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Last updated on: 5 December 2024
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Crypto mining firm BIT Mining has reported substantial profit from expanding its operations to include Dogecoin (DOGE) and Litecoin (LTC).
On 4 December 2024, the company revealed that mining these proof-of-work coins has proven nearly three times more lucrative than focusing solely on Bitcoin (BTC).
Since launching its DOGE and LTC mining operations in May 2023, BIT Mining has mined 227.9 million DOGE, valued at $94.8 million, and 84,485 LTC, worth $10.7 million as of 27 November 2024.
However, the firm has not disclosed how much of these holdings it has retained, even as the two coins have experienced notable price surges over the past month.
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BIT Mining’s Bitcoin Reserves Remain Low
In contrast, BIT Mining’s Bitcoin reserves are relatively modest, with just 22.6 BTC held at the end of 2023, currently valued at $2.2 million.
BIT Mining’s recent profitability is largely attributed to the rising popularity of DOGE, partly fueled by political developments.
The victory of Donald Trump and Elon Musk’s public promise to establish a “Department of Government Efficiency” (DOGE) under his administration have boosted the coin’s visibility and value.
“Musk’s influence and the changing regulatory landscape in the US after Trump’s win have had a major impact on mining profitability,” said BIT Mining’s vice president and chief economist, Dr. Youwei Yang.
BIT Mining’s pivot to diversify has also impacted its stock performance. On 4 December 2024, the company’s shares rose 10% on the New York Stock Exchange, closing at $3.26. This contrasts with the broader Bitcoin mining sector, which saw gains of 3% to 7%.
In our latest press release today, we shared our high profitability and continued commitment with merge #mining both #Litecoin and #Dogecoin. 🙌
“As of November 27, 2024, the Company has mined 84,485.42 #LTC and 227,908,250.38 #DOGE.” ⛏️💪
More here👇https://t.co/5pAH4lUQgB
— BIT Mining Limited (@BITMining_BTCM) December 4, 2024
However, BIT Mining’s stock remains down 37% year-to-date, reflecting long-standing struggles since its rebranding from 500.com, an online sports lottery operator, to a cryptocurrency mining firm.
The company’s mining fleet now exceeds 5,550 machines capable of mining DOGE, LTC, and Bellscoin (BEL), contributing to 1.32% of the total network hashrate for these coins. This makes BIT Mining one of the largest operators in the space.
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Other Miners Remain Committed to Bitcoin
Despite the profitability of diversification, other Bitcoin miners remain committed to BTC.
Marathon Digital recently ventured into mining Kaspa (KAS), generating $16 million by mid-2024. However, firms like CleanSpark and TeraWulf are steadfast in focusing exclusively on Bitcoin, citing its established track record.
Likewise, Jack Dorsey’s payment firm Block (SQ) has announced a shift in focus, prioritizing the development of equipment for Bitcoin miners and its self-custody crypto wallet.
Meanwhile, BIT Mining’s recent success is not without controversy. The company admitted to paying bribes to Japanese officials between 2017 and 2019 to secure a resort and casino license during its time as 500.com.
On 18 November 2024, it agreed to pay $10 million in fines to settle charges with US authorities.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Ruholamin Haqshanas is an accomplished crypto and finance journalist with over three years of experience. He has been featured in various high-profile outlets, including Cryptonews.com, Investing.com, 24/7 Wall St, and Business2Community. Read More
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