Argo Blockchain shares drop on news of COO departure

2024-1-9 12:59

In a surprising turn of events, Argo Blockchain PLC (LSE: ARB) witnessed a substantial price drop in its shares today following the announcement of the departure of its Chief Operating Officer (COO).

The company, known for its global leadership in cryptocurrency mining, disclosed this significant change in its management, impacting investor sentiment.

Argo Blockchain PLC’s strong December performance

Argo Blockchain revealed its operational performance for December 2023, demonstrating a 4% increase in daily Bitcoin production compared to the previous month. The company mined 155 bitcoins, contributing to a monthly revenue of $6.6 million – a notable 25% surge from November 2023, marking the highest revenue month of the year.

CEO Thomas Chippas highlighted the impressive performance, citing increased transaction fees, enhanced operational efficiency, and a counterbalancing effect from network difficulty. Despite a challenging quarter with a 19% increase in monthly average network difficulty, Argo’s daily production rose by 20%, closing the year on a robust note.

Change in company management and share allotment

According to the company’s announcement, Seif El-Bakly stepped down as COO to pursue other opportunities effective January 5, 2024. The operations team now reports to Chief Strategy Officer Sebastien Chalus. Simultaneously, Argo Blockchain granted 1,379,727 Restricted Stock Units (RSUs) on December 5, 2023, under its 2022 Equity Incentive Plan.

In alignment with El-Bakly’s departure agreement, 1,973,892 new ordinary shares (PSU Shares) were issued. These PSU Shares will vest and be admitted to the Official List and trading on the Main Market of the London Stock Exchange on January 11, 2024. Post-admission, the company’s total Ordinary Shares will amount to 538,937,363.

Market response and ARB stock performance

The market responded swiftly to the news, with Argo Blockchain shares experiencing a 14.31% decline, currently trading at 23.24 GBX. The day’s high reached 26.00 GBX, while the low touched 21.30 GBX. The company’s market capitalization stands at 124.89 million GBX.

Investors are closely monitoring the situation as the departure of a key executive, coupled with changes in share allotment, introduces a new dynamic for Argo Blockchain. Analysts anticipate further market adjustments in response to these developments.

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