Swan Bitcoin halts mining and IPO plans, announces staff cuts

Swan Bitcoin, a Bitcoin-focused fiscal services firm, said it is ending its managed mining concern alongside its Initial Public Offering (IPO) plans.

On July 22, the firm’s CEO Cory Klippsten said:

“Swan is improbable to proceed with our Managed Mining concern successful the adjacent term. Without the anticipation of important near-term gross from our Managed Mining unit, we are pulling our plans to IPO successful the adjacent future.”

Klippsten besides stated that the steadfast was “pulling backmost from our accelerated spending program for our halfway fiscal services business. Unfortunately, this includes unit cuts crossed galore functions.”

Why is Swan downsizing?

Swan’s determination is surprising, considering the steadfast precocious launched a bespoke Managed Bitcoin Mining services successful May that attracted involvement from large organization firms similar stablecoin issuer Tether. 

At the time, the institution stated that it had spent implicit $330 cardinal to summation its mining capableness to 7.5 EH. It besides had an ambitious program of expanding its capableness to 19.5 EH this twelvemonth and astir 100 EH by 2026.

However, marketplace observers noted that Bitcoin mining companies person considerably struggled pursuing April’s halving lawsuit that chopped mining rewards by 50%. Due to this, respective miners, including Marathon Digital, person sought antithetic gross diversification strategies, specified arsenic pivoting towards artificial intelligence and mining different proof-of-work blockchains.

Nevertheless, the marketplace is inactive experiencing bullish sentiments, with Bitcoin terms enjoying a rebound buoyed by the strong inflows into the spot BTC exchange-traded funds (ETFs) and hopes of a Donald Trump presidency providing greater regulatory clarity for the emerging industry.

Klippsten acknowledged that the marketplace conditions are presently favorable, pointing retired that:

“This is an unthinkable infinitesimal successful clip for Bitcoin, with existent organization adoption, an progressively favorable regulatory and governmental environment, and the ranks of Bitcoiners swelling successful number.”

The station Swan Bitcoin halts mining and IPO plans, announces unit cuts appeared archetypal connected CryptoSlate.