Cory Klippsten, the CEO of financial services company Swan Bitcoin, has announced that the company has scrapped its plans for an IPO “in the near future” after shutting down its mining operations.
IPO plans stall without mining branch
In a post on X on July 22, Klippsten announced a workforce reduction and said it was “unlikely that the company would continue with [zijn] Managed Mining company.” The CEO stated that without revenue from the mining division, the company expected to abandon its IPO plans.
“Swan is withdrawing from our accelerated spending plan for our core financial services businesses,” Klippsten said. “Unfortunately, this includes staff reductions in many functions.”
Mining company to start in 2023
In January, Swan Bitcoin announced that it had launched a mining venture in 2023 and was working to become a publicly traded company in the U.S. within 12 months. At the time, the company reported revenue of $125 million as of 2023 and had doubled its employee count.
Klippsten’s announcement came about three months after the Bitcoin halving cut mining rewards from 6.25 to 3.125 BTC per block. The event has led to a drop in revenue for major mining companies, including Bitfarms, a Canadian company facing a hostile takeover by Riot Platforms.
Other mining companies have outperformed in 2024. German BTC mining company Northern Data is reportedly planning to file for an IPO in the US in the first half of 2025. Genesis Digital Assets is also reportedly considering a public offering in the near future.
Source: https://newsbit.nl/swan-bitcoin-stopt-ipo-plannen-en-vermindert-personeel-na-stopzetten-miningactiviteiten/
