Cloud Hosting

In a surprising twist in the crypto-sphere, BIT Mining (BTCM), once a leading Ethereum miner, has altered its crypto treasury strategy drastically. Following Ethereums monumental transition from proof of work to proof of stake, the Ohio-based miner, listed on the New York Stock Exchange, has shifted its focus to Dogecoin and Litecoin.

The company reported a revenue of $72.9 million for the last quarter, marking a near 20% increase from the previous quarter but witnessing a 75% plunge year on year. BIT Minings revenue is primarily split across three sectors: mining cryptocurrencies independently, mining as part of a pool, and hosting services within its data centers.

In the previous quarter, BIT Minings revenue from its mining pool reached $60 million, accounting for 82% of its total income. Meanwhile, self-mining and data centers each contributed approximately $6 million.

Prior to Ethereums transformation in September last year, known as the Merge, Ethereum mining made up over three-quarters of BIT Minings self-mining revenue. This pivotal shift in Ethereums consensus mechanism, which eradicated the necessity for crypto miners, predictably plunged BIT Minings self-mining income from $7.1 million in Q3 2022 to a mere $1.9 million in the subsequent period.

As Ethereum mining waned, the firm garnered $6.2 million from mining cryptocurrencies in Q1 2023, predominantly Litecoin (LTC) and Dogecoin (DOGE), post the shutdown of certain Bitcoin mining rigs. Notably, Dogecoin and Litecoin witnessed skyrocketing hash rates around the time of the Merge, despite their differing hashing algorithms from Ethereum.

Follow us for the latest crypto news!

Amid these changes, Analyst Mike Fay (via Seeking Alpha) has expressed bafflement over BIT Minings decision to sell off one-third of its Ethereum holdings, amounting to 1,602 ETH ($3 million at current prices). In contrast, the firm boosted its Dogecoin holdings by 62% quarter on quarter, escalating from 42.8 million DOGE ($3.1 million) to 69.5 million DOGE ($5 million). Its Bitcoin holdings remained steady at 289 BTC, worth $7.8 million.

No spam, no lies, only insights. You can unsubscribe at any time.

With this shift, BIT Minings crypto treasury was almost 28% Dogecoin at the end of Q1 2023. The companys total assets stood at $40.2 million, with liabilities amounting to $39 million, including lease obligations.

Fay argued against BIT Minings strategy, questioning why the firm would hold onto meme coins instead of leveraging Ethereums staking potential at virtually no cost. Despite rising Ethereum prices, BIT Minings decision has sparked speculation and criticism, further fueling the debate on effective digital asset management strategies.

Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.

Read more from the original source:

Ethereum Miner Turns to Dogecoin: BIT Mining Dumps ETH After ... - Crypto News Flash