FinServ firm Swan Bitcoin has postponed its plans to go public. It is parallelly shutting down its mining unit, pulling back from its 'accelerated spending plan' for its core financial services business, and initiating a staff cut across several verticals.
Via a post on X [formerly Twitter,] the firm’s executive Cory Klippsten asserted,
“Swan is unlikely to continue with our Managed Mining business in the near term. Without the expectation of significant near-term revenue from our Managed Mining unit, we are pulling our plans to IPO in the near future.”
Swan offers users BTC asset management and financial advisor services. It also has a product that discourages investors from selling their coins. It only fosters buying, making them “hodlers” by virtue.
The firm kickstarted its mining operations 2023. Earlier this year, the firm indicated that institutions were backing its mining business. It secured more than $100 million from these players and intended to raise more funds to expand its operations.
Swan had plans to launch mining farms abroad and notch up its aggregate hash power to 8 exahash.
In the latest announcement, the executive labeled the fired staff to be “some of the best Bitcoiners on Earth.” He, however, did not disclose how many employees were impacted by this decision.
Community members were taken aback by the bearish development of the firm scaling back its ambitious growth strategy. Several community members, including crypto researcher Zack Voell, did not hesitate to question, “Isn’t this a bull market? What happened?”
In his post, Klippsten asserted that “this is an incredible moment in time for Bitcoin.” He gave credits to “real institutional adoption,” the “increasingly favorable regulatory and political environment,” and the “ranks of Bitcoiners swelling in number.”
Owing to the halving, several Bitcoin miners have been under distress. As a result, they have been leaning on AI’s back to help them navigate the rough waters.
That being said, it should be noted that there are firms on the other side of the equation as well. As reported by blocmates, German Bitcoin miner and cloud computing platform Northern Data AG is in talks with advisors about going public in the US.
Stake in its artificial intelligence cloud computing and data center businesses will be up for grabs by the public at a combined valuation ranging in the $10 billion to $16 billion bracket.
