Argo Blockchain Faces Major Restructuring Amid Financial Challenges

According to Cointelegraph, Argo Blockchain's largest creditor, Growler Mining, is set to assume control of the struggling cryptocurrency mining company through a debt-for-equity swap. This move will significantly dilute the stakes of existing shareholders, leaving them with a minimal share in the company. The restructuring, filed under the UK Companies Act, involves Growler converting approximately $7.5 million in secured loans and providing additional funding in exchange for 87.5% of Argo's recapitalized equity. Bondholders of Argo's $40 million unsecured notes will collectively receive 10%, while current shareholders will retain a mere 2.5%. This court-supervised restructuring plan, known as Project Triumph, aims to avert insolvency and maintain the miner's Nasdaq listing. Argo Blockchain has announced plans to delist from the London Stock Exchange, concluding its six-year tenure as one of the UK's few publicly traded cryptocurrency companies. The company's shares will continue to trade on Nasdaq, contingent upon meeting compliance requirements, including a planned reverse stock split before January 2026. Despite remaining incorporated and headquartered in London, Argo's capital-market focus will shift entirely to the United States. Argo initially made history in 2018 as the first cryptocurrency company to list on the London Stock Exchange, raising approximately $32 million for a valuation of $61 million. However, the company's Bitcoin output has significantly declined over the past two years, dropping from nearly six coins a day in 2022 to just two in 2024, due to aging equipment and high energy costs impacting profitability. The restructuring plan includes Growler's proposal to inject new capital, referred to as "Exit Capital," and transfer ownership of Growler USCo, a subsidiary with new mining assets, into Argo in exchange for new shares. This strategy grants Growler operational control and the ability to modernize Argo's outdated equipment before it becomes obsolete in 2026. If approved by the High Court of England and Wales, the restructuring will eliminate most of Argo's debt, safeguard its Nasdaq listing, and transfer control of the company to its creditors. For investors, this represents a near-total loss and marks the end of Argo's era as a pioneering public-market crypto company in Britain.