As a seasoned crypto investor with a knack for deciphering market trends and understanding the intricacies of the blockchain ecosystem, I find the recent layoffs at Foundry both concerning and intriguing. Having weathered numerous bull and bear markets, I’ve learned to navigate through such turbulence with a keen eye on the long-term potential.
Foundry, a major mining pool and a subsidiary of DCG, laid off 60% of its staff. These layoffs targeted the company’s non-core functions, including its entire hardware team and a possible future sale of mining site operations.
Meanwhile, the founder of Digital Currency Group (DCG), Barry Silbert, has recently unveiled fresh endeavors. The latest addition to his portfolio was introduced last week, which goes by the name Yuma AI Ecosystem Accelerator.
Massive Layoffs at Foundry
It’s reported that the world’s leading Bitcoin mining group, Foundry, is planning to dismiss around 60% of its workforce. This information originates from unidentified sources within the company who conversed with Blockspace. Despite this, Foundry has released a statement on the matter.
In a recent strategic move, Foundry has chosen to concentrate on its main operations and aid the growth of DCG’s latest affiliates. This restructuring process includes a tough choice to trim down the workforce at Foundry, leading to job cuts across various departments.
The fact that Digital Currency Group (DCG) has other subsidiaries apart from Foundry is worth highlighting. While Foundry is one of many DCG ventures led by Barry Silbert, not all of these companies are going through the same struggles. In a recent announcement, Silbert unveiled Yuma, an initiative aimed at fostering the growth of artificial intelligence (AI) development.
Essentially, the financial woes of Digital Currency Group (DCG) aren’t shared equally among its different subsidiaries. About a year ago, the bankrupt crypto lender Genesis filed a lawsuit against DCG, its parent company, over unpaid loans. Additionally, DCG also sold CoinDesk, a well-known crypto news outlet, around the same time. It appears now that Foundry might be facing similar difficulties.
In August, Foundry established itself among the top Bitcoin miners globally, accounting for over half of the total hash rate alongside AntPool. However, the Bitcoin mining difficulty has been exceptionally high this year, particularly following the halving event, leading to reduced profits for mining operations worldwide.
These layoffs have primarily targeted Foundry’s non-core employees. Of an initial crew of 250, 20 staff members were reassigned to Yuma, and between 160-170 were laid off.
This involves both the ASIC repair and hardware departments, while keeping mining pool functions operational. Findry is contemplating the possibility of selling off their on-site operation team, responsible for managing Bitcoin mining facilities.
It’s tough to assess Foundry’s overall financial status because the company has been secretive about these recent layoffs. For instance, DCG’s Q3 2024 shareholder letter stated that Foundry was projected to generate $80 million in revenue, but these job cuts still occurred. As a result, it’s unclear where the world’s biggest Bitcoin mining pool might be headed next.
Read More
- ZRO PREDICTION. ZRO cryptocurrency
- IDEX PREDICTION. IDEX cryptocurrency
- GTAI/USD
- Snowbreak: Containment Zone Meta Report – Anniversary Edition
- Gachiakuta Chapter 115: Release Date, Where To Read, Expected Plot And More
- BTC PREDICTION. BTC cryptocurrency
- ADA PREDICTION. ADA cryptocurrency
- CSPR PREDICTION. CSPR cryptocurrency
- STETH PREDICTION. STETH cryptocurrency
- The End of the Petrodollar? Andy Schectman Warns of Potential Total Financial Collapse in the U.S.
2024-12-04 07:18