Claims of a staffing cut at Anchorage Digital

Anchorage Digital, one of the leading digital asset banks operating in the U.S. with a federal license, has drawn attention after reports that it reduced its workforce by 17%. The move by the company, which was said to have reached a valuation of $4.2 billion earlier this year, comes at a time when the prolonged weakness in crypto markets has increased cost pressure across the industry.

According to a Friday report from The Information, citing people familiar with the matter, Chief Executive Officer Nathan McCauley informed employees about the cuts this week. In McCauley’s February testimony to Congress, Anchorage said it had about 400 employees worldwide; if headcount has remained unchanged, the reported reduction would amount to roughly 68 people.

Cointelegraph also reported that it contacted a public relations representative for Anchorage to verify the story but did not receive an immediate response.

Pressure in crypto markets and the price outlook

The report pointed to crypto markets, which have been struggling over the past year, as the main backdrop for the layoffs. Bitcoin briefly climbed above $87,000 on Friday, but it remains well below the $126,000 peak it reached last October.

The picture suggests that pressure on revenue expectations and cost structures for industry firms has not fully eased. The reduction at Anchorage also shows that market conditions can still shape company decisions even as regulated crypto services continue to grow.

Institutional and regulated crypto activity continued to grow

Recent moves by the company

Anchorage was the first crypto company to receive a national trust charter from the Office of the Comptroller of the Currency (OCC) in 2021. Since then, the company has become a major player in regulated crypto custody services.

  • As part of its expansion into stablecoin issuance, it was linked to Tether’s new U.S. stablecoin, USAT.
  • The company also received a $100 million strategic investment from Tether earlier this year.

The layoff report came as Anchorage continued to expand its institutional client base and regulated business lines. As a result, the development is seen not only as a shrinkage at one company, but also as a sign of the current environment in crypto, where growth and profitability pressures are unfolding at the same time.