Swan Bitcoin (BTC +0.17%), a California-based investment platform specializing in Bitcoin, has announced significant changes to its business operations. CEO Cory Klippsten revealed on X that the company is shutting down its mining business and canceling plans to go public.
Klippsten stated, “@Swan is unlikely to continue with our Managed Mining business in the near term. Without the expectation of significant near-term revenue from our Managed Mining unit, we are pulling our plans to IPO in the near future.”
In addition to these changes, Swan Bitcoin has laid off several employees across various departments and has scaled back its ambitious growth strategy. Klippsten mentioned efforts to assist the downsized employees in finding new jobs. However, the exact number of affected employees has not been disclosed.
At press time, Swan Bitcoin has not responded to requests for comments. The company provides Bitcoin asset management and financial advisory services, including a product that allows users to buy, but not sell, their Bitcoin, promoting a “hodling” strategy. The mining unit, which began operations in 2023, emerged from stealth in January after raising over $100 million from institutional investors. There were plans to establish mining farms overseas and increase the company’s total hash power to 8 exahash.
Klippsten previously shared with The Block his intentions to take the company public by the end of the year after raising and deploying $205 million across equity, credit, and hedge funds to expand the business.
The decision to shut down Swan’s mining business coincides with a challenging period for many Bitcoin miners following the Bitcoin halving, which has reduced revenues and investor interest. Several firms in the industry are now pivoting to providing computing power for AI companies and cloud service providers.