Argo Excels in BTC Production, Announces COO Exit

The UK’s cryptocurrency miner Argo Blockchain (LSE: ARGO) reported its highest Bitcoin (BTC) mining output since May. Additionally, the company announced the departure of Chief Operating Officer (COO) Seif El-Bakly “to pursue other opportunities.” In a separate statement, the firm also reported the issuance of new ordinary shares with a total value of £7.8 million.

The company announced a significant boost in its Bitcoin production for December 2023, reporting mining 155 Bitcoin and averaging 5.0 BTC daily, marking a 4% increase from the previous month. This growth in Bitcoin production is attributed to several factors, including heightened transaction fees on the Bitcoin network and improved operational efficiency. Argo’s mining revenue for December reached $6.6 million, a substantial 25% increase from November 2023 and the highest in the year.

The year’s trajectory showed a varying pattern in Bitcoin mining, with the highest production in January (168 Bitcoin) and a notable decline in August (105 Bitcoin). However, the company demonstrated resilience with a steady increase towards the end of the year, culminating in December’s peak. The revenue figures followed a similar trend, indicating the company’s ability to adapt to the dynamic nature of cryptocurrency mining.

“During the fourth quarter, our daily production was 4.8 Bitcoin per day, which was a 20% increase from the prior quarter,” commented Thomas Chippas, the CEO of Argo appointed in November. “This is despite a 19% increase in monthly average network difficulty in the fourth quarter compared to the prior quarter.”

In the latest financial report, the publicly-listed cryptocurrency mining company has detailed a period of mixed financial results. The Q3 2023 brought a financial net loss of $9.9 million.

COO Steps Down

In a significant shift within the company’s management, Seif El-Bakly stepped down from his role as COO effective 5 January 2024. El-Bakly, who served as the Interim CEO from February to November 2023, has been thanked for his contributions and leadership.

The operations team, under the guidance of Chief Strategy Officer Sebastien Chalus since February 2023, will continue without disruption. In line with El-Bakly’s departure, Argo Blockchain issued 1,973,892 new ordinary shares as part of his separation agreement.

Funding Round to Support Growth

In a separate move, Argo Blockchain secured £7.8 million ($9.9 million) through a new share issuance to institutional investors. The placement of 38,064,000 new ordinary shares, priced at £0.205 each, represents a modest discount compared to the 30-day average trading price. This influx of capital is earmarked for working capital, debt repayment, and general corporate purposes, positioning Argo Blockchain for sustained operational stability and growth.