Foundry Reduces Workforce: A Strategic Shift in Bitcoin Mining Operations
In a significant move announced on Monday, Foundry, recognized as the largest Bitcoin mining pool globally, has undertaken a substantial workforce reduction. This decision involves laying off nearly 60% of its employees, as reported by Blockspace. The layoffs impact both domestic and international teams, decreasing the company’s employee count from over 250 to approximately 80-90 individuals.
Strategic Refocus on Core Business Activities
According to insiders quoted by Blockspace, the layoffs are part of a broader “strategic initiative” designed to bolster Foundry’s main revenue-generating operations. In a shareholder letter from the parent company, Digital Currency Group (DCG), Foundry is projected to achieve $80 million in revenue from its self-mining endeavors by 2024. The company stated:
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We have recently made a strategic choice to concentrate on our core business—operating the leading Bitcoin mining pool worldwide and expanding our site operations—while nurturing the growth of DCG’s newest subsidiaries.
Despite the reduction in staff, key areas continue to function efficiently. Foundry’s Bitcoin mining pool, which currently contributes to 30% of the Bitcoin network’s total hashrate, remains its most prominent business unit. Furthermore, the operations of the mining pool, firmware team, and self-mining division remain unaffected, although the company has dissolved its ASIC repair and hardware teams.
Impact of Genesis Collapse on Foundry
The layoffs occur amidst a challenging phase for Foundry and its parent entity, Digital Currency Group. After the downfall of Genesis, a subsidiary of Barry Silbert’s conglomerate, Foundry had ventured into various new business areas, including custom hardware and decentralized AI infrastructure.
Recently, the company transitioned approximately 20 employees to a new DCG subsidiary, Yuma, a decentralized artificial intelligence startup spearheaded by DCG with Barry Silbert also serving as its acting CEO.
Established in 2017 as a part of the Digital Currency Group, Foundry has been a significant force in the Bitcoin mining sector, previously providing attractive mining pool fee structures and even offering 0% fees to its largest clients. However, the company has encountered obstacles, such as defaults on ASIC-backed loans that have impacted its self-mining segment.
The recent layoffs symbolize a pivotal moment in Foundry’s evolution, reflecting wider trends within the cryptocurrency industry as businesses navigate regulatory challenges and market fluctuations.
Bitcoin’s Market Position
As of the latest update, the leading cryptocurrency, Bitcoin, is trading at $95,570, experiencing a consolidation phase over the last ten days, remaining below its all-time high of $99,540. This threshold has been challenging to surpass, hindering Bitcoin from reaching the anticipated $100,000 milestone.
Currently, Bitcoin shows no price movement compared to the previous day. However, over extended time frames, the cryptocurrency continues to exhibit significant growth, with a remarkable increase of nearly 40% in the past month.
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