Bitcoin financial products company Swan is abandoning mining, postponing its planned initial public offering (IPO) and laying off employees, CEO Cory Klipsten said in a statement on X (formerly Twitter).
Swan's managed #mining business was aimed at large institutional investors who could invest in mining ventures in partnership with the company. The initial product announcement noted that #Tether "has already invested significant capital, largely through @Swan, to create a major presence in #bitcoin mining.
UPDATE - @Swan is unlikely to continue our managed mining business in the near term. As we do not expect significant near-term revenues from our managed mining division, we are canceling our plans to IPO in the near future.
In a statement to Protos, Tether said, "Our contracts with Swan's mining division have not been affected and we do not expect any disruptions. The teams running these operations have been isolated and will continue to operate as normal.
it appears that despite the partnership with Tether, the sector has failed to meet Swan's "expectations for significant short-term revenue.
This apparently led to the decision to postpone the planned IPO.
the report also notes that Swan was forced to make "staff reductions" this week. At least one employee, Steven Rivera, who held a position in education, wrote a letter to X Company saying that his position was no longer available.
Despite the fact that Swan appears to be in trouble, Mr. Clipsten believes that "this is an incredible moment for bitcoin.
Previously, Mr. Clipsten criticized one of Swan's competitors, Celsius, saying that Celsius' "mining IPO was always just a marketing ploy.
Now he tells subscribers, "See you on the battlefield. #TeamBitcoin .
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