Ross Stevens’ Bitcoin firm NYDIG has let go of more than a third of its personnel, despite raising billions of dollars for its bitcoin fund earlier this month.
The Wall Street Journal report states that the firm is exploring cost-cutting solutions facing the crypto collapse; over 110 employees were laid off late last month. The company’s LinkedIn profile indicates that the number of employees at NYDIG is around 286, on average.
The investment management and trading firm said that its Bitcoin balances surged high during the third quarter, despite dismissing its CEO Robert Gutmann and President Yan Zhao back in October.
However, it seems that the high balance had little impact on the company’s plan to downsize the number of people employed. Recall that the enterprise was stable when it closed a $1 billion fundraising round valued at a $7 billion valuation back in 2021.
Ross Stevens’ Bitcoin firm Raises $1 Billion Capital to Build its Platform
Back in late 2021 NYDIG raised $1 billion in funding to create a bitcoin platform designed for institutional purposes. The platform was meant to link up with financial institutions and credit unions, giving a significant portion of retail banking consumers access to bitcoin on a scale that has never happened before; this informs the reasons the company’s slogan was “Bitcoin for all.”
However, the cryptocurrency market has declined after NYDIG’s fundraising. Bitcoin’s price crashed below $20,000 per coin, falling over 70% from its all-time high of about $67,500 back in November 2021.
Earlier in the month, the duo of CEO Robert Gutmann and President Yan Zhao stepped down from their respective roles to join the parent company. Recently appointed Tejas Shah and Nate Conrad will now carry on as the CEO and President respectively.
Meanwhile, like other concerned firms, NYDIG is seeking to manage the challenge created by institutional and retail investors’ risk-off stances toward ostensibly dangerous digital assets.
In 2017, NYDIG, which had been founded back in 2016, was divided into a new company, to offer technological and financial services solutions to institutions including banks, FinTech firms, investment managers, and others.