Argo Blockchain CEO Buys 75K Shares in Insider Transaction

Currently serving as the interim CEO of Argo Blockchain, Jim MacCallum recently conducted an insider deal. Specifically, the interim CEO bought 75,000 American Depositary Receipts, representing the Company’s ordinary stock.

Details of MacCallum Transaction

Argo Blockchain shared the transaction details in a regulatory filing released on Monday, February 3. According to the filing, MacCallum bought 75,000 shares on Nasdaq, ranging from $0.4550 to $0.4700 each, between January 29 and 30.

MacCallum paid around $34,625 for the shares at an average price of $0.4617 per ADR. Argo Blockchain disclosed the insider purchase as required by regulations for persons with managerial responsibilities. Following the announcement, Argo’s shares on the London Stock Exchange rose 2.27% to 4.5 GBX.

Thomas Chippas Resigns from Argo Blockchain

The deal occurred just a few days after Argo Blockchain announced that CEO Thomas Chippas would step down on February 28. MacCallum, Argo’s Chief Financial Officer CFO, has already taken over as temporary CEO while the firm hunts for a permanent replacement.

Chippas’ resignation comes at a difficult time for Argo. Chippas, who joined Argo in November 2023, contributed to the company’s financial success, strengthening the balance sheet and early repayment of a Galaxy loan.

The crypto mining company is currently experiencing significant financial losses and is under pressure to become profitable. Argo reported a $6.3 million net loss in Q3 2024 and a $7.5 million revenue decline year-over-year. 

The Genesis of Argo’s Financial Challenges

Argo’s financial issues can be traced to a class action lawsuit filed against the firm in 2021 . Investors accused Argo of making false and misleading statements during its Initial Public Offering (IPO) in September 2021. 

These legal constraints impeded Argo’s capacity to mine Bitcoin (BTC), perform business strategy, meet obligations, and run its flagship facility, Helios. In December 2022, Argo signed a deal with Galaxy Digital Holdings to sell its $65 million Helios plant in Dickens County. The deal included another $35 million asset-backed loan from Galaxy.

Argo Blockchain Making Efforts to Overcome its Financial Issues

The 75,000 share purchase from MacCallum aligns with Argo’s efforts to build its deflated balance sheet. 

The mining firm raised $5.3 million in December through a share subscription. The company said it intends to use the funds to relocate or sell mining equipment from the Helios facility in Texas. This is in addition to supporting maintenance operations in Quebec.