NEW YORK, Saturday, July 27, 2024- Swan Bitcoin, a digital asset financial services firm, announced on Platform X that it had abandoned plans for an initial public offering and shut down its managed mining unit.
The company’s CEO, Cory Klippsten, cited a lack of expected near-term revenue from the mining operation as the primary reason for the decision. The move also includes staff reductions across various departments.
Swan will continue to offer Bitcoin financial services and education, according to Klippsten.
The decision comes amid a challenging environment for Bitcoin miners, marked by increased competition and lower profitability.
Swan Bitcoin is a prominent player in the Bitcoin financial services industry. Swan Bitcoin had planned to go public within the next 12 months. The company aimed to raise additional capital to expand its mining operations, which boasted 160 megawatts of computing power.
Swan had also secured over $100 million in investments from institutional backers, including Tether.
SWAN’s announcement on X is given below.
ANNOUNCEMENT –
@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 shortly.
Accordingly, Swan is pulling back from our accelerated spending plan for our core financial services business. Unfortunately, this includes staff cuts across many functions.
The Swans we’ve had to let go in our staff reduction this week are some of the best Bitcoiners on Earth, and I would gladly work with every one of them in the future. I will be doing my best to help them find new roles in Bitcoin, and I hope that if you have the opportunity to help similarly, you’ll jump at the chance.
This is an incredible moment in time for Bitcoin, with real institutional adoption, an increasingly favorable regulatory and political environment, and the ranks of Bitcoiners swelling in number. At Swan, we remain ready to serve you with an array of Bitcoin financial services and free Bitcoin education.
See you on the battlefield. #TeamBitcoin”
