Argo Blockchain CEO Thomas Chippas has stepped down from both his CEO role and board directorship after 14 months of service.
His compensation package, which included up to 2.85 million units, was contingent on meeting performance milestones, meaning he will forfeit this payout due to his early departure.
The company has appointed Jim MacCallum, CFO, to act as interim CEO while it looks for a permanent leader.
Before Argo, Chippas served as CEO at Cboe Digital, Managing Director at Citi and founded ErisX, a digital asset platform later acquired by Cboe in 2021.
Thomas Chippas, the chief executive officer of Argo Blockchain, has officially announced his departure after leading the crypto mining company for 14 months.
According to a company on January 21, Chippas will step down from his position and vacate his board directorship, starting February 28, 2025. He joined Argo in November 2023 after previously serving as the CEO and board member of Cboe Digital.
Leadership Transition and Compensation Impact
When Chippas took over as CEO, his included an offer of up to 2.85 million units related to Argo’s American Depositary Shares, vested over a three-year period. However, his early departure means he will forfeit the compensation package, as it was contingent upon continued employment and performance milestones.
Following his resignation, Argo Blockchain announced that Chief Financial Officer Jim MacCallum will serve as interim CEO while the company conducts a search for a permanent successor. The firm intends to employ the services of an executive search firm to identify a leader aligned with its long-term vision.
The firm currently operates a crypto mining facility in Quebec and maintains offices across the United States, Canada, and the United Kingdom.
Before joining Argo, Chippas held several leadership roles, including Managing Director at Citi’s New York branch. He also founded ErisX, a digital asset trading platform later acquired by Cboe in 2021.
Argo Blockchain’s Financial Struggles
During his tenure at Argo, Chippas helped improve the company’s financial standing. One of his notable achievements was overseeing the repayment of the company’s loan to Galaxy Digital ahead of schedule.
“Thomas has made significant contributions to Argo including the repayment of the Galaxy loan ahead of schedule and improving the balance sheet. On behalf of the Board and everyone at Argo, I would like to thank Thomas for his many achievements and wish him every success in the future,” said Matthew Shaw, Chairman of the Board.
Despite his short tenure, Chippas’ departure comes at a time when Argo Blockchain is still facing significant financial difficulties. The company’s Q3 2024 results revealed a net loss of $6.3 million, driven by tough market conditions and shrinking margins in its mining operations.
The company’s revenue fell to $7.5 million, down 28% from the previous year. Its mining efforts yielded 123 Bitcoin during the quarter, averaging just 1.3 BTC per day, while its mining margins plummeted from 58% to a mere 8%.
According to reports, adjusted EBITDA also saw a dramatic shift, going from a positive $2.4 million last year to a loss of $2.1 million.
