Sprouts Farmers Market closes $600 million revolving credit facility
NEW YORK - BIT Mining Limited (NYSE:BTCM), currently valued at $39.25 million and trading at $2.46, announced Thursday it will strategically expand into the Solana blockchain ecosystem and build a treasury of up to $300 million in SOL tokens. According to InvestingPro analysis, the company’s stock has shown strong momentum, gaining nearly 7% in the past week.
The cryptocurrency mining company plans to raise between $200 million and $300 million in phases to accumulate SOL tokens, according to a press release statement. The company will initially convert its existing cryptocurrency holdings into SOL and adopt a long-term holding strategy. With a current ratio of 1.7, BIT Mining maintains sufficient liquidity to meet its short-term obligations, though InvestingPro data indicates the company is quickly burning through cash.
As part of its expansion, BIT Mining intends to operate validator nodes on the Solana network to support decentralization and security while generating staking rewards.
"We are excited to take this bold step into what we believe is one of the most dynamic and promising ecosystems in the blockchain space," said Xianfeng Yang, CEO of BIT Mining, in the statement.
The company, which currently focuses on cryptocurrency mining, data center operations, and mining machine manufacturing, describes the move as a strategic shift to capture opportunities across the broader blockchain value chain. With revenue of $32.92 million in the last twelve months and a gross profit margin of 9.07%, the company faces profitability challenges. InvestingPro subscribers can access 11 additional key insights about BIT Mining’s financial health and growth prospects.
BIT Mining says it will implement this expansion based on market conditions and capital availability. The company plans to leverage Solana’s infrastructure and developer community as part of its growth strategy.
The announcement represents a significant diversification for BIT Mining, which currently owns 7nm BTC chip designs and develops miners for LTC/DOGE and ETC cryptocurrencies.
In other recent news, BIT Mining has reported significant developments in its operations. The company has seen a notable increase in power capacity, thanks to the addition of a new site in Ethiopia, which reached 35MW active capacity in March. This expansion is expected to contribute over $2 million in hosting revenues. At its primary facility in Akron, Ohio, BIT Mining operated at nearly full capacity, dedicating approximately 43MW to hosting, generating an estimated $5.9 million in hosting revenue for the first quarter of 2025. This marks an increase from $3.8 million in the fourth quarter of 2024. However, self-mining revenues are projected to have decreased to $3.7 million, falling short of the $5.3 million previously estimated by H.C. Wainwright. The firm maintains a Neutral rating on BIT Mining, recognizing the company’s operational advancements and the positive trends in the bitcoin market. H.C. Wainwright suggests the possibility of BIT Mining reporting double-digit million revenue figures for the first quarter, surpassing their current $9.1 million estimate. The firm, however, remains cautious and awaits the first-quarter results before making any further adjustments to their rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.