⚙️ Chinese car dealer Cango Inc. invests $256 million in Bitcoin mining
Shanghai's car dealer Cango Inc. announced an investment of $256 million into the Bitcoin mining sector, having directly purchased 32 EH/s of Bitcoin mining hash rate from Bitmain Technologies, making them a new player in the global mining scene.
As early as November, Cango showcased their strength by mining 363 Bitcoins, valued at approximately $36 million. This significantly elevated their position in the global mining community, making them one of the top participants worldwide.
Cango's rapid growth in mining business is mainly due to their strategic acquisitions. The mining machines purchased from Bitmain are hosted in Georgia, USA, and they have signed an 18-month hosting contract. This way, they don’t have to worry about maintaining the data center and can focus on mining.
Although China banned cryptocurrency mining in May 2021, some experts estimate that Chinese mining pools still control 55% of the global Bitcoin hash rate.
Cango also plans to buy another 18 EH/s of computing power from Golden TechGen by the end of March 2025, which could bring their total hash rate to 50 EH/s, potentially allowing them to compete on equal footing with industry giants like Marathon Digital Holdings.
There is speculation that the hardware Cango purchased may be Bitmain's Antminer S19X, which is competitively priced at $8 per TH/s.
With Bitcoin prices hovering around $100,000, Cango's timing in entering the cryptocurrency field seems well-timed. Although this is a far cry from their original identity as an automotive trading service provider, it is indeed proof of their continuous self-reinvention.
Cango's stock price also surged significantly due to this news, rising from $3.41 to $6.91, with market capitalization increasing to $500 million. It seems that their Bitcoin mining business may become a major source of income in the short term.
💬 Do you think Cango's entry into Bitcoin mining is a wise move or a speculative risk? Leave your thoughts and opinions in the comments!
