Swan Bitcoin Bitcoin
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“@Swan is unlikely to continue its managed mining business in the short term. It will likely scrap its IPO plans in the near future as it does not expect significant short-term revenue from its managed mining business,” Klippsten said.
The company also laid off several employees across “multiple functions” and scaled back its ambitious growth strategy. Klipsten said it would try to offer new jobs to the laid-off employees. It’s unclear how many Swan employees have lost their jobs.
The company did not respond to a request for comment by the time of writing.
Swan provides Bitcoin asset management and financial advisory services. It includes a product that allows people to buy coins but not sell them, making them true “holders.” The mining division began operations in 2023 and only emerged from stealth in January after raising at least $100 million from institutional investors. There were plans to set up mining farms overseas and increase the company’s total hash power to 8 exahashes.
Clipsten previously told The Block that he plans to take the company public by the end of the year after raising and investing $205 million through equity, credit and hedge funds to grow the business.
The closure of Swan’s mining operations comes at a stressful time for many miners following the Bitcoin halving, which led to a sharp decline in profits and investor interest. Several companies have shifted their focus to providing computing power to AI companies and cloud providers.
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About the Author
Daniel Kuhn is a senior journalist and editor at The Block, covering the cryptocurrency industry with a particular focus on technology. He previously served as an associate editor at CoinDesk, where he covered the opinions/articles section. He was first published in the trade publication Financial Planning. Before pursuing journalism, he studied philosophy as an undergraduate, English literature as a graduate student, and business and economic reporting at NYU’s professional program. You can connect with him on Twitter and Telegram @danielgkuhn, or find him on Urbit as ~dorrys-lonreb.