As an analyst with over a decade of experience in the cryptocurrency market, I’ve witnessed numerous ups and downs, but the recent news about Foundry’s restructuring stands out as a significant event. The decision to lay off 27% of its staff amidst a planned spin-off of their self-mining business is not uncommon in times of market adjustment, but it’s always disheartening to see talented individuals affected by such changes.
In simpler terms, the largest Bitcoin mining pool globally, known as Foundry, recently made the decision to reduce its workforce by 27%. This move was disclosed following a strategic reorganization, according to someone who is in the know, speaking to CryptoMoon on December 3.
16% of Foundry’s U.S. workforce, along with some employees from their Indian team, are part of the recent job cuts, according to the source.
According to a letter sent to shareholders in November and obtained by CryptoMoon, it was revealed that Digital Currency Group (DCG), Foundry’s parent company, intends to separate its self-mining business into an independent entity, which will remain under DCG’s control.
Lately, we’ve chosen to concentrate Foundry on our main operations – running the top Bitcoin mining pool worldwide and expanding our site operations – while assisting in the development of DCG’s latest subsidiaries, such as the separation of Foundry’s profitable self-mining business,” is a paraphrased version that conveys the same meaning in an easy-to-understand way.
In our restructuring process, it was a tough call, but we decided to minimize the workforce at Foundry, leading to job reductions affecting several departments,” the team explained.
Market share
Operator of the world’s largest Bitcoin mining pool, Foundry USA (a subsidiary of Foundry), manages around a third of the market share among pool operators, as per data from Hashrate Index.
Additionally, they operate a self-operated mining business that’s projected to generate approximately $80 million in revenue by 2024, as stated in their November report to investors.
DCG stated in November that they think this company will be more robust operating independently. Therefore, they plan to separate it as a completely owned subsidiary of theirs. Furthermore, they intend to hire experts from outside to help attract investment capital.
Industry adjustments
In various sectors of the industry, Bitcoin miners are making cost reductions and adopting artificial intelligence, as they deal with the effects brought about by the network’s halving that occurred in April.
Every four years, the Bitcoin mining process reduces the amount of new Bitcoins produced for each block by half, which is a feature built into its network.
Due to the rising costs and challenges associated with Bitcoin mining, the results for different miners have become quite diverse, as indicated by the CoinShares’ Q3 mining report.
Even with the current situation, miners are still deploying new systems and planning for more growth, expecting an increase in prices down the line,” as stated by CoinShares.
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2024-12-04 00:16