Bitcoin mining giant Foundry has announced a major restructuring, laying off nearly 27% of its workforce as it pivots to focus on its core business of mining and site operations. The layoffs affect employees across multiple teams, with over half of those impacted based in the United States.
Strategic Shift and AI Spinoff
Foundry’s CEO, Mike Coyler, confirmed the layoffs, leaving the company with approximately 200 employees. The move is part of a broader strategy that includes spinning off its artificial intelligence division, Bittensor, into a new subsidiary named Yuma.
“This restructuring allows us to sharpen our focus on what we do best—Bitcoin mining and operational efficiency,” the company said in a statement. “While difficult, these decisions are necessary to position Foundry for future success. We deeply value the contributions of all our employees, including those impacted by this transition.”
Addressing Rumors
Reports initially surfaced suggesting up to 60% of Foundry’s workforce had been cut. The company has since disputed these claims, emphasizing that the layoffs were limited to 27%. Foundry also addressed rumors about its hardware and ASIC repair services, denying any plans to shut them down. Instead, the company is deprioritizing its hardware business to reallocate resources to its mining operations.
Industry Context
Foundry’s restructuring comes as crypto mining stocks, including Marathon Digital Holdings, Riot Platforms, and Hut 8 Mining, experience growth. These companies have seen rising revenues and stock prices, even after the recent Bitcoin halving, which reduced block rewards to 3.125 BTC.
The shake-up also follows financial turbulence for Foundry’s parent company, Digital Currency Group (DCG). Earlier this year, DCG resolved a dispute involving its now-bankrupt subsidiary Genesis, agreeing to a $482.5 million settlement. The restructuring within Foundry may signal an effort by DCG to stabilize its portfolio and streamline operations amid industry challenges.
What’s Next for Foundry?
With its workforce reduced and its AI division operating independently, Foundry aims to double down on Bitcoin mining and operational optimization. The company’s strategic pivot is indicative of broader trends in the crypto sector, where firms are reevaluating their priorities amid shifting market dynamics.
While Foundry adapts to a leaner operating model, its success in navigating these changes will be closely watched by both industry peers and investors.