Swan Bitcoin Pulls the Plug on Its IPO Plans Due to the Closure of Its Mining Division
- WBOYOriginal
- 2024-07-23 14:35:111130browse
The decision was made by CEO Cory Klippsten on July 22, stating that the company had to cut expenses and address the consequences of mining revenue loss.
Financial services firm Swan Bitcoin has abandoned its IPO plans following the closure of its mining division.
The decision was announced by CEO Cory Klippsten on July 22, who stated that the company had to reduce expenses and address the impact of lost mining revenue.
Klippsten announced staff cuts and said that the firm’s Managed Mining operations would not be supported in the short term.
Klippsten stated that the company could not proceed with the IPO due to the lack of mining revenues.
“Swan is pulling back from our accelerated spending plan for our core financial services business. Unfortunately, this includes staff cuts across many functions,” explained Klippsten.
In January, Swan Bitcoin started mining and planned to go public within a year.
The firm had generated $125 million in revenue since 2023 and doubled its employee count at that time.
Klippsten’s statement comes amid the latest Bitcoin halving, which has reduced mining rewards from 6.25 to 3.125 BTC per block.
The event led to a decline in the revenues of major mining corporations like Bitfarms, which is being targeted for acquisition by Riot Platforms.
However, other mining companies are faring better in 2024, with Swan Bitcoin being among the struggling firms in the industry.
German mining firm Northern Data plans to conduct an IPO in the US in the first half of 2025, and Genesis Digital Assets is also preparing to go public, among others.
This move by Swan Bitcoin highlights the challenges faced by crypto firms in the current market.
It will now focus on strengthening and maintaining its core financial services business as it adjusts to the environment.
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