Compass Mining cuts costs amid market downturn
Compass Mining, a US bitcoin mining business, has fired 15% of its workforce and slashed executive pay as the crypto market downturn deepens. The company cited growing too quickly and failing to deliver as the reasons for the cost-cutting measures, which include a pay cut of up to 50% for senior management. Last week, the CEO and CFO departed from the company following several setbacks and disappointments. This move follows the recent departure of the firm’s CEO and CFO last week and further exemplifies how crypto firms are struggling to stay afloat amid plummeting bitcoin prices.
Crypto market slump affecting Compass Mining and other firms worldwide
Crypto companies worldwide have been in a state of collapse since the price of bitcoin has fallen nearly 40% in a matter of weeks. Almost £250 billion has been wiped out in the past month alone according to data from CoinMarketCap. As the downturn continues, companies such as Compass Mining are taking forceful measures to stay afloat and avoid bankruptcy.
Compass disputes allegations of unpaid bills
Compass Mining has denied allegations made by crypto mining business Dynamics Mining that it owes hundreds of thousands of dollars of unpaid energy bills. Instead, Compass Mining has argued that many of the statements made by Dynamics Mining on social media are incorrect and create further damage. With the ongoing slump in the crypto market, it remains to be seen whether Compass and other mining companies across the globe will survive the current downturn.
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