The debt-for-equity swap leaves existing shareholders with just 2.5% as the struggling Bitcoin miner delists from the London Stock Exchange and shifts focus to the U.S.
Argo Blockchain’s Debt Crisis Leads to Dramatic Takeover
Argo Blockchain, once a leading name in the UK’s crypto mining sector, has effectively lost control of its operations after its largest creditor, Growler Mining, seized an 87.5% stake through a sweeping debt-for-equity restructuring. The move, filed under the UK Companies Act, is aimed at preventing insolvency and ensuring Argo’s survival under new ownership.
Under the restructuring — known as Project Triumph — Growler will convert $7.5 million in secured loans into equity and provide additional funding to stabilize operations. Bondholders of Argo’s $40 million unsecured notes will receive 10% of the recapitalized company, while current shareholders retain just 2.5%, marking a near-total dilution of their holdings.
“Without a balance sheet restructuring, Argo would face insolvency both on a cash flow and asset basis,” the company warned in its filing.
Exit from London Market After Six Years
The restructuring comes with another major shift: Argo will delist from the London Stock Exchange (LSE), ending its six-year tenure as one of the UK’s few publicly traded crypto miners. The firm plans to maintain its Nasdaq listing, contingent on meeting compliance requirements such as a reverse stock split before January 2026.
Although still headquartered in London, Argo’s capital-market strategy will pivot entirely to the United States. The miner first went public on the LSE in 2018, raising $32 million at a $61 million valuation, a milestone moment for Britain’s early crypto industry.
Falling Bitcoin Output and Strategic Shift
Argo’s challenges stem from a sharp drop in Bitcoin production, falling from nearly six BTC per day in 2022 to just two in 2024. The decline reflects aging mining hardware and rising energy costs, which have severely eroded profit margins.
The company has also sold its Helios facility in Texas to Galaxy Digital, consolidating remaining operations at sites in Canada’s Baie-Comeau and hosting centers across Tennessee and Washington State.
Growler’s takeover plan includes injecting new “Exit Capital” and merging its U.S. mining subsidiary (Growler USCo) into Argo in exchange for new shares. This move gives Growler operational control and access to modern mining assets, positioning the firm to refresh Argo’s fleet before 2026’s next halving cycle.
If approved by the High Court of England and Wales, the restructuring will erase most of Argo’s debt while transferring ownership to creditors. For investors, it represents the end of Argo’s era as a British public crypto pioneer — and the start of a creditor-controlled revival attempt under new management.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.