Cango Inc., a Shanghai-based car transaction services platform, announced that it has completed the $256 million cash acquisition of a 32 EH/s hashrate rack-mounted cryptocurrency miner from Bitmain. The company previously announced the acquisition on November 6, along with a proposed $144 million acquisition of additional 18 EH/s hashrate rack-mounted miners from Golden TechGen.
Cango specifically purchased miners from Bitmain Technologies Georgia Limited and Bitmain Development Limited (collectively referred to as “Bitmain”), indicating that Bitmain could continue to serve as a colocation provider for Cango.
The cash settlement transaction was completed after the relevant closing conditions were met. The closing of the stock settlement transaction was subject to certain closing conditions that have not yet been met.
Cango Inc. uses unidentified Bitcoin miners to produce 363.9 BTC
Cango Inc., a Chinese automotive services giant, has gone from cars to cryptocurrency mining dominance by spending $256 million for 32 EH/s of hashrate from Bitmain. Cango and Bitmain closed the cash-settled deal by allocating all of the mining machines’ hashrate computing power to the company. However, legal ownership of the machines is expected to be transferred to the company later, as agreed by the two companies.
The company launched first in Bitcoin and achieved significant results in November after mining 363.9 BTC with deployed miners. The production made Cango the third-largest publicly traded company by published hashrate and the fifth-largest by achieved hashrate. The company produced an average of 18.85 BTC per day and did not sell any of the Bitcoin it produced in November, leaving its total Bitcoin holdings at 363.9 BTC. The published hashrate of 32 EH/s managed an average operating hashrate of 29.75 EH/s.
Cango Inc. did not specify which model of rack-mounted miners it acquired from Bitmain, though the unit cost of $8 per TH/s suggests it may have acquired 50 EH/s from the Antminer S19XP series that Bitmain has imported since 2023.
Blockspace Media confirmed the initial fleet model for Cango, citing a person close to the matter who stated that the miners consist entirely of Antminer S19XPs.
Cango Inc. reported third-quarter revenue of $3.84 million as of Nov. 30. The company’s Bitcoin mining revenue in November alone was already several times higher than its revenue in Q2 2024. Its shares also jumped from $3.41 in mid-November to $6.91 as of Dec. 17, giving it a market cap of more than $500 million. The company’s hosting costs were not disclosed in its fourth-quarter earnings report, but its total assets under management as of Sept. 30 were $564 million.
The company's overall business performance remained stable in the third quarter of 2024, said Jiaoyuan Lin, CEO of Kangju. He added that the strong results were mainly driven by the company's strict cost control and risk management strategies, which greatly improved its operational efficiency. Lin said the company has strengthened monitoring mechanisms and risk assessments, effectively maintained a low non-performing loan ratio and ensured asset quality and stability.
Lin revealed that Cango is focusing on high-quality projects that complement the company’s core competencies. He added that the company aims to demonstrate its strength and vision on a broader scale. Lin said the company is keen to enhance its data analytics capabilities to gain a more accurate understanding of target markets and user demographics. According to the CEO, Cango will build on this foundation to achieve more balanced global growth.