TL;DR
- BIT Mining has increased its profits almost threefold by diversifying its mining to Dogecoin (DOGE) and Litecoin (LTC), instead of focusing solely on Bitcoin (BTC).
- As of November 2023, the company mined over 227 million DOGE and 84,500 LTC, worth approximately $94.8 million and $10.7 million, respectively.
- BIT Mining’s shares rose 10% on December 4, although the company is still facing a 37% decline in its annual performance and legal controversies over bribery in Japan.
The cryptocurrency mining company BIT Mining has revealed that its venture into Dogecoin (DOGE) and Litecoin (LTC) mining has been significantly more profitable than its previous focus on Bitcoin (BTC). According to a company report released on December 4, the diversification into these proof-of-work cryptocurrencies has generated nearly three times the profits compared to mining BTC alone.
By the end of November, BIT Mining had mined over 227 million DOGE, valued at approximately $94.8 million, and around 84,500 LTC, worth $10.7 million. The company did not specify how much of these cryptocurrencies it had held, although both have experienced significant price increases in the past month.
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
This transition is part of a diversification strategy aimed at increasing profit margins by taking advantage of the characteristics of DOGE and LTC, such as lower transaction fees and faster processing speeds compared to Bitcoin.
The Importance of Diversifying
BIT Mining has greatly benefited from the price increases of DOGE, partially influenced by media impact from figures like Elon Musk and Donald Trump’s electoral victory. These factors have contributed to improving mining profitability, signaling to the company that they should further strengthen their diversification strategy.
BIT Mining Continues to Recover
On the stock market, BIT Mining’s shares rose 10% on December 4, reaching $3.26 per share, although its performance so far this year remains negative with a 37% drop. The company is also expanding its operations and currently has over 5,550 active machines mining DOGE, LTC, and Bellscoin, representing 1.32% of the total network hashrate for these networks.
Despite its success in DOGE and LTC mining, other mining companies like CleanSpark and TeraWulf have opted to remain focused on Bitcoin, highlighting the conservative approach of these competitors in light of new market opportunities.
On the other hand, BIT Mining remains embroiled in controversies, as it recently admitted to paying bribes in Japan to obtain a resort and casino license between 2017 and 2019. The company resolved this issue with a $10 million fine from the U.S. government
