- British Bitcoin mining firm Argo Blockchain has lost its second CEO in two years
- Thomas Chippas has resigned following his appointment in February 2023
- Chippas took over long-serving CEO Peter Wall, who oversaw several financial struggles
Argo Blockchain, a prominent British cryptocurrency mining firm, has announced the resignation of its second CEO in two years. Thomas Chippas, who was also a director, left the company on Tuesday, having spent less than 24 months in the role. The company, which has survived financial difficulties felt by many Bitcoin miners in recent years, has appointed Chief Financial Officer Jim MacCallum as interim CEO while initiating the search for a permanent successor.
Argo’s Tough Time
Argo was one of the worst affected Bitcoin mining companies during the lean years of 2022-2023, where rising energy costs and a depressed Bitcoin price threatened its very existence. Matters came to a head in October 2022 when a $27 million financing deal fell through, which led to the suspension of Argo’s shares and suggestions that it could fall into bankruptcy. However, the company was rescued weeks later when Galaxy Digital provided $100 million in funding, although it led to Argo having to give up its recently opened Helios mining plant.
Long-serving CEO Peter Wall left the company shortly after, with Chippas taking the role and hoping to steady the ship. However, despite the consistent production of bitcoins, the company’s share price has continued to tumble: it has dropped more than 70% during Chippas’ tenure, while the company’s American Depositary Shares (“ADS”) listed on the Nasdaq have fallen below $1.00 for 30 consecutive business days, causing it to breach the minimum bid price requirement. Argo has been given until July to see its share price recover before trading will be suspended.
The company reported a net loss of $6.3 million in the third quarter of 2024, which it attributed to challenging market conditions and declining mining margins, and it seems that whoever takes over the company is going to have a tough time turning the ship around.
