Foundry Cuts 60% of Staff Amid Crypto Challenges

Foundry, the world’s largest Bitcoin mining pool and a subsidiary of Digital Currency Group (DCG), has laid off 60% of its workforce, primarily targeting non-core teams like hardware and ASIC repair. This decision is part of DCG’s broader strategy to streamline Foundry’s operations while focusing resources on new ventures, including Yuma, an AI ecosystem accelerator launched by DCG founder Barry Silbert.

The layoffs impacted a significant portion of Foundry’s 250 employees, with 20 reassigned to Yuma and most others dismissed. The company’s hardware team was entirely cut, and Foundry is reportedly considering selling its mining site operations team. Despite these challenges, Foundry’s core mining pool operations remain intact.

Bitcoin mining has faced increasing challenges due to higher mining difficulty and reduced profitability, particularly following the halving event earlier this year. These factors have pushed many mining companies, including Foundry, to reevaluate their operational efficiency. While Foundry still ranks among the largest Bitcoin mining pools globally, controlling a significant share of the hash rate alongside AntPool, the industry’s financial pressure is evident.

DCG’s recent history includes financial troubles, such as lawsuits from its subsidiary Genesis over unpaid loans and the sale of CoinDesk. However, not all DCG entities are struggling—Silbert’s launch of Yuma suggests a pivot toward AI and new technologies as a way to diversify the group’s business interests.

Foundry’s financial health remains unclear. DCG’s Q3 2024 shareholder letter projected $80 million in revenue for Foundry, but the layoffs suggest underlying challenges. These cuts signal potential shifts in Foundry’s focus and operations, leaving its future uncertain as it navigates a volatile mining market.