Jul 11, 2022 at 07:05Bitcoin mining company Compass Mining laid off 15% of its staff and reduced the salaries of top management to “stay afloat.” It is not the first and probably not the last crypto company forced to take desperate measures because of crypto winter. How Compass Mining’s case differs from others is described below.
The company, which has offices in the U.S., Iceland, and Canada, announced this on its official website. Compass Mining co-founders Thomas Heller and Paul Gosker assure that the changes will allow the company “to take a good position in the emerging market.
“Given the recent market downturn and anticipated future market conditions, we have had to carefully analyze our costs and realign with future business,” according to the announcement.
In addition to layoffs, the company also decided to cut the salaries of the top management by up to 50%. Compass Mining is already the third mining company to face operational difficulties amid the cryptocurrency crisis.
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“While these changes are painful, they will allow Compass to remain flexible and well-positioned in this emerging market that challenges many of our industry peers,” said the statement.
Among other measures, Compass will reduce marketing costs.
“We will pay more attention to diligent content providers and partner with those who care about the companies we receive dollars from. The most important factor moving forward is providing our customers with exceptional service and benefits.”
Miners also owe a lot to lenders who lent money to purchase collateralized equipment in the hardware. Ethan Vera, co-founder of the mining firm Luxor Technologies, believes that many lenders (Bable Finance, Galaxy Digital, Celsius Network, BlockFi, Foundry Networks) are concerned that they have made too many loans to secure the mining devices themselves. He estimates that the firms have lent a total of $4 billion.
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