In short
- Bitcoin miner MARA has cut 15% of its workforce as the company focuses on AI.
- The withdrawal, he said was not due to financial difficulties, follows his recent sale of Bitcoin for $1.1 billion.
- Shares in MARA ended Thursday up more than 8%, but have fallen 53% in the past six months.
Bitcoin crowdfunder MARA has cut staff by 15% after selling $1.1 billion in high-value crypto, the company confirmed Decrypt after the start report from Blockspace Media.
Based on sources close to the matter, the source said the layoffs would affect full-time employees in all departments, and could also affect the company’s contractors.
“MARA remains focused on making our transition from Bitcoin mining to an electronics and electronics manufacturing company,” a MARA spokesperson said. Decrypt.
“As our company changes, so does the way we work and where we invest our resources. With this in mind, as part of our growth strategy, we made the difficult but important decision to reduce our team by approximately 15%,” he added.
According to an internal memo reviewed by BlockspaceThe company’s CEO Fred Thiel said the decision was not “just a financial decision – it’s a strategic one.”
“As we have shared our recent announcements with Starwood and Exaion, we are looking at the company in a different way,” he said. “That means our team’s form has to change with it.”
Thiel’s comments speak to the company’s approach to entering the data space for AI and powering AI computing, noting the latest partnership is a data center development platform owned by Starwood Digital Ventures money in Exiona company that develops and operates data centers in Europe.
MARA, like other Bitcoin miners, has made significant changes to the power of AI and other computing requirements, expanding its focus beyond the high-end crypto economy. Recently, the company announced selling about 15,000 BTC or more than $1.1 billion price, allowing it to repurchase convertible debt and strengthen its finances.
That sale came later approved a decision that allowed him to sell Bitcoin from his websitenot only BTC worked.
It is not the only Bitcoin miner to download its storage. Rival Miner Riot Platforms sold about $250 million in BTC on Q1, after $200 million in revenue from sales in Q4. Also, earlier this year, Cango parted with more than $300 million in BTC as it changes back to AI.
Shares in MARA ended Thursday up more than 8%, trading hands at $8.71. Shares have fallen more than 53% in the past six months, while Bitcoin has fallen nearly 47% from its all-time high of $126,080 to trade around $67,000.
MARA is not the only crypto company that has cut staff in recent months, most notably Jack Dorsey’s company associated with Bitcoin Block. cutting more than 4,000 jobs in February. Some companies in the area that have recently reduced include Gemini, Crypto.comand Algorand Foundationand OP Labs. In some cases, including Block and Gemini, companies have cited greater reliance on AI tools to create fewer employees.
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