In February 2021, Argo Blockchain told shareholders it had reached an agreement with DPN LLC to buy 320 acres of land in Texas for $5 million in shares initially, rising to $17.5 million.
However, Boatman Capital requested a formal valuation of the land by a certified real estate appraiser in Texas and found that the land acquired by Argo was worth $168,000. The report suggested that Argo shareholders had benefitted from the sale, but the claims have not been proven.
Peter Wall, the CEO of Argo Blockchain clarified that the land in question was 160 acres in size with an option for an additional 160 acres to be purchased as part of the agreement.
He refuted claims by Boatman Capital in a statement to the Telegraph. He said: “Our feeling was that the opportunity cost to wait, to try and find our own piece of land to do all of that legwork ourselves would be too big” adding that the purchase was “a very solid deal.”
The news comes after Argo’s reported strong results for the first half of the year with revenue jumping by 180 per cent to £31.1m. However, the company’s share price is down 1.9 per cent in the past 24 hours.
Boatman Capital caused problems for a British contractor in 2018 when they published a report that caused Babcock’s shares to fall by more than 5 per cent on the day it was published.