Argo Blockchain’s CEO steps down as miner’s future remains uncertain
Peter Wall is stepping down as Argo Blockchain’s CEO and interim chairman to “pursue other opportunities,” the bitcoin miner announced in a press release today. Seif El-Bakly will serve as Argo’s interim CEO until the company finds a suitable long-term replacement.
Wall leaves Argo ‘to pursue other opportunities’
Argo Blockchain CEO and Interim Chairman Peter Wall is stepping down after three years with the company, the bitcoin miner said in a press release Thursday. Seif El-Bakly will act as Argo’s interim CEO while Matthew Shaw has been appointed as the new chairman, the statement added.
“It has been a great privilege to have led Argo Blockchain for the past three years. It has been quite a journey and we have come a long way. I am delighted to have recently led the successful Galaxy deal and I thank all my colleagues at Argo for their commitment, support and enthusiasm in driving Argo forward. Onwards and upwards!”
– said Peter Wall.
Wall, who agreed to remain an adviser to the mining company for the following three months to facilitate the transition, stepped down just a week after chief financial officer Alex Appleton stepped down from the role. Like Appleton, Wall said he is leaving Argo to “pursue other opportunities.”
Argo said it would hire an executive search firm to find a suitable, long-term replacement for Wall. The miner’s shares fell nearly 7% in London trading on Thursday.
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Argo faces an uncertain future
Wall’s exit adds to the uncertainty surrounding the bitcoin miner, which has had its ups and downs over the past year. The company’s mining profitability fell significantly last summer as high power prices increased operating costs at its largest facility, Helios.
On a more positive note, the crypto miner entered into a $100 million bailout deal with Galaxy Digital shortly after repaying its debt to the investment firm. The deal involved selling Helios to Galaxy for $65 million and a $35 million loan from the company to Mike Novogratz.
But last month, Argo took another hit after reports revealed the bitcoin miner is facing a class action lawsuit, citing misleading statements made during the 2021 initial public offering (IPO) of its American Depositary Shares (ADS). According to a filing with US District Court for the Eastern District of New York, Argo failed to disclose that it faced severe capital constraints, as well as power and network problems.
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About the author
Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.