Shanghai-based car dealership Cango Inc. has made a bold move into the world of cryptocurrency, announcing their pivot towards Bitcoin (BTC) mining with a $256 million acquisition of 32 exahashes per second (EH/s) in hashrate from Bitmain Technologies. In November, they extracted an impressive 363 BTC, which amounts to roughly $36 million, showcasing their potential as a significant player in the global Bitcoin mining industry.
This unexpected turn for Cango, who previously focused on motor vehicle financing and car trading services due to regulatory pressures in China, now finds them joining the ranks of other bigwigs like Marathon Digital Holdings in the lucrative business of Bitcoin mining. Their strategic acquisitions have allowed them to quickly become one of the largest public Bitcoin miners globally, boasting a 4% share of daily mined BTC around the world – quite an achievement considering their recent entry into the field.
To support their expansion into Bitcoin mining, Cango has secured colocation agreements with various service providers like those found in Georgia’s burgeoning crypto scene. These agreements enable them to house their hardware in secure environments without having to worry about managing their own data centers – a crucial advantage given China’s recent crackdown on cryptocurrency mining activities last year.
What’s more fascinating is that despite the ban imposed by China, Chinese mining pools still control a staggering 55% of the global BTC hashrate – highlighting both the resilience and ingenuity of these entities. In line with their strategy to grow their presence in the industry, Cango plans to secure another 18 EH/s from Golden TechGen, a company owned by ex-Bitmain CFO Max Hua.
This deal, expected to be finalized by the end of March 2025, involves issuing $144 million in common stock, potentially taking their total hashrate up to 50 EH/s – allowing them to compete head-on with industry leaders like Marathon Digital Holdings. Cango’s foray into cryptocurrency appears well-timed as BTC prices remain high, sitting comfortably above the $100,000 mark, while the network hashprice has rebounded impressively to $63 per petahash per second (PH/s).
Their decision to pivot towards cryptocurrency mining might seem like a drastic change from their roots as an automotive transaction service provider, but it aligns with their history of adaptability and innovation. Established in 2010, they initially focused on motor vehicle financing before transitioning into car trading due to regulatory pressures in China.
More recently, they diversified their operations further by launching AutoCango.com – an online platform offering used Chinese cars globally. However, their recent success in Bitcoin mining has overshadowed these previous endeavors, generating more revenue than all three business units combined during the first quarter of this year alone.
Source
As per reported by cryptopotato.com
