Solana Gains Momentum — BIT Mining's $300M Treasury Push Unleashes Rally
BIT Mining aims to raise $300 million for SOL.
The corporation plans to convert its cryptocurrency assets to SOL to increase its reserve.
SOL could reach $183 if an inverted Head and Shoulders pattern is confirmed.
After cryptocurrency mining company BIT Mining (BTCM) announced a $300 million treasury move towards Solana, SOL rose 4% on Thursday.
BIT Mining shares the interest in SOL treasury; Solana wins.
BIT Mining, listed on the NYSE, aims to raise between $200 million and $300 million in fees for a Solana treasury.
The corporation plans to convert its cryptocurrency assets to Solana as part of its new move, although it did not disclose how much it has.
"We are excited to take this bold step towards what we believe is one of the most dynamic and promising ecosystems in the blockchain space," said BIT Mining CEO Xianfeng Yang in a press release on Thursday.
With Solana's infrastructure and a growing developer community, BIT Mining expects to "drive innovation, enhance ecosystem integration, and create sustainable value for shareholders." It also stated that it will operate validator nodes to support Solana and earn staking payments.
BIT Mining joins other companies that have switched to SOL, mimicking Bitcoin Strategy's treasury accumulation strategy (formerly MicroStrategy). In recent months, Classover Holdings, SOL Strategies, DeFi Development Corporation, and Upexi have formed Solana treasuries.
BIT Mining's shares rose nearly 150% on Thursday following the news before falling 14% after the close.
SOL rose above the 100-day SMA and the 50-day EMA to the $163 barrier, which is reinforced by the 200-day SMA.
A rise above $163 would confirm an inverted Head and Shoulders pattern, which could push its price up 12% to $183, the next significant resistance level. A rejection at $163 could cause it to drop to $142.
The Stochastic Oscillator (Stoch) is overbought and the Relative Strength Index (RSI) is above neutral. The overbought Stoch conditions suggest a short-term pullback despite the strong bullish momentum.