Foundry, the world’s largest Bitcoin mining pool, cuts 60% of the workforce amid restructuring

Foundry, the world’s largest Bitcoin mining pool, has sent more than 60% of its staff packing today. The company released some of its local and international employees, affecting several teams, including the ASIC repair and hardware teams. The mining pool operations, firmware team, and self-mining department remained partially intact.

Familiar sources state that the company’s move to lay off staff is strategic as it aims to improve the main revenue streams. The digital currency group shareholder letter points to Foundry’s race to earn $80 million in revenue from its self-mining business for 2024.

Foundry BTC mining pool accounts for 30% of the Bitcoin network’s total hashrate

Foundry boasts of several business lines. One of its most significant lines is the mining pool, which accounts for 30% of the network’s total hashrate. The firm has always been the pool of choice for institutional-scale and public Bitcoin mining firms incorporated in the US.

Foundry’s other significant business lines include self-mining, custom hardware, decentralized AI infrastructure, ASIC repairs, firmware, and site operations across other Bitcoin mining and general compute verticals. It launched some revenue streams in 2022 after Genesis, a subsidiary of their shared parent company, Digital Currency Group, collapsed.

While most departments were affected by the layoffs, the firm’s site operations, which control and oversee Bitcoin mining firms, remain in place. There are speculations that Foundry is planning to sell, but only time will prove this. 

DCG restructures by moving Foundry employees to Yuma and resolving Genesis disputes

Foundry had moved nearly 20 workers to Yuma, a new subsidiary under Digital Currency Group (DCG). Yuma, a decentralized AI startup, has roots in Foundry and is supported by investments through Foundry’s AI-focused division, Bittensor.  The startup is run in an acting capacity by Barry Silbert, the DCG CEO.

The Foundry was registered in 2017 under the wings of DCG and has often given more competitive mining pool fee rates. Its offers are always enticing, sometimes extending 0% fees to its most prominent clients. Around 2020 and 2021, the firm introduced ASIC-backed loans.

These layoffs are a strategy for the DCG to repair its shredded empire. Genesis, which was DCG pride, went bankrupt after FTX’s implosion. 

Following the bankruptcy period, DCG spent vast dollars to help Genesis pay its creditors. However, Genesis initiated a legal dispute, claiming that DCG owed its creditors around a $1.7 billion loan.

The legal dispute was solved in August, with DCG committing to pay Genesis $324.5 million in cash and $158 million in cryptocurrencies.

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