**Update (July 11, 9:10 AM UTC):** This story now includes perspectives from Bit Mining’s lead economist, Youwei Wang.
In a significant strategic maneuver, Bitcoin mining firm Bit Mining is setting its sights on the Solana blockchain ecosystem. To fuel this transition, the company intends to raise up to $300 million.
As revealed in a press release issued Thursday, Bit Mining plans a phased fundraising effort, targeting between $200 million and $300 million. The goal is to amass a substantial treasury of Solana (SOL) tokens.
The raised funds will also be allocated to expanding the company’s presence and functionality within the Solana network, as well as acquiring additional SOL tokens. The plan includes converting a portion of Bit Mining’s current cryptocurrency holdings into SOL, with a commitment to a long-term holding strategy. The precise amount of the initial conversion hasn’t been specified.
Data from BitcoinTreasuries.NET indicates Bit Mining currently possesses 19 Bitcoin (BTC), an asset valued around $2 million based on current market prices.
While details are sparse, Bit Mining’s chief economist, Youwei Wang, told Cointelegraph that the company intends to convert “most” of its existing crypto assets into SOL.
“Looking ahead, crypto obtained from our mining operations will also be gradually converted into SOL after covering electricity costs,” Wang stated in the interview.
Bit Mining Stock Soars Following Solana Announcement
The announcement triggered a significant surge in Bit Mining’s stock price. In pre-market trading, shares reached a high of $11, representing a 350% increase from Wednesday’s closing price of $2,
reported by Yahoo Finance. As of this update, the stock has settled back to $6.29.
Bit Mining plans to actively participate in the Solana network’s operation by running validator nodes, supporting both its decentralization and security.
According to the company, this validator role will allow for deeper integration within the Solana ecosystem, facilitating the creation of lasting value through active engagement in blockchain operations.
Xianfeng Yang, CEO of Bit Mining, stated that this strategic move highlights the company’s dedication and flexibility within an “ever-evolving industry.” The CEO voiced confidence in their strategic vision and ability to generate shareholder value.
“We are thrilled to embark on this significant step into what we believe is among the most vibrant and promising ecosystems in the blockchain landscape,” Yang commented.
Data sourced from CompaniesMarketCap.com places Bit Mining as the 17th largest Bitcoin mining entity globally, as ranked by market capitalization.
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Bit Digital Moves Towards Ethereum
Bit Mining’s move to diversify its cryptocurrency holdings mirrors a similar decision made by another firm.
On June 26, Bit Digital shared its intent to shift focus away from Bitcoin mining, instead emphasizing an Ethereum-centered strategy. The company aims to transform into “a dedicated Ethereum staking and treasury organization.”
In contrast to Bit Mining, Bit Digital’s stock initially saw a decline following the announcement, falling from $2.35 to $1.99 – a 15% drop on June 27. However, the stock has since shown signs of recovery, reaching $3.59 on Wednesday – representing an 80% rise since the shift, as noted by Google Finance.
When asked if this move is the beginning of a trend that more companies may adopt, Wang suggested to Cointelegraph that smaller and medium sized companies could want to look into crypto outside of Bitcoin.
According to Wang, companies may adopt this new direction despite their overall faith in Bitcoin. Wang added that maintaining a competitive and legitimate Bitcoin treasury now requires more capital.
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