$4.2B crypto bank Anchorage Digital cuts 17% of workforce: Report

What happened

The reported cuts come as Anchorage expands its institutional footprint, including stablecoin (a digital token meant to hold a fixed value, usually one dollar) issuance and a $100 million investment from Tether. Anchorage Digital, a federally chartered US digital asset bank valued at $4.2 billion earlier this year, has reportedly cut 17% of its workforce, suggesting that the prolonged crypto market downturn is weighing on the company even as it expands its institutional footprint.

Cointelegraph reached out to a public relations contact representing Anchorage for confirmation but did not receive an immediate response. Bitcoin (BTC) briefly recovered above $87,000 on Friday but remains well below its $126,000 peak reached last October.

Citing people familiar with the matter, The Information reported Friday that CEO Nathan McCauley informed employees of the cuts this week. Anchorage had about 400 employees globally as of February, according to McCauley’s congressional testimony at the time, meaning a 17% reduction would amount to roughly 68 jobs if its headcount remained around that level. Crypto markets have struggled over the past year, which The Information cited as the backdrop for Anchorage’s workforce reduction.