Anchorage Digital, a federally chartered American digital asset institution that secured a $4.2 billion valuation earlier in the year, has allegedly laid off 17% of its personnel, indicating that the extended cryptocurrency market slump continues to impact the firm despite its growing institutional presence.
Drawing on sources close to the situation, The Information reported on Friday that Chief Executive Officer Nathan McCauley communicated the downsizing to staff during the week. Based on congressional testimony delivered by McCauley in February, Anchorage maintained a global workforce of approximately 400 individuals at that time, implying that a 17% contraction equates to nearly 68 positions if staffing levels stayed relatively constant.
Cointelegraph contacted an external public relations representative for Anchorage seeking validation, though no prompt reply was provided.
The digital asset sector has faced persistent difficulties over the preceding year, a factor highlighted by The Information as the context for the staff reductions at Anchorage. Bitcoin (BTC) briefly climbed past $87,000 on Friday while staying significantly beneath its all-time high of $126,000 attained last October.
These job cuts coincide with Anchorage broadening its footprint within the heavily regulated American cryptocurrency space. The enterprise achieved the milestone of becoming the initial crypto entity to obtain a national trust charter from the Office of the Comptroller of the Currency back in 2021, eventually evolving into a prominent digital asset custodian.
In more recent developments, Anchorage has branched out into the creation of stablecoins, participating in ventures such as Tether’s fresh US-focused stablecoin USAT. Earlier in the year, the organization secured a $100 million equity injection from Tether.
Related: Crypto’s billions are back, but the premiums aren’t
Originally published at https://cointelegraph.com/news/anchorage-digital-cuts-workforce-report?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
