Bitcoin Firm NYDIG Slashes 110 Jobs Amid Ongoing Crypto Bear Market: Report
Bitcoin services company New York Digital Investment Group (NYDIG) has slashed about a third of its headcount, according to a Thursday report by The Wall Street Journal, citing people familiar with the matter.
The workforce cut affected approximately 110 of the NYDIG’s employees and was announced on September 22, people said. The firm is reportedly seeking to reduce expenses and narrow focus on more promising businesses.
Founded in 2017, NYDIG is a subsidiary of Stone Ridge Holdings. The firm offers Bitcoin trading, brokerage, custody, and asset management services to institutional investors.
The headcount cut, if confirmed, comes amid leadership changes at NYDIG, with former CEO Robert Gutmann and president Yan Zhao stepping down on October 3, replaced by Tejas Shah and Nate Conrad, respectively.
NYDIG did not immediately respond to a Decrypt request for comment.
NYDIG to defy the bear market?
NYDIG raised $1 billion last December at a valuation of more than $7 billion, announcing the fresh capital will be used to further develop the company’s institutional-grade Bitcoin platform, adding such features as Lightning Network payments, asset tokenization, and smart contracts functionality.
In a recent filing with the SEC, NYDIG said it secured $720 million for its Institutional Bitcoin Fund, with a total of 59 investors contributing to the raise.
Last week, the firm also said, among other things, it will focus on accelerating investments in its Bitcoin mining franchise serving North American miners.
Several prominent crypto companies already announced staff cuts this year, as the dramatic decline in the value of cryptocurrencies, coupled with the rising inflation, impacted their businesses.
These included Coinbase, Crypto.com, Gemini, Robinhood, Mercado Bitcoin, Immutable, and BlockFi.
NYDIG, however, insists its balance sheet is “the strongest it’s ever been” as the firm’s Bitcoin balance hit an all-time high in the third quarter, or up almost 100% compared to the same period last year.
NYDIGis yet to publish its Q3 2022 report, however, the company said it expected its revenue to increase further after the 130% growth through the second quarter.Source