NYDIG Lays Off a Third of Its Staff: Report

The trading firm is looking to cut costs as the markets continue its downward trajectory following this year’s poor performance

article-image

Source: Shutterstock

share

key takeaways

  • Despite raising hundreds of millions of dollars for its institutional bitcoin fund, NYDIG has let a third of its staff go
  • The firm had raised $1 billion in October of last year with a valuation of $7 billion

Crypto investment management and trading firm NYDIG has laid off more than a third of its staff, despite having raised hundreds of millions of dollars for its bitcoin fund earlier this month.

According to a report by the Wall Street Journal, around 110 staff were let go late last month as the company seeks cost-cutting measures amid the crypto downturn. According to the company’s LinkedIn profile, NYDIG’s staff count is estimated to be around 286.

Blockworks attempted to contact the trading firm but did not receive a response by press time.

Despite replacing its CEO Robert Gutmann and President Yan Zhao earlier in October, NYDIG said its bitcoin balances had hit an all-time high during the third quarter. 

But it appears that record balance has had little impact on the firm’s decision to reduce employee numbers. The company had been on solid ground in late 2021 when it closed a $1 billion funding round with a valuation of $7 billion.

Tejas Shah and Nate Conrad are the latest to take on NYDIG’s CEO and president roles, respectively. Both Gutmann and Zhao will continue to work at the firm’s $12 billion parent company, Stone Ridge Holdings, which they co-founded with Ross Stevens in 2012. 

NYDIG also raised $720 million for its institutional bitcoin fund on Oct. 4 with contributions coming from 59 investors.

Crypto markets remain on shaky ground following the fallout of the lending crisis earlier this year. That event, triggered by the fall of Terra’s ecosystem, has all but wiped billions of dollars from the market, which has been repeatedly testing the highs of the 2017 bull market cycle.

NYDIG, like others, is attempting to navigate rough seas as retail and institutional investors take a risk-off approach to otherwise seemingly risky digital assets.

Bellwether crypto bitcoin has fallen more than 70% from $69,000 seen in November last year to just under $20,000.

Established in 2016, NYDIG was later spun off into a separate entity in 2017. Its main mission has been to “make Bitcoin accessible to all” by providing technology and financial services solutions to banks, FinTech companies, investment managers, and institutions, among others.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

Marathon Digital’s latest heating project in Finland part of broader vision to “drive the advancement of the digital asset compute industry,” CEO says

article-image

MicroStrategy announced that it bought nearly 12,000 more bitcoin from April to late June

article-image

Unpacking Trump memecoins and the Kraken/CertiK situation

article-image

Instead, the primary path to real RWA growth is dollar-backed stablecoins

article-image

While crypto lawmaking is set to quiet down this summer, bitcoin miner activity appears to be heating up