Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Swan to cancel public listing and shutter Bitcoin mining unit following layoffs

Swan to cancel public listing and shutter Bitcoin mining unit following layoffs

The BlockThe Block2024/07/22 19:04
By:The Block

Quick Take The bitcoin-only investment company is rolling back its mining business, downsizing and canceling plans to go public, Swan CEO Cory Klippsten said. Swan’s Managed Mining unit was launched in July 2023. The company had planned to go public by the end of the year.

Swan Bitcoin BTC +0.83% , the California-based, bitcoin-only investment platform, is rolling back its mining business revealed earlier this year, and canceling plans to go public, CEO Cory Klippsten announced on X.

“@Swan is unlikely to continue with our Managed Mining business in the near term. Without the expectation of significant near-term revenue from our Managed Mining unit, we are pulling our plans to IPO in the near future,” Klippsten said.

Additionally, the company has laid off several employees “across many functions” and scaled back its ambitious growth strategy. Klippsten said he would attempt to assist those downsized employees with new jobs. It is not yet clear how many Swan employees lost their jobs.

The company has not returned a request for comment at press time.

Swan offers bitcoin asset management and financial advisor services — including a product that allows people to buy, but not sell, their coins, making them true “hodlers.” Its mining unit began operating in 2023 and only came out of stealth in January after raising at least $100 million from institutional investors. There were plans to launch mining farms overseas and raise the company’s total hash power to 8 exahash.

Klippsten previously told The Block he planned to take the company public by the end of the year after raising and deploying $205 million across its equity, credit and hedge funds in an effort to grow the business.

The shuttering of Swan’s mining business comes at a stressful time for many miners following the Bitcoin halving , which slashed revenues and investor interest. Several firms have pivoted to providing computing power for AI firms and cloud providers.


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Uniswap sets a new record with $38 billion monthly trading volume

Share link:In this post: Uniswap’s monthly trading volume has surged by almost 50% in November. The monthly fee generation has outdone Ethereum in some instances. Solana’s trading volume rose by over 50%, highlighting DeFi’s move to regain blockchain control.

Cryptopolitan2024/11/29 05:33

Russia Pushes Crypto Tax Reform Amid Bitcoin Surge

However, Russian miners of cryptocurrencies will be exempt from paying VAT (Value Added Tax) on the coins they mine.

Cryptotimes2024/11/29 05:00

XRP Lawsuit: US Judge Approves Ripple’s Judgment Request

Judge Phyllis Hamilton approved a joint request from both parties to move forward with the final judgment while maintaining a stay on the plaintiff’s class claims.

Cryptotimes2024/11/29 05:00