In summary
- BIT Mining announced that combined mining of Dogecoin and Litecoin turned out to be three times more profitable than mining Bitcoin alone.
- The company had mined 227.9 million Dogecoin and 84,485 Litecoin as of 2021, with a combined total value of over $112 million.
- Bitcoin hit a new all-time high of $103,679, while Dogecoin and Litecoin rose 8% and 16% respectively.
Bitcoin mining company BIT Mining has stated that creating the largest Cryptocurrency is not the only profitable business right now: Dogecoin is proving to be an even bigger winner.
The Akron, Ohio-based publicly traded company (NYSE: BTCM) announced on Wednesday that mining Elon Musk’s favorite cryptocurrency—along with Litecoin, the 24th largest digital asset—was much more profitable than mining only Bitcoin.
Litecoin was launched as a faster and cheaper version of Bitcoin. Dogecoin was created as a joke, but it is now the seventh-largest cryptocurrency by market capitalization—mainly thanks to posts by Tesla CEO Musk.
The two cryptocurrencies can be mined simultaneously in a process called “merge mining,” delivering double rewards for network participants. And for BIT Mining, it has turned out to be beneficial, as BTC rewards were halved in April in a quadrennial process called halving, making Bitcoin mining a less profitable venture.
“As other miners in the crypto ecosystem look to diversify their revenue streams in a post-halving environment, the company’s expansion into Litecoin and Dogecoin has proven to be almost three times more profitable than mining Bitcoin alone,” BIT Mining stated in a statement.
He added that the price increases of Dogecoin and Litecoin are due to Musk’s support for the cryptocurrency and President-elect Donald Trump’s promise to support the sector.
Musk, the world’s richest man, has repeatedly said on X (formerly known as Twitter) how much he likes Dogecoin, which has led to price increases in the past. But the billionaire has admitted that he is not actively involved in the crypto ecosystem, despite his comments.
BIT Mining said it had mined 84,485 Litecoin and 227,908,250 Dogecoin since it began its self-mining business in 2021—totals currently valued at $12.2 million and $100.2 million, respectively. In the crypto ecosystem, miners work to keep a network running and create new currencies, typically through industrial operations that use a lot of electricity.
CoinGecko shows that Dogecoin is currently trading for just under $0.44 per coin, up more than 8% in 24 hours; Litecoin is up 16% and is priced at $143.
Bitcoin hit a new all-time high of $103,679 on Wednesday, surpassing the long-awaited $100,000 mark after weeks of resistance. The coin is now priced at $101,368, after rising almost 7% in one day.
Edited by Andrew Hayward.
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