Foundry – Bitcoin Mining Company Cuts Workforce, Refocuses on Core Business

Foundry, one of the leading Bitcoin mining companies, has reduced its workforce by nearly a third as part of a comprehensive restructuring effort.

Foundry Spins Off AI Division, Prioritizes Bitcoin Mining

Foundry has announced a 27% reduction in its workforce, with over half of the layoffs occurring in the U.S. According to CEO Mike Coyler, this decision was finalized during an internal meeting, leaving the company with approximately 200 employees.

This move is part of Foundry’s strategic restructuring plan. The company has spun off its artificial intelligence (AI) division, Bittensor, to form a new subsidiary called Yuma. The primary goal is to focus on its core operations: Bitcoin mining and managing mining facilities.

"During the restructuring process, we made the tough decision to downsize our workforce, resulting in layoffs across several departments. We value the contributions of all employees, including those affected by this change," Foundry stated.

Denying Rumors of Hardware Division Shutdown

Earlier reports by Blockspace suggested that up to 60% of Foundry's workforce might be laid off. However, the company has dismissed these claims. Foundry also denied rumors of shutting down its hardware business and ASIC repair services, emphasizing that the company is only deprioritizing the hardware segment.

Bitcoin Mining Sector Thrives Despite Challenges

The workforce reduction comes amid strong stock performance for Bitcoin mining companies such as Marathon Digital Holdings, Hut 8 Mining, and Riot Platforms. Despite the recent halving event reducing the mining reward per block to 3.125 BTC, these companies have continued to achieve increased revenues and stock prices.

Foundry’s parent company, Digital Currency Group (DCG), is also undergoing restructuring following the bankruptcy of its subsidiary, Genesis. DCG has invested hundreds of millions of dollars to address Genesis’ debts and settle a $1.7 billion loan. In August, DCG agreed to pay $482.5 million to Genesis in cash and cryptocurrency.