Bitcoin mining firm Foundry confirms layoffs despite rising mining revenues

Bitcoin It's booming and the crypto industry is making a comeback – but lately layoffs continue.

The latest company to make such a move is the American Bitcoin Miner Foundry. The Rochester, New York-based foundry has announced it has cut 16% of its workforce. The company is one of the largest US Bitcoin miners.

He announced in a statement Decrypt “The foundry has made the difficult decision to reduce its workforce, resulting in redundancies across a number of teams. The company has also cut a small team in India, he added.

Blockspace first reported the staff word, though Foundry said a smaller number of roles were affected than originally claimed.

“We recently made a strategic decision to focus Foundry on our core business – building the world's number one Bitcoin mining pool and growing our site operations – while supporting the development of DCG's new subsidiaries, including Yuma and Foundry's successful self-mining business,” he said in a statement.

Yuma is an artificial intelligence (AI) platform and founding subsidiary. Foundry's owner, Digital Currency Group (DGG), said in a letter to shareholders after the US election that the mining operation was best run “as an independent business”. Foundry also offers a standalone service for other digital assets such as Ethereum.

Despite the rise in the value of crypto, major companies in the space – including the giant Ethereum CommunicationHigh digital asset exchange Krakenand the New York stage dYdX– The number of heads has decreased this year. Professionals They spoke Decrypt Prior to the election, regulatory uncertainty played a role in the decline of companies.

Bitcoin mining is a particularly difficult industry. The reward for miners decreases every four years, and it becomes more expensive for companies to run their businesses.

Bitcoin mining It's the process of using powerful computers to verify transactions on a large crypto network.

Back in the day, 14 years ago, the process could be done on a home PC. But as the network grows, so does the industry and the competition. Miners are typically large operations using server farms and lots of electricity.

Miners receive newly minted bitcoins for their work, and as the years go by, the coin-mining process becomes more difficult and even more labor-intensive.

However, according to JP Morgan, the price of BTC rose in November on the back of rising BTC mining revenue, which came within a few hundred dollars of $100,000 for the first time late last month.

Edited by Andrew Hayward.