Cryptocurrency mining company Argo Blockchain’s stock plunged 8.6% to $3.36 per share following the announcement that its former interim CEO and Chief Operating Officer, Seif El-Bakly, departed from the company on January 5th. El-Bakly decided to leave Argo to pursue other career opportunities that were not disclosed.
During his tenure as interim CEO from February to November 2023, El-Bakly provided oversight and leadership after the departure of ex-CEO Peter Wall. With El-Bakly’s exit, operations will continue to report to Chief Strategy Officer Sebastien Chalus, who has overseen operations since assuming those responsibilities last February.
The stock drop resulted in Argo’s market capitalization falling substantially to $183.7 million, reflecting investor concerns regarding the executive changeover as well as the crypto bear market’s impact on mining economics.
On a more positive note, Argo revealed stronger Bitcoin production in December 2023, mining 155 Bitcoins compared to 148 the previous month – a monthly increase of 4%. Argo attributed the improved productivity to rising transaction fees and operational efficiency gains partially offsetting greater mining difficulty on the Bitcoin network.
Additionally, Argo completed an offering of 38 million new shares to institutional investors, generating $9.9 million in gross proceeds that will provide working capital flexibility. Funds are earmarked to pay down debt and cover expenses amidst the turbulent cryptocurrency environment.
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