Emily Walker
On Monday, Foundry, recognized as the world’s largest Bitcoin mining pool, disclosed a substantial workforce reduction, laying off around 60% of its employees. This report, shared by Blockspace, indicates that the layoffs will impact both US and global teams, decreasing the workforce from more than 250 to approximately 80-90 individuals.
Foundry’s Strategic Shift
According to insiders mentioned by Blockspace, these layoffs are part of a “strategic initiative” aimed at bolstering Foundry’s primary revenue streams.
In a letter to shareholders from Digital Currency Group (DCG), the parent company, it was noted that Foundry anticipates generating $80 million in revenue from its self-mining operations by 2024. Foundry’s statement included:
We recently made the strategic decision to focus Foundry on our core business—operating the #1 Bitcoin mining pool globally and expanding our site operations, while also supporting the growth of DCG’s new subsidiaries.
Despite the layoffs, important divisions still remain active. Foundry’s Bitcoin mining pool, which currently holds a 30% share of the Bitcoin network’s total hashrate, is still a major component of its business. The mining pool operations, firmware team, and self-mining division continue to function, although the company has eliminated its entire ASIC repair and hardware teams.
Impact of Genesis Downturn
The decision to reduce the workforce follows a challenging period for Foundry and its parent company, Digital Currency Group. After the downfall of Genesis, a subsidiary of Barry Silbert’s firm, Foundry expanded into various sectors, including custom hardware and decentralized AI infrastructure.
Recently, around 20 employees were transferred to a new DCG subsidiary, Yuma— a decentralized AI startup under the leadership of Barry Silbert, who also serves as the company’s CEO.
Since its inception in 2017 as a part of Digital Currency Group, Foundry has established itself as a vital player in the Bitcoin mining sphere, previously offering competitive mining pool fees and 0% fees to its largest clients.
However, the company has encountered difficulties, including defaults on ASIC-backed loans that have affected its self-mining segment.
The recent job cuts represent a crucial point in Foundry’s evolution, reflecting broader challenges in the cryptocurrency industry as companies face regulatory scrutiny and market fluctuations.
As of this writing, Bitcoin, the leading cryptocurrency, is priced at $95,570, remaining stable over the past 10 days just under its peak of $99,540, which it has struggled to surpass, preventing it from hitting the $100,000 mark.
Currently, the price of BTC shows no fluctuations compared to yesterday. However, when viewed over a longer timeframe, the cryptocurrency has experienced substantial increases, particularly in the past month where it has gained nearly 40%.
Featured image from DALL-E, chart from TradingView.com