Swan Bitcoin Shuts Down Mining Business
Swan Bitcoin (BTC +4.83%), a California-based bitcoin-only investment platform, is discontinuing its mining operations and canceling plans to go public, as announced by CEO Cory Klippsten on X.
“@Swan is unlikely to continue with our Managed Mining business in the near term. Without the expectation of significant near-term revenue from our Managed Mining unit, we are pulling our plans to IPO in the near future,” Klippsten stated.
The company has also conducted layoffs across multiple functions and has scaled back its ambitious growth strategy. Klippsten mentioned he would assist affected employees in finding new jobs, though the number of layoffs has not been disclosed.
Swan has not yet provided a comment regarding the matter.
Swan Bitcoin offers bitcoin asset management and financial advisory services, including a unique product that allows users to buy but not sell their bitcoins, making them true “hodlers.” The mining unit commenced operations in 2023, emerging from stealth in January after raising around $100 million from institutional investors.
Initial plans included launching mining farms overseas and increasing the company’s total hash power to 8 exahash. Klippsten had previously indicated intentions to take the company public by the end of the year after raising and deploying $205 million across its equity, credit, and hedge funds.
The decision to shut down the mining division occurs during a challenging period for many miners, following the Bitcoin halving, which has reduced revenues and investor interest. Many firms are now pivoting towards providing computing power for AI companies and cloud service providers.
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