The publicly listed Bitcoin (BTC) miner from Wall Street (NYSE: ARBK) and London (LSE: ARB) Argo Blockchain plc announced today (Tuesday) that Chief Executive Officer Thomas Chippas will step down from his position and board directorship, effective February 28, 2025.
Chief Financial Officer Jim MacCallum will serve as interim CEO while the company conducts an executive search.
Argo Blockchain CEO Steps Down, CFO to Serve as Interim Chief
The CEO joined Argo Blockchain in late 2023, during a challenging period for the cryptocurrency market and the mining industry. During his tenure, Chippas led significant financial improvements at the dual-listed crypto miner, notably orchestrating the early repayment of the company's Galaxy loan and strengthening its balance sheet position.
“Thomas has made significant contributions to Argo including the repayment of the Galaxy loan ahead of schedule and improving the balance sheet,” said Matthew Shaw, Chairman of the Board. “On behalf of the Board and everyone at Argo, I would like to thank Thomas for his many achievements and wish him every success in the future.”
The company, which operates a mining facility in Quebec and maintains offices across the US, Canada, and the UK, said it plans to engage an executive search firm to identify a permanent successor.
Before joining the cryptocurrency mining company, Chippas held the role of Managing Director at Citi’s New York branch. His longest tenure, however, was with Cboe Digital, where he served as CEO and a member of the Board of Directors. He also continues to serve on the board of TS Imagine, a company providing SaaS platforms for integrated electronic front-office trading.
Argo Still Faces Challenges
Although Chippas is leaving Argo Blockchain in a more stable condition, significant challenges persist. According to the Q3 2024 financial report, the cryptocurrency mining company reported a net loss of $6.3 million for the quarter, reflecting ongoing market difficulties and shrinking mining margins.
Revenue fell to $7.5 million in Q3, a 28% decline from $10.4 million in the same period last year. During the quarter, the company mined 123 Bitcoin, averaging 1.3 BTC per day. Mining margins saw a sharp drop to 8% compared to 58% a year earlier when the company benefited from power credits due to economic curtailments. Adjusted EBITDA swung to negative $2.1 million, a significant downturn from positive $2.4 million in the prior year.
In December, Finance Magnates reported that Argo Blockchain raised £4.2 million ($5.3 million) through a share subscription. The company issued approximately 76.9 million new ordinary shares at 5.5 pence per share to an institutional investor. The funds aim to support strategic initiatives, including the relocation or divestment of mining equipment from its Helios facility in Texas and maintaining Bitcoin mining operations in Quebec. The company is also looking to expand into high-performance computing (HPC).
The latest mining report from January indicates that Argo produced 39 BTC in December 2024, the same as in November.
Our December operational update is out:????Mined 39 Bitcoin in December.????Daily production was 1.3 Bitcoin per day consistent with November.????Mining revenue of $3.9 million, an increase from $3.4 million in November.????We are currently evaluating alternative site options to…
— Argo (@ArgoBlockchain) January 7, 2025
However, production remains at a five-month low, underscoring the company's ongoing challenges..
This article was written by Damian Chmiel at www.financemagnates.com.
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