Argo Blockchain effectively taken over by creditor Growler Mining

Argo Blockchain, a UK crypto asset (cryptocurrency) mining firm, was effectively taken over as it transferred control to its major creditor, Growler Mining.

On the 21st (local time), according to Cointelegraph, the deal was carried out as a debt-for-equity swap converting about $7.5 million of secured loans into shares. Growler will also inject additional funds and secure 87.5% of the restructured Argo's equity.

In addition, holders of unsecured bonds worth $40 million will receive 10% of the equity, and existing shareholders will retain only 2.5%. The restructuring is part of a court-supervised rescue plan named 'Project Triumph', intended to prevent Argo's bankruptcy and maintain its Nasdaq listing.

Argo said, "If we do not restructure our financial structure, obtaining the necessary financing will become impossible, and we will become insolvent both in terms of cash flow and financially."

At the same time, Argo will begin delisting procedures from the London Stock Exchange (LSE). Argo, which in 2018 became the UK's first publicly listed cryptocurrency company, will leave the LSE after six years and plans to shift its capital-market focus to the United States. However, the corporate entity will remain in London.

According to filings, Argo's Bitcoin mining output plunged from an average of about 6 per day in 2022 to under 2 per day in 2024. Aging equipment and rising power costs have been cited as major causes. Also, after selling the Texas Helios mining facility to Galaxy Digital, it now operates only at Baie-Comeau in Canada and hosting centers in the U.S. states of Tennessee and Washington.