Gemini, Crypto.com Newest Crypto Corporations to Blame Downsizing on AI

With the bitcoin value nonetheless sitting roughly 44% beneath the all-time excessive of round $125,000 hit in October, various crypto companies have introduced employees cuts. Notably, numerous integrations and upgrades of inside processes to incorporate extra use of AI have been on the middle of the press releases related to these cuts.

On Thursday, it was introduced that Crypto.com can be shedding roughly 12% of its whole workforce. In a press release, Crypto.com CEO Kris Marszalek mentioned the areas of the enterprise that might be affected by the layoffs are these which don’t adapt to the elevated use of AI throughout your entire firm. “We’re becoming a member of the checklist of corporations integrating enterprise-wide AI,” Marszalek said on X. “Firms that don’t make this pivot instantly will fail.”

We’re becoming a member of the checklist of corporations integrating enterprise-wide AI. Firms that don’t make this pivot instantly will fail. Firms that transfer slowly might be left behind. Firms that transfer instantly and pair the most effective AI instruments with top-performers will obtain a degree of…

— Kris | ai.com (@kris) March 19, 2026

On high of that, crypto trade Gemini introduced layoffs of its personal, and cuts on the Winklevoss Twins-founded firm have now reached 30% of its workforce for the reason that begin of the 12 months, according to a report in Bloomberg. Gemini’s chief working officer, chief monetary officer and chief authorized officer have additionally just lately left the corporate. Moreover, the crypto trade made an announcement saying the corporate might be deploying AI instruments throughout the corporate in an effort to extend productiveness throughout your entire enterprise.

In gentle of its poor inventory efficiency just lately, Gemini is also facing a class-action lawsuit from considered one of its buyers, who claims the trade didn’t correctly disclose its pivot in enterprise focus in direction of prediction markets. On the time of this writing, Gemini’s inventory is down 84.72% because it was first listed in September of final 12 months.

Different latest examples of crypto corporations pointing to AI because the reasoning behind layoffs embody crypto market knowledge startup Messari and bitcoin-focused fintech firm Block (previously Sq.). According to a report in The Block, Messari’s CEO stepped down amidst layoffs which can be a part of the corporate’s restructuring into an “AI-first” enterprise. Block also made headlines late last month as one of many first main tech corporations to announce giant layoffs on account of additional integration of AI into enterprise processes.

After all, many critics have wondered out loud if it’s a coincidence that every one of those layoffs as a consequence of AI are taking place at crypto corporations on the similar time that the crypto asset market is a methods off of its all-time highs. Crypto startups have oftentimes laid off giant parts of their respective staffs during previous crypto bear markets, and a few have argued AI is getting used as a scapegoat for a similar form of phenomenon going down within the crypto trade as soon as once more.

There’s extra however corporations are being tremendous sneaky about it

— Psychedelic El ₿arto (@PsychedelicBart) March 19, 2026

On the similar time, a lot of bitcoin mining corporations, reminiscent of Cango and Bitdeer, are additionally pivoting to AI in an effort to extend and diversify their sources of income. In some instances, mining corporations have sold their entire stashes of bitcoin. Others have left the mining trade fully to concentrate on the upper earnings out there in AI.

That mentioned, loads of bitcoin mining corporations are additionally merely diversifying the usage of their knowledge facilities for extra income streams. According to James Cheng, who’s the CFO at bitcoin mining {hardware} producer Canaan, bitcoin miners’ collective curiosity in AI is sensible, as there are synergies available between the 2 industries by way of maximizing profitability and stabilizing the energy grids related to these energy-intensive areas of focus. “The 2 companies are in a single ecosystem,” mentioned Cheng. “It’s not competing with one another. It’s one plus the opposite.”

The falling bitcoin value has undoubtedly harmed the earnings beforehand loved by the mining trade, and the crypto asset has confronted heavy criticism from analysts who’ve seen the previous few months as an indication of bitcoin’s failure to dwell as much as its touted potential as a secure haven asset in occasions of geopolitical uncertainty. Nonetheless, bitcoin held up better in response to the beginning stages of the war in Iran than it did throughout increased tensions around Greenland.

All of this follows market dynamics from the previous couple of years through which gold, which occupies the same area of interest to bitcoin’s, with its “digital gold” narrative, has massively outperformed bitcoin itself. The latest bitcoin value decline in response to perceived hawkishness from the Fed has additionally additional solidified this criticism, as this means that the crypto asset remains to be very a lot appearing as a risk-on asset within the present surroundings.