Debt-for-equity swap puts Growler Mining in control of struggling Argo Blockchain

Argo Blockchain is undergoing a major restructuring after falling into deep financial trouble. Its main lender, Growler Mining, will now take over the crypto-mining company. Under a court-supervised plan, Project Triumph, Growler will convert its debt into ownership, taking a major stake in the company’s equity.

The restructuring was filed under the UK Companies Act. It revealed that Growler will convert about $7.5 million in secured loans and provide new funding in exchange for 87.5% of Argo’s recapitalized equity. 

This leaves unsecured bondholders with 10% and existing shareholders with a mere 2.5% stake, effectively wiping out most existing equity value. The restructuring also aims to prevent insolvency and preserve Argo’s Nasdaq listing. 

“Unless the Plan Company [Argo] implements a restructuring of its balance sheet, the Plan Company will be unable to obtain the funding it needs and will be insolvent on both a cash flow basis and a balance sheet basis,” Argo said.

Argo to be taken off the London Stock Exchange

Argo will be taken off the London Stock Exchange. This will end its six-year run as one of the UK’s few publicly traded crypto companies. However, its shares will continue to trade on Nasdaq if the company meets the requirements, including planning a reverse stock split before January 2026.

The company will still be incorporated and have its major office in London, but it will only focus on the US capital market. Argo was the first crypto company to go public on the London Stock Exchange in 2018. It raised about $32 million and was worth $61 million then.

Argo’s operational profitability has been severely impacted by outdated mining equipment and high energy costs. Its Bitcoin output has significantly declined, falling from nearly six coins per day in 2022 to barely two in 2024. 

Argo stated that its liabilities include senior unsecured notes that it is unable to service, and it has very limited liquidity. In fact, at one point, the company reported $866,000 without further funding.

The company also said it cannot raise external financing on viable terms. To that end, without the restructuring, it would be insolvent both on a cash-flow and balance-sheet basis. 

As reported by Cryptopolitan, the company previously sold its Helios facility in Texas to Galaxy Digital and now concentrates its mining operations at Canada’s Baie-Comeau site and US hosting centers in Tennessee and Washington State.

Stakeholders are at risk of losing their equity value

The first major court hearing is scheduled for 5 November 2025 at the High Court of Justice in London. Plan meetings where voting happens are scheduled for 28 Nov 2025, and the sanction hearing is scheduled for 8 Dec 2025.

The restructuring plan will be voted on by shareholders, noteholders, or holders of senior unsecured notes, and the Secured Lender, which is Growler. 

If approved and sanctioned, the rights and claims of participants, creditors, and shareholders will be affected. Shareholders (existing ordinary shares) and ADR holders are informed that they may lose substantial value or have their holdings restructured. 

Noteholders of the senior unsecured notes are in a tough spot because the company hasn’t paid the interest and doesn’t see a way to return the full amount without this reorganization. However,  if any class votes it down and the Court doesn’t override, the plan may not succeed. 

Meanwhile, a new retail advocate has been appointed for non-institutional investors to review the plan’s fairness and represent retail holders’ concerns to the court. 

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