❕ How Chinese Lending Firm Cango Became a Bitcoin Mining Powerhouse
Cango, a Chinese automotive transaction service platform, has emerged as a significant player in the bitcoin mining industry after acquiring 50 exahashes per second (EH/s) of mining power for $400 million. This move positions Cango among the largest bitcoin miners globally. The company initially spent $256 million in cash for 32 EH/s from Bitmain and will issue $144 million in shares for the remaining 18 EH/s from Golden TechGen and other sellers.
Cango's stock surged over 362% in 2024 due to this diversification into bitcoin mining, which is seen as an effective way to balance energy grids by allowing miners to adjust their operations based on energy demand. Currently, Cango relies heavily on Bitmain for operational support but plans to develop its in-house mining capabilities over time. As Cango ramps up its operations, it expects to contribute approximately 6% of Bitcoin's total computing power. The company has already mined 363.9 BTC in November, valued at around $35 million, and may adjust its bitcoin holdings based on market conditions.
