BIT Mining Sees 3X Profit Boost from Mining Dogecoin and Litecoin Over Bitcoin
Crypto mining company BIT Mining has revealed that its shift to mining Dogecoin (DOGE) and Litecoin (LTC) has proven to be significantly more profitable than its previous focus on Bitcoin (BTC) alone. According to a statement released on December 4, the company’s expansion into these proof-of-work (PoW) coins has resulted in profits nearly three times higher than when it mined only Bitcoin.
A Profitable Shift: DOGE and LTC Outperform BTC
Until November 27, BIT Mining mined 227.9 million DOGE worth approximately $94.8 million and 84,485 LTC valued at $10.7 million. While the company did not disclose how much of these assets it retained, the surge in the prices of both DOGE and LTC over the past month has undoubtedly enhanced its returns.
BIT Mining also reported holding 22.6 BTC at the end of 2023, worth $2.2 million at current prices.
The Impact of Market Factors on Mining Profits
BIT Mining attributed some of its mining profitability to the rise in DOGE prices, which saw a notable boost due to Elon Musk’s influence and Donald Trump’s US election win. In particular, Musk’s proposal to establish a Department of Government Efficiency (DOGE) in Trump’s administration has sparked additional interest in the meme-based cryptocurrency, further boosting its value.
Youwei Yang, BIT Mining’s Vice President and Chief Economist, explained:
“Elon Musk’s influence and the changing regulatory landscape in the US after the Trump win have had a major impact on mining profitability.”
The company’s decision to diversify into DOGE and LTC mining has not gone unnoticed by the market. BIT Mining’s stock saw a 10% increase on the New York Stock Exchange on December 4, closing at $3.26, outperforming many other Bitcoin miners, which saw smaller gains between 3% and 7%.
Strategic Shift: From Bitcoin to Diversified Mining Operations
The company first ventured into DOGE and LTC mining in May 2023, roughly two-and-a-half years after it rebranded from 500.com to BIT Mining and started exclusively mining Bitcoin. BIT Mining, which once operated as an online sports lottery platform, has since pivoted to become a diversified crypto mining firm.
As of now, the company operates over 5,550 active machines, capable of mining DOGE, LTC, and Bellscoin (BEL). Together, these machines account for 1.32% of the global network hashrate.
Industry-Wide Trend of Mining Diversification
BIT Mining’s decision to diversify its mining activities is part of a broader trend in the industry. MARA Holdings, another major Bitcoin mining player, revealed it started mining Kaspa tokens in September 2023, generating $16 million in revenue by June 2024.
However, some companies, like CleanSpark and TeraWulf, continue to focus solely on Bitcoin mining. CleanSpark’s Senior Vice President Harry Sudock emphasized the company’s preference for Bitcoin, citing its long track record as a key reason for sticking with BTC mining for the foreseeable future.
Legal Challenges and Resolutions
BIT Mining’s recent growth and diversification come at a time when the company is resolving past legal issues. The firm recently acknowledged paying bribes to Japanese officials between 2017 and 2019, when it was still operating as 500.com. In November 2023, BIT Mining agreed to pay $10 million in fines to settle charges brought by the U.S. government.
Conclusion: A Strategic Approach to Crypto Mining
BIT Mining’s shift to mining Dogecoin and Litecoin has paid off, proving that diversifying from Bitcoin can lead to higher profits. With over 5,500 active machines and an expanding presence in the DOGE and LTC markets, the company is well-positioned for continued growth. However, as the crypto mining industry faces both market volatility and regulatory scrutiny, companies like BIT Mining will need to balance innovation with compliance to remain competitive and profitable in the evolving landscape.
