Mining company Argo Blockchain experiences an 8% drop in shares following the departure of its former interim CEO and COO, Seif El-Bakly. The company announced El-Bakly’s decision to step down in pursuit of “other opportunities.”
In an Operation Update report on Jan. 8, Argo Blockchain disclosed that El-Bakly officially left the firm on Jan. 5. The departure comes without a specified reason, emphasizing El-Bakly’s exploration of alternative career paths. Sebastien Chalus, Argo CSO, has been overseeing operations since February 2023.
Market Reaction: Share Plunge on Nasdaq
The news of El-Bakly’s departure prompted an 8.6% decline in Argo (ARBK) shares on Nasdaq, settling at $3.36. The market capitalization of the mining company also suffered, falling to $183.7 million, as reported by stock exchange data.
ARBK shares in USD | Source: Nasdaq
Mining Performance: December 2023 Highlights
Argo Blockchain shared insights into its mining activities, revealing the mining of 155 BTC in December 2023. This represents a 4% increase in daily Bitcoin production compared to November 2023. The boost is attributed to higher transaction fees, and enhanced operational efficiency, and is balanced by an increase in network difficulty.
Financial Move: Placement of 38 Million Shares
The company further disclosed the completion of a placement of 38 million shares, generating gross proceeds of $9.9 million. Argo specified that the net proceeds from this placement will be allocated to working capital, debt repayment, and general corporate purposes. The placement is limited to institutional investors who have already subscribed.
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.
— Argo (@ArgoBlockchain) January 8, 2024
Cautionary Note on Securities: Regulatory Compliance
Argo emphasized that the placement announcement is not an offer or solicitation for securities in the United States. It is limited to certain institutional investors who have already expressed interest, ensuring regulatory compliance.
As Argo Blockchain addresses changes in leadership and financial strategies, the market observes closely to understand the company’s approach to navigating these shifts and sustaining its position in the mining sector.
