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Swan Plans to End Mining Operations, Drops IPO Plans
Miners continue to face profitability challenges and the market consolidates post-Halving.
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Bitcoin services firm Swan will halt mining operations and has pulled the plug on its IPO ambitions.
What’s the scoop?
- Miner Down: Swan CEO Cory Klippsten posted to X that his firm no longer has expectations of significant near-term revenues for its “Managed Mining” group. As such, Swan is “unlikely” to continue operations of the group and has abandoned its plans to list on a publicly traded stock exchange.
- Big Cuts: Due to its loss of a major revenue stream, Swan will be forced to reduce spending on its core financial service businesses and cut staff across many functions.
Bankless take:
While Bitcoin’s hash rate has remained resilient post-Halving due to optimism on the crypto industry, miner profitability has decreased, placing Network integrity at risk should additional miners sell down BTC reserves and capitulate on operations.
ANNOUNCEMENT - @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.
— Cory Klippsten 🦢 #Bitcoin is for everyone (@coryklippsten) July 22, 2024
Accordingly, Swan is pulling back from our…