Anchorage Digital reportedly cuts 17% of staff amid crypto downturn

Anchorage Digital is reportedly cutting approximately 17% of its workforce, a move attributed to cost pressures affecting the broader cryptocurrency sector. CEO Nathan McCauley informed employees of the reduction, which follows a period of market volatility and a prolonged downturn in crypto markets.

This restructuring comes despite a $100 million strategic equity investment from Tether earlier this year and a reported company valuation of $4.2 billion. The company, which holds a federal charter as a crypto-focused national trust bank in the United States, previously underwent a similar workforce reduction of about 20% in March 2023.

While the exact number of affected employees has not been officially confirmed, calculations based on previous congressional testimony suggest the cuts could impact roughly 68 positions. The company has not specified whether its banking arm, Anchorage Digital Bank N.A., is affected by these latest layoffs.