Anchorage Digital Slashes 17% of Staff as Crypto Slump Persists

Anchorage Digital, the federally chartered crypto bank valued at $4.2 billion earlier this year, is cutting roughly 17% of its global workforce, a sign that the extended downturn in digital asset markets is forcing even regulated institutions to rein in costs.

Chief Executive Nathan McCauley informed employees of the layoffs this week, according to The Information, which cited people familiar with the matter. With a global headcount of about 400 as of February, the reduction translates to approximately 68 positions. McCauley had disclosed that staffing figure during congressional testimony earlier this year.

A public relations representative for the San Francisco-based company did not immediately respond to requests for comment.

The cuts underscore the financial strain rippling through the crypto sector even as Anchorage continues to broaden its institutional business. The company became the first digital asset firm to receive a national trust charter from the Office of the Comptroller of the Currency in 2021, a milestone that positioned it as a leading custodian for institutional clients seeking regulated exposure to cryptocurrencies.

Market conditions have remained difficult. Bitcoin briefly climbed above $87,000 on Friday but still trades far below its all-time high of $126,000 reached last October. The prolonged weakness has pushed many crypto companies to reassess operating expenses, and Anchorage now joins a list of firms that have trimmed payrolls in response.