Dogecoin Mining Turns Out 3 Times More Profitable for This Bitcoin Miner

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BIT Mining has made a whopping $100 million worth of DOGE on its Dogecoin mining operations, per a release.

By Shaurya Malwa|Edited by Oliver Knight

Updated Dec 5, 2024, 3:20 p.m. UTCPublished Dec 5, 2024, 9:30 a.m. UTC

What to know:

BIT Mining said it had mined 84,485.42 LTC (worth $10 million at current prices) and 227,908,250 DOGE (worth a whopping $100 million) since it started its self-mining business. The endeavor reaped three times more profit than its bigger bitcoin (BTC) mining operations. Such gains on its DOGE operations came as the token’s prices have more than tripled since late September on repeated endorsements by technocrat Elon Musk

Publicly traded BIT Mining (BTCM) will continue its self-hosted mining operations for dogecoin (DOGE) and litecoin (LTC) after the endeavor reaped three times more profit than its bigger bitcoin (BTC) mining operations, per a release.

BIT Mining said it had mined 84,485.42 LTC (worth $10 million at current prices) and 227,908,250 DOGE (worth a whopping $100 million) since it started its self-mining business. It reported having over 5,500 active mining machines, representing 1.32% of the global network hash rate in LTC, DOGE and the smaller Belcoin (BEL).

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Such gains on its DOGE operations came as the token’s prices have more than tripled since late September on repeated endorsements by technocrat Elon Musk and the proposal of a Department of Government Efficiency (D.O.G.E), a non-governmental department under the upcoming Trump administration.

“The recent rally in Litecoin and Dogecoin, fueled in part by Elon Musk’s influence and the changing regulatory landscape in the US after the Trump win, has had a major impact on mining profitability,” Dr. Youwei Yang, VP of Mining at BIT Mining, said in a statement. “Many analysts predict this upward trend will continue through 2025, reflecting confidence in DOGE’s potential and the broader growth of the cryptocurrency industry.”

Mining is the process by which transactions for various cryptocurrencies are verified and added to the blockchain using powerful computers to solve complex mathematical problems, which validate these transactions, in return for token rewards.

Following Bitcoin’s latest halving in April 2024, which halved the block reward for miners, many have turned to alternative strategies to maintain profitability. Some firms have repurposed mining infrastructure for AI applications, selling computational power for tasks beyond crypto mining.

Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.
Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM,
BANANA, ROME, BURGER, SPIRIT, and ORCA.
He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.

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