- BIT Mining will raise $200M to $300M to build a SOL treasury and shift from Bitcoin mining.
- The company will convert all crypto holdings into SOL and run Solana validator nodes.
- This strategic move aligns BIT Mining with other firms focusing on Solana’s growing ecosystem.
BIT Mining Limited (NYSE: BTCM) has announced a significant shift in its cryptocurrency strategy, with a focus on the Solana blockchain. The company plans to raise between $200 million and $300 million in phases to build a SOL token treasury. According to its press release, BIT Mining aims to convert its existing crypto assets into SOL. The company will also adopt a long-term holding strategy and operate validator nodes on the Solana network.
The announcement marks a significant departure from BIT Mining’s historical focus on Bitcoin and other proof-of-work cryptocurrencies. Previously, the firm concentrated on mining operations across Bitcoin, Litecoin, Dogecoin, and Ethereum Classic. With this new direction, the company is realigning its resources to focus on proof-of-stake participation. The plan also involves being part of the network in terms of decentralization and security, particularly in relation to the validator activities.
Capital Raising and Validator Operations
BIT Mining aims to raise $200 million to $300 million in phases based on the current market situation and capital availability. The proceeds will be used to accumulate SOL tokens and enhance the company’s position within the Solana ecosystem. It also aims to utilize validator nodes on the Solana network to enhance decentralization, protection, and generate staking profits.
The company will consolidate its digital assets portfolio by converting existing crypto holdings to SOL. This step aligns with the trend of companies reorganizing their treasury policies to accommodate high-growth blockchain platforms. The decision was attributable to the capacity and developer community of Solana as well as its network.
Industry Trend Toward Solana
BIT Mining joins a growing list of firms increasing exposure to the Solana blockchain. Last week, DeFi Development Corp. disclosed a $2.7 million SOL purchase as part of its crypto strategy. Similarly, Sol Strategies, a Canadian asset firm, holds over 420,000 SOL tokens, highlighting the rising interest in Solana among institutional investors and public companies.
Sol Strategies has also filed to list on the Nasdaq Capital Market under the ticker “STKE.” In its submission, the firm highlighted the significance of Solana in the projects of asset tokenization and digital infrastructure. This momentum suggests that Solana is becoming a focal point for companies seeking to integrate blockchain technology into their business strategies.
Company Background and Market Reaction
BIT Mining is a vertically integrated cryptocurrency mining and hardware development company. The firm can develop mining hardware used for mining Litecoin, Dogecoin, and Ethereum Classic. It also has a 7-nanometer proprietary Bitcoin computer chip design and data centers to provide hosting services. This pivot toward a Solana-based model indicates a diversification away from its mining-centric origins.
Related: Bit Digital Exits Bitcoin Mining to Focus on ETH Staking
According to the announcement, the shares of BIT Mining (BTCM) rose more than 300% in pre-market trading. The positive reaction of investors is an indication that the stock market is interested in the company’s new direction. BIT Mining is now the 17th most capitalized publicly traded Bitcoin miner, based on market capitalization. By making this strategic shift, the company is committed to becoming a key participant in the Solana ecosystem.
