Cory Klippsten, the CEO of financial services firm Swan Bitcoin, announced the company would be scrapping its plans for an initial public offering “in the near future” following a shutdown of its mining operations.
In a July 22 X post, Klippsten announced a staff reduction and said the firm was “unlikely to continue with [its] Managed Mining business in the near term.” The CEO said that, without revenue from the mining arm, the company expected to halt its plans for an IPO.
“Swan is pulling back from our accelerated spending plan for our core financial services business,” said Klippsten. “Unfortunately, this includes staff cuts across many functions.”
In January, Swan Bitcoin announced it had launched a mining venture in 2023 and was working to become a publicly traded company in the US within 12 months. The firm said at the time that it had reported $125 million in revenue since 2023 and doubled the number of its staff.
Klippsten’s announcement came roughly three months after the Bitcoin (BTC) halving cut the mining rewards from 6.25 to 3.125 BTC per block. The event has caused earnings from major mining companies to drop, including Bitfarms — the Canadian firm being targeted by Riot Platforms for a hostile takeover.
Other mining firms have fared better in 2024. German BTC mining firm Northern Data reportedly plans to seek an IPO in the US starting in the first half of 2025. Genesis Digital Assets is also reportedly considering a public offering in the near future.