Anchorage Digital is cutting about 17% of its workforce as weaker crypto market conditions put pressure on the company’s operations, according to reports.
CEO Nathan McCauley told employees about the layoffs this week. The cuts could affect about 68 jobs, based on Anchorage’s reported headcount of 400 employees in February.
The layoffs come as Anchorage expands its stablecoin business. Tether invested $100 million in the company in February, valuing Anchorage at about $4.2 billion.
Anchorage Cuts Staff
Anchorage has not identified a lost client, regulatory action or failed product as the reason for the layoffs. Reports attributed the cuts to weaker crypto market conditions.
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Bitcoin dropped to $84,000 on Friday, well below its record of about $126,000 set last October. The cryptocurrency remains below that peak.
Anchorage operates as a federally chartered digital asset bank. The Office of the Comptroller of the Currency granted its national trust bank charter in January 2021.
Stablecoin Business Expands
Anchorage also operates in Singapore and New York and has expanded its stablecoin business. Anchorage Digital Bank issues Tether’s USA₮ stablecoin, expanding its business beyond custody and other digital asset services.
The latest cuts are not Anchorage’s first. The company also reduced its workforce in 2023. The new layoffs come as Anchorage continues operating its custody, banking and stablecoin businesses.
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