Argo Blockchain Plc(US:ARBK)2025-11-19 17:02Summary of Argo Blockchain Town Hall Meeting (November 19, 2025) Company Overview - Company: Argo Blockchain (NasdaqGS: ARBK) - Industry: Cryptocurrency mining, specifically Bitcoin and other cryptocurrencies - Current Situation: Argo is undergoing a restructuring plan due to financial difficulties exacerbated by high energy costs and prolonged low cryptocurrency prices since 2021 [7][8][9] Key Points from the Meeting Restructuring Plan - Purpose: The restructuring plan aims to restore Argo's financial stability and allow it to continue trading [4][12] - Court Approval: The plan requires court approval, with meetings for plan participants scheduled for December 2, 2025, and a sanction hearing on December 8, 2025 [5][6] - Participants: Shareholders, note holders, and secured lender Growler are involved in the restructuring process [5][11] Financial Challenges - Energy Costs: Energy costs account for approximately 50% of Argo's total costs, significantly impacting profitability [9] - Debt Burden: Argo has been reliant on third-party funding since December 2022, with a total debt of $40 million due in November 2026 [8][11][33] - Mining Margin Decline: The mining margin fell from $11.5 million (39% margin) in 2024 to $1.2 million in 2025 due to rising costs and reduced Bitcoin rewards following the April 2024 halving [10] Proposed Changes - Equity Distribution: Under the restructuring plan, Growler will own 87.5% of the enlarged share capital, note holders will hold 10%, and existing shareholders will retain 2.5% [13][18] - ADS Ratio Change: To maintain NASDAQ listing, the ratio of American Depositary Shares (ADS) will change from 1:10 to 1:1,260 [14][16] - Delisting from LSE: Argo intends to delist from the London Stock Exchange, establishing a matched bargain facility for shareholders to trade shares post-delisting [17] Financial Support - Funding from Growler: Growler will inject $3.5 million into Argo as part of the restructuring plan, which is critical for meeting obligations to unsecured creditors [12][34] - Equitization of Debt: Senior unsecured notes will be converted into equity, allowing note holders to receive shares in the restructured company [18][19] Market Conditions - Crypto Market Volatility: The company has faced a "crypto winter" since 2021, leading to significant declines in cryptocurrency prices and market sentiment [9] - Future Profitability: While no profit forecasts were provided, the board believes that with reduced debt and new funding, there is potential for recovery [49] Additional Considerations - Management Structure: Argo's management will continue to run the business, with a potential non-executive representative from Growler on the board [38] - Tax Obligations: Ongoing tax disputes in Canada are still unresolved, with no firm timeline for resolution [38] - CapEx Plans: Expected capital expenditures of $25 million in 2026 and 2027 were mentioned, but details on financing were not provided [52] Conclusion - The restructuring plan is seen as a necessary step for Argo to avoid insolvency and provide a pathway for potential recovery, albeit with significant dilution for existing shareholders and note holders [51][52]