Earlier this week, the management of the American investment company Swan Bitcoin, which specializes in investing in bitcoins, decided to close the mining business and abandon its IPO. Swan Bitcoin CEO Cory Klippsten clarified that his company will no longer finance the development of its core business areas at an accelerated pace.
“We are moving away from our accelerated spending plan to grow our core business and financial services. Unfortunately, this includes cutting functional staff,” Klippsten said.
Swan Bitcoin did not specify what events inside or outside the company caused the company to cut costs and abandon Bitcoin mining. It is most likely that the decision was made in the wake of the Bitcoin halving, increased competition in the mining industry and a reduction in block rewards, which made it more difficult for miners to recoup operating costs.
Notably, Swan Bitcoin has shown significant growth in 2023, doubling its headcount and reaching revenues of around $125 million. In January, Swan Bitcoin announced the accelerated development of its own Bitcoin mining division, as well as its intention to conduct an initial public offering of its shares on the stock exchange in the very near future.
Source: Bits
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