The departure of interim CEO and COO Seif El-Bakly has resulted in an 8.38% decline in Argo Blockchain’s Nasdaq-listed shares (ARBK). As a result, the company’s market capitalization has been significantly reduced to $183.7 million.
El-Bakly, who took over the company in February 2023 after the departure of former CEO Peter Wall, left Argo Blockchain on January 5, 2024, in search of new opportunities. The company’s operations will now be overseen by CSO Sebastien Chalus.
In addition to El-Bakly’s departure, Argo Blockchain recently granted 1,379,727 Restricted Stock Units (RSUs) on December 5, 2023, as part of its 2022 Equity Incentive Plan. These RSUs will vest over three years.
Despite the leadership transition, Argo Blockchain has reported significant operational achievements. In December 2023, the company mined 155 Bitcoins, representing a 4% increase in daily production compared to November. This growth can be attributed to higher transaction fees on the Bitcoin blockchain, improved operational efficiency, and an increase in network difficulty.
The company’s mining revenue for December 2023 reached $6.6 million, a 25% increase from the previous month and the highest for the year. This success follows a consistent trend, with four consecutive months of over 18% revenue growth.
Argo Blockchain ended 2023 with 9 BTC and other digital assets equivalent to 18 Bitcoins on its balance sheet. CEO Thomas Chippas expressed satisfaction with the company’s performance, highlighting the increase in daily production and revenue despite the rise in network difficulty.
To further support its operations, Argo Blockchain completed a placing of 38 million shares, raising $9.9 million in gross proceeds. These funds will be used for working capital, debt repayment, and general corporate purposes. However, the placement was restricted to specific institutional investors and not available to the broader U.S. market.
In conclusion, while Argo Blockchain faces challenges with the departure of its interim CEO, the company has achieved significant operational milestones and continues to strengthen its financial position for future growth.
The source of the article is from the blog mendozaextremo.com.ar