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2024 marks a pivotal time in the Bitcoin mining industry as Cango (CANG), a car loan company based in Shanghai, China, enters the market with a goal of achieving 50 exahashes per second (EH/s) of mining power. Cango, valued at $363 million, purchased 32 EH/s for $256 million from Bitmain and plans to issue $144 million worth of shares to acquire an additional 18 EH/s from Golden TechGen and other vendors.
When operational, Cango will provide about 6% of all Bitcoin computing power, placing it among the world’s largest miners. Cango’s stock has surged more than 362% in 2024, drawing attention to the little-known company. Although new to bitcoin mining and dependent on Bitmain for operational support, Cango’s management views the move as a strategic move amid industry consolidation. They plan to build their in-house mining expertise over time and are prepared to adjust their bitcoin holdings based on market conditions.
In November, Cango mined 363.9 BTC, worth around $35 million at the time. Bitcoin (BTC) is currently testing a key resistance level around $97,000 amid concerns of a possible pullback. After a strong start to the year, Bitcoin saw a rally to $96,740, with traders observing difficulty in reclaiming the 50-day simple moving average (SMA), which had previously served as support.
Some market analysts have stressed the importance of holding this support level and warned against getting carried away by the excitement, noting the low trading volume. They advise that any potential dips should be viewed as buying opportunities, with some predicting a floor near $80,000. However, they also advise doing thorough research as the market remains volatile and risky.
