Cryptocurrency mining company BIT Mining has reported substantial profits from expanding its operations to include Dogecoin (DOGE) and Litecoin (LTC).
On December 4, 2024 the company revealed that the extraction of these Proof-of-work coins have proven to be almost three times more profitable than focusing solely on Bitcoin (BTC).
Since launching DOGE and LTC mining operations in May 2023, BIT Mining has mined 227.9 million DOGE, worth $94.8 million, and 84,485 LTC, worth $10.7 million to November 27, 2024.
However, the company did not disclose how many of these holdings it retained, even though the two coins have seen notable price increases 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 only 22.6 BTC held as of late 2023, currently valued at $2.2 million.
BIT Mining’s recent profitability is largely attributed to DOGE’s growing popularity, partly fueled by political developments.
Donald Trump’s victory and Elon Musk’s public promise to establish a “Department for Government Efficiency” (DOGE) under his administration Have it increased the visibility and value of the currency.
“Musk’s influence and the changing regulatory landscape in the United States following Trump’s victory have had a major impact on the profitability of the mining sector,” said BIT Mining Vice President and Chief Economist Dr. Youwei Yang.
BIT Mining’s diversification strategy also affected its stock performance. On December 4, 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 has seen gains of 3% to 7%.
In our latest press release today, we shared our high profitability and our continued commitment to the merger #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 information here
https://t.co/5pAH4lUQgB
— BIT Mining Limited (@BITMining_BTCM) December 4, 2024
However, BIT Mining shares remain down 37% year to date, reflecting long-standing difficulties from its rebranding from 500.com, an online sports lottery operator, to a cryptocurrency mining company.
The company’s mining fleet now exceeds 5,550 machines capable of mining DOGE, LTC, and Bellscoin (BEL), contributing 1.32% of the total network hashrate for these coins. This makes BIT Mining one of the largest players in the industry.
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Other miners remain busy on Bitcoin
Despite the profitability of diversification, other Bitcoin miners remain committed to BTC.
Marathon Digital recently ventured into Kaspa (KAS) mining, generating $16 million by mid-2024. However, companies like CleanSpark and TeraWulf are steadfast in focusing exclusively on Bitcoin, citing its well-established track record.
Likewise, Jack Dorsey’s payments company Block (SQ) he announced a shift in focus, the definition of priorities equipment development for Bitcoin miners and its self-custodial crypto wallet.
Meanwhile, BIT Mining’s recent success is not without controversy. The company admitted paying bribes to Japanese officials between 2017 and 2019 to secure a resort and casino license during its time as 500.com.
On November 18, 2024, he agreed to pay a $10 million fine to settle the charges with US authorities.
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