- The compass was recently accused of not paying for electricity
- Cryptographic miners sell Bitcoin to meet operating expenses
Cryptocurrency mining and hosting company Compass Mining has eliminated staff after two executives resigned last week, admitting that it was “growing too fast.”
and statement On Thursday, the company’s recently appointed interim CEOs Thomas Heller and Paul Gosker said the team would be reduced in size by 15%. Seniors and management cut wages by up to 50%, they added.
The Compass website does not show a specific number of employees, but LinkedIn lists 83 employees. This suggests that about 13 people have lost their jobs.
“While painful, these changes will allow Compass to stay agile and well-positioned in this evolving market, which has challenged many of its peers in the industry,” wrote the interim CEO. ..
“Of all the decisions we had to make as the new CEO, this is much more difficult and we are under our leadership and for all the changes that are made. I take full responsibility. “
Compass Appointment Heller and Gosker on June 28, after former CEO Whit Gibbs and CFO Jodie Fisher resigned.There was no clear reason for their resignation, but the compass Admitted “Frustration and disappointment” that undermines the company’s purpose of making cryptocurrency mining easy and accessible.
In late June, the company was accused of hosting the company’s Dynamics Mining for failing to pay its electricity compensation fees. The compass denied the claim, saying that Dynamics operates only about 1% of the contracted capacity.
“Compass has fulfilled all of its obligations under the contract with Dynamics, including its financial obligations,” he said. statement..
The slump in the cryptocurrency market and the liquidity crisis in crypto lending space have forced some companies to cut costs or give up their employees.Exchanges and lenders including Coinbase, BlockFi, Gemini, Crypto.com, bold When strong These are just a few of the famous names that are affected.
Marcus Sotiliou, an analyst at Digital Asset Broker GlobalBlock, said Bitcoin miners are selling Bitcoin as it appears to be in the next stage and earnings are declining along with the bear market.
Core Scientific, driven by recent market turmoil and rising energy costs Said On Tuesday it sold 7,202 Bitcoins for about $ 167 million in June — leaving miners with only 1,959 Bitcoins and about $ 132 million in cash. in the meantime, Argo blockchain, Bit farm, Riot When CleanSpark We also sold Bitcoin reserves to pay for operating expenses.