5 December, 2024
Bitcoin miner Foundry lays off employees to focus on core business
Foundry, a leading Bitcoin mining company, has cut nearly a third of its staff as part of a wider restructuring effort.
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Bitcoin mining company Foundry has cut nearly a third (27%) of its staff, with more than half of the affected employees based in the United States. According to the Bitcoin mining company, employees were informed of the layoffs ahead of a company meeting where the decision was approved. Company CEO Mike Coyler confirmed the move, which will leave Foundry with 200 employees.
According to Blockspace, the layoffs are part of Foundry's ongoing restructuring process. The company is also spinning off its artificial intelligence (AI) division Bittensor into a new subsidiary called Yuma. The goal is to focus on Foundry's core Bitcoin mining and site operations businesses.
"As part of this realignment, we have made the difficult decision to reduce Foundry's workforce, resulting in layoffs across multiple teams. We are grateful for the contributions of all our employees, including those impacted by these changes," the mining company reportedly said.
Before Foundry confirmed the layoffs, another Blockspace report cited anonymous sources saying up to 60% of the staff had been laid off. However, Foundry denied the claims. The company also denied rumors of shutting down its hardware and ASIC remediation business lines, saying it was simply prioritizing other businesses.
Foundry's decision to lay off employees comes at a time of growth for cryptocurrency mining stocks including Marathon Digital Holdings, Hut 8 Mining, and Riot Platforms. These companies have seen growth in stock prices and revenues despite the recent Bitcoin halving event that reduced block rewards to 3.125 BTC.
Foundry's parent company DCG is in the midst of a broader restructuring effort following the bankruptcy of its subsidiary Genesis. DCG invested hundreds of millions of dollars in Genesis to repay creditors, but a dispute arose over a $1.7 billion loan. The issue was resolved in August, with DCG agreeing to pay Genesis $482.5 million in cash and cryptocurrency.
