Short-seller homes in on shareholder dilution in latest Argo Blockchain attack

Quick Take

  • Short-seller Boatman Capital first targeted Argo Blockchain over the purchase of land for a crypto mining facility in Texas.
  • Its second report on the company, published this morning, focuses on shareholder dilution.

Short-seller Boatman Capital has published a new report on what it describes as ‘serious governance failures’ at London-listed crypto miner Argo Blockchain.

The report, which comes several months after Boatman’s initial attack on Argo, focuses on the extent to which shareholders have been diluted by the company’s capital raising.

“Argo has diluted shareholders by 52% so far this year with further dilution likely given potential capex [capital expenditure] requirements of $1.5-2 billion for the Texas project,” stated Boatman in the report, adding that Argo has also raised money by issuing bonds at “eye-watering interest rates.”

Argo’s current market capitalization stands at around £500 million (roughly $660 million). It was worth more than double that in February of this year after a sudden spike in its share price.

Boatman bases its dilution claims on publicly available information that suggests that the number of Argo shares in circulation has risen from 307,905,000 at the start of the year to 468,082,335 today.