Argo Blockchain Bitcoin Miner Aims to Double Hashrate with GEM Mining Acquisition

Argo
Blockchain (LSE: ARB;
NASDAQ: ARBK),
the publicly listed London and Wall Street Bitcoin (BTC) miner, announced today (Wednesday) that it has entered into non-binding term sheets to acquire assets from GEM Mining and secure additional financing, a move that could potentially
double its mining capacity.

Argo Blockchain Seeks to
Double Hashrate with $21.7 Million GEM Deal

The
proposed transaction includes the acquisition of GEM Mining’s assets for up to
$21.7 million in Argo shares, as well as a $10 million investment from GEM’s
institutional investors. If completed, the deal would add 2.4 exahash of mining
power to Argo’s operations, significantly boosting its Bitcoin production
capabilities.

“We
believe this transaction represents a significant step toward profitable growth
for Argo and strengthens our capital structure,” said Matthew Shaw, Chairman
of Argo’s Board. “The Argo and Gem teams are working collaboratively to
complete due diligence and finalize definitive documentation.”

The asset
acquisition would be satisfied through the issuance of new Argo ordinary
shares, with an initial consideration of $11.7 million and up to $10 million in
contingent consideration based on hashrate performance over the following year.
The share price for the initial consideration is set at 3.4 pence, based on the
20-day volume-weighted average price as of March 25, 2025.

New CEO, Old Problems

The move
comes just two days after the company announced that
Justin Nolan will take over as CEO, who previously served as the president
of Arkon Energy. He has prior experience with the Bitcoin miner, having helped
develop the Helios project as Chief Growth Officer.

Argo Blockchain is excited to announce the appointment of Justin Nolan as Chief Executive Officer and Director. Justin was previously CEO of Arkon Energy, a digital infrastructure company. Prior to this, he served as Chief Growth Officer at Argo and was instrumental in the…

— Argo (@ArgoBlockchain) March 24, 2025

He replaces
Thomas
Chippas, who supported the company through a difficult period since 2023.
Although Chippas managed to save the company from the threat of bankruptcy and
secure and repay
a loan from Galaxy, the firm still hasn’t achieved profitability.

According
to the most recent financial report
for Q3 2024, revenue decreased by 30%, the number of mined BTC was only 1.3
BTC per day, mining margins shrank from 58% to 8%, and the net loss deepened to
$6.3 million. Despite these challenges, Nolan claims that “Argo has a
strong foundation” and sees light at the end of the tunnel.

Transaction Details

The
financing component of the deal includes a $7 million secured convertible note
with an 8% annual interest rate and a $3 million equity investment. Both
elements would be priced at a 25% discount to Argo’s closing share price. Upon
completion of the transaction, GEM would be entitled to appoint two directors
to Argo’s board.

Argo
Blockchain, known for its focus on sustainable cryptocurrency mining, operates
primarily with renewable energy sources. The company has mining facilities in
Quebec and offices across North America and the UK.

Stifel is
acting as financial advisor to Argo, while Compass Point is advising GEM on the
transaction.

This article was written by Damian Chmiel at www.financemagnates.com.