Argo Blockchain's largest lender Growler Mining plans to acquire 87.5% of its equity

ChainCatcher news, according to Cointelegraph, the largest lender of crypto mining company Argo Blockchain, Growler Mining, is taking over the troubled mining firm through a debt-to-equity swap plan.

Under the plan, existing shareholders will only retain a small portion of the company’s equity. According to the restructuring proposal submitted under the UK Companies Act, Growler will convert $7.5 million in secured loans into equity and provide additional financing in exchange for 87.5% of Argo’s equity after restructuring. Meanwhile, holders of $40 million in unsecured bonds will receive 10% equity, and existing shareholders will retain only 2.5%. The transaction is part of a court-supervised “Project Triumph” restructuring plan, aimed at avoiding bankruptcy and maintaining its Nasdaq listing. Argo has warned that without a balance sheet restructuring, the company will go bankrupt due to cash flow and balance sheet issues.

In addition, Argo will delist from the London Stock Exchange, ending its six-year listing history in the UK. If compliance requirements are met, its shares will continue to trade on Nasdaq, and the company’s capital market focus will fully shift to the United States. Due to aging equipment and high energy consumption, Argo’s daily bitcoin production has dropped sharply from nearly 6 coins in 2022 to less than 2 coins in 2024, resulting in a significant decline in profitability.