Cango, a firm in Shanghai focused on automotive transactions, disrupted the Bitcoin mining landscape towards the close of 2024. They made headlines by acquiring 50 EH/s of mining power, marking their entrance as a formidable player in the sector.

With a market valuation of $363 million, Cango's ambition did not come cheap. The firm first invested $256 million for 32 EH/s of mining power from Bitmain, a noted manufacturer in the space. The remaining 18 EH/s is financed through a combination of shares and purchases from Golden TechGen, a company linked to former Bitmain executive Max Hua.

"I guess it's surprising for people in the [bitcoin mining] industry because nobody has ever heard of Cango before," said Juliet Ye, Cango’s Senior Director of Communications.

Cango's innovative transition to mining comes amidst its background in providing loans for automobile purchases. Although they are still heavily dependent on Bitmain for operational logistics, Cango is scaling up to adapt and manage its mining operations effectively.

As of November, Cango mined 363.9 BTC, worth approximately $35 million, hinting at a strong profitability stream stemming from their new venture. Julie Ye indicated potential flexibility in their Bitcoin holdings based on market conditions, signaling strategic foresight as they navigate this rapidly changing industry.

For more details about the Bitcoin mining sector and ongoing trends, check out CoinDesk.