With bitcoin prices remaining roughly 44% below the October peak near $125, 000, several crypto firms have announced workforce reductions, often citing increased AI integration and internal upgrades as key reasons. On Thursday, Crypto. com revealed plans to cut about 12% of its staff. CEO Kris Marszalek emphasized that layoffs would affect areas resistant to integrating AI enterprise-wide. He stated on X that companies failing to adopt AI quickly risk failure. Similarly, crypto exchange Gemini has laid off 30% of its workforce since the start of the year. High-level executives including the COO, CFO, and chief legal officer have departed recently. Gemini also announced plans to adopt AI tools to boost productivity. The company faces a class-action lawsuit from an investor alleging insufficient disclosure regarding a strategic shift toward prediction markets. Since its September listing, Gemini’s stock has dropped 84. 72%. Other crypto firms linking layoffs to AI include market data startup Messari and bitcoin-focused fintech company Block (formerly Square). Messari’s CEO resigned amid restructuring aimed at becoming an “AI-first” company.

Block made headlines recently by announcing significant layoffs attributed to AI integration across business processes. Critics question whether these AI-driven layoffs are merely coinciding with the crypto market’s decline from all-time highs. Historically, crypto startups have reduced staff during bear markets, leading some to argue that AI is a convenient excuse for recurring industry-wide cuts. Meanwhile, many bitcoin mining companies like Cango and Bitdeer are pivoting toward AI to diversify and increase revenue. Some have sold their bitcoin holdings entirely, while others have exited mining to focus solely on AI ventures. Many miners are also using their data centers to generate alternative revenue streams. James Cheng, CFO of mining hardware manufacturer Canaan, explained that the interest in AI among bitcoin miners is logical due to synergies that enhance profitability and help stabilize energy grids in this energy-intensive sector. “The two businesses are in one ecosystem, ” he said. “It’s not competing with each other. It’s one plus the other. ” Falling bitcoin prices have clearly impacted mining profits. Analysts have criticized bitcoin’s recent performance, viewing it as a failure to act as a reliable safe haven asset amid geopolitical tensions. Nevertheless, bitcoin showed more resilience during the early stages of the Iran war compared to increased tensions around Greenland.