BIT Mining has announced a significant strategy shift, moving to actively support the Solana blockchain and divesting from its current crypto assets.
Shift to Solana
On July 10, NYSE-listed BIT Mining announced a pivot from its Bitcoin-centric roots to generate assets based on Solana. As part of its new strategy, BIT Mining plans to raise up to $300 million to build a treasury predominantly in SOL.
BIT Mining Plans
BIT Mining plans to liquidate its current crypto reserves, originally diversified across assets such as BTC, Litecoin, and Dogecoin, fully converting them into SOL. The company aims to gradually increase its assets based on available capital, with the goal of holding SOL long-term and actively participating in network operations as a validator.
Market Reaction
BIT Mining's strategy change raises interest in its long-term viability amid declining margins in Bitcoin mining. The initial reaction to the news has been positive: BIT Mining's stock (BTCM) surged over 300% in pre-market trading. However, analysts note that the company has yet to outline specific goals for its SOL holding and staking, raising questions about the discipline of its strategy.
BIT Mining's turn towards Solana reflects changing strategies among crypto companies seeking new avenues to maintain competitiveness in a rapidly evolving industry.
