A Strategic Pivot to Diversification of Operations BIT Mining has successfully made significant leaps in profitability through diversification from Bitcoin BTC mining to Dogecoin DOGE and Litecoin LTC. On Dec. 4, the company disclosed that the profitability from the operation of DOGE and LTC mining had generated nearly three times more value than Bitcoin mining alone.
Since launching DOGE and LTC mining in May 2023, BIT Mining has mined over 227.9 million DOGE, with a value of $94.8 million, and 84,485 LTC valued at $10.7 million. Much of this profitability comes through LD3 mining machines, which BIT Mining acquired from Bee Computing in 2021. By expanding into these two proof-of-work cryptocurrencies, BIT Mining is demonstrating the potentially huge financial rewards possible in the crypto mining sector through diversification.
External Factors Boost DOGE Profitability
The surging value of Dogecoin has been the main contributor to increased profits for BIT Mining. Recently, DOGE surged on news related to the U.S. election victory of Donald Trump and a suggestion by Elon Musk to set up a “Department of Government Efficiency” (DOGE), a body that would act as an advisory role in streamlining government operations, which further added meme-inspired coin’s popularity.
Elon Musk’s influence and the change in regulations following the Trump victory has greatly affected mining profitability,” said Youwei Yang, BIT Mining’s vice president and chief economist.
BIT Mining’s Market Performance
On Dec. 4, BIT Mining’s stock was up 10% to close at $3.26, while its peers mostly rose between 3-7%. Its stock remains down 37% year-to-date, however, reflecting broader challenges in the industry. BIT Mining currently operates more than 5,550 mining rigs, which account for 1.32% of the combined DOGE, LTC, and Bellscoin (BEL) network hashrate.
Moral Quandaries Remain
Despite its recent success, BIT Mining has faced scrutiny for past ethical breaches. The company, formerly known as 500.com, acknowledged bribing Japanese officials between 2017 and 2019 to influence casino licensing bids. In November, BIT Mining agreed to pay $10 million in fines to settle U.S. government charges over the allegations.
The Industry’s Stance on Diversification
While BIT Mining embraces diversification, rivals like CleanSpark and TeraWulf remain committed to Bitcoin. According to CleanSpark’s senior vice president, Harry Sudock, Bitcoin’s established stability makes it a more reliable long-term mining focus.
BIT Mining’s move exemplifies the potential for diversified mining operations, even as it navigates ethical controversies and industry competition.
