According to four people with knowledge on the subject, bitcoin services company NYDIG laid off nearly 100 jobs.
Bitcoin Services Company NYDIG Lays 30 Percent Of Its Employees
The firm has laid off about 30% of its staff in the past few weeks, according to three people with knowledge of the matter. Another added that the layoffs had been going on for “a few weeks”.
The Wall Street Journal first announced the layoffs late Thursday, saying 110 employees had been laid off.
In late 2021, NYDIG raised $1 billion in funding to build an enterprise-grade Bitcoin platform. The platform was expected to connect banks and credit unions to provide unprecedented BTC access to the majority of retail banking customers.
The company branded the campaign as “Bitcoin for All”.
But since NYDIG’s fundraising cryptocurrency market declined. Bitcoin price has slumped below $20,000 per coin, down 70% from its all-time high of around $67,500 in November 2021.
A former company employee said:
“NYDIG invested all of its money in this banking strategy, but they realized that it was not possible for these banks to be ready.
They squandered all that money by telling a story that they were going to bring Bitcoin to the masses. Their basic strategy was wrong.”
The layoffs also coincide with a period of leadership changes. In early October, the company announced that CEO Robert Gutmann and Chairman Yan Zhao would resign and return to Stone Ridge Holdings Group, NYDIG’s parent company.
Tejas Shah and Nate Conrad, both executives at NYDIG, will take over as CEO and chairman, respectively.
Gutmann and Zhao were co-founders of Stone Ridge, an alternative asset manager specializing in alternative investment strategies, including weather insurance and pharmaceutical royalties.
*Not investment advice.
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