The Argo Blockchain PLC (LON: ARB) share price rallied 10% despite announcing the departure of an executive and changing its registered office address and company secretary. Typically, such news would cause a company’s stock price to fall, but this was not the case for the Bitcoin mining company.
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Yesterday, Argo announced its Chief Financial Officer (CFO), Alex Appleton, had resigned from his position to pursue other opportunities. In addition, Appleton resigned from his position as an Executive Director, which led Argo to engage the services of an executive search firm to find a replacement for the crucial position.
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Investors do not like when a company loses a high-ranking executive such as the CFO, given the crucial role such a person plays in any organisation. However, the markets did not punish Argo as much as they could have, with the company’s shares closing down 4.92% on Monday.
Argo Blockchain’s shares could not be held back for long as they rallied higher on Tuesday despite announcing changes to its registered office address and appointing a new company secretary, which should have spooked investors but did not.
To understand why investors were willing to give Argo Blockchain the benefit of the doubt, we have to look at the primary drivers behind its latest rally. ARB shares have risen 147% this year, boosted by the rising Bitcoin prices. The shares have since plateaued along with Bitcoin prices.
Therefore, it is pretty clear that the most dominant factor behind Argo’s share price rally is Bitcoin prices, given that it is a Bitcoin miner and stands to benefit significantly from rising Bitcoin prices. Hence, investors are more focused on Bitcoin prices than Argo’s internal operations, which explains why the recent announcements had little impact on ARB shares.
*This is not investment advice.
The Argo Blockchain share price.
The Argo Blockchain share price surged 12.94% to trade at 16.376p, from Monday’s closing price of 14.50p.
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