Crypto venture capital firm Digital Currency Group (DCG) has decided to split its Foundry mining business into two separate entities. According to a report from Blockspace, this restructuring was unveiled in a private DCG shareholder letter shared with key stakeholders. The new entities include Fortitude Mining and Foundry.
Major Foundry Restructuring is in the Works
Per the Blockspace report, Fortitude Mining will accommodate Foundry’s former self-mining operations and physical infrastructure. On the other hand, Foundry will stick to its pool operations and other Bitcoin mining service business lines.
In the shareholders’ letter, DCG noted that it is making adjustments to the business to position it for future growth.
“We believe [Fortitude] will be stronger as a standalone business, and so we are spinning it out as a wholly-owned DCG subsidiary,” the letter reads.
To make the transition smoother, DCG will bring some of Foundry’s leadership into the new subsidiary. For further support and to raise capital, Digital Currency Group plans to hire other staffs externally. Per the reports, Fortitude is already requesting hosting providers to bill invoices to the new entity. This has been ongoing for at least a month.
It is worth noting that Foundry has just come out of a season of series of layoffs. The company went through a headcount reduction recently as reported by Coingape.
In its defence, Foundry claimed that the job slash was necessary to ensure that it focused on its mining pool business. It also needed to make that tough call to support “the development of DCG’s newest subsidiaries, including Yuma and the spinout of Foundry’s successful self-mining business.”
DCG and Latest Business Moves
It is worth noting that DCG introduced Yuma last month. It branded Yuma as a new subsidiary that will focus on developing the Bittensor (TAO) ecosystem.
The crypto venture capital firm expects the new subsidiary to empower developers in creating, training, and accessing AI for innovation.
According to DCG, it gave the name, Yuma, to conform with Bittensor’s “Yuma Consensus” protocol. Apart from its other benefits, this smart contract protocol makes it possible to incentivize creator’s participation with the TAO, a token known to weather geopolitical storms.
The post DCG To Split Foundry Digital Mining Into Two Entities: Report appeared first on CoinGape.
