Growler Mining, the largest lender of Argo Blockchain, plans to acquire an 87.5% stake in it

ChainCatcher news, according to Cointelegraph, cryptocurrency mining company Argo Blockchain's largest lender, Growler Mining, is taking over the struggling miner through a debt-to-equity swap plan.

Under this plan, existing shareholders will only retain a small portion of the company's equity. The restructuring proposal submitted under the UK Companies Act shows that Growler will convert a $7.5 million secured loan 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, while existing shareholders will retain only 2.5%. This transaction is part of the court-supervised "Project Triumph" restructuring plan, aimed at avoiding bankruptcy and maintaining its listing on Nasdaq. Argo warned that without a balance sheet restructuring, the company would go bankrupt due to cash flow and balance sheet issues.

Additionally, Argo will delist from the London Stock Exchange, ending its six-year listing in the UK. If compliance conditions 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 plummeted from nearly 6 coins in 2022 to less than 2 coins in 2024, significantly reducing profitability.