Bitwise has cut about 14% of its workforce, reducing staff at the San Francisco-based digital asset manager from roughly 180 to 155 employees. The company confirmed that about 25 people were affected by the layoffs as the crypto market faces a difficult period.
Despite the reduction, Bitwise chief executive Hunter Horsley has said the company continues to expect growth as crypto becomes more integrated into the global economy. Separately, Bitwise Chief Investment Officer Matt Hougan said crypto valuations outside Bitcoin could potentially double or more if more protocols successfully connect network revenue to their native tokens.
“For years, revenue was the best argument against crypto. It’s about to become the best argument for it.” — @Matt_Hougan
Find out why in the latest Bitwise CIO Memo: https://t.co/xCXF27w0l4 pic.twitter.com/l4Gg5IO4YE
— Bitwise (@Bitwise) August 12, 2026
The staff reduction makes Bitwise the latest crypto company to cut jobs in 2026. Other companies that have announced workforce reductions include Robinhood, Polygon and Pump.fun.
Bitwise has continued to expand its business despite the cuts. In February, the company acquired Chorus One, a move that is expected to strengthen its staking services.
The wider digital asset industry has been adjusting its workforce for different reasons. BitGo cut 15% of its staff in June in what its chief executive described as a one-time action, with a focus on artificial intelligence and stablecoins. Coinbase also announced plans in May to reduce its workforce by 14%, citing a shift towards an AI-focused strategy.
Bitwise has also faced pressure in the market. Since January, shares of the Bitwise 10 Crypto Index Fund had fallen by more than 30%. The fund tracks the 10 largest cryptocurrencies by market capitalisation, including Bitcoin and Ether.
Meanwhile, Hougan has put forward a more optimistic view of crypto valuations. In an August 12 memo, he argued that token values could rise significantly if more blockchain networks and decentralised applications begin directing revenue generated by their activity towards their native tokens.
He pointed to projects including Hyperliquid, Uniswap, Aave, Pump.fun and Lighter as examples of protocols using fees or other revenue to fund token purchases or burns. Hougan expects more decentralised finance applications and Layer 1 networks to adopt similar models over the next 12 to 24 months.
His most bullish prediction comes with an important condition. Hougan said valuations could double or more if the connection between protocol revenue and token value continues to strengthen. Bitwise has also clarified that the assessment reflects views at a particular point in time and is not a guarantee of future performance or investment advice.
Hyperliquid is one of the clearest examples. Its documentation says trading fees flow to the Assistance Fund, which converts them into HYPE. The acquired tokens are then burned and removed from supply. Hougan estimates that around 99% of fee revenue has been directed towards this mechanism.
Uniswap and Aave are also developing ways to connect protocol economics with their tokens, although their approaches differ. Uniswap activated protocol fees and a burn mechanism through its UNIfication initiative, while Aave has been running a token buyback programme and developing a broader revenue framework.
Pump.fun has also made its model explicit, allocating 50% of protocol revenue to token buybacks. The platform reported significant PUMP purchases and burns during the week of August 3 to August 9.
Hougan believes a more favourable US regulatory environment could encourage such models. However, the legal position remains more complicated than simply treating token buybacks or burns as equivalent to corporate stock buybacks. Crypto tokens generally do not give holders the same legal rights as shareholders.
For Bitwise, the combination of staff reductions and a bullish long-term view reflects the mixed picture facing the crypto industry. Companies are cutting costs and reshaping their teams, even as investors and industry executives continue to see opportunities in the growing connection between blockchain activity, protocol revenue and token value.
Crypto firm Bitwise has let go about 14% of its workforce during a prolonged slump in digital-asset prices https://t.co/bNI4KkB6d7
— Bloomberg (@business) August 12, 2026
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