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One-third of staff laid off in Digital Investment Group NYDIG: Report

According to the Wall Street Journal, which cited persons familiar with the case on Thursday, New York-based digital investment business NYDIG fired off about a third of its personnel, or around 110 workers in total.

According to three sources familiar with the situation, the layoffs have been going on for “a few weeks,” with business leaders giving formal letters of layoffs on September 22.

NYDIG, a Bitcoin trading and banking startup, said the layoffs were part of an effort to reduce spending and focus on more viable enterprises.

NYDIG is a Bitcoin-only financial services company that provides a broad range of services.

NYDIG CEO Robert Gutman and President Zhao Yan stepped down on October 3, and NYDIG executives Tejas Shah and Nate Conrad took over as CEO and President, respectively.

On September 13, the New York-based global asset management company Stone Ridge Asset Management disclosed preparations with the Securities and Exchange Commission to liquidate and dissolve its Stone Ridge Bitcoin Strategy Fund (SEC).

According to documents filed with the U.S. Securities and Exchange Commission as of October 3, the New York-based digital investment organisation NYDIG claimed to have raised $720 million for its institutional bitcoin fund.

In its statement, NYDIG did not explain why it was swapping out its senior executives and did not mention the recent layoffs. According to the company’s statement, it is on track for record revenue this year, with sales increasing 130% in the first half.

Ross Stevens, NYDIG’s founder, stated:

“The firm’s balance sheet is the strongest it’s ever been, and now we’re investing aggressively into a capital-starved market.”

Executives at NYDIG did not respond to calls for comment. The public relations firm for the company declined to comment.

NYDIG, which was founded in 2017 as New York Digital Investment Group, provides institutional investors with bitcoin trading, brokerage, custody, and asset management services. The company raised $1 billion in a fundraising round valued at more than $7 billion in December. A year ago, NYDIG handled the acquisition of $100 million in bitcoin by Massachusetts Mutual Life Insurance Co., highlighting mainstream finance’s growing interest in cryptocurrency. MassMutual bought a $5 million minority ownership share in NYDIG as part of that transaction.

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