In light of its recent acquisition and lawsuit filing, the bitcoin miner Argo continues to undergo a series of organizational adjustments. Peter Wall is resigning from his roles as CEO and interim chairman of Argo Blockchain in order to “pursue new opportunities.”
According to official sources, he will give up interim leadership to COO Seif El-Bakly. Wall has volunteered to continue serving as a consultant to Argo for the next three months to aid in the transition. Matthew Shaw has been appointed as board chairman.
UK’s Bitcoin miner loses its CEO
The London-based miner had a difficult 2022 due to rising power prices, which increased operational costs at Helios, its largest facility, where the miner did not have a fixed-rate power deal.
The crypto mining company caused a market frenzy in December when it unintentionally published drafts of postings stating that it would seek Chapter 11 bankruptcy protection.
The acquisition contributed to Argo regaining compliance with the Nasdaq minimum bid price requirement. This includes keeping the stock’s minimum bid price at $1 for 30 consecutive trading days.
However, on Jan. 26, a lawsuit was filed against the company and some of its executives and board members for failing to disclose critical information to investors. According to the lawsuit, the corporation neglected to disclose its vulnerability to cash limits, electricity expenses, and network challenges.
To avert that destiny, the beleaguered mining has been looking for additional finance. In December, it sold its Helios mining plant to Galaxy Digital for $65 million and borrowed $35 million from the firm. In January, it also increased its bitcoin mining capacity.
Following his resignation, Peter Wall stated that he was “pleased” to have led the recent Galaxy Digital takeover deal. He stated:
It has been a great privilege to have led Argo Blockchain over the past three years. It has been quite a journey, and we have come a long way. I am pleased to have recently led the successful Galaxy deal, and I thank all my colleagues at Argo for their dedication, support, and enthusiasm in driving Argo forward. Onwards and upwards!
Peter Wall
The business also announced the departure of Argo board member Sarah Gow in the same announcement. This development is due to health concerns. She has been a member of the board since July 20, 2021.
These withdrawals follow the resignation of the company’s CFO, Alex Appleton, in early February. Appleton also stated that he is leaving in order to “pursue other opportunities.” Appleton has been an executive with the company since September 2020.
The publicly traded miner will use the assistance of an executive search company to find a long-term replacement for Wall. As of 08:38 UTC, the company’s London-traded shares (ARB) had fallen more than 10% to 16.6 pence (20 US cents).
Argo Blockchain mined BTC increases by 14%
Furthermore, the crypto mining company raised the number of mined bitcoin by 14%, from 147 BTC in December 2022 to 168 BTC in January 2023. Argo announced in a press release published on February 8, 2023, that the firm mined more bitcoin in January due to “fewer curtailment hours in January compared to December, when a significant winter storm devastated much of the United States.”
In addition, Argo’s mining revenue increased from $2.49 million in December 2022 to $3.42 million in January 2023. Meanwhile, the company possesses 115 BTC as of January 31, with a total hashrate of 2.5 EH/s.
Galaxy said in a press release after the merger that it would no longer produce monthly mining profit reports or include the non-IFRS reconciliation table in the firm’s monthly operating update. Instead, the reports will be released on a quarterly basis.
