Cango Inc., a Chinese automotive transaction service platform, recently made headlines by acquiring 32 EH/s of hash rate from Bitmain in a $256 million cash-settled deal. The company also announced a separate acquisition of additional mining machines with 18 EH/s of hash rate from Golden TechGen. This move marks Cango’s foray into the world of Bitcoin mining, with the goal of positioning itself as a key player in the industry.
The acquisition of the on-rack miners from Bitmain is a strategic move for Cango, as it allows the company to leverage the hash computing power of the machines. The deal also includes Bitmain continuing as Cango’s colocation provider, ensuring seamless operation of the mining machines. While the cash-settled transaction has been successfully completed, the share-settled transaction is still pending certain closing conditions.
In November, Cango saw significant results from its Bitcoin mining operations, producing 363.9 BTC with an average operating hash rate of 29.75 EH/s. This performance propelled the company to become the third-largest publicly traded company by deployed hash rate and the fifth-largest by realized hash rate. Additionally, Cango did not sell any of the Bitcoin it mined in November, leading to a total holding of 363.9 BTC.
The exact model of the on-rack mining machines acquired from Bitmain has not been disclosed, but the unit cost of $8 per TH/s suggests they may be from the Antminer S19XP series imported by Bitmain. Blockspace Media confirmed that Cango’s initial fleet of miners consisted entirely of Antminer S19XPs, further solidifying the company’s commitment to Bitcoin mining as a key strategy for growth.
Cango Inc.’s stock price has experienced a significant boost following its entry into Bitcoin mining, reaching a market cap of over $500 million. The company reported strong Q3 revenue of $3.84 million, with Bitcoin mining revenue in November surpassing previous quarter earnings. CEO Jiayuan Lin attributed the company’s success to strict cost control and risk management strategies, as well as a focus on high-quality projects that align with Cango’s core competencies.
Looking ahead, Cango is focused on expanding its data analysis capabilities to gain a better understanding of its target markets and user demographics. The company aims to achieve more balanced global growth by leveraging its solid foundation and strategic vision. With a commitment to innovation and excellence, Cango is poised to continue its upward trajectory in the world of automotive services and beyond.
