NYDIG, a Bitcoin gateway platform providing various crypto services, has quietly reduced its employee account, according to a recent report.
WSJ.com writes that about one-third of its staff, or 110 individuals, have been let go. The move follows a change in executive leadership that was announced on October 3, 2022. At that time, NYDIG said that Tejas Shah and Nate Conrad had been promoted to the roles of CEO and President, respectively. CEO Robert Gutmann and outgoing President Yan Zhao were expected to remain at Stone Ridge Holdings Group, the parent company of NYDIG
Simultaneously, NYDIG claimed that Bitcoin balances had hit all time highs, almost doubling since the same time last year, while revenue had jumped by 130%.
NYDIG did not report profitability, and it may be suffering from the challenging funding environment as VC capital has been drying up. Ross Stevens, Founder and Executive Chairman of NYDIG did claim that the firm’s balance sheet was the “strongest its ever been.” NYDIG last raise funding at the end of 2021 raising $1 billion at a valuation of $7 billion.
NYDIG did say it would focus more energy on its mining services, a more hardware-intensive business.
The entire crypto sector has been challenged in recent months, just like traditional financial markets. Record-high inflation and rising interest rates have put the economy on a path to recession. Most observers claim the economy is already in recession, but things are going to get even worse. NYDIG, like many firms, may simply be girding for the declining global economy.