Bitcoin
financial
services
firm
Swan
Bitcoin
pulled
its
plan
to
take
the
company
public,
discontinued
its
managed
mining
unit
and
cut
staff
across
several
units.
Swan
CEO
Cory
Klippsten
said
in
a
social
media
post
that
the
company
will
still
offer
bitcoin
(BTC)
financial
services
and
free
bitcoin
education.
“Without
the
expectation
of
significant
near-term
revenue
from
our
Managed
Mining
unit,
we
are
pulling
our
plans
to
IPO
in
the
near
future,”
Klippsten
wrote
in
the
X
post.
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Advisors
Are
So
Excited
About
a
Spot
Bitcoin
ETF
“Accordingly,
Swan
is
pulling
back
from
our
accelerated
spending
plan
for
our
core
financial
services
business.
Unfortunately,
this
includes
staff
cuts
across
many
functions,”
he
added.
The
move
comes
at
a
time
when
the
mining
landscape
has
become
more
competitive
after
the
recent
Bitcoin
halving,
which
cut
the
block
rewards
by
half.
The
availability
of
spot
bitcoin
exchange
traded-funds
(ETFs)
have
also
deterred
many
investors
from
the
mining
industry,
shutting
some
doors
to
capital
for
miners.
As
a
result,
many
miners
are
struggling
to
keep
their
business
profitable
by
being
pure-play
mining
operations
and
pivoting
some
of
their
infrastructure
to
serve
artificial
intelligence
and
cloud
computing-related
services.
Despite
the
Bitcoin
halving
making
the
mining
ecosystem
tougher
and
less
profitable
to
navigate,
several
private
miners
are
still
vying
to
go
public
following
bitcoin’s
record
high
earlier
this
year.
Genesis
Digital
Assets,
formerly
backed
by
FTX’s
Sam
Bankman-Fried,
and
two
of
Northern
Data’s
units
were
among
other
firms
reportedly
planning
IPOs.
Earlier
this
year,
Swan
said
it
will
go
public
within
the
next
12
months
and
the
mining
unit
had
160
megawatts
(MW),
or
4.5
exahash
per
second
(EH/s),
worth
of
computing
power
up
and
running.
At
the
time,
the
firm
also
said
that
the
mining
business
has
been
funded
by
institutional
investors,
with
more
than
$100
million
and
hopes
to
raise
more
capital
to
expand
its
operations.
Tether
was
among
the
backers
of
Swan’s
managed
mining
service,
with
as
undisclosed
amount
of
investment
into
its
business.
UPDATE
(July
22,
18:29
UTC):
Adds
additional
context
in
the
last
paragraph
about
Swan’s
$100
million
funding
and
investors.
