Argo Blockchain shares plunge 8% following COO departure

Mining company Argo Blockchain has announced that its former interim CEO and COO Seif El-Bakly stepped down from his position to ‘pursue other opportunities.’

In an Operation Update report on Jan. 8, Argo Blockchain said that starting from Jan. 5, its former interim CEO and COO Seif El-Bakly is no longer with the firm. While the reason for his departure was not disclosed, the document notes that El-Bakly decided to explore “other opportunities.”

El-Bakly served as Argo’s interim CEO from February to November 2023, following the departure of the company’s former head, Peter Wall. The report highlights that since February 2023, the operations team has been reporting to Argo CSO Sebastien Chalus, who will continue to oversee all operations moving forward.

ARBK shares in USD | Source: NasdaqAmid the news, Argo (ARBK) shares on Nasdaq plunged in a moment by 8.6% to $3.36, resulting in the firm’s market capitalization falling to $183.7 million, according to data from the stock exchange.

Argo also revealed that in December 2023, the firm mined 155 BTC, representing a 4% increase in daily Bitcoin production compared to November 2023, driven by “increased transaction fees on the network, greater operational efficiency and offset by an increase in network difficulty.”

Additionally, Argo announced the completion of a placing of 38 million shares, yielding gross proceeds of $9.9 million.

The net proceeds of the placing are expected to be used for working capital, the repayment of debt, and for general corporate purposes, Argo said in a document, adding that the placing is limited to “those certain institutional investors that have already subscribed and this announcement should not be considered an offer or solicitation to purchase or subscribe for securities in the United States.”