Swan Bitcoin cancels IPO plans, shuts down mining unit, and scales back spending with staff reductions.
Swan, a Bitcoin investment corporation Bitcoin has decided to discontinue its managed mining operations and has ceased its intentions to go public in the near future.
CEO Cory Klippsten announced in an X post on Monday that the company is reducing its plans to increase spending on its primary financial services business.
He did not specify the number of employment cuts, but this rollback encompasses staff reductions in various departments.
“The Swans we’ve had to let go in our staff reduction this week are some of the best Bitcoiners on Earth, and I would gladly work with each and every one of them in the future,” he said.
Swan disclosed in January that it had been developing a Bitcoin mining subsidiary since mid-last year. The organization also disclosed that it was contemplating a Series C funding round and intended to list on the stock exchange within the next year.
Klippsten had stated that Swan’s goal was to equitably distribute its mining rigs between foreign and domestic locations.
Nevertheless, he elected not to disclose the locations of the majority of the sites. Furthermore, Swan disclosed that its miners are currently operating at a rate of 4.5 exahashes per second (EH/s), expecting to increase this output to eight EH/s by March.
Swan experienced significant growth in the previous year, tripling its team size and generating over $125 million in annualized revenue.
Swan’s decision to abandon its IPO ambitions coincides with a more difficult environment for miners. The recent Bitcoin halving, which resulted in a 50% reduction in block rewards, heightened competition.
Additionally, the emergence of spot Bitcoin ETFs has attracted investors away from direct mining participation, which has impeded miners’ ability to secure funding.
This double threat is compelling numerous miners to expand their operations beyond pure-play mining. To maintain profitability, they are progressively utilizing their infrastructure to provide services in cloud computing and artificial intelligence.