Bitcoin mining firm cuts 27% of workforce in strategic shift amid DCG restructure: report

Prominent Bitcoin mining group Foundry Digital cut 27% of its workforce this week. The layoffs, which affected 74 employees, reflect a strategic shift to prioritize core operations, including its Bitcoin mining operations and facilities. This decision follows an internal restructuring within Digital Currency Group (DCG), Foundry’s parent company.

CEO Mike Coyler said the firm is focusing on its core business lines to strengthen its market position. As part of this change, the platform has de-prioritized its custom hardware initiatives while maintaining its ASIC repair services.

The foundry cuts jobs

According to Blockspace’s latest report, the layoffs were accompanied by the transfer of 20 Foundry employees to Yuma, a decentralized AI startup that grew out of Foundry’s internal Bittensor project. Yuma now operates as an independent entity from DCG under CEO Barry Silbert. Foundry management described the changes as part of a strategy to streamline operations and refocus on its core businesses, including its flagship Bitcoin mining suite and site operations.

Foundry currently accounts for 30% of the total hashrate of the Bitcoin network. Its automining business alone is on track to generate $80 million in revenue by 2024, according to DCG’s third quarter 2024 shareholder letter. Meanwhile, other lines of business, such as ASIC repairs and decentralized AI infrastructure, remain operational.

In a statement, the company stated,

“We recently made the strategic decision to focus Foundry on our core business while supporting the development of DCG’s newest subsidiaries. As part of this realignment, we made the difficult decision to reduce the Foundry workforce, resulting in layoffs across a number of teams.”

Navigating turbulent waters

The layoffs come amid broader challenges for DCG, which has worked to stabilize its operations following the bankruptcy of its Genesis lending subsidiary after being caught up in the fall of FTX.

Amid financial challenges, Foundry moved from a free model to a paid service, marking a significant shift in its business strategy in April last year.

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