Overview

Cango has made a significant entry into the bitcoin mining industry by purchasing a powerful mining capability.

Key Highlights

• Cango, a Chinese automotive transaction service platform, ventured into bitcoin mining in November 2024.
• The company invested $400 million to acquire 50 EH/s of mining power, placing it among the world's largest bitcoin miners.
• It heavily relies on Bitmain for operational support.

Market Entry

The introduction of Cango into the bitcoin mining sector turned heads, particularly given its background in automotive financing. Based in Shanghai and valued at $363 million, the firm now aims to command a significant portion of the mining landscape.

“I guess it’s surprising for people in the [bitcoin mining] industry because nobody has ever heard of Cango before,” Juliet Ye commented on Cango's unexpected entry.
“But the history of Cango is a history of adaptation.”

Acquisition Details

Cango's initial purchase involved 32 EH/s from Bitmain, acquired for $256 million. The remaining 18 EH/s will be obtained through $144 million in shares from Golden TechGen, a company linked to Max Hua.

Stock Performance

Upon entering the mining sector, Cango’s stock surged over 362%, closing 2024 at $4.56. Juliet Ye noted, “All of a sudden, a lot of people are very much interested in Cango.”

Future of Mining Operations

Cango operates its mining fleet through Bitmain while planning to understand market demands better and work on building its mining teams in the future. With Bitcoin mining providing roughly 6% of the total computing power once operational, Cango aims to adapt its strategies ongoing.

Cango is exploring opportunities to convert its crypto assets into operational advantages, ensuring it stays agile in this dynamic market.