Interim CEO’s Departure Sends Argo Blockchain Shares Tumbling 8%

Argo Blockchain’s Nasdaq-listed shares (ARBK) experienced an 8.38% decline after the departure of its interim CEO and COO, Seif El-Bakly.

According to data from the stock exchange, the drop saw the shares plummet to $3.50, significantly reducing the firm’s market capitalization to $183.7 million.

Argo Blockchain Announces El-Bakly’s Departure

According to the January 8 Operation Update report, El-Bakly, who had been at the helm of the company since February 2023 after the departure of former CEO Peter Wall, parted ways with Argo Blockchain on January 5, 2024, in pursuit of new opportunities.

Since El-Bakly’s tenure as interim CEO, the operations team at Argo has been under the guidance of CSO Sebastien Chalus. Chalus is set to continue overseeing the company’s operations.

In related news, Argo Blockchain granted 1,379,727 Restricted Stock Units (RSUs) on December 5, 2023, as part of its 2022 Equity Incentive Plan.

These RSUs are set to vest over three years. Additionally, in connection with Mr. El-Bakly’s departure, the company issued new ordinary shares to finalize his Performance Share Units (PSUs) vesting.

This transition comes at a crucial time when Argo Blockchain has reported significant operational achievements.

Argo Blockchain Achieves Record Highs

In December 2023, the company reported mining 155 Bitcoins, marking a 4% increase in daily production compared to November.

This growth is due to increased transaction fees on the Bitcoin blockchain, enhanced operational efficiency, and an uptick in network difficulty.

The company’s mining revenue for December 2023 stood at $6.6 million, a 25% increase from the previous month and the highest for the year. This success was part of a consistent trend, with the fourth consecutive month of over 18% revenue growth.

As of December 31, 2023, Argo Blockchain held 9 BTC and other digital assets equivalent to 18 Bitcoins on its balance sheet.

Thomas Chippas, Argo’s Chief Executive, expressed satisfaction with the company’s performance, stating,

“I am delighted to close out 2023 with our strong performance both in December and in the full fourth quarter. During the fourth quarter, our daily production was 4.8 Bitcoin per day, which was a 20% increase from the prior quarter. This is despite a 19% increase in monthly average network difficulty in the fourth quarter compared to the prior quarter.”

Argo Blockchain also completed a significant financial milestone with the placement of 38 million shares, raising $9.9 million in gross proceeds.

New RNS: We completed a placing of 38m shares for gross proceeds of £8m ($10m). The price of 20.5p is a 1% discount to the 30 day VWAP & an 11% premium to the 45 day VWAP.

Funds to be used for working capital, to repay debt, & other corp. purposes.

RNS: https://t.co/sPpRBKp7yx

— Argo (@ArgoBlockchain) January 8, 2024

The funds are allocated for working capital, debt repayment, and general corporate purposes. However, this placement was limited to specific institutional investors and not available to the broader market in the U.S.