Bit Mining up 51% after launch of new Litecoin, Dogecoin mining machine

Quick Take

  • Shares of bitcoin miner Bit Mining jumped 51%.
  • The company recently announced a new machine for mining litecoin and dogecoin.

Bit Mining jumped about 51% as most mining stocks rallied along with bitcoin, which has been trading above $21,000 after two months in the $17,000 range.

The company announced a new litecoin and dogecoin mining machine dubbed LD3 on Tuesday, having first publicized the launch on Jan. 9 on Twitter.

Bit Mining's American Depositary Shares were trading around $4.70 at 2:45 p.m. EST.

Last month, it implemented an ADS ratio change that was effectively a one-for-ten reverse share split. That followed a warning from the New York Stock Exchange in August because shares were trading under $1. Bit Mining was given six months to gain compliance. 

"This release of new LD3 miners is one validation of our corporate strategy into action," Youwei Yang, chief economist at Bit Mining, said in a statement sent to The Block. “We have been dedicated to transitioning the company to be more diverse in various areas of blockchain besides the mining center and be hardcore technology driven."

A total of 5,000 LD3 machines have been produced, counting the ones for internal use and for sale, the company said. It is the second ASIC miner the company developed since acquiring hardware manufacturer Bee Computing last year. Bit Mining also owns mining pool, which was hacked last month.

"Vertically integrating via ASIC manufacturing offers the company numerous benefits, including cost control, limited reliance on third parties, and customization in the event it decides to devote a large portion of its machines to self-mining, in addition to building as an alternate, and potentially significant revenue stream," said H.C. Wainwright & Co's analyst Kevin Dede in a note from December.

The firm recently started coverage of Bit Mining with a neutral rating.

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