BIT Mining thrives with Dogecoin and Litecoin mining, tripling profits over Bitcoin. Altcoin focus boosts stock price and growth - IcoHolder.
BIT Mining, a leading cryptocurrency mining company, has revealed a significant shift in its mining strategy that has led to substantially higher profits compared to its traditional focus on Bitcoin (BTC). The company announced on December 4, 2024, that its mining operations focused on Dogecoin (DOGE) and Litecoin (LTC) have been nearly three times more lucrative than Bitcoin mining alone. This shift, which began in May 2023, is a notable pivot in the cryptocurrency mining landscape.
Since launching its DOGE and LTC mining operations, BIT Mining has successfully mined 227.9 million DOGE, valued at approximately $94.8 million, and 84,485 LTC, worth $10.7 million as of late November 2024. Despite the impressive volumes mined, the company has not disclosed how much of these holdings have been retained. However, the value of these assets has surged in recent weeks, reflecting the growing interest in these cryptocurrencies.
While Bitcoin mining remains the cornerstone of the industry, BIT Mining’s entry into altcoin mining has made a significant impact on its bottom line. The profitability is attributed to the rising popularity of Dogecoin, which has seen a boost from political developments in the United States, notably the involvement of figures like Elon Musk and Donald Trump. Musk’s advocacy for DOGE, particularly with his public promise to create a "Department of Government Efficiency" (DOGE) under Trump's potential administration, has sparked renewed interest in the coin.
In contrast to its success with Dogecoin and Litecoin, BIT Mining's Bitcoin reserves remain relatively small. By the end of 2023, the company held just 22.6 BTC, valued at $2.2 million. This modest amount highlights the company's shift in focus and its decision to diversify its mining portfolio. According to Dr. Youwei Yang, BIT Mining’s vice president and chief economist, the increasing popularity of Dogecoin and the evolving regulatory landscape in the US have been key factors driving profitability in the altcoin space.
BIT Mining's decision to diversify into altcoins has also had a positive effect on its stock price. On December 4, 2024, the company’s shares surged by 10% on the New York Stock Exchange, closing at $3.26. This outpaced the broader Bitcoin mining sector, which saw a more modest 3% to 7% increase.
BIT Mining’s expansion into DOGE, LTC, and Bellscoin (BEL) has positioned it as one of the largest operators in the mining sector. With over 5,550 machines now dedicated to these coins, the company controls 1.32% of the total network hashrate for these cryptocurrencies. This large-scale operation highlights BIT Mining’s significant role in the industry, though its stock has still experienced a 37% decline year-to-date, reflecting ongoing challenges after its rebranding from 500.com to a cryptocurrency mining firm.
Despite BIT Mining’s success, other major Bitcoin miners are sticking to their core strategy. Companies like Marathon Digital, which recently ventured into mining Kaspa (KAS), have found profitability in altcoins. However, firms such as CleanSpark and TeraWulf remain firmly committed to Bitcoin, citing its long-standing reputation and stability.
Notably, Jack Dorsey’s payment firm, Block, has also announced a shift in focus toward Bitcoin. The company is prioritizing the development of equipment for Bitcoin miners and strengthening its self-custody wallet offerings.
Despite its recent success, BIT Mining has faced legal challenges. The company admitted to paying bribes to Japanese officials between 2017 and 2019 to secure a resort and casino license during its previous operations as 500.com. On November 18, 2024, BIT Mining agreed to pay a $10 million fine to settle charges with US authorities, further complicating its corporate image.
As BIT Mining continues to expand and adapt to changing market conditions, its success with Dogecoin and Litecoin highlights the growing diversification within the cryptocurrency mining industry. However, its legal and financial challenges remind the market that navigating this volatile sector is not without risks.
