Crypto broker NYDIG cuts one-third of staff in new focus
The company was founded in 2017 and it raised $1 billion in a round of funding in December valuing the company at $7 billion
NYDIG switching its focus toward more promising businesses means job cuts.
The bitcoin trading and banking firm laid off about a third of its workforce last month, people familiar with the matter told the Wall Street Journal.
The jobs lost come to about 110 as the company looked to trim expenses and narrow its focus.
The cutbacks came less than two weeks before NYDIG announced it had replaced its top two executives.
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Bitcoin prices took a tumble over the last few days. (Photo by Fernando Gutierrez-Juarez/picture alliance via Getty Images / Getty Images)
On Oct. 3, NYDIG said that Chief Executive Robert Gutmann and President Yan Zhao had stepped down from their roles, although they will remain parent company Stone Ridge Holdings Group.
They were replaced by Tejas Shah, formerly head of institutional finance, and Nate Conrad, global head of payments, respectively.
In this photo illustration, a NYDIG (New York Digital Investment Group LLC) logo is seen on a smartphone screen. ((Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) / Getty Images)
The reason for the executive changes was not disclosed.
NYDIG didn’t specify in its statement why the firm was swapping out its top executives, and didn’t note the recent layoffs.
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A company statement said it was on pace for record revenue this year, with sales up 130% during the first half.
Ross Stevens, NYDIG’s founder, said, "The firm’s balance sheet is the strongest it’s ever been, and now we’re investing aggressively into a capital-starved market."
NYDIG executives didn’t return requests for comment. The company’s public-relations firm declined to comment.
Founded in 2017 as New York Digital Investment Group, NYDIG offers bitcoin trading, brokerage, custody and asset management services to institutional investors.
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The company raised $1 billion in a funding round in December that valued it at more than $7 billion.