Anchorage Digital reportedly cuts 17% of workforce

Anchorage Digital reportedly cut 17% of its workforce, according to The Information, which cited people familiar with the matter. Anchorage is a federally chartered US digital asset bank valued at $4.2 billion earlier this year. The Information reported Friday that CEO Nathan McCauley informed employees of the cuts this week. McCauley's congressional testimony in February put Anchorage's global workforce at about 400 employees. A 17% reduction would amount to roughly 68 jobs if Anchorage's headcount remained around that level. A public relations contact representing Anchorage did not immediately respond to a request for confirmation. The reported cuts suggest that the prolonged crypto market downturn is weighing on Anchorage even as the company expands its institutional operations. The Information cited crypto markets' struggles over the past year as the backdrop for the workforce reduction. Bitcoin briefly recovered above $87,000 on Friday. However, Bitcoin remains well below its $126,000 peak reached last October. Anchorage became the first crypto company to receive a national trust charter from the Office of the Comptroller of the Currency in 2021. Anchorage has since grown into a major crypto custodian. Anchorage has more recently expanded into stablecoin issuance, including Tether's new US stablecoin USAT. Anchorage received a $100 million strategic investment from Tether earlier this year.