CEO of Argo Blockchain resigns days after CFO’s resignation
Many mining companies, such as Argo Blockchain, have felt the impact of the decline in bitcoin prices. FoIn some firms, their rigs could not cover the loan collateral. So it’s not surprising that mining companies could feel the impact of last year’s revenue losses in 2023.
The Bitcoin bear market was relentless in 2022, driving many crypto institutions into bankruptcy. The profitability of crypto mining fell within this period, and hashrate and the difficulty of mining also increased, making the process more difficult.
In a recent development, Argo Blockchain, a leading cryptocurrency miner announced CEO Peter Wall’s resignation from his official role. This announcement comes barely a week after former CFO Alex Appleton resigned.
The Story of Argo Blockchain Issues
Argo Blockchain felt the effects of the 2022 bear market, losing more than 50% of its share price after reporting a negative cash flow. The company also suffered from declining productivity caused by a blizzard in December 2022. As a result, Argo Blockchain only mined 147 BTC in Decembera 25% decline from November’s output of 198 BTC.
Argo suspended its trading activities on the Nasdaq Global Select Market on December 27, 2022. The company stated that the suspension was to review important data regarding its financial performance.
These financial problems drove the debt to nearly $80 million, creating a financial emergency. As a result, Argo eventually chose to sell its Helios facility to Galaxy Digital for $65 million. This move reduced overall debt, and protected the company from filing for bankruptcy protection.
Bitcoin Miner Argo Blockchain Sells Its Helios Facility For $65 Million #Bitcoin pic.twitter.com/XVjtCqjK2C
— Eduardo Pinto | Crypto Trader (@EduaPintMans) 28 December 2022
Peter Wall has released a video explains why Helios must be sold. According to Wall, the sale will reduce total debt by $41 million, improve liquidity, simplify the operating structure and allow mining operations to continue. This move prevented the company from going bankrupt and dealing with a similar scenario FTX saga in 2022.
In January 2023, however, Argo was slammed with one class action by some of its investors. That lawsuit stated that the firm reported false statements and omitted important information about capacity constraints and hidden costs. According to the lawsuit, these omissions and wrongful actions translated into losses for investors. These events have culminated in the wave of dismissals in February 2023.
Key players leave Argo
Argo announced 1 February that Alex Appleton, former CFO of Argo Blockchain, has resigned. According to the post, he would focus on other opportunities unrelated to the crypto mining sector. The news received mixed reactions, with some users expressing relief that Alex will no longer be at the helm of affairs.
Also, Sarah Gow resigned from his position; as a non-executive board member of Argo’s board. According to the reports, the dismissal was based on health reasons. However, the Board thanked her for her tremendous contribution since joining the Board in July 2021.
Bitcoin price plunges below $22,000 l BTCUSDT on Tradingview.com
Peter Wall, the former CEO of Argo Blockchain, is the latest executive to step down. The company announced his resignation after three years of service. Wall expressed his gratitude to the company for giving him an interesting journey and recalled the success of the Galaxy deal.
Seif El-Bakly was appointed interim CEO. In addition, Matthew Shaw was elected as chairman. According to Shaw, Peter built a strong foundation for Argo, a company full of talented people focused on delivering profitable growth.
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