Swan to cancel public listing and shutter Bitcoin mining unit following layoffs

Swan Bitcoin, the California-based, bitcoin-only investment platform, is rolling back its mining business revealed earlier this year, and canceling plans to go public, CEO Cory Klippsten announced on X.

“@Swan is unlikely to continue with our Managed Mining business in the near term. Without the expectation of significant near-term revenue from our Managed Mining unit, we are pulling our plans to IPO in the near future,” Klippsten said.

Additionally, the company has laid off several employees “across many functions” and scaled back its ambitious growth strategy. Klippsten said he would attempt to assist those downsized employees with new jobs. It is not yet clear how many Swan employees lost their jobs.

The company has not returned a request for comment at press time.

Swan offers bitcoin asset management and financial advisor services — including a product that allows people to buy, but not sell, their coins, making them true “hodlers.” Its mining unit began operating in 2023 and only came out of stealth in January after raising at least $100 million from institutional investors. There were plans to launch mining farms overseas and raise the company’s total hash power to 8 exahash.

Klippsten previously told The Block he planned to take the company public by the end of the year after raising and deploying $205 million across its equity, credit and hedge funds in an effort to grow the business.

The shuttering of Swan’s mining business comes at a stressful time for many miners following the Bitcoin halving, which slashed revenues and investor interest. Several firms have pivoted to providing computing power for AI firms and cloud providers.