In 2024, the Bitcoin mining sector witnessed a breakthrough development with the entry of Cango (CANG), a Shanghai-based car leasing company in China. Valued at $363 million, Cango is acquiring 50 exahashes per second (EH/s) of mining capacity, becoming one of the largest Bitcoin miners in the world. The company invested $256 million in cash for the first 32 EH/s from Bitmain and plans to issue $144 million in shares for the remaining 18 EH/s from Golden TechGen and other suppliers. This diversification has led to a more than 362% increase in Cango's stock price in 2024, elevating the company's influence in the market. Although Cango has a history of adapting and diversifying, including investments in electric vehicles and renewable energy, the company is still relatively new in the mining sector and relies on Bitmain for operational support. Once fully operational, Cango will contribute about 6% to the total computing power of the entire Bitcoin network. The company intends to strengthen its internal mining operations over time and is prepared to adjust its Bitcoin holdings based on market conditions. In November alone, Cango mined 363.9 BTC, worth approximately $35 million.
The CEO of Bitwise, Hunter Horsley, made predictions for a transformative year in 2025 in the cryptocurrency sector, marked by the adoption of AI, tokenization, and Bitcoin investments by corporations. He anticipates a boom in niche businesses supported by AI, which could lead to an increase in tokenized companies. Horsley emphasizes the importance of tokenization, arguing that it could be the key for small businesses to access capital markets. He envisions the emergence of 'Bitcoin Standard Corporations,' organizations that will hold Bitcoin on their balance sheets, contributing to the adoption of Bitcoin in business. Additionally, he believes that a recovery in mergers and acquisitions may occur, particularly among large corporations, which could accelerate the development of cryptocurrencies. In summary, Horsley views these developments as a crucial turning point in reshaping the market in 2025.
