According to Thursday’s report by The Wall Street Journal, NYDIG, New York Digital Investment Group, a Bitcoin services company, has laid off about a third of its headcount. People said this laid-off was announced on September 22, and it affected around 110 of the NYDIG’s employees.
NYDIG has taken this step to reduce expenses and narrow focus on more promising businesses. NYDIG, which was founded in 2017, is a subordinate of Stone Ridge Holdings, and this firm offers Bitcoin trading, brokerage, asset management services, and custody to institutional investors.
This headcount cut also affected the leadership posts, as on the 3rd of October, their former CEO Robert Gutmann and president Yan Zhao stepped down. Now the post of CEO is handled by Tejas Shah and the president is handled by Nate Conrad.
Last December, NYDIG raised $1 billion at a valuation of more than $7 billion, and they announced that it would be used for developing the Bitcoin platform. They had announced that they would add more features to Bitcoin, such as Lightning Network payments, smart contracts functionality, and asset tokenization.
In a recent filing with the SEC, NYDIG said that it had raised around 59 investors and secured $720 million for its Institutional Bitcoin Fund from them. Last week, the firm said that it would focus on accelerating investments in its Bitcoin mining franchise serving North American miners, together focusing on other things.
This year, not only Bitcoin announced a staff cut, but other several prominent crypto companies also announced their staff cut. These announcements are due to the dramatic decline in the value of cryptocurrencies, which impacted their business. The companies that cut their staff are Gemini, Coinbase, Crypto.com, Robinhood, Immutable, Mercado Bitcoin, and BlockFi.