BIT Mining Rockets 21% – Is This the Start of a New Crypto Mining Era?

• BIT Mining (BTCM) surges 21.6% to $4.8152, hitting an intraday high of $5.37
• Completes second phase of $51MW Ethiopian data center acquisition, issuing 45.3M shares
• CEO announces strategic pivot to Solana ecosystem, signaling broader crypto market ambitions

Africa-focused expansion and Solana ecosystem entry ignite a 21.6% intraday rally for BIT Mining, marking its best session since late 2023. The stock’s $5.37 high shatters resistance levels, while sector peers lag behind in a mixed tech hardware landscape.

Africa Expansion & Solana Shift Ignites Explosive Rally
BIT Mining’s surge stems directly from completing its second phase of a strategic Ethiopian data center acquisition, adding 51MW capacity. The 45.3M share issuance underscores confidence in scalable operations leveraging Africa’s competitive energy costs. CEO Xianfeng Yang’s emphasis on Solana ecosystem exploration adds a dual catalyst: positioning the firm to capitalize on rising Solana-based crypto adoption while expanding Bitcoin mining infrastructure. This dual strategy – geographic and technological diversification – signals a bold pivot beyond traditional mining operations, attracting speculative capital.

Tech Hardware Sector Stagnates as BIT Mining Breaks Out
While BIT Mining soars 21.6%, the Technology Hardware & Equipment sector languishes. Sector leader RIOT Platforms (RIOT) rises just 0.93%, reflecting broader industry inertia amid semiconductor supply bottlenecks and AI chip shortages. BIT Mining’s move defies sector trends, with its crypto-mining specialization and geographic expansion offering a unique narrative absent in semiconductors or consumer hardware peers.

Bullish Technicals Highlight Call Options for Continued Rally
Technical Indicators:
• MACD: 0.482 (above signal line 0.209) – bullish momentum
• RSI: 64.9 – neutral/bullish crossover zone
• Bollinger Bands: Current price ($4.815) exceeds upper band ($4.43) – extreme overbought condition
• 30-day support: $1.93 – distant anchor

Bulls should target $5.50 resistance (psychological round number) while watching $4.60 for short-term support. Aggressive buyers may consider leveraged plays via call options.

Top Picks:
1. BTCM20250718C5 (July $5 Call):
• Delta: 0.491 | Gamma: 0.334 | Theta: -0.065 | IV: 211.5%
• 1274 contracts traded – highest liquidity
• 12.05% leverage ratio offers 110.5% upside potential if price reaches $5.30 by expiry
• Ideal for near-term $5+ breakout bets

2. BTCM20250815C5 (August $5 Call):
• Delta: 0.568 | Gamma: 0.170 | Theta: -0.016 | IV: 159.4%
• 348 contracts traded with $39,602 turnover
• 5.67% leverage ratio retains flexibility for mid-term trends
• Gamma advantage (0.170) amplifies gains in volatile crypto environments

Payoff Example: A 5% price rise to $5.05 would yield $0.05 profit per BTCM20250718C5 contract (max gain capped at $0.05).

Trade Hook: BTCM20250718C5 offers best risk/reward for $5+ penetration

Backtest BIT Mining Stock Performance
The backtest of BTCM's performance after a 22% intraday surge shows mixed results, with varying win rates and returns over different time frames. Here's a detailed analysis:1. Frequency and Win Rates: The event occurred 553 times, with a 3-day win rate of 48.10%, a 10-day win rate of 47.02%, and a 30-day win rate of 44.48%. This indicates a higher probability of positive returns in the short term, especially within the first 3 days.2. Returns: The average 3-day return was 0.89%, the 10-day return was 0.22%, and the 30-day return was 0.58%. The maximum return during the backtest was 1.13%, which occurred on day 45 after the surge. This suggests that while there was a good chance of positive returns immediately following the surge, the overall returns diminished over longer time frames.In conclusion, BTCM experienced a higher probability of positive returns in the immediate aftermath of a 22% intraday surge, with the 3-day win rate being the highest. However, the returns decreased over longer time frames, indicating that holding BTCM for extended periods after such a surge may not yield the same level of profitability.

Hold the Fort: Solana Plays and African Scaling Will Decide BTCM’s Next Move
BIT Mining’s 21.6% surge marks a critical inflection point, but sustainability hinges on two factors: Solana ecosystem execution and African operational scalability. While the $5.37 high dazzles, traders must monitor $4.60 support and Solana price dynamics. Sector leader RIOT’s 0.93% gain underscores BTCM’s outlier status, but overbought RSI (64.9) demands caution. Aggressive investors should deploy 50% of capital in BTCM20250718C5 calls while reserving dry powder for dips below $4.70. Action: Track Solana’s $40 support and Ethiopian regulatory approvals – the next catalysts.