Growler Mining Takes Control of Argo Blockchain in Debt-for-Equity Swap
- Growler Mining will convert $7.5 million in secured loans for an 87.5% stake in Argo Blockchain.
- Bondholders will receive 10% of Argo’s $40 million unsecured notes, while existing shareholders retain only 2.5%.
- The restructuring plan, named Project Triumph, aims to prevent insolvency and maintain Argo’s Nasdaq listing.
- Argo plans to delist from the London Stock Exchange after six years but will continue trading on Nasdaq.
- Argo’s Bitcoin output has decreased from nearly six coins per day in 2022 to about two coins daily in 2024.
The takeover by Growler includes plans for new capital injection and operational control over Argo, which is shifting its focus entirely to the U.S. market after selling its Helios facility in Texas.
If approved, this restructuring will significantly reduce Argo’s debt and mark the end of its era as a public company in the UK, with investors facing substantial losses due to the equity dilution.(Source)
