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Update, July 11, 9:10 am UTC: This article has been updated to add comments from Bit Mining chief economist Youwei Wang.
Bitcoin mining firm Bit Mining is making a strategic shift into the Solana ecosystem, with plans to raise up to $300 million to support the move.
The company said on Thursday it plans to raise between $200 million and $300 million in different phases to build a sizable Solana (SOL) token treasury.
The capital will also be used to expand its capabilities within the network and acquire more tokens. As part of the plan, Bit Mining said it will convert some of its existing crypto holdings into SOL and adopt a long-term holding strategy. It did not specify how much of its reserves would be converted initially.
BitcoinTreasuries.NET data shows that Bit Mining holds 19 Bitcoin (BTC), worth about $2 million at current prices.
While the company did not give specifics, Bit Mining chief economist Youwei Wang told Cointelegraph that it will convert “most” of its existing crypto holdings into SOL.
“For future new crypto generated from mining activities, we will also gradually convert them to SOL after paying the electricity bills,” Wang told Cointelegraph.
Bit Mining stock surges 350% on pre-market trading
Bit Mining stock prices surged to a high of $11 in pre-market trading following the announcement, up 350% from its Wednesday closing of $2, according to Yahoo Finance. At the time of writing, the stock price has pulled back to $6.29.
The company said it plans to run validator nodes on Solana to support the network’s decentralization and security.
Bit Mining said this allows it to further integrate within the Solana ecosystem and create sustainable value through blockchain participation.
Bit Mining CEO Xianfeng Yang said the move shows their commitment and adaptiveness in an “ever-evolving industry.” The executive expressed confidence in their vision and ability to deliver value to their shareholders.
“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,” Yang said.
Companies Market Cap data shows that Bit Mining is currently the 17th-largest Bitcoin miner in the world by market capitalization.
Related: LetsBonk overtakes Pump.fun: Are Solana memecoins back for good?
Bit Digital pivots into an Ethereum strategy
Bit Mining’s pivot into the altcoin ecosystem follows a similar move from another Bitcoin mining company.
On June 26, Bit Digital announced it would abandon Bitcoin mining and switch to an Ethereum-focused strategy. The company said it will become a “pure play Ethereum staking and treasury company.”
Unlike Bit Mining, Bit Digital stocks initially declined to $1.99 from $2.35 after the announcement, falling 15% on June 27. However, the stock eventually recovered, surging to $3.59 on Wednesday, up 80% since the announcement, according to Google Finance data.
When asked if more companies may follow this trend of building altcoin-based treasuries, Wang told Cointelegraph that more mid to small cap companies may want to diversify beyond Bitcoin.
The executive said this may happen not because they don’t believe in Bitcoin, but because Bitcoin treasury requires more capital to be a competitive and legitimate player.
Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge
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