Although Bitcoin (BTC) has already gained almost 70% in 2024, shares of Argo Blockchain, a cryptocurrency mining company publicly listed in London and the US, are scraping the bottom, falling 55%.
The company’s solution to some of its problems and shareholder discontent is the sale of its data center in Mirabel, Canada. The London branch of the company (LSE: ARB) announced the finalization of the move on Thursday. At the same time, the miner issued over 460,000 new common shares.
The plan to sell a data center in the Quebec region was first announced almost two months ago. The transaction, which brought total consideration of $6.1 million, allowed the company to reduce its debt and significantly streamline its operations.
The net proceeds from the sale were used to pay off the outstanding $1.4 million Mirabel Facility mortgage, with the balance allocated to repay debt owed to Galaxy Digital Holdings, Ltd.
As of March 28, 2024, Argo’s debt to Galaxy was $12.8 million, a 63% reduction from the original balance of $35.0 million.
“The company continues to execute on its strategy to strengthen the balance sheet and reduce non-mining operating expenses. The company reduced its debt by $12.4 million in Q1 2024,” commented Thomas Chipas, CEO of Argo, on the deal.
In addition to debt reduction, Argo relocated and deployed mining machinery from the Mirabel Facility to its facility in Baie Comeau, Quebec. This consolidation is expected to reduce the company’s non-mining operating expenses by $0.7 million per year, allowing for more efficient use of the facility and on-site team.
Argo Blockchain also announced the issuance of 460,477 new common shares.
Bitcoin winter hit Argo
As we mentioned at the very beginning, the price of Bitcoin growing dynamically in 2024. Initially, Argo Blockchain shares also rose along with it, but weaker than expected BTC production in the first months of the year caused shareholders to lose confidence in the company. As a result, the spring of cryptocurrencies in the broad market has turned into a prolonged winter for miners of digital assets.
Meanwhile, Argo Blockchain underwent significant management changes. Seif El-Bakley has stepped down as COO after serving as interim CEO from February to November 2023.
Whether we look at Argo’s London-listed or US-listed shares, the charts show the same picture: down about 55% since the start of the year.
The price of Bitcoin (blue) is rising while Argo (orange) is falling. Source: Tradingview.com
Meanwhile, Marathon Digital Holdings, the largest publicly traded cryptocurrency miner, lost just 6% and Phoenix Group gained about 2%.
Although Bitcoin (BTC) has already gained almost 70% in 2024, shares of Argo Blockchain, a cryptocurrency mining company publicly listed in London and the US, are scraping the bottom, falling 55%.
The company’s solution to some of its problems and shareholder discontent is the sale of its data center in Mirabel, Canada. The London branch of the company (LSE: ARB) announced the finalization of the move on Thursday. At the same time, the miner issued over 460,000 new common shares.
The plan to sell a data center in the Quebec region was first announced almost two months ago. The transaction, which brought total consideration of $6.1 million, allowed the company to reduce its debt and significantly streamline its operations.
The net proceeds from the sale were used to pay off the outstanding $1.4 million Mirabel Facility mortgage, with the balance allocated to repay debt owed to Galaxy Digital Holdings, Ltd.
As of March 28, 2024, Argo’s debt to Galaxy was $12.8 million, a 63% reduction from the original balance of $35.0 million.
“The company continues to execute on its strategy to strengthen the balance sheet and reduce non-mining operating expenses. The company reduced its debt by $12.4 million in Q1 2024,” commented Thomas Chipas, CEO of Argo, on the deal.
In addition to debt reduction, Argo relocated and deployed mining machinery from the Mirabel Facility to its facility in Baie Comeau, Quebec. This consolidation is expected to reduce the company’s non-mining operating expenses by $0.7 million per year, allowing for more efficient use of the facility and on-site team.
Argo Blockchain also announced the issuance of 460,477 new common shares.
Bitcoin winter hit Argo
As we mentioned at the very beginning, the price of Bitcoin growing dynamically in 2024. Initially, Argo Blockchain shares also rose along with it, but weaker than expected BTC production in the first months of the year caused shareholders to lose confidence in the company. As a result, the spring of cryptocurrencies in the broad market has turned into a prolonged winter for miners of digital assets.
Meanwhile, Argo Blockchain underwent significant management changes. Seif El-Bakley has stepped down as COO after serving as interim CEO from February to November 2023.
Whether we look at Argo’s London-listed or US-listed shares, the charts show the same picture: down about 55% since the start of the year.
The price of Bitcoin (blue) is rising while Argo (orange) is falling. Source: Tradingview.com
Meanwhile, Marathon Digital Holdings, the largest publicly traded cryptocurrency miner, lost just 6% and Phoenix Group gained about 2%.