Unchained Capital Reorganizes Management Amid Bitcoin Fall

While the FTX crisis has just occurred, the crypto market has not been very promising before, a number of companies have started to record losses due to the effects of the bear market this year, including Unchained Capital.

While Unchained has never had exposure to FTX, Alameda, or any other institutions that have lost client cash, co-founder and CEO Joe Kelly said in a blog post about the job losses on Friday that financing for Bitcoin-backed loans has been considerably limited by recent market developments.

Unchained Capital downsized its employees by around 15%. The company moved Chief Product Officer Will Cole to a senior advisory position and Chief Business Development Officer Parker Lewis to the board of directors. According to the blog post:

“In order to ensure Unchained and our clients retain solid footing through the current market, no matter how it develops, we find ourselves having to make another hard decision today: we are reducing our overall workforce by roughly 15%.

While this means losing valuable and talented team members, we believe this reduction in expenses materially impacts our chances for long-term success.”

The number of Bitcoin deposits and trades at his firm are at historic highs, Joe Kelly said, and the loan book’s collateral-to-principal ratio is at 214%.

“We have also continued our five-year track record, through multiple cycles and periods of high volatility, of never incurring a loss in our loan portfolio and our aggregate loan book today remains over-collateralized at a 214% collateral-to-principal ratio.”

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