Foundry Cuts Workforce by 60%: The World’s Largest Bitcoin Mining Pool Restructures

by

As a seasoned analyst with over two decades of experience in the tech and finance industries, I have witnessed numerous ups and downs in various markets. The recent layoffs at Foundry, the world’s largest Bitcoin mining pool, are a stark reminder of how dynamic and unpredictable this industry can be.

As an analyst, I’m sharing some insights from yesterday: On Monday, I learned that Foundry, a global leader in Bitcoin mining, made a tough decision to downsize their workforce substantially. This means they’re letting go of roughly 60% of their staff, which translates to around 170-180 employees, as per Blockspace’s report. Both US and international teams are impacted by this move, bringing the company’s overall headcount down from over 250 to approximately 80-90 employees.

Foundry Focuses On Core Business

According to sources close to the situation as reported by Blockspace, these layoffs appear to be a strategic move intended to bolster Foundry’s primary income-producing activities.

As per a shareholder letter penned by the parent company, Digital Currency Group (DCG), it’s anticipated that Foundry will yield approximately $80 million in revenue from its mining operations by the year 2024. This prediction was made public via a statement issued by Foundry itself.

As a crypto investor, I’ve chosen to concentrate Foundry on its primary mission: leading the global Bitcoin mining pool and expanding our on-site operations. Simultaneously, I stand committed to backing the growth of DCG’s latest ventures.

Even though there have been layoffs, crucial sectors within the company are still active. Notably, Foundry’s Bitcoin mining pool – responsible for 30% of the overall Bitcoin network’s processing power – remains a significant part of their operations.

Furthermore, while the company has let go of its entire ASIC repair and hardware teams, it’s worth noting that the mining pool operations, firmware team, and self-mining division remain operational.

Layoffs Follow Genesis Collapse

Due to some rough times experienced by Foundry and its overseeing organization, Digital Currency Group, layoffs are now taking place. This situation arises after the failure of Genesis, a subsidiary owned by Barry Silbert’s company. In an effort to adapt, Foundry expanded into multiple business sectors such as custom hardware and decentralized artificial intelligence infrastructure.

Over the past week, approximately twenty employees were relocated to Yuma, a cutting-edge AI company under the DCG umbrella and spearheaded by both DCG and Barry Silbert, who serves as the chief executive officer of this newly established business.

As a researcher, I find myself delving into the dynamic world of Bitcoin mining, where Foundry, established in 2017 under the Digital Currency Group umbrella, has carved out a significant role. Initially recognized for its competitive mining pool fee rates and even offering enticing 0% fees to our largest clients, Foundry has been a key player in the industry’s landscape.

Yet, the firm has encountered difficulties, such as delinquencies on ASIC-supported loans, which have negatively impacted its self-mining sector.

The recent layoffs mark a critical juncture in Foundry’s journey, mirroring broader trends within the cryptocurrency space as companies grapple with regulatory pressures and market volatility. 

Currently, as I type this, the top cryptocurrency, Bitcoin, is being exchanged at around $95,570. Over the past ten days, it has been holding steady below its all-time high of $99,540, which it hasn’t managed to surpass since then, keeping Bitcoin from achieving the $100,000 mark.

At present, Bitcoin’s price remains unchanged compared to yesterday. Yet, over extended periods, the digital currency is still exhibiting substantial growth, with a noteworthy increase of almost 40% in the monthly chart.

Read More

2024-12-04 19:42