Swan Bitcoin, a Bitcoin-focused financial services firm, said it is ending its managed mining business alongside its Initial Public Offering (IPO) plans.
Klippsten also stated that the firm was “pulling back from our accelerated spending plan for our core financial services business. Unfortunately, this includes staff cuts across many functions.”
Swan’s decision is surprising, considering the firm recently launched a bespoke Managed Bitcoin Mining services in May that attracted interest from major institutional firms like stablecoin issuer Tether.
At the time, the company stated that it had spent over $330 million to increase its mining capacity to 7.5 EH. It also had an ambitious plan of increasing its capacity to 19.5 EH this year and about 100 EH by 2026.
Nevertheless, the market is still experiencing bullish sentiments, with Bitcoin price enjoying a rebound buoyed by the strong inflows into the spot BTC exchange-traded funds (ETFs) and hopes of a Donald Trump presidency providing greater regulatory clarity for the emerging industry.
Klippsten acknowledged that the market conditions are currently favorable, pointing out that:
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Source : CryptoSlate