Cango, a leading Chinese automotive transaction service platform, has made waves in the cryptocurrency world by becoming a significant player in bitcoin mining. The company recently acquired a staggering 50 exahashes per second (EH/s) of mining power in a $400 million deal, catapulting it into the upper echelons of global bitcoin miners.
The acquisition was divided into two phases: Cango paid $256 million in cash to Bitmain for 32 EH/s and issued $144 million worth of shares to acquire an additional 18 EH/s from Golden TechGen and other sellers. This bold pivot has paid off handsomely, with Cango’s stock soaring by over 362% in 2024.
Cango’s move into bitcoin mining is strategic, leveraging the flexibility of mining operations to balance energy grids. Miners can scale back during peak energy demand, providing stability to power networks—a feature increasingly valued in the global energy transition.
Currently, Cango is heavily dependent on Bitmain for operational support, but the company has ambitious plans to develop its own mining infrastructure. Once fully operational, Cango expects to contribute about 6% of Bitcoin's total computing power, solidifying its position as a mining powerhouse.
In November alone, Cango mined 363.9 BTC, worth approximately $35 million. The company has indicated it will adjust its bitcoin holdings based on market trends, signaling a cautious but optimistic approach to its new venture.
This diversification marks a transformative moment for Cango, illustrating how traditional companies can successfully venture into the high-stakes world of cryptocurrency. As Cango expands its operations, it is poised to influence both the bitcoin mining landscape and the broader energy sector.
