Anchorage Digital has cut 17% of its workforce, The Information reported, citing people familiar with the matter. CEO Nathan McCauley told employees about the decision this week. The company has not yet responded to a request for comment.
What is known about the cuts
Anchorage Digital is a federally chartered US digital asset bank, valued at $4.2 billion earlier this year. In February, according to McCauley's congressional testimony, the company had about 400 employees worldwide. If headcount has not changed since, 17% comes to roughly 68 jobs.
Cointelegraph asked a company representative for confirmation but did not get a quick reply.
The reason, per the report
The Information ties the cuts to the prolonged downturn in crypto markets. Bitcoin briefly rose above $87,000 on Friday, but it remains far from the $126,000 peak reached last October.
In other words, the company is reducing headcount even after several strong moves in recent months. The report's sources do not say which teams are affected.
What Anchorage does
In 2021 the company became the first crypto firm to receive a national trust charter from the US Office of the Comptroller of the Currency (OCC). It has since grown into a major custodian of digital assets.
More recently Anchorage moved into stablecoin issuance, including the new US stablecoin USAT from Tether. Earlier this year Tether put $100 million of strategic investment into the company.
Bottom line
For the industry this is one more sign that a weak market hits headcount even at firms with a federal charter, a large backer and new products. As of publication, Anchorage Digital has not confirmed the cuts.
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