 87.5% of Argo Blockchain in a court-supervised debt-for-equity swap.
• Argo Blockchain will delist from the London Stock Exchange but remain on Nasdaq.
• Unsecured bondholders will receive 10%, and current shareholders are left with only 2.5%.
• The restructuring aims to avoid insolvency and refresh Argo’s outdated mining operations.

Argo Blockchain, once a prominent name in crypto mining, is handing over control to its primary lender, Growler Mining. Through a bold debt-for-equity swap, Growler is set to acquire 87.5% of the company. The restructuring plan comes as Argo faces declining Bitcoin output and financial instability. The move aims to save Argo from insolvency and maintain its Nasdaq presence, while wiping out most existing shareholder value.

Growler Mining Takes Control of Argo Blockchain

Argo Blockchain’s largest creditor, Growler Mining, is assuming control of the troubled cryptocurrency mining firm. The shift in ownership is part of a court-approved restructuring plan called Project Triumph. Growler will exchange approximately $7.5 million in secured debt and provide new capital in return for 87.5% of Argo’s recapitalized equity.

This development leaves unsecured bondholders with 10% and existing shareholders with only 2.5% of the company. Argo stated in its filing that without this plan, it would face insolvency under both cash flow and balance sheet tests.

The plan is being supervised by the High Court of England and Wales. If approved, it will allow the company to maintain operations and avoid liquidation. Argo’s goal is to meet compliance standards on Nasdaq while shutting down its listing in the UK.

Argo to End London Stock Exchange Listing

Argo will delist from the London Stock Exchange, ending its six-year presence as one of the UK’s publicly traded crypto miners. The company will retain its incorporation in the UK but shift all capital market efforts to the United States.

Argo first listed in London in 2018, raising approximately $32 million with a $61 million valuation. Now, amid financial pressure, it will focus on its Nasdaq listing and conduct a reverse stock split before January 2026 to remain compliant.

The company has already sold its Helios mining facility in Texas to Galaxy Digital. It now operates from sites in Baie-Comeau, Canada, and hosting facilities in Tennessee and Washington State.

Declining Bitcoin Output and Fleet Challenges

Argo’s mining operations have struggled due to aging hardware and rising electricity costs. In 2022, the company mined almost six Bitcoin per day. However, by 2024, this figure fell to fewer than two coins per day.

These operational problems have weighed heavily on revenue and profits, prompting the need for restructuring. As part of the plan, Growler Mining will inject “Exit Capital” into the company and transfer assets from its own subsidiary, Growler USCo.

This asset transfer is intended to modernize Argo’s mining fleet and extend operational viability beyond 2026. The move also secures Growler’s control of daily operations.

Project Triumph to Reshape Argo’s Future

Under the Project Triumph plan, Argo will reduce its debt burden, restore financial health, and reposition itself for growth. The debt-for-equity swap will remove much of Argo’s liabilities while giving Growler decision-making control.

The restructuring will give Growler Mining access to Argo’s remaining infrastructure and allow it to run the business under new leadership. According to Argo, “The Plan Company will be unable to obtain the funding it needs and will be insolvent” without implementing this arrangement.

While existing investors face steep losses, the plan seeks to ensure Argo continues to operate and retain a public listing in the United States.

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