Argo CEO follows resignation trend after mining facility sold to Galaxy Digital
Cryptocurrency miner Argo continues to undergo a series of changes in the company in light of a major acquisition and a recently filed lawsuit.
Peter Wall, CEO of Argo Blockchain, announced his resignation from a leadership position on 9 February.
According to the announcement, Wall will remain as an advisor to Argo for the next three months to support the transition from the position. He also noted that he was “delighted” to spearhead a recent deal with Galaxy Digital.
In the same announcement, the company announced the resignation of Argo board member Sara Gow. This development is due to the state of health.
Today we announced that the CEO @PeterGWall resigned as CEO/Chairman.
Seif El-Bakli, CFA (COO), has been named interim CEO; Matthew Shaw was named chairman.
We thank Peter for his many accomplishments and wish him every success in the future.https://t.co/iPxeeXp7c3
— Argo (@ArgoBlockchain) February 9, 2023
However, just a week before these changes at the company, Argo lost its chief financial officer, Alex Appleton, in yet another resignation.
This Feb. 1 announcement said that Appleton had resigned to “seize other opportunities,” according to a statement on the London Stock Exchange. This coincided with the completion of the sale of the Helios facility to Galaxy Digital Holdings.
Appleton has been with the company in a senior position since September 2020.
Bitcoin mining revenue jumped 50% to $23 million in a month
This is the latest in a series of changes for Argo that began in late December 2022, when it reported insufficient funds and no guarantees to avoid filing for Chapter 11 bankruptcy.
Weeks after the announcement, the company revealed that it had sold its lead mining operation, Helios, to crypto-focused global financial services firm Galaxy Digital for $65 million. This helped Argo reduce its total debt by $41 million.
This acquisition was a factor that helped Argo regain compliance with Nasdaq’s minimum bid price rule. This entails maintaining the stock’s minimum offer price at $1 for 30 consecutive trading days.
However, on January 26, a lawsuit was filed against Argo and several of its executives and board members for failing to disclose key information to investors.
The case alleges that the company did not disclose its susceptibility to capital restrictions, electricity costs and grid problems.
Credit : cointelegraph.com