Argo Blockchain's Shares Plummet as Debt Talks Remain Unresolved

Argo Blockchain's shares fell 13% as talks over a proposed recapitalization plan remain unresolved. The company is negotiating a senior secured loan with Growler Mining, which is central to its survival plan. The loan has yet to be signed or funded, and a High Court hearing is expected in late October. Argo missed a July interest payment on its bonds, underscoring its financial pressure.

Argo Blockchain plc (LSE: ARB, NASDAQ: ARBK) experienced a significant drop in its share price, falling by 13% on July 2, 2025. This decline was attributed to ongoing negotiations over its proposed recapitalization plan, which remains unresolved. The company is currently in talks with Growler Mining regarding a senior secured loan that is crucial for its survival.

The loan agreement has yet to be executed or funded, and the first High Court hearing for the recapitalization plan is scheduled for late October 2025. If the plan is subsequently approved by the Court, the effective date is expected to be in early to mid-December 2025. Under the proposed terms, Growler would acquire at least 80% of the company following the conversion of its loan and the injection of assets. Bondholders would receive equity in exchange for their debt, while existing shareholders would retain their stock but face dilution.

Argo Blockchain also reported missing a scheduled interest payment on its outstanding bonds due on July 31, 2025, which is subject to a 30-day grace period ending on August 30, 2025. This missed payment underscores the financial pressure the company is facing.

The company has confirmed that while negotiations with Growler are ongoing, there is no assurance that a definitive agreement will be signed or that the plan will be consummated. Should the plan not be approved, Argo Blockchain will pursue other alternatives, including formal insolvency processes in the UK, US, and Canada. Further updates are expected once a definitive agreement related to the loan is reached and subsequently, as terms of the plan are finalized.

References:
[1] https://www.marketscreener.com/news/argo-blockchain-continues-recapitalization-talks-with-growler-mining-ce7c50dadf88f223
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3UD11Q:0-argo-blockchain-says-negotiations-with-growler-ongoing-loan-not-executed/
[3] https://www.investegate.co.uk/announcement/rns/argo-blockchain--arb/update-to-proposed-recapitalization-/9068893
[4] https://www.proactiveinvestors.com/companies/news/1077182/argo-blockchain-slumps-13-as-debt-deal-talks-remain-unresolved-1077182.html