Foundry, a Bitcoin 
$98,513 mining pool affiliated with Digital Currency Group (DCG), announced a 16% reduction in its workforce in the United States. The reduction also affected a small team in India. The company stated that this decision is part of a strategic restructuring process.
Industry Pressure and Declining Mining Profits
A spokesperson for DCG remarked, “We are focusing on operating Foundry as the world’s largest Bitcoin mining pool and expanding our site operations.” They also noted that DCG’s new subsidiaries, particularly Yuma and Foundry’s own self-mining operations, supported the separation process. The company confirmed that layoffs occurred in multiple teams, expressing gratitude for all employees’ contributions.
The Bitcoin mining sector is currently under pressure due to declining profitability rates. Post-Bitcoin halving, mining revenues are expected to decrease. The hashprice index has dropped approximately 40% over the past year, falling from around 100 dollars in December to about 60 dollars today. However, a slight increase in this index has been observed over the last three months.
Foundry’s restructuring decision serves as a notable example of how to manage industry pressures. The long-term impacts of the company’s strategic decisions will be closely monitored.
Bitcoin Price Rises While Mining Stocks Lag Behind
Recent data shows that Bitcoin’s price has increased by 130% over the past year. Despite this rise, mining companies have not sufficiently benefited from the increase.
According to a report by JPMorgan, the total revenue from mining at current Bitcoin prices is estimated at 74 billion dollars. This situation has caused mining companies’ stock performances to lag behind the market.
