NYDIG has slashed about 33% of its headcount resulting in 110 jobs lost at the bitcoin (BTC-USD) trading and banking company, as of September 22, according to a recent report by The Wall Street Journal, citing people with knowledge on the matter.
In the wake of suppressed cryptocurrency prices after huge drawdowns took effect at the beginning of 2022, the layoffs come as the company seeks to cut expenses and narrow its focus toward more promising businesses, the people told the WSJ.
At the beginning of October, NYDIG shuffled its leadership after naming Goldman Sachs alums Tejas Shah and Nate Conrad as chief executive officer and president, respectively. At the time, NYDIG did not specify why those replacements were made, but noted that its “balance sheet is the strongest it’s ever been, and we’re now investing aggressively into a capital-starved market.”
NYDIG did not immediately respond to a request for comment by Seeking Alpha.
Towards the end of the crypto bull market in December 2021, NYDIG raised $1B in a growth equity funding round at a valuation of more than $7B. But with bitcoin (BTC-USD) and many other digital tokens dropping as much as 70% since then, NYDIG’s value has perhaps come down as well.
In June, Deloitte teamed up with NYDIG to give clients bitcoin capabilities.