By the end of 2024, the Bitcoin mining industry witnessed a significant change with the entry of Cango (CANG), a financial services provider for auto loans from Shanghai, China. Cango is on track to become one of the largest Bitcoin operators in the world by acquiring 50 exahashes per second (EH/s) of mining capacity.
To achieve this ambition, Cango has heavily invested, paying $256 million for its first 32 EH/s and plans to issue $144 million in stock to acquire an additional 18 EH/s from various suppliers. This diversification has caused Cango's stock to soar over 362% by the end of the year and attracted new interest in this company.
Cango, with a history of adaptation since its founding in 2010, is also exploring opportunities to use renewable energy and has previously invested in electric vehicle production. The company aims to capture about 6% of Bitcoin's total hashrate when mining operations are fully operational. Unlike other large operators, Cango is currently relying on Bitmain for infrastructure and mining technology but plans to build internal capacity over time. The company remains willing to adjust its Bitcoin holdings based on market conditions. In November alone, Cango successfully mined 363.9 BTC, equivalent to approximately $35 million at that time.
MicroStrategy, the largest Bitcoin holder, plans to raise $2 billion through the issuance of perpetual preferred stock to continue purchasing more Bitcoin as part of its "21/21" plan. This issuance may involve the conversion of existing Class A shares or dividends, and is expected to take place this quarter, although it still depends on market conditions. This initiative is distinct from MicroStrategy's larger plan to raise $21 billion through financial instruments and equity, which has helped the company own a substantial amount of Bitcoin. Currently, MicroStrategy holds 446,400 Bitcoin worth approximately $43.9 billion. Under the leadership of Executive Chairman Michael Saylor, this Bitcoin strategy of MicroStrategy has significantly boosted the company's stock price, rising 13.2% on January 3, 2024.
The aggressive moves from Cango and MicroStrategy not only leave a mark on the cryptocurrency industry but also create many new trends, reflecting a strong transformation and long-term investment in the future of Bitcoin and the cryptocurrency market as a whole.
