Following a protracted battle pitting First Investments against Argo Blockchain PLC, the two sides are finally due to bury the hatchet and start afresh in a new business-to-business deal ahead of a planned crunch meeting.
In the agreement, Argo Blockchain has decided to let go one of its founders and the chairman of the board of Directors, Jonathan Bixby, who will be replaced by the other Argo Blockchain director and co-founder, Mike Edwards in a chair capacity.
On the other hand, First Investments -an activist investor platform- will be buying the Argo Blockchain’s mining-as-a-service solution as an enterprise. The latter company will then benefit tremendously by earning revenues of up to $1 million on a monthly basis.
It is key to note that First Investments will be the pioneer enterprise level client of Argo Blockchain and the contract of cooperation and business has already been signed and in effect.
Argo Blockchain Had To Make Some Changes
First Investments needed to be confident that Argo Blockchain has the intellectual capacity to deliver on its end of the contract for the partnership deal to be signed. To achieve this end, Argo Blockchain has announced that its current chairman is stepping down. Soon after, the company management has promised to select the next non-executive director at the next annual general meeting to when shareholders meet.
Additionally, First Investments is expected to be consulted in the appointment since it is a client that is the sole customer for Argo Blockchain’s mining-as-a-service solution.
The Benefit Of The Argo Blockchain’s Deal Outweigh The Cost
Argo Blockchain believes that the costs of the changes are lesser than the massive benefits that the platform is getting from both First Investments and the business-to-business miner HIVE Blockchain according to Edwards.
He additionally says that the company is responding to shareholder’s demands and that the plan is set to pay long-term dividends to its investors as a constant revenue stream will be created.
The Argo co-founder further celebrates the achievement of the outgoing chairman Jonathan by attributing the deployment of the enterprise level mining-as-a-service solution to his business-minded strategies.
Edward, in his statement, also says that the deal signing is a testament to the “strong foundation” that Argo is built on.
Argo Blockchain PLC Shares Are Bullish
Since the platform does not have its native Token and it has been listed in the LSE under RNS Number 0390Z, its shares are bullish having surged by 26% to stand at 6 pence each on Wednesday (May 15). This is in response to not only the news of the new B2B deal with First Investments but also an official Press Release of May 15 that confirms the structural changes leading up to the new business deal.
About The Next AGM
The PR reveals that the AGM is scheduled for June 25, 2019, and the chairperson is expected to relinquish his position when the meeting adjourns. After consulting with the new client, an independent non-executive director will be appointed.
In general, Blockchain businesses are recording increased sales as many platforms are requiring Blockchain-as-a-service solutions to remain competitive and cut operational costs.