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March 14, 2023

At Anchorage Digital, we are building an enduring financial institution for the digital economy. That long-term vision requires us to adjust to changing economic, marketplace, and regulatory conditions. As part of that commitment, today we are announcing that we will be initiating a strategic realignment to better focus our resources. That process includes the difficult but necessary decision to reduce our headcount. We want to share our thinking behind this decision and what it means for our team, our clients, and our investors going forward.

Our business is robust and growing, due in large part to our standing as America’s only federally chartered digital asset bank operating under the oversight of the OCC, and our unique position as a qualified custodian for digital assets.

The strategic adjustments we are undertaking have been developed over the course of a several months-long review process and are in response to an evolving landscape facing the crypto industry at-large, shaped by regulatory uncertainty in the U.S., broad macroeconomic challenges, and crypto market volatility. 

Those combined conditions have resulted in heightened demand for the safe and secure digital asset products and services, which we provide. In fact, our client assets under custody are at an all-time high. However, these same macroeconomic, market, and regulatory dynamics are creating headwinds for our business and the crypto industry.

Against that backdrop, we have restructured our team and will be parting with 75 employees (approximately 20% of our team). 

To be clear, this should in no way be viewed as a reflection on the contributions of those who are leaving. We’re immensely grateful for all they have done to help build Anchorage Digital and we will be doing all we can to ensure a smooth transition.

Rather, this restructuring is aimed at fueling the parts of our business that are most essential to our clients in the current and anticipated marketplace. In doing so, Anchorage Digital will be able to serve the growing demand to build regulated solutions for digital asset holders. 

Anchorage Digital will be executing these actions in a seamless manner for our clients and with all appropriate support for our team members. Our clients should experience no disruption in service, and we are also communicating with them directly.

Looking ahead, we remain optimistic about the digital economy and our place within it. We’re particularly confident that our status as an unequivocal qualified custodian for digital assets will position Anchorage Digital for what’s ahead.