Compass Mining Cuts 15% of Staff
Compass Mining recently had disputes with the owners of one of their mining facilities, Dynamics Mining. On June 27, Dynamics Mining tweeted that they were terminating the hosting agreement due to non-payments from Compass.
The following day, Compass Mining announced that the Board of Directors has accepted the resignations of their Chief Executive Officer and the Chief Financial Officer. They temporarily appointed their Chief Technology Officer and Chief Mining Officer as co-Presidents and CEOs while the board searches for permanent candidates.
On the 29th, Compass Mining officially denied the allegations made by Dynamics and claims to have “performed all of its obligations under its contracts with Dynamics, including its financial obligations.” They have also filed a lawsuit with a request for expedited relief to protect its interests and the interest of its customers.
In a statement released last night by the co-CEO’s, Compass announced that they would need to cut 15% of the staff and that executives would be taking pay cuts of up to 50%. They will also be reevaluating their marketing approach.
The firm admitted to growing too quickly, like many crypto companies. Until the recent bear market, the company was repeatedly selling out their mining rigs and hosting services. Their immediate and continued success since launching in January 2021 was met with more hires to keep up with demand.
