Argo Stock Crashes Over 60% Amid Bitcoin Mining Restructuring to Avert Insolvency

Shares of Argo Blockchain plunged more than 60% on Monday after the Bitcoin mining company unveiled a court-supervised restructuring plan in a last-ditch effort to avoid bankruptcy.

The London- and Nasdaq-listed miner said it has entered into an agreement with Growler Mining and will seek approval from a U.K. court to implement the proposed plan. If approved, the deal would eliminate existing shareholders and transfer majority ownership to Growler Mining, a mining firm based in Tuscaloosa, Alabama.

The move comes after months of worsening financial and operational strain for Argo, which first flagged “material uncertainty” about its ability to continue as a going concern in its 2024 annual report. On Monday, the company said its board now views a court-approved restructuring as a necessary alternative to “uncontrolled insolvency and liquidation.”

The proposal also underscores the mounting pressure on asset-light mining models in the wake of Bitcoin’s April halving and a prolonged hashprice squeeze. Argo’s looming collapse follows similar challenges faced by Bit Digital, which is now exiting its Bitcoin mining operations.

As part of the proposed restructuring, Growler would extend a $7.5 million senior secured loan to Argo to cover operations and professional costs during the process. The loan carries a minimum 10% interest rate and may be converted into equity if the plan is finalized. Growler has also committed to contributing $25–30 million in crypto assets to Argo’s U.S. subsidiary and to injecting additional “Exit Capital” to recapitalize the business and support ongoing funding needs.

In return, Growler is expected to receive at least 80% of the restructured company’s equity. Argo’s bondholders, who collectively hold around $40 million in claims, would be issued new common shares, while current shareholders would have their holdings canceled and replaced with only nominal compensation.

The proposal follows Argo’s unsuccessful attempts to raise capital earlier this year. In March, the company terminated a key equity-linked deal with GEM Mining just weeks after its announcement. A prior plan to raise $40 million through convertible debt also collapsed.

Compounding its financial troubles, Argo’s hosting agreement with Galaxy Digital—covering most of its mining fleet—was terminated at the end of 2024. Since then, the company has been relocating some of its Antminer S19j Pro machines to Merkle Standard while selling off the remainder.

Argo expects to file the restructuring plan with the court by August 29 and aims for it to take effect before November 30. The plan requires approval from 75% of its creditors and must be sanctioned by the High Court of England and Wales under the U.K. Companies Act.

The transaction will trigger a change-of-control under the U.K. Takeover Code, as Growler’s stake will exceed 30% of Argo’s voting shares. The company is seeking a waiver from the mandatory offer requirement, arguing that shareholders would not be worse off under the plan than in a liquidation.

In conjunction with the restructuring, Argo also announced the resignation of Chairman Matthew Shaw, effective June 27. He will be replaced by Maria Perrella, a current non-executive director. However, the company cautioned that there is no certainty the plan will proceed. Should it fail to gain creditor and court approval, Argo warned it would likely have to enter formal insolvency proceedings.