Crypto mining company BIT Mining has revealed that branching out into Dogecoin (DOGE-USD) and Litecoin (LTC-USD) has been almost three times more profitable than sticking solely to Bitcoin. In a Dec. 4 update, the company announced it mined 227.9 million DOGE, worth $94.8 million, and 84,485 LTC, valued at $10.7 million, by Nov. 27. This diversification strategy has made a huge impact in an industry where Bitcoin typically dominates.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Specialized Machines Drive Success
Key to BIT Mining’s success has been its use of LD3 mining machines, acquired from Bee Computing in 2021. These machines are optimized for mining DOGE and LTC, two proof-of-work cryptocurrencies that have surged recently. According to BIT Mining’s vice president Youwei Yang, “Elon Musk’s influence and the changing regulatory landscape in the U.S. after the Trump win have had a major impact on mining profitability.” Musk’s promise to create a Department of Government Efficiency (DOGE) under Trump’s administration has boosted DOGE’s popularity and price.
Stock Performance Shows Mixed Signals
On Dec. 4, BIT Mining’s stock rose 10% to close at $3.26, outperforming peers. However, the company’s shares remain down 35% year-to-date, reflecting challenges from its turbulent past, including paying $10 million in fines to the U.S. government for past bribery charges.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
