BIT Mining has reported a significant increase in profitability following its expansion into mining Dogecoin and litecoin , claiming this shift has yielded returns nearly three times higher than exclusively mining Bitcoin . As of late November, the company mined over 227 million Dogecoin, valued at approximately $94.8 million, and 84,485 litecoin , worth about $10.7 million. However, the exact amount of these coins retained by BIT Mining has not been disclosed, despite a notable upward trend in their values over the past month.
At the end of 2023, BIT Mining held a mere 22.6 Bitcoin , equivalent to $2.2 million, indicating a strategic pivot away from Bitcoin toward these alternative cryptocurrencies. The recent price increases in Dogecoin have been linked to various factors, including a political victory and commitments from high-profile figures to enhance efficiency within government. These developments have heightened the mining company’s overall profitability in this dynamic market.
On December 4, BIT Mining’s stock surged by 10% on the New York Stock Exchange, concluding the day at $3.26. This uptick contrasted with the overall year-to-date performance of the company’s shares, which have dropped by 37%, reflecting a broader trend of declining stock prices since 2014. Since commencing its mining operations for Dogecoin and litecoin in May, BIT Mining now operates with over 5,550 active mining machines across these and other coins, accounting for about 1.32% of the total network hashrate.
The trend of diversifying from Bitcoin mining is not isolated. Other companies in the sector, like Marathon Digital, have trialed mining diverse tokens with significant success. Conversely, some established competitors like CleanSpark and TeraWulf remain committed to Bitcoin mining, citing its historical stability and long-term potential.
These strategic shifts occur against a backdrop of legal challenges, as BIT Mining recently acknowledged paying bribes in Japan between 2017 and 2019 related to obtaining a casino license, resulting in a $10 million settlement with U.S. authorities.
